AXY News Global

AXY News Global · defense

Pentagon and Lockheed Agree to 10-Year Framework for 850 F-35 Jets

Deal would average 85 jets a year, pending Congress, while Lockheed self-funds at least $7 billion in F-35 initiatives

By AXY Defense Desk ·

The Pentagon, the Headquarters of the US Department of Defense. Photo was taken from a commercial airliner during the early morning sometime in September 2018.
The Pentagon, the Headquarters of the US Department of Defense. Photo was taken from a commercial airliner during the early morning sometime in September 2018.

Key points

The Pentagon and Lockheed Martin have agreed to a 10-year framework that the Defense Department says guarantees at least 850 F-35 Lightning II fighters for the U.S. military. The deal is still conditional. It needs congressional approval and money before it can become a binding contract. The framework was announced Thursday.

The agreement goes beyond the planes themselves. It includes initial spare parts, plus 10 years of modification kits and sustainment, the work that keeps aircraft flying and up to date. It also covers orders from foreign customers. Lockheed said production will continue at 156 aircraft per year. In exchange for the decade-long commitment, the Pentagon said Lockheed will self-fund at least $7 billion in initiatives supporting the F-35 program.

Neither announcement gave a total value for the deal or a per-jet price. That matters, because the price of each jet is the figure taxpayers and foreign buyers most want to know.

Why a Decade-Long Order Matters for the F-35 Program

The F-35 is a single-seat stealth fighter built by Lockheed Martin. It is flown by the U.S. military and by a number of allied countries, which is why the program is run as an international partnership and why foreign orders matter to its cost. The Pentagon's F-35 Joint Program Office manages the aircraft for the U.S. government.

For most of its life, the program has been bought one year at a time. Each year, Congress decides how many jets to fund, and the Pentagon and Lockheed negotiate a new contract. That cycle makes long-range planning hard. Suppliers that make engines, electronics and other parts do not know how much to order, and the company does not know how much to invest in new factory capacity.

The new framework is meant to break that pattern. Lockheed said the agreement will let it make upfront investments. In the words of Lockheed CEO Jim Taiclet, "we can make the upfront investments needed to expand capacity, improve efficiency, and build a more resilient supply chain." He added that the arrangement is "good for the taxpayer, good for our suppliers and, most importantly, good for the United States and its allies."

What 850 Jets Means Year by Year

Spread across 10 years, 850 jets works out to an average of 85 U.S. aircraft per year. That is the same number as the Pentagon's fiscal 2027 request for 85 F-35s across the services.

The gap between request and reality is the part to watch. In fiscal 2026, Congress funded just 47 F-35s. A request for 85 and a budget for 47 are very different things, and the framework only works if lawmakers pay for the higher figure. The deal does not, by itself, add a single dollar to the budget. It gives the Pentagon and Lockheed a commitment that depends on future spending decisions.

The Pentagon argues the arrangement will save money. Neither the Pentagon nor Lockheed has put a number on those savings. Lockheed said the framework is expected to save taxpayers billions of dollars through "long-term pricing and industry volume discounts." Under a multiyear buy, the government commits to purchasing a weapon across several years under one contract. That usually lets the maker buy parts in bulk and spread costs, which tends to lower the price of each unit. Whether that happens here depends on terms that have not been set.

Congress Still Has to Act, and the Calendar Is Tight

The framework cannot turn into a contract until Congress approves the multiyear buy. The approval would come through the annual defense policy bill, which sets the rules for military programs. Both chambers have written versions, and both would allow the Pentagon to sign multiyear F-35 contracts.

The House passed its version in July. Senate Democrats blocked their version from reaching the floor that same month. Senate leaders have since put it off until after the November midterm elections. Both bills would then have to be merged into a single law before the deal can move forward.

Money is a second hurdle. Congress has not yet approved a full-year defense budget. The government is running on a stopgap funding law that keeps it open through Dec. 11. That law holds spending at last year's levels and generally bars the Pentagon from starting new programs or multiyear buys. In practical terms, the F-35 framework could be stuck in limbo until lawmakers settle the budget.

The Air Force's Need for 1,509 Combat Fighters

The framework arrives days after the Air Force told Congress it needs 1,509 combat-coded fighters by 2035. Combat-coded means jets assigned to combat units rather than those used for training or testing. The request came in a force structure report sent to Congress on Oct. 16. F-35A models would make up about 40% of that fleet.

That figure helps explain why the Pentagon wants long-term certainty. If the Air Force plans to rely on the F-35 for a large share of its fighters over the next decade, the service needs production to be stable. A year-to-year buying pattern makes it hard to plan pilot training, maintenance crews and base upgrades around the jets.

The Readiness Problem Behind the Pitch

Lockheed is selling the framework partly as a fix for readiness. The company said steady orders will improve the F-35's mission-capable rate. That is the percentage of time a jet can fly at least one assigned mission. A jet that is grounded for parts or repairs does not count toward it.

The problem is real, according to the government's own watchdog. A Government Accountability Office report in June found that the rate fell from 67% in fiscal 2021 to 44% in fiscal 2025. The share of time jets could fly all of their assigned missions dropped from 38% to 25% over the same period. Later that month, F-35 program chief Lt. Gen. Gregory Masiello told senators that the fleet had outgrown its support system.

Lockheed's argument is that supply is the cause, and that predictable orders will help fix it. In its words, "Predictable demand from long-term contracts with suppliers will enable bulk procurement of raw materials and critical parts, slashing turnaround times and reducing logistics bottlenecks." The company added that this "will result in better mission-capable rates by eliminating the annual contracting cycle that has historically strained the industrial base."

That claim is plausible, but it is still a claim. Parts shortages and maintenance backlogs are not the only reasons jets sit idle, and the framework does not say how quickly any improvement would show up in the numbers.

A Run of Pentagon Deals to Speed Up Weapons

The F-35 deal is part of a broader pattern. In January, Lockheed reached an agreement to speed up output of the PAC-3 MSE, a missile interceptor. Weeks later, the company signed another agreement to quadruple production of THAAD interceptors. The THAAD work led to a contract worth more than $35 billion in June. Last year's defense bills had already approved multiyear buys for both interceptors.

On Oct. 19, the Pentagon announced a separate framework with BAE Systems. It covers up to seven years of purchases of Advanced Precision Kill Weapon System laser-guidance kits.

Taken together, these deals show a clear strategy. The Pentagon is trading longer commitments for lower prices and steadier production. Pentagon acquisition chief Michael Duffey made the case directly. "We have fundamentally changed how we stabilize the American defense industrial base to produce at speed and scale," he said. "This agreement with Lockheed Martin proves it."

Duffey also said that "By aligning financial incentives with actual performance, we are ensuring our warfighters are equipped with the lethal capabilities they need to fight and win." Neither the Pentagon nor Lockheed described what those performance-based incentives are, so the public cannot yet judge how they would work or whether they would reward the right results.

What Could Happen Next

The next test is the budget. If Congress passes a full-year defense budget that funds something close to 85 F-35s in fiscal 2027, the framework will look like a planning tool that worked. If lawmakers fund far fewer jets, as they did in fiscal 2026, the 850-jet figure will become a ceiling on paper rather than a guarantee.

The second test is the merged defense bill. Until the House and Senate versions are combined into one law, the multiyear authority is only a proposal. The timing matters, because the Senate has pushed its bill past the midterm elections.

Third, watch for the contract. Lockheed said the Joint Program Office and the company will work out the terms, pricing and schedules in a formal contract if Congress approves the multiyear buy and provides the money. That contract is where the real price per jet will appear, and where any promised savings will have to be shown.

Finally, the readiness numbers will tell the story. If the mission-capable rate and full-mission rate rise after the framework takes effect, the Pentagon and Lockheed will have a strong case. If they stay low, the deal will have bought a commitment without solving the problem that prompted it.

Questions and answers

How many F-35 jets does the Pentagon deal guarantee?

The 10-year framework guarantees at least 850 F-35 Lightning II fighters for the U.S. military, but only if Congress approves the deal and provides the funding. That works out to an average of 85 jets a year.

Does the Pentagon F-35 deal have a price tag?

Neither the Pentagon nor Lockheed Martin gave a total value or a per-jet price. Lockheed will self-fund at least $7 billion in F-35 initiatives, and the actual terms will be set in a formal contract if Congress approves.

What has to happen before the F-35 framework becomes a contract?

Congress must approve a multiyear buy through the annual defense policy bill, with the House and Senate versions merged into one law. Congress also needs to provide the money, and a full-year defense budget has not yet been approved.

Why is the Pentagon signing a long-term F-35 deal?

Lockheed says steady, long-term orders will let it invest in capacity and buy parts in bulk, which should cut delays. The F-35's mission-capable rate has fallen from 67% in fiscal 2021 to 44% in fiscal 2025, according to a Government Accountability Office report.

Topics: F-35 Lightning II, Lockheed Martin, Pentagon, Multiyear procurement, U.S. Air Force, Defense budget, Jim Taiclet, Michael Duffey

Sources: Defense News

https://axynewsglobal.com/article/pentagon-and-lockheed-agree-to-10-year-framework-for-850-f-35-jets