Lockheed, Pentagon announce $8.5 billion F-35 order - Polidicks

[quote]The Department of Defense and Lockheed Martin Corp (LMT.N) announced on Friday an agreement worth about $8.5 billion for 90 F-35 jets, the lowest price to date for the Pentagon's most expensive program. The deal for the tenth lot of the stealthy fighter aircraft brings the price per jet to below $95 million for the first time, compared to $102 million in the previous batch, a savings of $728 million. This is more than the $600 million that U.S. President Donald Trump claimed on Monday he had been able to shave off from the F-35 program, which he had described as "out of control" in December. Lockheed Martin said in a statement that "President Trump's personal involvement in the F-35 program accelerated the negotiations and sharpened our focus on driving down the price." The price per jet has been steadily declining as production ramps up, and defense analysts have said the discount hailed by Trump was in line with what had been flagged by Lockheed and Pentagon officials for months. "The increase in the number of aircraft in this agreement enables us to reduce costs by taking advantage of economies of scale and production efficiencies," Lockheed said. Lockheed, the prime contractor, and its partners including Northrop Grumman Corp (NOC.N), United Technologies Corp's (UTX.N) Pratt & Whitney and BAE Systems Plc (BAES.L) have been working on building a more cost-effective supply chain to fuel the production line in Fort Worth, Texas. Air Force Lieutenant General Chris Bogdan, who runs the F-35 program for the Pentagon, said on Dec. 19 the cost per plane should decrease about "6 to 7 percent" for the latest contract.[/quote] [url]http://www.reuters.com/article/us-lockheed-pentagon-order-idUSKBN15I29B[/url]

I'll wait to see the tax credits they got

[quote]Lockheed Martin said in a statement that "President Trump's personal involvement in the F-35 program accelerated the negotiations and sharpened our focus on driving down the price."[/quote] This strikes me as LockMart buttering up Trump for lots more deliciously profitable military contracts, seeing as the F-35 was always expected to drop to its current price and below as the development cycle of the airframe went on and the new technologies were developed, simplified, and perfected. If memory serves, that was kind of one of its biggest selling points way back when the project started

If they really just chopped 7 mil off each plane like that, I shudder to imagine what corners are being cut under the skin of those things

[QUOTE=Grenadiac;51773885]If they really just chopped 7 mil off each plane like that, I shudder to imagine what corners are being cut under the skin of those things[/QUOTE] That's not how it works. The more you produce, the more the price goes down. That's been the plan since the beginning. It's affordable because they're producing enough to replace most of the US fighter inventory and equip a bunch of allied nations with it. It's essentially the new F-16, which is widely flown by NATO countries. As long as the plane doesn't undergo the same spiral of death that the F-22 and [I]especially[/I] the B-2 underwent, the price per plane is only going to go down with each lot.

[QUOTE=Grenadiac;51773885]If they really just chopped 7 mil off each plane like that, I shudder to imagine what corners are being cut under the skin of those things[/QUOTE] There are hundreds of contractors making parts and hundreds of thousands of people involved in the program on top of military auditing. They won't be cutting corners.

[QUOTE=Grenadiac;51773885]If they really just chopped 7 mil off each plane like that, I shudder to imagine what corners are being cut under the skin of those things[/QUOTE] I heard they made the tail control surfaces out of duct tape and cardboard and the wheels out of pop bottles. Those government contractors gotta have their solid gold toilets somehow.

Curious to know what was changed

[QUOTE=Sitkero;51773844]This strikes me as LockMart buttering up Trump for lots more deliciously profitable military contracts, seeing as the F-35 was always expected to drop to its current price and below as the development cycle of the airframe went on and the new technologies were developed, simplified, and perfected. If memory serves, that was kind of one of its biggest selling points way back when the project started[/QUOTE] it's not even a selling point specific to the program. it's one of the basics of economics but hey, it makes trump look like a [I]master negotiator[/I] and as long as LM keeps buttering him up their stocks will rise [editline]3rd February 2017[/editline] [QUOTE=ROFLBURGER;51773948]Curious to know what was changed[/QUOTE] most likely very little to fuck all full production target pricing was <$85 mil per unit at 2018 from 2015 [url]https://www.f35.com/about/fast-facts/cost[/url]

[QUOTE=ultra_bright;51773933]I heard they made the tail control surfaces out of duct tape and cardboard and the wheels out of pop bottles. Those government contractors gotta have their solid gold toilets somehow.[/QUOTE] I thought it was the president who had a solid gold toilet?

[QUOTE=Sitkero;51773844]This strikes me as LockMart buttering up Trump for lots more deliciously profitable military contracts, seeing as the F-35 was always expected to drop to its current price and below as the development cycle of the airframe went on and the new technologies were developed, simplified, and perfected. If memory serves, that was kind of one of its biggest selling points way back when the project started[/QUOTE] no shi, also its slightly unnerving that lockheed went full North Korea so quickly. "Thanks to the personal efforts of the great leader the f-35 program has been accelerated and driven down the price!" see, it sounds very much like north korea [editline]4th February 2017[/editline] [QUOTE=ultra_bright;51773933]I heard they made the tail control surfaces out of duct tape and cardboard and the wheels out of pop bottles. Those government contractors gotta have their solid gold toilets somehow.[/QUOTE] aerospace grade duct tape costs 1000$ a roll and is no different from normal tape except they have certified its tape (im not joking this is a real thing)

[QUOTE=Sableye;51775429]no shi, also its slightly unnerving that lockheed went full North Korea so quickly. "Thanks to the personal efforts of the great leader the f-35 program has been accelerated and driven down the price!" see, it sounds very much like north korea [/QUOTE] [QUOTE]"The increase in the number of aircraft in this agreement enables us to reduce costs by taking advantage of economies of scale and production efficiencies," Lockheed said.[/QUOTE] Basically due to the US committing to a certain number of planes per year it enabled Lockheed to commit to their suppliers which brings a lower cost across the board. Anyone who has worked in any type of procurement or manufacturing job knows about this stuff but no it must magical North Korean negotiating tactics. It's not a basic part of capitalism, it's dictatorial economic interference :downs:.

[QUOTE=benwaddi;51775469]Basically due to the US committing to a certain number of planes per year it enabled Lockheed to commit to their suppliers which brings a lower cost across the board. Anyone who has worked in any type of procurement or manufacturing job knows about this stuff but no it must magical North Korean negotiating tactics. It's not a basic part of capitalism, it's dictatorial economic interference :downs:.[/QUOTE] Im well aware that it was due to planned reduction in price as planes got made, but lockheed basically lavishing trump with praise and claiming it was because of how great he is at being great sounds pretty much exactly like something north korea does all the time

[QUOTE=Grenadiac;51773885]If they really just chopped 7 mil off each plane like that, I shudder to imagine what corners are being cut under the skin of those things[/QUOTE] Yeah, poor F-35 having to use $1800 bolts instead of $2000 bolts. They're able to cut prices because they're A. producing more, B. are Lockheed Martin and have been inflating the project's costs for a long while because thanks to Republicans defense contractors have historically been more than free to ass fuck the tax payer at every turn. [editline]4th February 2017[/editline] [QUOTE=Sableye;51775651]Im well aware that it was due to planned reduction in price as planes got made, but lockheed basically lavishing trump with praise and claiming it was because of how great he is at being great sounds pretty much exactly like something north korea does all the time[/QUOTE] Trump's both a pliable idiot and a crony capitalist con-man. Lockheed is probably waxing Trump's carrot for a chance to take ass fucking the tax payer to a whole new level.

Has Trump not blasted all over twitter how he made this amazing deal yet?

[QUOTE=Sableye;51775429]aerospace grade duct tape costs 1000$ a roll and is no different from normal tape except they have certified its tape (im not joking this is a real thing)[/QUOTE] Thats because aerospace duct tape isnt duct tape. It's also made of aluminum.

[QUOTE=Code3Response;51777485]Thats because aerospace duct tape isnt duct tape. It's also made of aluminum.[/QUOTE] no this is litterally ducktape, its exactly the same thing you get from the store, its just certified or some BS so it can be used for assembly or testing purposes, we even keep it locked up so someone doesnt accidentally use it there is industrial strength tapes out there and we use those too but those are different

[QUOTE=Sableye;51777948]no this is litterally ducktape, its exactly the same thing you get from the store, its just certified or some BS so it can be used for assembly or testing purposes, we even keep it locked up so someone doesnt accidentally use it there is industrial strength tapes out there and we use those too but those are different[/QUOTE] I mean, there's a pretty key reason for that certification. It may be almost exactly the same as normal duck tape, but knowing it will 100% hold together that $200m airplane is pretty important.

[QUOTE=SataniX;51779275]I mean, there's a pretty key reason for that certification. It may be almost exactly the same as normal duck tape, but knowing it will 100% hold together that $200m airplane is pretty important.[/QUOTE] its only there to cover the parts surface while they assemble, after that its removed

do you have a source for this, because that sounds like complete lunacy.

[QUOTE=ultra_bright;51773933]I heard they made the tail control surfaces out of duct tape and cardboard and the wheels out of pop bottles. Those government contractors gotta have their solid gold toilets somehow.[/QUOTE] I hear the contractors are experts at paper airplane folding. I'm not worried.