The US Department of Defense has finalised a deal to buy a combined 71 F-35s from Lockheed Martin through the Joint Strike Fighter programme's sixth and seventh low-rate initial production (LRIP) lots. Covering the manufacture of 36 aircraft for S4.4 billion, the LRIP 6 deal includes 23 conventional take-off and landing F-35As for S103 million each; seven carrier-variant F-35Cs, each worth S120 million; and six short take-off and vertical landing F-35Bs, for S109 million each. The average aircraft unit cost is approximately 2.5% lower than in LRIP 5, the US government and Lockheed say in a joint statement. Worth S3.4 billion for 35 aircraft, the LRIP 7 order comprises 24 F-35As, seven F-35Bs and four F-35Cs. Both deals exclude the cost of F135 engines, which will be the subject of a separate contract with Pratt & Whitney. Lockheed will be responsible for covering any cost overruns incurred during the two future production lots, deliveries from which will start in the second quarters of 2014 and 2015,respectively. Any returns reported below the agreed price will be shared at a ratio of 80% to the government and 20% to Lockheed.
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