The Pentagon’s newly issued selected acquisition report to Congress notes a $4.5 billion reduction in the acquisition, operating, and support costs of the F-35 strike fighter program. Prime contractor Lockheed Martin said this marks the first time that a SAR reflects a cost reduction in the program. “We will work with the F-35 joint program office to implement further cost-saving measures, which will result in additional significant decreases to the total program costs,” said a company spokeswoman. The F-35 aircraft program has an estimated total cost of $326.9 billion, down 1.5 percent from the previous $331.9 billion estimate, states the report, issued on May 23. However, that savings is partially offset by a $442 million increase in the costs of F-35 engine acquisition, which jumped from $63.9 billion to $64.3 billion. Those costs rose primarily due to revised escalation indices, correction of cost allocations between the aircraft and engine subprograms, and a lower ramp-up of engine production in the near term, states the report.
The program executive officers for some of the Air Force’s largest acquisition management organizations are struggling to deal with an exodus of senior talent and experienced civilian staff, three of them told an industry conference.
