Contracts · Aircraft
Pentagon and Lockheed discuss multiyear F-35 production and sustainment deal, Breaking Defense reports
Neither chamber's version of the fiscal 2027 defense authorization bill explicitly authorizes multiyear sustainment, Breaking Defense reported.
The Department of War and Lockheed Martin are discussing an F-35 deal that could span up to a decade and cover both production and sustainment, Breaking Defense reported Friday, citing people familiar with the negotiations. Lockheed told the outlet it "continues to advocate for a multi-year contracting approach," and the F-35 Joint Program Office and the Pentagon declined to comment.1
Neither version of the bill explicitly mentions or authorizes a multi-year sustainment agreement
The fiscal 2027 defense authorization bill
Both the House and Senate will need to hammer out agreed upon language before Congress passes the finalized bill
would not authorize F-35 multiyear procurement until the defense secretary certifies the contract includes the full complement of initial spare parts and alternate mission equipment for each aircraft
The Pentagon and Lockheed Martin are in discussions over an F-35 deal that could span up to a decade and include both production and maintenance, according to people familiar with the negotiations.
Reported by Breaking Defense, Oct. 9, 2026
Sources
Matt Milas, president of Honeywell Aerospace's defense division, told Breaking Defense in September the "big benefit" would largely be on the sustainment side, since production is expected to stay at 156 jets a year. He said the deal could include "bulk buys" of spare parts, with more components flowing from around the 21st production lot, expected in roughly three years. Sustainment is the half neither chamber's bill explicitly authorizes, Breaking Defense reported.1
The Senate Armed Services Committee's bill and the House version would permit F-35 multiyear procurement contracts, Breaking Defense reported. The House adds conditions: certification that the contract includes "the full complement of initial spare parts and alternate mission equipment" for each jet, and a demonstration of cost savings of at least 5%.1
Lockheed previously pushed for a larger sustainment deal, a five-year performance-based logistics (PBL) contract. Lawmakers required the Pentagon to certify such a deal would cut maintenance costs or raise readiness, a hurdle officials couldn't clear, Breaking Defense reported. One source familiar with the negotiations called the sustainment proposal "PBL by another name." Dina Halvorsen, Lockheed's vice president of F-35 global sustainment, told reporters Sept. 14 that a multiyear performance-based contract "is still in discussion," adding, "I wouldn't necessarily call it a PBL."1
The source familiar with the negotiations doubted Lockheed "can successfully propose something that demonstrates long-term cost savings," the kind of case officials could not certify for the earlier PBL, Breaking Defense reported. The final bill, once both chambers agree on language, will show whether the House's savings test and spares certification survive and whether its text explicitly covers sustainment.1
Sources (1)
- Breaking Defense: Pentagon, Lockheed weigh multi-year F-35 production, sustainment deal (Oct. 9, 2026) breakingdefense.com
