Lockheed Martin F-35 Sustainment Contract Stepping Stone to Potential PBL Contract Next Year

摘要

A potentially $6.6 billion three-year sustainment contract award on Sept. 13 to Lockheed Martin [LMT] for its F-35 fighter is a stepping stone to a possible performance-based logistics (PBL) contract revision next year, if the company meets cost per flight hour (CPFH), parts availability and full mission capable (FMC) goals. While past F-35 sustainment contracts evaluated Lockheed Martin on the aircraft's mission capable rates, the new sustainment contract is to judge the company on FMC rates and the ontime availability of parts to ensure FMC rates improve. Overall, the Government Accountability Office has said that the F-35's FMC rate is 54 percent--18 points below the goal.