Lockheed Martin Receives Multi-Year F-16 Support Contract
FORT WORTH, TX, March 1st, 2002 -- Lockheed Martin Aeronautics Co., a business area of Lockheed Marin Corp. [NYSE: LMT], was awarded an approximately $69M post-production support contract effective March 1 to support the worldwide F-16 fleet. The program is named Falcon 2020, reflecting the fact the F-16 will be in the inventory of the U.S. Air Force and international air forces well beyond the year 2020 and the commitment to fully support the aircraft over its service life. The program was designed to enhance the F-16's combat capability, readiness and sustainability.
The contract, a renewable multi-year contracting arrangement with actual amounts depending on needs of the customers and funding available, provides for engineering services and technical support, repair and return, contractor support, acquisition development and integration, and supplies in support of the F-16 weapon system. This new multi-year contract arrangement includes more flexible terms and conditions that make it easier for the U.S. government to contract with Lockheed Martin for support of the F-16 on an annual basis.
"The F-16 Falcon 2020 program has been a real success story," said John L. Bean, vice president of F-16 Programs for Lockheed Martin Aeronautics Company. "This new long-term contracting arrangement will allow the U.S. Air Force and other international customers a more cost-effective contracting method for sustaining their F-16 fleets. It reflects a long-term commitment on the part of both the U.S. government and Lockheed Martin for F-16 fleet support and upgrade for the next two decades and beyond."
Ogden Air Logistics Center, Hill Air Force Base, Utah, is the contracting authority. The value of the orders on the contract awarded today is approximately $69 million. According to an announcement yesterday by the Department of Defense, the estimated potential value is approximately $12.7 billion over a 23-year period.
The Falcon 2020 program is a Department of Defense acquisition reform initiative that was conceived in 1994 and was first contracted in 1997. It was a five-year renewable contract. The program grew from the initial seven countries to the current 17 participating countries. Three new features of the new Falcon 2020 contract are repair and return of major components, acquisition of modification kits (including future major capability upgrades), and on-site contractor support.
The 17 countries who have participated in the Falcon 2020 program include: Belgium, Denmark, the Netherlands, Norway, Bahrain, Egypt, Greece, Israel, Jordan, Korea, Portugal, Singapore, Taiwan, Thailand, Turkey, Venezuela and the United States. This program will be available to new F-16 customers as well.
The F-16, the world's most sought-after fighter, is the choice of 22 countries. More than 4,000 aircraft have been delivered, hundreds more are on order for the U.S., and six other countries, and production is expected to continue beyond 2010. Major upgrades for all F-16 versions are being incorporated to keep the fleet modern and fully supportable over the aircraft's long service life.
Lockheed Martin Aeronautics Co. is a leader in the design, development, systems integration, production and support of advanced military aircraft and related technologies. Its customers include the military services of the United States and allied countries throughout the world. Products include the F-16, F-22, F-35 JSF, F-117, C-5, C-27J, C-130, P-3 and U-2.
Sam Grizzle (770) 494-3211; (678) firstname.lastname@example.org
Mary Jo Polidore (817) 777-6736; (817) email@example.com