Lockheed Martin Awarded $871 Million Contract Modification for F-35 Sustainment

Lockheed Martin Corp. (NYSE: LMT) has secured an $871.2 million modification to an existing contract for its F-35 Lightning II program, the U.S. Department of Defense announced Friday. The award provides for expanded support equipment and sustainment services for the fifth-generation fighter jet.

Contract Details

The modification increases the contract's overall ceiling to fund additional support equipment and non-recurring sustainment activities. These services are critical for establishing and activating new F-35 operational sites, both on land and at sea, for a wide range of global operators.

The contract supports the U.S. Air Force, Marine Corps, and Navy, as well as international Cooperative Program Partners and Foreign Military Sales (FMS) customers. Work will be performed primarily in El Segundo, California (90%) and Fort Worth, Texas (10%), with an expected completion date of February 2031. The Naval Air Systems Command in Patuxent River, Maryland, is the contracting activity.

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Financial Terms

According to the Pentagon's statement, no funds were obligated at the time of the award. Instead, funding will be allocated on a per-order basis as specific requirements are issued under the new contract ceiling. This structure provides flexibility in procurement for the various domestic and international partners involved in the F-35 program.

The contract modification was not competitively procured, which is common for sustainment and upgrade contracts where the original equipment manufacturer is the sole-source provider. In a separate action, Lockheed Martin Space was also awarded a $76.6 million modification for the TRIDENT II (D5) missile life extension program, with those funds being obligated immediately.