WELL, GOOD: Lockheed, Pratt Disclose F-35 Cost-Cutting Moves As Air Force Secretary Presses For Economies.

The Air Force has set a goal of reducing projected operating and support costs across the lifetime of the F-35 program by 38%, which is a tall order for a program that until recently was focused on other matters — like proving its capabilities in the biggest flight-test program ever executed. Now that the capabilities are demonstrated though (F-35 is achieving 20-to-1 kill ratios against adversary aircraft in exercises) Wilson really wants to get the price down.

She has not been subtle in telling contractors what the stakes are. Simply put, if the cost of “sustainment” — operations and support — doesn’t fall by the requisite 38%, then the Air Force may have to buy hundreds fewer planes than it was planning. It took Marillyn Hewson, CEO of lead airframe contractor Lockheed Martin, about two nanoseconds to get the message. She formed an internal review panel that figured out how to meet Secretary Wilson’s cost goals.

Imagine that.