The block buy would include F-35s for programme partners and foreign military sale (FMS) customers, and would cover aircraft procurement for fiscal years 2018 to 2020. The deal needs the blessing of Congress to proceed, and those discussions will begin soon.
“We’re feeling optimistic enough about the programme that we’re going to proceed with the planning on that, and we’ll be talking to the Congress about it,” DOD acquisition chief Frank Kendall told reporters in a teleconference call from Oslo, Norway.
By bundling the orders into a single, three-year production contact, Kendall says he expects to see “double-digit savings”, with multiyear procurements historically achieving a 5% to 15% cost reduction. The block buy is not covered under the same statute as a multiyear procurement, but has the similar effect of guaranteeing production quantities several years out instead of having to negotiate single-year lots, or exercise options in a base-year agreement.
“It would include our international partners and it could also include FMS customers,” Kendall says. “It allows industry to plan with some confidence in the next few years of production.”
Source / Author: Lockheed Martin
Photo: Lockheed Martin