Lockheed Martin Gets $1.3 Billion Advance for U.S. F-35 Jets

IN AIR, NAVAL AIR STATION PATUXENT RIVER, MD - FEBRUARY 11: (EDITORS NOTE: Image has been received by U.S. Military prior to transmission) In this image released by the U.S. Navy courtesy of Lockheed Martin, the U.S. Navy variant of the F-35 Joint Strike Fighter, the F-35C, conducts a test flight February 11, 2011 over the Chesapeake Bay. Lt. Cmdr. Eric "Magic" Buus flew the F-35C for two hours, checking instruments that will measure structural loads on the airframe during flight maneuvers. The F-35C is distinct from the F-35A and F-35B variants with larger wing surfaces and reinforced landing gear for greater control when operating in the demanding carrier take-off and landing environment. (Photo by U.S. Navy photo courtesy Lockheed Martin via Getty Images)

U.S. Navy photo courtesy Lockheed Martin via Getty Images

Lockheed Martin (LMT) subsidiary Lockheed Martin Aeronautics has received an interim payment of $1.28 billion for its 10th contract for F-35 fighter jets, the Pentagon said.

It said in a statement the payment was to ensure there would be no major production delays while the final terms of the contract for 90 F-35 Lightning II jets up to a maximum of $7.19 billion were being finalized.

The award is a modification to a previous Low Rate Initial Production (LRIP) contract and comes after negotiations on the ninth contract for F-35 jets concluded.

The U.S. Department of Defense will continue to negotiate the specifics of LRIP 10 to finalize the contract, a spokesman for the F-35 Joint Program Office (JPO) said.

This order includes 76 F-35A aircraft for the U.S. Air Force, Non-U.S. Department of Defense (DoD) participants and foreign military sales customers; 12 F-35B aircraft for the U.S. Marine Corps and non-U.S. DoD Participants and two F-35C aircraft for the U.S. Navy.

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“Once a final agreement on LRIP 10 is reached, the balance of the funding is provided. We appreciate the actions taken by the JPO to ensure delivery of F-35s,” a spokesman for Lockheed Martin Aeronautics said.

The F-35 is the Pentagon’s costliest arms program. The U.S. Defense Department expects to spend $391 billion to develop the plane and buy 2,443 of the supersonic, stealthy new warplanes, in the coming decades.

Lockheed, and its main partners including Northrop Grumman, Pratt & Whitney and BAE Systems, have been developing and building F-35s for the U.S. military and 10 allies.