JSF Cost Pressures Remain For Lockheed

Aviation Week and Space Technology ^ | 2/2/2010 | Graham Warwick and Amy Butler

[ErnstStavroBlofeld]

Lockheed Martin expects to be held to aggressive cost and schedule targets for the F-35 Joint Strike Fighter despite the U.S. Defense Dept.’s decision for development and production based on more conservative independent estimates.

The Pentagon’s decision to reject the JSF program office’s estimates and budget for the higher costs projected by the Pentagon’s Cost Assessment and Program Evaluation (CAPE) group has reduced planned U.S. F-35 procurement to 43 from 52 in fiscal 2011 and to 45 from 62 in FY ‘12.

But Lockheed remains convinced it can outperform the independent estimates and produce more aircraft for the procurement dollars available. “The government intends to budget conservatively, but hold industry accountable to more aggressive targets,” says Dan Crowley, executive vice president and program general manager.

“All three low-rate initial production [LRIP] lots under contract, and the proposal submitted for LRIP 4, are more aggressive than the conservative estimates,” he says. “There is an opportunity to buy to budget with the dollars available.”

Lockheed would like to see 2011 procurement increased to around 48 aircraft to sustain an economic ramp rate from the 32 aircraft to be purchased in 2010. “And we would like to get Lot 6 in 2012 into the range of 72 aircraft or more,” says Crowley. This would include eight F-35s for international partners.

Because of delays, the Pentagon is moving funds from procurement to development to increase resources available for flight testing and software development. Crowley says delivery of aircraft to test centers is six months behind schedule, while mission-system software development is “three to six months behind.”