The U.S. Defense Department said it may split a $14 billion order for the next two batches of F-35 combat jets after failing to reach agreement on a single deal with lead contractorLockheed Martin Corp.Here.
Lockheed has been in talks with the Pentagon for months about a combined deal for 160 jets covering two years of production, and the two sides had hoped to reach agreement in early 2016.
But negotiations over price and other issues have dragged on longer than expected as the Pentagon tries to cut the cost of the F-35A model used by the U.S. Air Force to around $80 million by the end of the decade.
The F-35 program office said it may now award a deal first on the smaller ninth batch of jets, which involves more than 63 planes, rather than combine it with a 10th batch.
Negotiating F-35 deals in bigger batches was intended to cut the Pentagon’s price and help Lockheed and its partners negotiate better deals with their suppliers, but the process is proving tougher than expected.
Tuesday, October 25, 2016
F-35 negotiations break down. Pentagon might split F-35 order!
via Wall Street Journal