US lawmakers moved last week to salvage a long-term deal to buy 2,400 Lockheed Martin AGM-158 JASSM cruise missiles for the US Air Force. A joint House-Senate panel agreed to allocate $85 million for 200 JASSMs, or 50 missiles less than the USAF wanted. Despite the reduction, the proposal would partially reverse even steeper budget cuts Congress threatened earlier this year after the programme suffered a series of minor testing problems. Lawmakers agreed to restore some funding after learning that Lockheed Martin's price guarantee - capped at an average $400,000 per missile - hinges on one condition, that annual production rates must be within 20%of the baseline plan. The new budget proposal meets that threshold.
Source: Flight International