Lockheed Martin Receives $62Billion Order to Manufacture F-16 Jets for Foreign Customers

  • Our Bureau
  • 08:04 AM, August 15, 2020
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Lockheed Martin Receives $62Billion Order to Manufacture F-16 Jets for Foreign Customers
F-16 manufacturing facility

In perhaps the single biggest order for F-16 jets, Lockheed Martin has been awarded a $62 billion ten-year, fixed price contract from the US Air Force for production of F-16 aircraft for multiple Foreign Military Sale (FMS) customers.

The initial delivery order is for 90 aircraft, including both the pre-priced recurring core configuration costs at $2,862,797,674 and the engineering change proposal/undefinitized contract action for the non-recurring costs not-to-exceed $2,078,307,572 obligated at approximately $1,018,370,710.

The total value for the initial delivery order is $4,941,105,246 and will be awarded on the same date.

Work will be primarily performed in Greenville, South Carolina; and Fort Worth, Texas, and is expected to be completed Dec. 31, 2026.  This contract involves 100% FMS to FMS partner nations and is the result of a sole-source acquisition.  FMS funds in the amount of $3,881,168,384 are being obligated at the time of award.  Air Force Life Cycle Management Center is the contracting activity, according to a US DoD release.

The official Pentagon announcement did not name the FMS countries but the contract probably includes 66 jets for Taiwan which inked a $8 billion deal with the US government in 2019.

In addition, the US concluded deals with Bulgaria for 8 weaponised F-16s for 1.16 billion. Other customers for which F-16 deals have been concluded include 14 jets for Slovaika. All this adds up to 89 jets.

Lockheed Martin Receives $62Billion Order to Manufacture F-16 Jets for Foreign Customers
F-16 jets
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