Pentagon saves $1B on F-35 JSF costs

FORT WORTH, Texas, April 11 (UPI) -- The Pentagon says the costs of its F-35 Joint Strike Fighter program have dropped by nearly $1 billion.

The U.S. Department of Defense has issued a new report saying the aircraft's estimated acquisition costs fell by almost $1 billion from 2006 to 2007.

The Selected Acquisition Reports concluded that the F-35 Lightning JSF total expense during a future estimated 30-year production program fell by $981 million -- negative-0.3 percent -- from $299.8 billion to $298.8 billion. The savings were caused partially by lower material costs thanks to new deals that Lockheed Martin concluded with its subcontractors, the company said in a statement Tuesday. Support costs were also recalculated, Lockheed Martin said.

"The F-35 program is intensely focused on affordability, and these numbers demonstrate that hard work on the part of government and contractor teams is achieving the desired result," said Dan Crowley, Lockheed Martin executive vice president and F-35 program general manager.

"The F-35 team is committed to protecting the program's affordability," said Maj. Gen. C.R. Davis, F-35 Program Executive Officer. "The team has placed the highest priority on cost management while building the world's most advanced multi-role fighter."

Selected Acquisition Reports sum up the most recent estimates of cost, schedule and technical status of programs and are presented every year. They cover research and development, procurement, military construction and acquisition-related operation and maintenance. Total program costs reflect actual costs to date as well as future anticipated costs and are adjusted for inflation.

Lockheed Martin said the F-35 program was on track to send its first aircraft to the U.S. armed forces in 2010. The first prototype F-35 has carried out 40 flights so far the first short takeoff/vertical landing - STOVL -- F-35B should fly this summer..

Lockheed Martin's main industry partners on the project are BAE Systems. Two engines systems being built for the aircraft by Pratt & Whitney -- the F135 -- and by General Electric and Rolls-Royce -- the F136.