Saturday, July 28, 2007
Jul. 28, 2007 (McClatchy-Tribune Regional News delivered by Newstex) --
The Pentagon awarded Lockheed Martin (NYSE:LMT) a $2.4 billion contract Friday to begin work on the second batch of F-35 Lightning II fighter jets.
The funds, appropriated by Congress in the 2007 de- fense budget, allow Lockheed and other contractors to purchase 'long lead time' materials and components required to produce six F-35A models for the Air Force and six F-35B short-takeoff-and-vertical-landing models for the Marines.
Congress would have to appropriate a similar amount of money in the fiscal year 2008 defense budget to complete work on all 12 airplanes, the first of which won't be delivered until 2010.
Committees in the House and Senate have indicated a willingness to fund the 12 aircraft, said Tom Burbage, Lockheed executive vice president and F-35 general manager, but that could change before a final budget is approved.
The Pentagon asked for funds in the 2007 budget to complete five planes, but Congress approved two.
Burbage said that it's important Congress not cut the 2008 budget or the program won't stay on schedule. 'Twelve is the number we need.'
The F-35 contract is one of three big ones the Pentagon issued to local companies.
Lockheed also received a $187 million contract to begin work on 30 F-16 jets for Turkey, a previously announced sale. The aircraft will be assembled in Turkey.
Bell Helicopter was awarded a $162.3 million contract for 11 H-1 series helicopters for the Marines. The Pentagon recently approved a revised plan adding the fourth low-rate production lot to allow Bell time to resolve production difficulties and cut costs.
The Marines plan to buy a 280 helicopters, only a handful of which have been produced and delivered. The helicopters are assembled in Amarillo with major components manufactured at Bell's Fort Worth-area plants.
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rcox@star-telegram.com Bob Cox, 817-390-7723
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