Wall Street Journal: Lockheed, Pentagon Battle Over Price of F-35
Situation could depress profits at defense contractor.
Lockheed Martin Corp. is embroiled in an unusual battle with the Pentagon over what the government is willing to pay for F-35 jet fighters, a situation that could depress profits at the world’s largest defense contractor.
The Pentagon this week ended more than year of talks with Lockheed and said it was imposing a new $6.1 billion deal for the next batch of 57 planes that start delivering next year.
It is by far the largest deal the Pentagon has struck without reaching agreement with its supplier, said contracting experts, and strikes at the heart of Lockheed’s growth engine.
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Update: F-35 Contract Feud Exposes Rift Over ‘Fair’ Prices (National Defense)
WNU Editor: Unbelievable. The F-35 program is years late. Billions over budget. And they want more money?