Low rate initial production (LRIP) is the hardest phase. It's one thing to develop an aircraft, and quite another to manufacture it. The phase between development to full-rate production has tripped up many programme offices in the past. For the F-35 programme, that struggle is personified in the strange and twisting saga of the LRIP V contract.
The F-35 programme office has revealed today that the Department of Defense will reduce the LRIP V procurement amount by five aircraft, which cuts some combination of F-35As and F-35Cs but preserves three orders for the F-35B.
This means the LRIP V order drops from 35 to 30 aircraft, but it's only the latest twist. The evolution of the LRIP V is tricky, but it basically breaks down like this:
- Up until two years ago, the DoD and Australia plans to buy 47 F-35s overall in LRIP V.
- Australia postpones buying their first batch of four aircraft by two years, cutting the total LRIP V number to 43.
- The first DoD restructuring comes next in February 2010, trimming the LRIP V order by one to 42.
- The second DoD restructuring in January 2011 is more severe. This time, the LRIP V order plummets by 10 to 32 aircraft.
- Congress doesn't like this arrangement, so it proposes raising the LRIP V amount to 35 aircraft.
- Now, the DoD cuts the number back to 30.
The number is continuing to fluctuate even one month after the fiscal year expired in which the contract should have been signed.
But the LRIP V award to Lockheed has been delayed by the most intense round of negotiations to date.
The DoD surprised Lockheed's negotiators about one month ago. Nearly six months after Lockheed submitted its proposal for LRIP V, the DoD decided to change the contracting terms. Now, Lockheed has to agree to pay at least some -- and maybe all -- of the extra costs caused by development mistakes. And the DoD is refusing to pay a $1.2 billion bill it owes Lockheed until the company agrees to the new terms.
[Click on the jump to read the programme office's full statement.]
Continue reading The saga of LRIP V for F-35.




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