The US Department of Defense agreed with Lockheed Martin Corp (NYSE:LMT) to build about 375 F-35 fighter jets over three years, the two parties said on Monday, amid expectations the price of the most common version of the aircraft would increase due to inflation and slower production, Report informs, citing foreign media.
Earlier on Monday, Reuters reported the deal, worth about $30 billion, was nearing an agreement.
A Pentagon previous three-year "block buy," signed in 2019, was for 478 F-35 fighter jets, allowing Lockheed to buy larger quantities of components to reduce costs by about 8%, to $34 billion, versus negotiating annual contracts.