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Air Force

Incentive Payments in New F-35 Sustainment Contract Contingent on LMT Meeting Goals

Frank Wolfe

Friday, September 17th, 2021

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Incentive Payments in New F-35 Sustainment Contract Contingent on LMT Meeting Goals

A 33rd Fighter Wing F-35A Lightning II flies alongside a 6th Air Refueling Wing KC-135 stratotanker from MacDill AFB, Fla. after refueling at Eglin AFB, Fla. on June 7 (U.S. Air Force Photo)

Incentive payments for Lockheed Martin [LMT] in the new, possibly $6.6 billion, three-year sustainment contract to the company for its F-35 fighter are contingent upon the meeting of cost per flight hour (CPFH), parts availability, and aircraft full mission capable (FMC) rate goals for fiscal 2021, 2022, and 2023. The F-35 Joint Program Office (JPO) and Lockheed Martin have declined to release the cost per flight hour, parts availability, and FMC targets that Lockheed Martin is to meet for fiscal…

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