WASHINGTON (Reuters) - The U.S. Department of Defense resumed accepting F-35 jet deliveries from Lockheed Martin Corp (LMT.N) last week after reaching an agreement on covering the costs to fix a production error, the Pentagon told Reuters on Monday.

FILE PHOTO - Lockheed Martin's logo is seen during Japan Aerospace 2016 air show in Tokyo, Japan on October 12, 2016. REUTERS/Kim Kyung-Hoon/File Photo

Terms of the agreement were not disclosed. The cost of the fix was $119 million, people familiar with the situation had previously told Reuters.

The Pentagon had stopped accepting the jets on March 29, the Pentagon’s F-35 Joint Program office told Reuters in a statement. The dispute was over responsibility for paying to fix corrosion related to an error discovered in the second half of 2017.

The military, U.S. allies that own F-35s and Lockheed Martin are making the necessary repairs to all aircraft, the Pentagon’s office in charge of the fighter program said in the statement.

When the Pentagon stopped taking delivery of F-35s, foreign customers also were affected. At least two foreign governments, Australia and Norway, had their jets caught up in the acceptance pause.

The majority of aircraft will be repaired within two years, the statement said.

Lockheed shares added to gains after the news and closed up 2 percent at $317.71.

Last year, the Pentagon stopped accepting F-35s for 30 daysafter discovering corrosion where panels were fastened to theairframe, an issue that affected more than 200 of the stealthyjets.

During routine maintenance at Hill Air Force Base in Utah last year, the Air Force detected “corrosion exceeding technical limits” where the carbon fiber exterior panel is fastened to the aluminum airframe.

Once a fix had been devised, the deliveries resumed andLockheed hit its target aircraft delivery numbers for 2017.

A lack of protective coating at the fastening point thatwould have prevented corrosion was identified as the primaryproblem, the Pentagon said at the time.

The fastening issue on the F-35 fleet did not affect flights, nor was it a safety concern, the Pentagon said last year.

On Monday, Lockheed said an agreement had been reached with the Pentagon, adding that it expected to hit its F-35 delivery target of 91 aircraft for 2018.

The pause was the latest production issue that has arisen in the Pentagon’s most expensive weapons program. In 2016, a fix for insulation problems in the fuel tanks and lines of the jets caused a slowdown in deliveries.</s>The Defense Department has resumed accepting F-35 jet deliveries from Lockheed Martin (NYSE:LMT) after reaching an agreement on covering the costs to fix a production error, Reuters reports.

Terms of the agreement were not disclosed, but Reuters previously had reported that the cost of the fix was $119M.

The Pentagon had stopped accepting the jets on March 29, the Pentagon’s F-35 Joint Program office tells Reuters, in a dispute over responsibility for paying to fix corrosion related to an error discovered late in 2017.

The U.S. military, U.S. allies that own F-35s and LMT are making the necessary repairs to all aircraft, Reuters reports, citing the DoD’s office in charge of the fighter program.</s>The U.S. Department of Defense has resumed accepting F-35 jet deliveries from Lockheed Martin Corp after reaching an agreement on who would cover the costs to fix a production error, a Pentagon official said on Monday. The terms of the agreement were not disclosed. The cost of the fix was US$119 million, people familiar with the situation had previously told Reuters.

WASHINGTON: The U.S. Department of Defense resumed accepting F-35 jet deliveries from Lockheed Martin Corp last week after reaching an agreement on who would cover the costs to fix a production error, the Pentagon told Reuters on Monday.

The terms of the agreement were not disclosed. The cost of the fix was US$119 million, people familiar with the situation had previously told Reuters.

The Pentagon had stopped accepting the jets on March 29, the Pentagon's F-35 Joint Program office told Reuters in a statement. The dispute was over who was responsible for paying to fix corrosion related to an error discovered in the second half of 2017.

The military, U.S. allies that own F-35s and Lockheed Martin are making the necessary repairs to all aircraft, the Pentagon's office in charge of the fighter program said in the statement.

The majority of aircraft will be repaired within two years, the statement said.

Shares of Lockheed added to gains after the news and were up 1.4 percent at US$315.90 in late afternoon.

Last year, the Pentagon stopped accepting F-35s for 30 daysafter discovering corrosion where panels were fastened to theairframe, an issue that affected more than 200 of the stealthyjets. Once a fix had been devised, the deliveries resumed, andLockheed hit its target aircraft delivery numbers for 2017.

A lack of protective coating at the fastening point thatwould have prevented corrosion was identified as the primaryproblem, the Pentagon said at the time.

On Monday, Lockheed said an agreement had been reached with the Pentagon, adding that it expected to hit its F-35 delivery target of 91 aircraft for 2018.</s>WASHINGTON, May 7 (Reuters) - The U.S. Department of Defense resumed accepting F-35 jet deliveries from Lockheed Martin Corp last week after reaching an agreement on who would cover the costs to fix a production error, the Pentagon told Reuters on Monday.

The terms of the agreement were not disclosed. The cost of the fix was $119 million, people familiar with the situation had previously told Reuters.

The Pentagon had stopped accepting the jets on March 29, the Pentagon's F-35 Joint Program office told Reuters in a statement. The dispute was over who was responsible for paying to fix corrosion related to an error discovered in the second half of 2017.

The military, U.S. allies that own F-35s and Lockheed Martin are making the necessary repairs to all aircraft, the Pentagon's office in charge of the fighter program said in the statement.

The majority of aircraft will be repaired within two years, the statement said.

Shares of Lockheed added to gains after the news and were up 1.4 percent at $315.90 in late afternoon.

Last year, the Pentagon stopped accepting F-35s for 30 days after discovering corrosion where panels were fastened to the airframe, an issue that affected more than 200 of the stealthy jets. Once a fix had been devised, the deliveries resumed, and Lockheed hit its target aircraft delivery numbers for 2017.

A lack of protective coating at the fastening point that would have prevented corrosion was identified as the primary problem, the Pentagon said at the time.

On Monday, Lockheed said an agreement had been reached with the Pentagon, adding that it expected to hit its F-35 delivery target of 91 aircraft for 2018. (Reporting by Mike Stone in Washington Editing by Chris Sanders and Matthew Lewis)</s>WASHINGTON: The US Department of Defense has resumed accepting F-35 jet deliveries from Lockheed Martin Corp after reaching an agreement on who would cover the costs to fix a production error, a Pentagon official said on Monday.The terms of the agreement were not disclosed. The cost of the fix was $119 million, people familiar with the situation had previously told Reuters.The Pentagon had stopped deliveries since at least April 11, when Lockheed first acknowledged to Reuters that the Pentagon was not taking new planes. The dispute was over who was responsible for paying to fix corrosion related to an error discovered in the second half of 2017.Last year, the Pentagon stopped accepting F-35s for 30 days after discovering corrosion where panels were fastened to the airframe, an issue that affected more than 200 of the stealthy jets. Once a fix had been devised, the deliveries resumed, and Lockheed hit its target aircraft delivery numbers for 2017.A lack of protective coating at the fastening point that would have prevented corrosion was identified as the primary problem, the Pentagon said at the time.Lockheed said an agreement had been reached with the Pentagon, adding that it expected to hit its F-35 delivery target of 91 aircraft for 2018.</s>Lockheed Martin Corp. is once again delivering new F-35 fighter jets, having arrived at an agreement with the U.S. Dept. of Defense over the maintenance costs on currently operating F-35s, a dispute that led the Pentagon on March 29 to stop accepting new aircraft.

The defect is described as airframe corrosion, which was first discovered in 2017.

No specific details of the agreement have been released by the Pentagon or Lockheed. Citing its own sources, Reuters news service reported the repairs will cost $119 million, and will be completed for all the affected aircraft within two years

The F-35 Lightning II Joint Strike Fighter is a single-engine aircraft fitted with Stealth technology and designed to deploy for ground attack or combat. More than 200 of the high-tech jets already are in service with the U.S. Air Force, U.S. Marine Corps, and U.S. Navy, and with defense forces in the U.K., Australia, Italy, Norway, and elsewhere.

Related: New Report Hints US May Slash F-35 Purchases

The F-35 program is beset by numerous cost-related problems, some relating to the delivery costs and others to maintenance issues. Lockheed and other major contractors have been working to reduce the unit costs for new deliveries, but maintenance issues present a separate budgetary concern for the service divisions. DoD has recently suggested that maintenance and repair costs to the jets currently in service could force it to reduce the number of new aircraft it purchases.

Lockheed and its F-35 program partners (Northrop Grumman Corp, Pratt & Whitney, and BAE Systems plc, and others) are scheduled to deliver 90 new jets this year, building toward a peak production rate of 160 new jets per year by 2023.</s>Take a look at just how the F-35 operates in the battle space.

DELIVERIES of the F-35 Lightning II stealth fighter have resumed after a clash between the Pentagon and Lockheed Martin over who pays to repair problems afflicting many of those already in service.

The company confirmed earlier this week that the stealth fighter was once again rolling off the production lines, with new deliveries being made to its US and international clients.

But who is responsible for the repair bill remains unknown.

And the incomplete nature of many existing F-35 stealth fighters is reportedly presenting real issues for pilots training to fly the advanced aircraft in combat.

Military.com reports the training unit at Eglin air force Base in Florida has its F-35s on ‘life support’ and is struggling to meet training requirements.

The issue emerged in March when the need to make quality control fixes to some 200 F-35s already delivered was raised.

While the nature of the new problems are being kept secret, a similar delivery shutdown was initiated last year after it was the corrosion of joints between the aircraft’s radar-absorbing composite panels and the aluminium structure was discovered.

Lockheed Martin was found responsible for not applying a specified corrosion-prevention treatment.

Reuters reports a Lockheed Martin spokesman this week refused to comment on whether it was their company or customers who will conduct the new repairs — or pay for them.

Lockheed spokesman Mike Friedman said: “While we don’t discuss specific cost figures and contracting terms, we have a comprehensive plan in place to effectively and efficiently address the F-35 hole primer issue.”

RELATED: Here’s the US vision for future air combat

“The F-35 Joint Program Office, along with the US services, international allies and Lockheed Martin, have implemented a comprehensive corrective action plan to make the necessary repairs to all aircraft while minimising impact to operations,” a statement reads. “The majority of aircraft will be complete within 24 months with the remaining aircraft completed as their availabilities/modification timing allows.”

The commander of the 33rd Fighter Wing which is training pilots in the F-35 told Military.com reports that it needs more aircraft and considerable upgrades to those it has.

Colonel Paul Moga said his unit had been forced to find workarounds to give its trainee pilots necessary time in the air.

“We are at the end of our rope as far as finding creative ways to generate more sorties in the same amount of daylight with the same aircraft, because you run the risk [of overrunning the fleet and breaking it],” Moga said.

Many of the fighters being used by the 33rd Wing are early production models, completed before many technical challenges had been solved. The issue is now both a lack of aircraft, and a lack of availability among the aircraft it has, he said.

“It stresses the system. Every single day we are maximum-performing in regards to the amount of student training that we do,” Moga said. “Everybody’s aware that that fleet is on life support right now.”

He places the blame at a lack of spare part availability, as well as the need to upgrade aircraft equipment and software to actual operational standards.

These are similar issues to those reported by the first unit to operate the Marine Corp’s F-35B ‘Jump Jet’ version of the Lightning II.</s>The contract calls for the production of GMLRS Alternative Warhead (AW) rockets, GMLRS Unitary rockets, Reduced-Range Practice Rockets (RRPRs) and integrated logistics support for the U.S. Army as well as GMLRS rounds for a number of international customers. Work will be performed at the Lockheed Martin facilities in Dallas and at the company's Precision Fires Center of Excellence in Camden, Ark.

"The GMLRS round continues to perform exceptionally well for our customers," said Gaylia Campbell, vice president of Precision Fires and Combat Maneuver Systems at Lockheed Martin. "And we are always executing continuous improvement initiatives to enhance performance, range and affordability of these critical rounds to assure they remain the preferred precision-strike option for our warfighters."

GMLRS is an all-weather rocket designed for fast deployment that delivers precision strike beyond the reach of most conventional weapons. The GMLRS AW was the first munition developed to service area targets without the effects of unexploded ordinance, complying with the DoD cluster munitions policy. GMLRS Unitary rockets greatly exceed the required combat reliability rate and have established a reputation for affordability. The RRPR allows users to train with realistic, full-motored rockets with limited flight range, making them ideal for smaller testing ranges.

In combat operations, each GMLRS rocket is packaged in a MLRS launch pod and is fired from the Lockheed Martin HIMARS or M270 family of launchers. For more than 40 years, Lockheed Martin Missiles and Fire Control has been the leading designer and manufacturer of long-range, surface-to-surface precision strike solutions, providing highly reliable, combat-proven systems like MLRS, HIMARS, ATACMS and GMLRS to domestic and international customers.

About Lockheed Martin 

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 100,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.</s>BETHESDA (dpa-AFX) - Lockheed Martin (LMT) said it received an $828 million not-to-exceed contract from the U.S. Army for Lot 13 production of Guided Multiple Launch Rocket System (GMLRS) rockets and associated equipment.



The contract calls for the production of GMLRS Alternative Warhead (AW) rockets, GMLRS Unitary rockets, Reduced-Range Practice Rockets (RRPRs) and integrated logistics support for the U.S. Army as well as GMLRS rounds for a number of international customers. Work will be performed at the Lockheed Martin facilities in Dallas and at the company's Precision Fires Center of Excellence in Camden, Ark.



Copyright RTT News/dpa-AFX</s>Capt. Michael Slotten, a 61st Fighter Squadron F-35 student pilot, climbs into an F-35 Lighting II at Luke Air Force Base, Arizona, July 7, 2017. (US Air Force photo/Staff Sgt. Jensen Stidham)

EGLIN AIR FORCE BASE, Fla. — One of the busiest F-35 Joint Strike Fighter training units is hoping the US Air Force can help relieve some of the pressures of training student pilots with ineffective resources.

The 33rd Fighter Wing, the leading training wing for F-35 student pilots, hopes it will receive additional F-35A aircraft, along with considerable upgrades to its existing fleet, to keep up with training demands, said Col. Paul Moga, commander of the 33rd Fighter Wing here.

"Right now, production is king. We've got to find ways to solve this aircrew crisis, and our contribution to that is getting our students through the training program as quickly as possible," Moga said, referring to the service's ongoing pilot shortage.

Military.com sat down with Moga, head of the F-35A Lightning II flying program, during a trip accompanying Air Force Secretary Heather Wilson to the base.

Moga said the unit has found smarter ways inside the existing structure of the 33rd to get more quality sorties into the curriculum despite limitations.

"We're the first Air Force wing to start doing what we call 'hot swaps,'" Moga said.

The term refers to different student/instructor pairs swapping out for back-to-back flights in a single aircraft in order to save time and execute more sorties.

But lately it's not enough.

Maj. Gen. Jay Silveria, US Air Force Warfare Center commander, walks out to an F-35A Lightning II with Lt. Col. Matt Renbarger, 58th Fighter Squadron commander, before his final qualification flight, at Eglin Air Force Base, Florida, September 26, 2014. US Air Force photo

"We are at the end of our rope as far as finding creative ways to generate more sorties in the same amount of daylight with the same aircraft, because you run the risk [of overunning the fleet and breaking it]," Moga said.

The 33rd maintains 25 F-35As. The US Navy, which also has a presence on the base and sends pilots through the training pipeline here, keeps 8 F-35Cs on station.

The wing is authorized to have 59 aircraft.

"It stresses the system. Every single day we are maximum-performing in regards to the amount of student training that we do," Moga said.

The sustainment of F-35s at Eglin is crucial to that training mission.

Although the F-35 is the Pentagon's newest and most advanced aircraft to date, the oldest of the fleet resides at the Florida base. Moga said the planes, part of Lockheed Martin Corp.'s earliest low rate initial production batches, need the additional work.

"Everybody's aware that that fleet is on life support right now, and they need to kind of crank up the machine a little bit if they plan on extending the utility of this fleet another five or 10 years," said Moga, who also oversees the maintenance training units here.

The fifth-generation stealth plane arrived here in 2011 and made the 33rd Fighter Wing the first US F-35 training unit. The first class of student pilots started training in 2013.

While Luke Air Force Base, Arizona, trains pilots in its "B course" program and flies more sorties, prospective pilots come to Eglin for its academic training center program.

An F-35A Lightning II team parks the aircraft for the first time at Mountain Home Air Force Base, Idaho, February 8, 2016. US Air Force photo

Luke's curriculum requires students to train for 8 months, more than double the time of pilots coming through training at Eglin. As a result, Eglin's throughput outpaces Luke's program even though it too only trains about six pilots at a time.

Moga said officials are trying to find ways to get more sorties out of the planes they have, but they are hopeful that additional F-35As can come to the base in the future to bulk up training for their students.

"Right now, just based on our availability and our mission capable rates, it's just not possible," Moga said.

The sustainment issues lie in the mission systems. Eglin's aircraft are "in dire need" of more mission system spare parts, the commander said.

The planes prospective pilots fly also have some of the oldest Block 2B software.

"They are the oldest software configuration outside some of the test aircraft out there," Moga said.

Moga said it could create a gap in training, as pilots who then head to Luke or Hill Air Force Base, Utah, would see newer software models.

"We can't produce a 3F graduate because we don't have any 3F aircraft," Moga said, referring to Block 3F software. The Defense Department's F-35 Joint Program Office is currently overseeing efforts to move to the even more advanced Block 4 software, which would give the F-35 a full range and larger weapons suite in combat operations sometime in the early 2020s.

The fleet here has only just now begun catching up with needed integration upgrades, Moga said.

And even if the wing received all the spare parts, a handful of aircraft are always down because they're receiving modifications or are getting depot maintenance, he added.

A Lockheed Martin F-35B Lightning II joint strike fighter flies toward its new home at Eglin Air Force Base, Florida, January 11, 2011. Thomson Reuters

Originally, Eglin was supposed to receive 107 aircraft. But in 2009, Valparaiso Mayor Bruce Arnold sued the Air Force over concerns that noise levels and increased activity would disrupt citizens living near the base.

Yet even if the wing is authorized to keep less than half of the originally planned 107, it still remains more than 20 fighters shy of what it needs.

Moga said the capacity at Eglin is there for more aircraft, with hangar space, accompanying maintenance units, and a wide range to train on.

"I just want people to be aware there are untapped resources here at Eglin and we need to start taking advantage of it," Moga said.

For example, he said, because of how the unit falls under Air Education and Training Command, there's an entire maintenance squadron that could support two units.

The base's infrastructure is only one piece of the puzzle.

If the base was in a position to get more jets, the production rate for F-35A pilots could increase. But that's only if the Air Force needs it to.

Air Combat Command, which oversees all the combat-coded squadrons in the service, would need to be ready to task and absorb those pilots if production ramps up.

"If we got 12 more jets, we could increase our training by about 60 percent," Moga said. "If we got another squadron of 24 aircraft, we could [more than] double our production."
The United States Department of Defense says it has resumed accepting deliveries of F-35 Lightning II fighter jets from manufacturer Lockheed Martin after resolving a dispute over a production error which was leading to corrosion.