Friday, August 2, 2013


Canceling Lockheed F-35 Said to Be Among Pentagon Options

By Tony Capaccio
August 02, 2013 12:00 AM EDT 

Lockheed Martin Corp.'s F-35 jet is the Pentagon’s costliest weapon system, with the estimated price tag of $391.2 billion for a fleet of 2,443 aircraft, up 68 percent from the projection in 2001, as measured in current dollars. Photographer: Mike Fuentes/Bloomberg
Canceling the $391.2 billion program to build Lockheed Martin Corp. (LMT)’s F-35 fighter jet is among options the Pentagon listed in its “strategic review” of choices if forced to live with automatic budget cuts, according to people familiar with Defense Department briefings.
The F-35 was a program listed for potential elimination in charts at briefings held July 31 by the Defense Department, according to the people, who asked not to be identified discussing the closed-door sessions.
Scrapping the fighter wasn’t among options disclosed to reporters that day by Defense Secretary Chuck Hagel as he outlined in broad terms results of the review he ordered of alternative approaches if the military must continue to absorb about $50 billion a year in cuts under the process known as sequestration. Hagel indicated the Pentagon may have to choose between a “much smaller force” and a decade-long “holiday” from modernizing weapons systems and technology.
“We have gone to great lengths to stress that this review identified, through a rigorous process of strategic modeling, possible decisions we might face under scenarios we may or may not face in the future,” Pentagon spokesman George Little said in an e-mailed statement. “Any suggestion that we’re now moving away from key modernization programs as a result of yesterday’s discussion of the outcomes of the review would be incorrect.”

Protecting F-35

The F-35 is the Pentagon’s costliest weapon system, with the estimated price tag of $391.2 billion for a fleet of 2,443 aircraft, up 68 percent from the projection in 2001, as measured in current dollars. The rising costs and troubles in building the plane as it’s still being developed have led to criticism in Congress.
The Pentagon moved to protect the F-35 from sequestration’s initial impact this year, locking in several contracts before the cuts took effect. Frank Kendall, the Defense Department’s chief weapons buyer, has said he will continue to do his best to protect the plane built by Bethesda, Maryland-based Lockheed in the future.
Based on that track record, “the implication is that any ‘option’ to kill the program is an academic exercise rather than a serious possibility,” according to Loren Thompson, a defense analyst with the nonprofit Arlington, Virginia-based Lexington Institute. Thompson wasn’t briefed on the charts.
While the Pentagon and its supporters have lobbied for relief from sequestration, President Barack Obama and congressional leaders aren’t engaged in active efforts to find an alternative to the automatic cuts.

Protecting Weapons

In Hagel’s presentation to reporters, he cited the F-35 among weapons systems that could be protected if substantial cuts are made instead to forces.
Asked on July 31 whether there is an emerging consensus in the Pentagon about protecting forces or weapons capability, Admiral James Winnefeld, vice chairman of the Joint Chiefs of Staff, predicted “we will edge slightly probably toward capability, because we have to keep our industrial base alive, we have to keep focusing on new technologies.”
Pentagon officials and the Government Accountability Office have said this year that the F-35 is making steady progress in development and flight testing.
Lockheed and the Pentagon reached an accord this week for the company to produce 71 more F-35 jet fighters, saying costs per plane have been reduced by about 4 percent.

‘High Priority’

“The F-35 is a very high priority,” Kendall, the undersecretary for acquisition, said in July 15 interview. “Could we protect it completely? I’m not sure. We have to look at all the trade-offs. We may address some of those decisions in the fall, but right now, we are committed to the program. That hasn’t changed.”
The supersonic F-35 was intended to transform military aviation. Three versions for the Air Force, Navy and Marine Corps would be built off a common assembly line, an approach designed to permit faster production, reduced costs and compatibility among allied air forces.
About a quarter of the aircraft would be purchased by other countries. NorwayCanada, the U.K., AustraliaTurkeyItaly, the Netherlands, Denmark and the U.S. agreed in 2006 to cooperatively produce and sustain the F-35 jet. Israel and Japan later signed on to purchase jets and take part in their development.

Tuesday, July 30, 2013


The Canadian Press - ONLINE EDITION

F-35 price cut in offing with new deal inked between Pentagon and aircraft-maker

OTTAWA - The maker of the controversial F-35 is touting the new lower cost of the stealth fighter in a new agreement signed with the Pentagon.
Officials at Lockheed Martin say the price tag for the next two batches of the radar-evading jet built for the U.S., Australia, Italy, Norway and Britain will see successive price cuts of four per cent each year, and increased production.
The agreement will allow the U.S. Defence Department to purchase all 71 aircraft originally planned for those production phases, including those that were in jeopardy of being cut due to Washington's sequestration budget impacts.
The average price tag for the current batch of F-35s is pegged at US$120 million, and Lockheed Martin officials say by mid-2015 the eight per cent price cut will be fully in effect.
Sticker shock and conflicting estimates have made the purchase of 65 F-35s a political lightning rod in Canada, where National Defence was accused of low-balling the liability to taxpayers.
The Harper government had put the purchase on hold while it evaluates whether to go to a full-blown competition to replace the air force's CF-18 fleet.

Friday, June 28, 2013


Pentagon Mulls Delay in Lockheed's F-35 Program

By Dow Jones Business News,  June 28, 2013, 12:25:00 PM EDT


WASHINGTON--The Pentagon is weighing a delay to its most costly and controversial weapons program, the F-35 stealth fighter plane, as part of a short-term cost saving move, according to defense officials.
Defense Secretary Chuck Hagel is considering the delay as one option presented by a task force to cut Pentagon spending over the second half of this decade.
But officials stressed no decisions have been made and that senior advisers to Mr. Hagel are recommending against the option, noting that it would not save enough money to justify the move.
Defense analysts said delaying full production of the F-35 would save between $1 billion and $2.5 billion a year between 2015 and 2019, the time frame being examined by the Pentagon.
Any delay to the program could be a blow to the fighter plane and its prime contractor, Lockheed Martin Corp. ( LMT ), and comes at a time when many defense analysts say the once-troubled program has righted itself, overcoming various problems that have delayed the aircraft and added to its costs.
Delaying the program was an option raised by the Pentagon's Strategic Choices Management Review, a task force of senior leaders examining ways to reduce spending to comply with the across-the-board budget cuts mandated by Congress.
Officials declined to say how long the F-35 could be delayed under the proposed option or how much money the Pentagon estimates would be saved. Earlier, officials participating in the review had weighed a two-to-three year delay limited to the Navy variant of the fighter plane, but that option was rejected by the task force.
If Mr. Hagel opted to delay the program, the Pentagon likely would continue to purchase small numbers of the plane, but would hold off a move to full production in 2015, according to defense analysts. Because the Air Force plans the fastest increase in production for its variant of the plane, any slowdown would likely fall heaviest on that service, analysts said.
Jennifer Allen, a spokeswoman for Lockheed Martin, said it was not appropriate for the company to "speculate on internal DOD discussions and decisions."
Since the F-35 is the military's largest weapons program, many officials consider it the easiest to cut, said Jim McAleese, a defense analyst.
Richard Aboulafia, a defense analyst with the Teal Group, said delaying the F-35 from full production could cover about 30% of the reductions needed in the procurement budget under the mandatory spending reductions.
But analysts agreed short term savings will come with long-term costs.
"You are going to jeopardize the export market and that will keep costs high," said Mr. Aboulafia. "It is not a death spiral, but it is a pain spiral that could really damage the program."
Loren Thompson, a defense analyst who advises Lockheed, said the delay makes little sense, and over the long term will add to the costs.
"There is a reflex to look at the F-35 program as bill payer because it is the biggest program. But since it is the biggest, any change in the plan has outsized fiscal consequences," Mr. Thompson said.
The strategic review is considering delays to other weapons programs as well, although officials declined to outline specific proposals.
The senior advisors recommending against the delay are worried that slowing the program could discourage other countries from purchasing the plane, officials said. Fewer countries buying the advanced plane would make each one more expensive.
According to the military's most recent report to Congress, the Marine variant of the plane, the F-35B, is due to begin military operations in 2015. The Navy variant, the F-35C, is due to begin operations by 2019. The Air Force variant, the F-35A, will enter operations in 2016.
Slowing production would likely delay that timetable, particularly for the Navy and Air Force variants.
Originally designed to be a low-cost plane costing about $40 million a copy, costs have grown to about $122 million each for the Air Force version. The Pentagon estimates that the unit cost eventually will decline to $92 million.
But some officials worry that any cuts to the size of the program, or too long a delay, will drive up those unit costs, putting the entire program in danger.
Mr. McAleese said many of the F-35's past problems have been addressed, and the program seems stronger now than it has in the past.
The plane has encountered cost overruns, developmental delays and questions about the reliabilityof its technology.
"The trend lines are not all perfect, but the trend lines are all moving in the right direction now, for the first time," he said.
Write to Julian E. Barnes at Julian.Barnes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires



Read more: http://www.nasdaq.com/article/pentagon-mulls-delay-in-lockheeds-f-35-program-20130628-00457#ixzz2XX7MTKCn

Wednesday, April 3, 2013


F-35 Scores Historic First Combat Kill By Shooting Down F-35 Program

4,728  |   3 APRIL 2013   |  BY DREW 
F-35 lightningBETHESDA, MD — An F-35 Lightning II Joint Strike Fighter made history today by scoring the plane’s first combat kill when it shot down the F-35 program.
“It was exhilarating,” Air Force Major Thomas Bale said after returning to base. “I hate to kill jobs but I can’t help but celebrate. This was an important mission to protect America’s national defense budget.”
The mission was planned after the F-35 program was spotted sitting on an airfield in Maryland. Although the F-35 is a stealth fighter, the additional billions of dollars in cost overruns needed for long range operations made the program easy to find on radar.
The mission was slated for the F-22 Raptor, but Maj. Bale refused to fly the plane. The F-35 was pushed onto the runway as a replacement while its blueprints were still in development.
“Don’t worry, we have plenty of time,” Brigadier General Rick Santos said as the mission plans were changed. “The target has cracks in its engine, it’s not going anywhere.”
Bale took off seven years behind schedule and billions over budget, and problems arose quickly.
“The software’s not working, I have to switch to manual,” Bale said frantically over the radio. “And there’s something wrong with my helmet. Seriously? It’s a fucking helmet!”
The veteran pilot then spotted the target program surrounded by Lockheed Martin employees and U.S. military personnel yelling at each other. Bale then opened fire — the first test of the F-35’s weapons — resulting in the explosion of the F-35 program, and destruction of jobs in 45 congressional districts.
“Woohoo!” Maj. Bale shouted after scoring the costliest kill in history. He attempted to land on the carrier USS John F. Kennedy but was unable to catch his plane’s tailhook to the arresting cable. After four tries he gave up and was just able to make it back to base before running out of fuel.
Armed predator drones captured the operation on video and were on standby to destroy any future aviation programs involving manned flight.



Read more: http://www.duffelblog.com/2013/04/f-35-scores-historic-first-combat-kill-by-shooting-down-f-35-program/#ixzz2PSirTpXP 
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Sunday, March 24, 2013

F-35 grounding latest setback for troubled program - Politico

F-35 grounding latest setback for troubled program - Politico

Air Force Warns New Fighter Jet Is Getting Too Costly, Urges Contractors to ... - Wall Street Journal

Air Force Warns New Fighter Jet Is Getting Too Costly, Urges Contractors to ... - Wall Street Journal

F-35 Joint Strike Fighter Not Ready for Combat Until at Least 2019, GAO Says - Nextgov

F-35 Joint Strike Fighter Not Ready for Combat Until at Least 2019, GAO Says - Nextgov

What Does Lockheed's F-35 Fighter Jet Really Cost?

What Does Lockheed's F-35 Fighter Jet Really Cost?

http://www.courant.com/business/hc-f-35-price-sidebar-20130318,0,5903951.story

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Asia's F-35 buyers forced to wait as China seeks edge - Reuters

Asia's F-35 buyers forced to wait as China seeks edge - Reuters

Dutch orders for F-35 likely to be scaled back: sources - Globe and Mail

Dutch orders for F-35 likely to be scaled back: sources - Globe and Mail

Insight: Expensive F-35 fighter at risk of budget "death spiral" - Reuters

Insight: Expensive F-35 fighter at risk of budget "death spiral" - Reuters

Boeing touts fighter jet to rival F-35

Boeing touts fighter jet to rival F-35 — at half the price - CBC.ca
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNH3vVoSjC5GGtJT8F_v7PT5LOnn5Q&url=http://www.cbc.ca/news/politics/story/2013/02/27/pol-fighter-jets-boeing-superhornet-f-35-milewski.html?cmp%3Drss

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More F-35 Turbulence - TIME

More F-35 Turbulence - TIME

Pentagon: F-35 won't have a chance in real combat - RT

Pentagon: F-35 won't have a chance in real combat - RT

Sunday, March 17, 2013


The Most Expensive Fighter Jet Ever Built, by the Numbers

Thanks to the sequester, the Defense Department is now required to cut more than $40 billion this fiscal year out of its $549 billion budget. But one program that's unlikely to take a significant hit is the F-35 Joint Strike Fighter, despite the fact that it's almost four times more expensive than any other Pentagon weapons program that's in the works.
We've compiled some of the most headache-inducing figures, from the program's hefty cost overruns to the billions it's generating in revenue for Lockheed Martin.
Year in which work on the fighter began.
Year in which full-rate production was set to begin.
Year in which full-rate production is now scheduled.
Estimated total cost in 2001.
Current estimated total cost, according to the Washington Post.
Amount already spent on the F-35.
The number of planes originally ordered by the Pentagon in 2001.
The number of planes currently on order. In 2010, the Simpson-Bowles deficit reduction commissionrecommended cutting the number of planes ordered for the Navy and the Air Force by half and scrapping the Marines’ version, which has been plagued by the most problems.
The number of planes that have already been built, even though testing of the fighter is far from complete. And when all the tests are finished, "there will be no yes-or-no, up-or-down decision point," Pierre Sprey, one of the chief architects of the Air Force's older F-16 Fighting Falcon, told the Post. "That's totally deliberate. It was all in the name of ensuring it couldn't be canceled."
The number of planes set to be complete by the time testing is finished in 2018.
$81.7 million
Estimated total cost per plane in 2001.
$162.5 million
Current estimated total cost per plane.
The number of jobs the F-35 currently supports, according to Lockheed Martin.
The number of jobs Lockheed says the fighter will support when full production starts.
The states over which Lockheed and its subcontractors and suppliers have spread the F-35 work.
Amount Lockheed spent on lobbying in 2012, according to OpenSecrets.
Lockheed’s approximate revenue from the F-35 in 2012, according to a recent filing with the Securities and Exchange Commission. While that figure represented 14 percent of the company’s total revenue last year, Lockheed said in the filing that it expects the F-35 “to represent a higher percentage of our sales in future years.”
Amount it could cost to develop, build, fly and maintain all the F-35s on order for 55 years — the lives of the planes — according to Pentagon estimates cited by Bloomberg.
While the F-35 is billions over budget and years behind schedule, the program seems to be doing better recently. A Government Accountability Office report released this week found that Lockheed has made progress in improving supply and manufacturing processes and addressing technical problems.
"We've made enormous progress over the last few years," Steve O'Bryan, Lockheed’s vice president of F-35 business development, told the Washington Post.
The military’s current head of the program, Lt. Gen. Christopher Bogdan, agreed that things have improved but said Lockheed and another major contractor, Pratt & Whitney, still have a ways to go.
“I want them to take on some of the risk of this program,” Bogdan said last month in Australia, which plans to buy 100 of the planes. “I want them to invest in cost reductions. I want them to do the things that will build a better relationship. I’m not getting all that love yet.”
Correction: An earlier version of this post included the estimated total cost of the F-35 program when it began in 2001 ($233 billion) as well as an inflation-adjusted figure calculated in 2013 dollars in parentheses. The $233 billion figure, however, already included projected inflation, so we have removed the inflation-adjusted figure.