Lockheed Martin unveils long-term contracts with more F-35 suppliers

|About: BAE Systems plc (BAESY)|By:, SA News Editor

Lockheed Martin (LMT) says it has transitioned additional F-35 suppliers to longer term Performance Based Logistics contracts and Master Repair Agreements to improve supply availability and reduce sustainment costs.

Previously under annual contracts, LMT says the new multi-year PBLs allow each company to make longer term investments and actions to cut costs and enhance efficiencies; the PBLs cover several contracts with BAE Systems (OTCPK:BAESY), Northrop Grumman (NYSE:NOC) and Collins Elbit Vision Systems, a joint venture between Collins Aerospace (NYSE:UTX) and Elbit Systems (NASDAQ:ESLT).

LMT also says it has established 12 MRAs with key suppliers to enhance repair capacity and speed, including separate suppliers Honeywell (NYSE:HON), General Electric (NYSE:GE) and Eaton (NYSE:ETN).

LMT says the F-35's reliability and readiness continues to improve and newer production aircraft are averaging greater than 60% mission capable rates en route to the program's 80% goal, and the company says it has lowered its portion of operating costs per aircraft by 15% since 2015.

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