Lockheed Martin Wins $1.28 Billion Undefinitized Contract Action
January 06, 2021 at 10:00 am EST
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The F-35 Joint Program Office awarded the Lockheed Martin industry team a $1.28 billion Undefinitized Contract Action (UCA) to support operations and sustainment of the global F-35 fleet through June 30, 2021. The UCA provides initial critical sustainment activities for a worldwide fleet while negotiations continue on a long-term contract to build enterprise capacity and affordability to support the future fleet of more than 3,000 F-35 aircraft. The UCA funds industry sustainment experts supporting operations worldwide, individual bases, depot maintenance, pilot and maintainer training, and sustainment engineering across the globe. It also covers fleet-wide data analytics and supply chain management for part repair and replenishment to enhance overall supply availability. The F-35 Joint Program Office, together with each U.S. Service, international operators and the F-35 industry team, leads F-35 sustainment and the Global Support Solution. Lockheed Martin and industry teammates BAE Systems and Northrop Grumman provide critical sustainment support for over 600 aircraft in key areas such as training, base operations, repairs, global supply, and sustainment support to F-35 customers. While many think of sustainment as all of the activity after aircraft delivery, it actually begins the moment a requirement is written and design starts. The fifth generation F-35 is designed and produced with mission readiness and the warfighter's success in mind. The F-35's reliability continues to improve, and newer production aircraft are averaging greater than 70% mission capable rates, with some operational squadrons consistently near 75%. Cost per flight hour has decreased by more than 40% during the last five years. To further improve readiness and cost stability, the enterprise is conducting supply chain competitions and building supply capacity, synchronizing spare buys, improving parts reliability and maintainability, implementing advanced analytics tools, accelerating modifications of earlier aircraft, and supporting the stand-up of government-led regional warehouses and repair depots. More than 600 F-35 aircraft have been delivered and are operating from 26 bases around the globe. More than 1,200 pilots and 10,000 maintainers have been trained, and the F-35 fleet has surpassed more than 345,000 cumulative flight hours.
Lockheed Martin Corporation specializes in the design, manufacturing and marketing of aeronautic, submarine, and aerospace systems. Net sales break down by activity as follows:
- sale of aeronautic systems (40.7%): military and civilian aircraft, primarily for government organizations;
- sale of helicopters, mission and electronic systems (24%): military and commercial helicopters, ships, sea and land-based missile defense systems, radars, sensors, sea and air-based mission and combat systems, training systems, cyber solutions, command, control and communication systems, surveillance and reconnaissance systems, simulation and training systems, etc.;
- sales of aerospace systems (18.7%): satellite systems, missile systems and space transport systems;
- sale of air defense and fire control systems (16.6%): air and missile defense systems, tactical missiles, precision strike weapons systems, fire control systems, etc. The group also offers support services for mission operations, preparation, technical support, integration services, etc.
Net sales break down by source of income into sales of products (83.3%) and services (16.7%).
Net sales are distributed geographically as follows: the United States (74.3%), Europe (9.5%), Asia/Pacific (8.3%), Middle East (5.8%) and other (2.1%).