F-35 Heading Toward Block Buy
Every year, the Pentagon and its corporate partners hash out contracts for individual low-rate initial production (LRIP) lots of the F-35 joint strike fighter. If the man running the program has his say, those days are numbered.
With the negotiations over LRIP 8 at a conclusion, Lt. Gen. Chris Bogdan, the head of the F-35 joint program office, is planning on negotiating LRIP 9 and 10 together. And come LRIP 11, he wants a whole new model of procurement in place.
“By next summer we will put out a request for proposal on LRIP 11 jets,” Bogdan told reporters Thursday. “That RFP will ask Lockheed to do a block buy for our partners. At least, that is my intention.”..
A number of partner nations have already committed to large procurements of the fifth-generation stealthy jet, so bundling their orders together is just logical, Bogdan said.
“If you were to take their requirements and put them together, you could actually have a substantial number of airplanes, starting in LRIP 11 and spanning LRIP 11, 12 and 13, bought as a block of airplanes, almost as if it was a multi-year [buy] for the US,” he said.
Participation in a block buy would be open to all international partners or foreign military sales customers who are interested, and Bogdan said he expects “substantial savings” for those involved.
But while a block buy could benefit international partners, the US would not be able to participate in such a buy due to acquisition rules barring a multi-year procurement until the jet enters full-rate production.
In other words, the United States would be paying more per F-35 model than a country such as, for argument’s sake, South Korea, which has pledged to procure 40 F-35A fighters through foreign military sales.
…The US is by far the largest customer for the F-35 program, and while a block buy of international customers will lead to savings, the greatest savings possible would come from getting the US on a multi-year once the program enters full-rate production…
…The current plan calls for the three US services to buy 34 of 57 total planes in LRIP 9, 55 of 96 total planes in LRIP 10 and 68 of 121 total planes in LRIP 11…
http://www.defensenews.com/article/20141031/DEFREG02/310310028/F-35-Heading-Toward-Block-Buy