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Pentagon: Lockheed sign $4 billion deal for more F-35 jets

OWoN: Why build jets that have engine issues? Just to feed Lockheed's profits?

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Pentagon: Lockheed sign $4 billion deal for more F-35 jets

Press TV
25 October 2014

The United States Department of Defense and Lockheed Martin have struck a deal worth about $4 billion, sources say.

The contract signed for an eight batch of 43 F-35 fighter jets will lower the cost of the radar-evading warplanes by 3 percent, the sources stated on Thursday.

Lockheed Martin will undertake to build jets for both the US and its allies.

According to one of the sources, the US can reduce the cost of the Air Force model of the plane by approximately 4 percent. The cost includes the expenses for 17 of the total 43 aircraft.

After an engine on Air Force jet failed on June 23, the entire F-35 fleet was grounded for weeks and this slowed the negotiations between the two sides.

An official at the Martin corporation said on Tuesday that the company could reach a deal with the Pentagon which would encompass weapons program worth $399 billion.

"We are encouraged by progress taking place and look forward to an agreement in the near future," said Lockheed spokesman Mike Rein.

In January, the White House gave the Pentagon its budget guidance for 2015 through 2019, calling for more military spending than Congress currently allows.

The fund would add to the $498 billion military base budget for 2015 which was agreed on in last year’s bipartisan budget deal.

The $498 billion budget includes $9 billion in relief from 2011 congressional budget caps, known as sequestration, which cuts the military spending by almost $50 billion in a decade.


1 comment :

  1. Honeywell probed by US for F-35 Fighter China-made parts

    The US Justice Department is investigating export and import procedures at Honeywell International Inc after the firm included Chinese parts in equipment it built for the F-35 fighter jet, Reuters reported.

    Earlier reports had indicated that US President Barack Obama’s administration ignored laws that prohibit certain Chinese-made parts on US weapons systems. They said that the Pentagon allowed two US arms manufacturers to avoid sanctions on using Chinese components. The parts in question include important magnets used in F-35 fighter program.

    In a report last week, Reuters, citing three sources familiar with the matter, said that the Pentagon twice waived laws banning Chinese-built components in US weapons in 2012 and 2013 for parts supplied by Honeywell for the F-35 program which is run by Lockheed Martin. The aim, according to the report, was to keep F-35 fighter program on track.

    The second firm that was allowed to use Chinese-made parts and components in the F-35 program is Northrop Grumman Corp.

    The waivers have been issued by the Department of Defense.

    New details indicate that one of the waivers involved simple thermal sensors that Honeywell initially produced in Scotland before moving that production line to China in 2009 and 2010. The other waivers involved high-performance magnets built in China and elsewhere.

    According to some estimates, the controversial military aircraft program is expected to cost US taxpayers close to half of a trillion dollars. The program is already facing strong criticism for cost overruns and delays.

    A recent report from the Pentagon’s internal watchdog, Inspector General, found that the fighter jet was plagued with hundreds of issues. It actually found 719 problems with the Pentagon’s F-35 Program.

    The IG’s report concluded that prime contractor Lockheed Martin and its subcontractors Northrop Grumman, BAE Systems, L-3 Display Systems, Honeywell Aerospace and United Technologies Corporation “did not follow disciplined AS9100 Quality Management System practices” (that deal with the requirements for design and/or manufacture of aerospace products)” which could “adversely affect aircraft performance, reliability, maintainability, and ultimately cost.”

    According to a study by the Stockholm International Peace Research Institute (SIPRI), the US is the largest exporter of conventional weapons in the world. The US account for 30% of global arms sales, or about $7 billion per year, for the period 2005-2009. The report found that during 2005-2009, the US sold one-third of its arm exports to South Korea (15%), Israel (13%) and the United Arab Emirates (11%).


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