The Pentagon estimates that upgrades to Lockheed Martin F-35 fighter jets will cost the department $1.65 billion, or $100 million lower than its forecast last year, Bloomberg reported Monday.
Tony Capaccio writes the new estimate represents a 36 percent decline from the projected F-35 modernization cost of $2.57 billion in September 2012.
F-35 cost projections are submitted to Congress as part of the Pentagon’s annual program assessment report.
The Pentagon attributes the decrease in program cost estimates to collaborative efforts between the agency and Lockheed to manage the assembly time and process to retrofit F-35s, according to Bloomberg.
Capaccio writes the department wants Lockheed to share the costs of refreshing the fighter jets under a concurrency clause in a proposed contract.
The projected F-35 costs are for enhancement and correction work covered or will be covered by the first 10 contract awards through 2016.