posted on Apr, 17 2014 @ 05:03 PM
The F-35 program went up $4.5B last year for the US program. A large portion of that appears to have come from Pratt & Whitney. Bogdan has publicly
said that Pratt & Whitney is not meeting their commitment. He is accusing them of spreading overhead from other programs that have ended to the F-35
Pratt & Whitney is claiming Competitive Privilege for refusing to give out prices for the F-35 engines. It also gives Gen Bogdan no leverage over the
manufacturer to force them to lower costs.
Much of the $4.5 billion in cost increases in the past year to the now $398.6 billion U.S. portion of the F-35 program are due to overly rosy
projections on anticipated decline in the “cost curve,” or price to build the stealthy fighter, says USAF Lt. Gen. Christopher Bogdan, F-35
program executive officer.
Performance continues to fall short of projections for two major reasons: cost from the prime contractors and major subcontractors – including labor
rates and overhead -- and delayed purchases by Joint Strike Fighter customers.
These are realities behind adjustments in the long-term pricing estimates for the multinational F-35 included in the 2013 selected acquisition report,
a document required annually by Congress on major weapon systems. The F-35 program office shared this fact sheet with reporters to provide context for
The adjustments in the long-term pricing estimates for the multinational F-35 are included in the program’s 2013 selected acquisition report, a
document required annually by Congress on major weapon systems. Total U.S. program cost — including development, procurement and 55 years of
sustainment — is estimated at $398.6 billion over last year’s estimate of $391.2 billion. Of that $4.5 billion is in the procurement portion of
Bodgan says that in the context of the overall program’s price tag, this increase is negligible. But he remains frustrated with contractors’
Pratt & Whitney spokesman Matthew Bates says the company has decreased its pricing 40% since the first production lot, but the company is claiming
competitive privilege in its sole-source deal for F-35 engines in not releasing its actual numbers (AWIN First, April 7). Negotiations for low-rate
initial production lots 7-8 are under way and slated for completion in the summer, he says.
Bogdan seems frustrated by the lack of leverage he has in dealing with a monopoly engine provider. “There is only one engine on the F-35. Period,”
he said. “When you are in a sole-source environment it is difficult to find the right leverage and motivation and drive the cost out of a