PROCUREMENT: F-35A Cost To Drop Below $80 Million Per Fighter In 2023.

In 2022, Lockheed Martin officials expect to negotiate the next multiyear F-35 contract with the Joint Program Office. The goal is to use the steady cash flow from a multiyear contract to drive down further the production costs once the contract kicks in.

As part of a pitch for multiyear contract, Lockheed Martin officials say such a deal will lower the F-35A price to less than $80 million per fighter, Marillyn Hewson, chief executive of Lockheed Martin, told analysts during a conference call today discussing the company’s 2018 year-end results and expectations for 2019.

“That’s our target, to continue to drive the unit cost down,” Hewson said. “And we won’t stop there, we will always be looking at ways that we can take the cost down in the program as it continues to mature and grows.”

That’s not much more than the Air Force pays for a fully loaded F-16 Block 52.