One Big F-35 Contract: $2.8B Of $3.7B For Foreign Planes

[F-22Raptor]

WASHINGTON: After the markets closed on a sleepy and rainy summer Friday afternoon, White House Chief of Staff Reince Priebus was ousted and DHS Secretary John Kelly named to take his place, and, oh, by the way, a $3.69 billion contract was awarded Lockheed Martin for 50 foreign F-35s and work on the Lot 11 LRIP.

What’s in play here?

Most of the money, $2.2 billion, goes to buy one British F-35B, one Italian F-35A, eight Australian F-35As, eight Dutch F-35As, four Turkish F-35As, six Norwegian F-35As aircraft, and 22 F-35As for Foreign Military Sales customers.

Separately, Lockheed won an interim payment of $5.6 billion in early July to help pay for the 91 American F-35s jets in LRIP 11.

The F-35 Joint Program Office said the Pentagon would continue to negotiate the 11th low rate initial production contract with Lockheed Martin and expected an agreement by the end of 2017. The full contract should be finished by the end of the year, the JPO said in a statement. At the same time, they said they are negotiating a separate deal with Pratt & Whitney for the F135 engines, which should be done about the same time.

http://breakingdefense.com/2017/07/one-big-f-35-contract-2-8b-of-3-7b-for-foreign-planes/

 

[Gomig-21]

lol. This isn't a monopoly, is it? Let's see, LM gets the contract for the USAF, USN and the USMC as well as all those foreign sales? Genius. The rich get richer in the true definition of capitalism.

I hope Northrop gets the chance with the 6th gen comp. and Boeing somehow keeps the F/A-18 going. Tough spot for those two in this survival of the SUPER fittest.

 

[The Accountant]

lol. This isn't a monopoly, is it? Let's see, LM gets the contract for the USAF, USN and the USMC as well as all those foreign sales? Genius. The rich get richer in the true definition of capitalism.

I hope Northrop gets the chance with the 6th gen comp. and Boeing somehow keeps the F/A-18 going. Tough spot for those two in this survival of the SUPER fittest.

This is not capitalism but dirty capitalism ... they finance wars, they are playing on the both side of the war ... capitalism in its true is just an open market economy but the have made it a devil ...

 

[Sully3]

F35 has alot of negative press around it.

seems like potential buyers should be concerned.

 

[Gomig-21]

This is not capitalism but dirty capitalism

Same thing, isn't it?

 

[The Accountant]

Same thing, isn't it?

No Capitalism is a free market economy where capital is one of the factor of production ... It receives rewards like other factor of production ...

In dirty Capitalism, Capital receive extra ordinary return by crimal means,,, using war, weapons, politics, media, harrasement and any other means ... E.g. Iraq destroyed as they were trying to sell oil other than Dollars ... USA is financing weapons of both Qatar and KSA ... and they are fueling the fight ...

 

[Gomig-21]

No Capitalism is a free market economy where capital is one of the factor of production ... It receives rewards like other factor of production ...

...and grow and monopolize your product to the greatest extent possible. That's what LM has done with the F-35 and what many mega businesses all over the world attempt to do. You crush your opponent by making your product better, more accessible to more people by any means possible. If you have the clout and weight behind you to destroy your competition, you do it. You never let your competition threaten your growth. Competition is good for diversity of product and services, part of capitalism, but it's not good for max growth and monopoly which is the ultimate goal of capitalism.

In dirty Capitalism, Capital receive extra ordinary return by crimal means,,, using war, weapons, politics, media, harrasement and any other means ... E.g. Iraq destroyed as they were trying to sell oil other than Dollars ... USA is financing weapons of both Qatar and KSA ... and they are fueling the fight ...

KSA, UAE, Bahrain and Egypt have been eyeing Qatar for a fight for quite some time now. The US isn't fueling this fight, it's taking advantage of it. Big difference.

 

[The Accountant]

...and grow and monopolize your product to the greatest extent possible. That's what LM has done with the F-35 and what many mega businesses all over the world attempt to do. You crush your opponent by making your product better, more accessible to more people by any means possible. If you have the clout and weight behind you to destroy your competition, you do it. You never let your competition threaten your growth. Competition is good for diversity of product and services, part of capitalism, but it's not good for max growth and monopoly which is the ultimate goal of capitalism.



KSA, UAE, Bahrain and Egypt have been eyeing Qatar for a fight for quite some time now. The US isn't fueling this fight, it's taking advantage of it. Big difference.

No, thats not the case,,, the fight started only after Trump visit to KSA and KSA specifically referred to Trump support ... Whereas Trump tweets are known to everyone ...

Being the super power US had to convince KSA otherwise ... This is fueling,, you are encouraging one country to attack another ...

 

[C130]

lol. This isn't a monopoly, is it? Let's see, LM gets the contract for the USAF, USN and the USMC as well as all those foreign sales? Genius. The rich get richer in the true definition of capitalism.

I hope Northrop gets the chance with the 6th gen comp. and Boeing somehow keeps the F/A-18 going. Tough spot for those two in this survival of the SUPER fittest.

Northrop is building B-21 and Boeing is going to get an order for Advance Super Hornets.

@Penguin how does contract compare to Indian Rafale?? 50 F-35 for $3.7 billion sounds cheap.

 

[Gomig-21]

Northrop is building B-21 and Boeing is going to get an order for Advance Super Hornets.

I realize that. The point was that nothing compares to the way LM has monopolized the fighter industry since it beat Northrop with the YF-22 and the F-35 (which also beat Northrop's X-32) has cornered the market with contracts for the 3 US military branches AND very lucrative foreign sales. It has gobbled the market in comparison. So it would be nice to see the others get a few more contracts.

 

[Penguin]

Northrop is building B-21 and Boeing is going to get an order for Advance Super Hornets.

@Penguin how does contract compare to Indian Rafale?? 50 F-35 for $3.7 billion sounds cheap.

74 million per unit sounds good but do not forget thay partners like uk, nl, italy have all paid in seriously into development already, which is not reflected in this contract....

 

[The Accountant]

74 million per unit sounds good but do not forget thay partners like uk, nl, italy have all paid in seriously into development already, which is not reflected in this contract....

plus this is after achieving economies of scale ... had this project was done by single country its cost would have been near about F22 raptor ....

 

[Gomig-21]

74 million per unit sounds good but do not forget thay partners like uk, nl, italy have all paid in seriously into development already, which is not reflected in this contract....

It's actually less than that. Correct me if I'm wrong. According to this part:

Most of the money, $2.2 billion, goes to buy one British F-35B, one Italian F-35A, eight Australian F-35As, eight Dutch F-35As, four Turkish F-35As, six Norwegian F-35As aircraft, and 22 F-35As for Foreign Military Sales customers.

That's 50 aircraft for $2.2 which comes out to $44 Mill a piece. There's probably differences in the cost of the A vs the B but to simplify things with just an average, that's extraordinarily cheap and might have to do with being level partners in the program which results in such discounts. But even some of the partners' participation is not that much. The UK is the only one that has put in a good chunk out of all (besides the US) with $2.2 billion as a level 1 partner. The next closest one is Italy with $1 Billion and the rest (Netherlands Australia Canada) are only in the $800 million and less. Turkey only put in $195 which is peanuts. But when it ends up being under $50 mill per platform, that's ridiculously cheap. Most of these partners and buyers already have the weapons that this thing will be unloading which makes that part even less costly.

Perhaps the shares these partners paid does reflect in the final cost?

 

[Penguin]

plus this is after achieving economies of scale ... had this project was done by single country its cost would have been near about F22 raptor ....

I doubt the economies of scale will start to kick in untill us forces start taking significant numbers in...

 

[The Accountant]

I doubt the economies of scale will start to kick in untill us forces start taking significant numbers in...

But absorbing developing cost by so many countries is already a big respite otherwise this development cost would have been part of the plane cost ... dont you agree ?