JSF Development Cost Target Raised

Published: Nov 01, 2005
Source: www.defensenews.com



Barely a week after the Pentagon upped the value of its F-35 Joint Strike Fighter (JSF) development contract by about 25 percent, the JSF program office acknowledged that inflation could add yet another billion dollars to the cost of the work for the Pentagon’s costliest program.

On Oct. 6, program officials officially “rebaselined” the plane’s development contract with prime contractor Lockheed Martin to $40.5 billion, up from the original figure of $33 billion set in 2001. The contract covers development costs for the plane and its engine through 2013, when the F-35 is slated to enter low-rate production.

In rebaselining a program, the Pentagon and contractors agree to change the initial funding benchmark for how much they estimate the work will cost. Lockheed had been working with the Defense Department on the details since last year.continue..