US DOD awards 10-year, USD 62bn contract to Lockheed Martin for F-16s

Lockheed Martin Corp. has announced it has been awarded a USD 62bn, 10-year contract for new production of F-16 foreign military sale aircraft, the company said.

The contract was awarded by the Pentagon and includes an initial USD 4.9 billion order for the first 90 jets for delivery to Taiwan (66 aircraft) and Morocco (24).

The total value for the initial delivery order is USD 4,941,105,246.

The contract is an indefinite-delivery/indefinite-quantity (IDIQ), fixed-price-incentive contract.

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

This contract involves 100% FMS to FMS partner nations and is the result of a sole-source acquisition. FMS funds in the amount of USD 3,881,168,384 are being obligated at the time of award.