FOU, Alm.del - 2015-16 - Endeligt svar på spørgsmål 165: Spm. om en redegørelse for konklusionerne og beregningerne i de amerikanske SAR rapporter, der evaluerer omkostningerne på at flyve henholdsvis Boeings Super Hornet (2012) og Lockheed Martins F-35 (2014), til forsvarsministeren

Forsvarsudvalget 2015-16
FOU Alm.del
Offentligt

Selected Acquisition Report (SAR)

RCS: DD-A&T(Q&A)823-198

F-35 Joint Strike Fighter Aircraft (F-35)

As of FY 2017 President's Budget

Defense Acquisition Management

Information Retrieval

(DAMIR)

UNCLASSIFIED

FOU, Alm.del - 2015-16 - Endeligt svar på spørgsmål 165: Spm. om en redegørelse for konklusionerne og beregningerne i de amerikanske SAR rapporter, der evaluerer omkostningerne på at flyve henholdsvis Boeings Super Hornet (2012) og Lockheed Martins F-35 (2014), til forsvarsministeren

F-35

December 2015 SAR

Table of Contents

Common Acronyms and Abbreviations for MDAP Programs

Program Information

Responsible Office

References

Mission and Description

Executive Summary

Threshold Breaches

Schedule

Performance

Track to Budget

Cost and Funding

Low Rate Initial Production

Foreign Military Sales

Nuclear Costs

Unit Cost

Cost Variance

Contracts

Deliveries and Expenditures

Operating and Support Cost

UNCLASSIFIED

F-35

December 2015 SAR

Common Acronyms and Abbreviations for MDAP Programs

Acq O&M - Acquisition-Related Operations and Maintenance

ACAT - Acquisition Category

ADM - Acquisition Decision Memorandum

APB - Acquisition Program Baseline

APPN - Appropriation

APUC - Average Procurement Unit Cost

$B - Billions of Dollars

BA - Budget Authority/Budget Activity

Blk - Block

BY - Base Year

CAPE - Cost Assessment and Program Evaluation

CARD - Cost Analysis Requirements Description

CDD - Capability Development Document

CLIN - Contract Line Item Number

CPD - Capability Production Document

CY - Calendar Year

DAB - Defense Acquisition Board

DAE - Defense Acquisition Executive

DAMIR - Defense Acquisition Management Information Retrieval

DoD - Department of Defense

DSN - Defense Switched Network

EMD - Engineering and Manufacturing Development

EVM - Earned Value Management

FOC - Full Operational Capability

FMS - Foreign Military Sales

FRP - Full Rate Production

FY - Fiscal Year

FYDP - Future Years Defense Program

ICE - Independent Cost Estimate

IOC - Initial Operational Capability

Inc - Increment

JROC - Joint Requirements Oversight Council

$K - Thousands of Dollars

KPP - Key Performance Parameter

LRIP - Low Rate Initial Production

$M - Millions of Dollars

MDA - Milestone Decision Authority

MDAP - Major Defense Acquisition Program

MILCON - Military Construction

N/A - Not Applicable

O&M - Operations and Maintenance

ORD - Operational Requirements Document

OSD - Office of the Secretary of Defense

O&S - Operating and Support

PAUC - Program Acquisition Unit Cost

UNCLASSIFIED

F-35

December 2015 SAR

PB - President’s Budget

PE - Program Element

PEO - Program Executive Officer

PM - Program Manager

POE - Program Office Estimate

RDT&E - Research, Development, Test, and Evaluation

SAR - Selected Acquisition Report

SCP - Service Cost Position

TBD - To Be Determined

TY - Then Year

UCR - Unit Cost Reporting

U.S. - United States

USD(AT&L) - Under Secretary of Defense (Acquisition, Technology and Logistics)

UNCLASSIFIED

F-35

December 2015 SAR

Program Information

Program Name

F-35 Joint Strike Fighter Aircraft (F-35)

DoD Component

DoD

Joint Participants

United States Navy; United States Air Force; United States Marine Corps; United Kingdom; Italy; The Netherlands; Turkey;

Canada; Australia; Denmark; Norway

The F-35 Program is a joint DoD program for which Service Acquisition Executive Authority alternates between the

Department of the Navy (DoN) and the Department of the Air Force, and currently resides with the DoN.

Responsible Office

Lt Gen Christopher Bogdan

F-35 Lightning II Program Office

200 12th St South

Suite 600

Arlington, VA 22202-5402

[email protected]

Phone:

Fax:

DSN Phone:

DSN Fax:

Date Assigned:

703-601-5602

703-602-7649

329-5650

December 6, 2012

UNCLASSIFIED

F-35

December 2015 SAR

References

F-35 Aircraft

SAR Baseline (Development Estimate)

Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated March 26, 2012

Approved APB

Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated June 18, 2014

F-35 Engine

SAR Baseline (Development Estimate)

Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated March 26, 2012

Approved APB

Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated June 18, 2014

UNCLASSIFIED

F-35

December 2015 SAR

Mission and Description

The F-35 Joint Strike Fighter Aircraft (F-35) Program will develop and field an affordable, highly common family of next-

generation strike aircraft for the U.S. Navy, Air Force, Marine Corps, and allies. The three variants are the F-35A; F-35B;

and the F-35C. The F-35A will be a stealthy multi-role aircraft, primarily air-to-ground, for the Air Force to replace the F-16

and A-10 and complement the F-22. The F-35B variant will be a multi-role strike fighter aircraft to replace the AV-8B and F/A

-18A/C/D for the Marine Corps. The F-35C will provide the U.S. Navy a multi-role, stealthy strike fighter aircraft to

complement the F/A-18E/F. The planned DoD F-35 Fleet will replace the joint services' legacy fleets. The transition from

multiple type/model/series to a common platform will result in a smaller total force over time and operational and overall cost

efficiencies.

UNCLASSIFIED

F-35

December 2015 SAR

Executive Summary

The F-35 remains the DoD’s largest cooperative acquisition program, with eight International Partners participating with the

U.S. under Memorandums of Understanding for System Development and Demonstration (SDD) and Production,

Sustainment and Follow-on Development. Additionally, the program currently has three FMS customers. The F-35 program

is executing well across the entire spectrum of acquisition, to include development and design, flight test, production,

fielding and base stand-up, sustainment of fielded aircraft, and building a global sustainment enterprise.

The program is transitioning from slow and steady progress to a rapidly growing and accelerating Program. However, the

Program is not without risks and challenges. The completion of Mission Systems Software development and Autonomic

Logistics Information System (ALIS) development are the most prominent, current technical risks. The ability to standup four

separate Reprogramming Labs, complete all weapons envelope testing for Block 3F, and start Operational Test (OT) on

time, constitute the main schedule risks. Program leadership remains confident that it will deliver the full F-35 capability as

promised.

Successes and challenges in 2015: The F-35 Program closed out 2015 by executing the plan for test flights, total test points

and baseline test points. The test teams at Edwards Air Force Base (AFB) and Naval Air Station, Patuxent River, MD

completed 1374 actual flights (plan: 1286), 9582 total test points (plan: 9427) and 7798 baseline test points (plan: 7786).

The Program also met the production goal for the year by accepting its 45th aircraft delivery. This represented a 25 percent

increase from last year’s goal that was also met: the most aircraft delivered in one year in program history. These deliveries

included the first international delivery from the Italian Final Assembly and Check Out (FACO), and bring the overall

operational delivery total to 157 (146 U.S. aircraft as reflected in the Deliveries and Expenditure Section of the SAR, and 11

International Partner Aircraft) as of February 3, 2016. Along with Italy, Norway took its first delivery in 2015. Five partner

nations: Australia, Italy, the Netherlands, Norway and the United Kingdom, along with the Air Force, Marine Corps and Navy,

now fly the F-35. Israel and Japan will take their first deliveries in 2016.

Block 3i software was released for flight test in May 2015, to support the U.S. Air Force IOC declaration later in 2016. Coding

for the final development software block 3F, was completed in June 2015 and the software has been released for flight

testing. Additional updates are planned throughout the year with 3F tracking for completion by the end of the SDD in the fall

of 2017, to support U.S. Navy IOC in 2018 and the start of Initial Operational Test and Evaluation (IOT&E). Throughout

testing, interim software test builds are provided to both the developmental test and operational test teams, allowing them to

experience the software as early as possible and provide feedback. As of December 31, 2015, the program completed 80

percent of SDD test points and is on track for completion in the fourth quarter of 2017.

At the completion of the F-35 SDD program, the objective is to deliver full Block 3F capabilities (Mission Systems, Weapons

& Flight Envelope) for the Services and International customers. The F-35 program will continue to coordinate closely with

the JSF Operational Test Team and Director, Operational Test and Evaluation, on key test planning and priorities to

successfully meet significant SDD program milestones and objectives.

Currently, mission systems software and the ALIS system, are the program’s top technical risks. Disciplined systems

engineering processes, addressing the complexity of writing, testing, and integrating mission systems and ALIS software,

have improved the delivery of capability, although challenges remain.

F-35 Total Program Cost:

The BY dollar increase in RDT&E of approximately $300M is the result of a transfer of money from the Procurement

account to the RDT&E account to fund the modification of 24 OT aircraft for IOT&E. This transfer out of Procurement into

RDT&E had a zero net effect on Total Program Cost.

The BY dollar reduction in the estimated $7.5B Procurement Costs through the life of the program was the result of a

combination of increases and decreases within the Procurement account. Elements of the account that increased when

compared to last year's SAR estimate included increased labor rates, the addition of Electronic Warfare Band 2/5 capability

UNCLASSIFIED

F-35

December 2015 SAR

and updating the quantity profile. Elements in the account that decreased included; updated actuals for aircraft and engine

cost, and a change in inflation indices.

The net BY dollar increase in the estimated O&S of $23B (CAPE) and $43.3B (Joint Program Office (JPO)) were the result

of both increases and decreases within the O&S account, with U.S. Services' changes in aircraft life expectancy and bed

down plans overshadowing real reductions in O&S costs.

Business perspective: The price of the F-35 variants continues to decline steadily. For example, the price (including

airframe, engine and profit) of an LRIP Lot 8 aircraft was approximately 3.6 percent less than an LRIP Lot 7 aircraft, and an

LRIP Lot 7 aircraft, was 4.2 percent lower than an LRIP Lot 6 aircraft. LRIP Lots 9 and 10 contract negotiations are nearing

completion and the contract award is anticipated by late spring of this year.

The F-35 JPO is exploring the possibility of entering into a Block Buy Contract, for LRIP Lots 12-14 (FY 2018- FY2020). A

block buy would enable the JPO to save a significant amount of money by allowing the contractors to use Economic Order

Quantity purchases; enabling manufacturers to maximize production economies of scale, through bulk orders.

Earlier this year, the program reached agreement with Pratt & Whitney on the next two lots of F135 propulsion systems.

The LRIP Lots 9 and 10 will continue the price improvements realized on previous lots and the F135 engine is meeting War

on Cost commitments. For calendar year 2015, F135 production deliveries met contract requirements. However, recurring

manufacturing quality issues continue to hamper consistent engine deliveries. Recent quality escapes on turbine blades and

electronic control systems resulted in maintenance activity to remove suspect hardware from the operational fleet. Pratt &

Whitney has taken action to improve quality surveillance within their manufacturing processes and program office

manufacturing quality experts have engaged to ensure quality improvements are in place to meet production ramp

requirements.

Sustainment: Last year the JPO provided information regarding its efforts toward the establishment of the Global

Sustainment posture across Europe, Asia-Pacific and North America. In 2015, the F-35’s strong international team made

marked progress in delivering this capability to F-35 users and the program is on track to standing up regional Maintenance,

Repair, Overhaul, and Upgrade (MRO&U) capabilities for airframes and engines, for both the European and Pacific

Regions. These initial MRO&U assignments will support near-term F-35 airframe and engine overseas operations and

maintenance and will be reviewed and updated approximately every five years.

In the European region, Italy will provide F-35 initial airframe MRO&U capability in 2018. Also in 2018, engine heavy

maintenance in the European region will initially be provided by Turkey. The Netherlands and Norway will provide additional

engine heavy maintenance approximately two-to-three years after Turkey’s initial capability.

In the Pacific region, F-35 airframe MRO&U capability will be provided by Japan for the Northern Pacific and in the Southern

Pacific by Australia, with both capabilities required by early 2018. For F-35 engine heavy maintenance in the Pacific, the

initial capability will be provided by Australia by early 2018, with Japan providing additional capability five-to-seven years later.

In 2015, the program also kicked-off initial planning efforts for expansion of component repair into the European and Pacific

regions. Working through the F-35 Regional Capabilities Working Group forum, efforts began to identify ‘best value’ repair

sources in each region for approximately 18 key depot-level repairable items. Early program analysis indicates that grouping

certain components by common repair, test set and skills, can yield life cycle cost savings. Partners and their industries will

be requested to propose groupings, that leverage their strongest industrial competencies, to deliver optimum repair

capability at best cost to the global sustainment solution.

International and FMS: International participation in the program remains strong and the program is now training International

Partner pilots at Luke AFB.

In 2015, the first Royal Norwegian Air Force, F-35 rolled out and had its first flight from the Fort Worth Texas assembly

facility. The first Italian Air Force, F-35A rolled out of the production facility in Cameri Italy, and a few months later completed

the first F-35 transatlantic flight, landing at Naval Air Station, Patuxent River, Maryland. Additionally, the program began F-

35A aerial refueling flight testing with a Royal Australian Air Force KC-30A tanker and completed F-35A aerial refueling flight

testing with an Italian Air Force KC-767 tanker.

UNCLASSIFIED

F-35

December 2015 SAR

Initial site planning for the standup of maintenance capabilities in Norway, the Netherlands, Turkey, United Kingdom, Israel,

Japan and Korea commenced in 2015. The Japanese FACO assembly facility is now complete with both Electronic Mate

Assembly Stations, tools installed and accepted and the first Japanese F-35A is scheduled to rollout of the facility in

November 2016. Finally, construction and installation activities remain on schedule, with major components currently being

shipped.

In March 2012, in conjunction with the Milestone B decision, certification was made pursuant to section 2366b of title 10,

United States Code (U.S.C.). However, at that time, the MDA waived provision (3)(C) (now 3(G)), which certifies that the

JROC has accomplished its duties pursuant to section 181(b) of title 10, U.S.C., including an analysis of the operational

requirements for the program. The JROC accomplished the bulk of its duties under section 181(b); however, because at

that time, the IOC dates remained "TBD" by the Services, a waiver had been in place. In June 2013, the Services sent a joint

report to the U.S. Congress detailing their IOC requirements and dates. On April 22, 2015, the USD(AT&L) certified that this

provision has been satisfied because IOC Objective and Threshold dates for each of the three Services, Air Force, Marine

Corps, and Navy, have now been established.

UNCLASSIFIED

F-35

December 2015 SAR

Threshold Breaches

F-35 Aircraft

APB Breaches

Schedule

Performance

Cost

RDT&E

Procurement

MILCON

Acq O&M

O&S Cost

Unit Cost

PAUC

APUC

Nunn-McCurdy Breaches

Current UCR Baseline

PAUC

APUC

Original UCR Baseline

PAUC

APUC

None

F-35 Engine

APB Breaches

Schedule

Performance

Cost

RDT&E

Procurement

MILCON

Acq O&M

O&S Cost

Unit Cost

PAUC

APUC

Nunn-McCurdy Breaches

Current UCR Baseline

PAUC

APUC

Original UCR Baseline

PAUC

APUC

None

UNCLASSIFIED

F-35

December 2015 SAR

Schedule

UNCLASSIFIED

F-35

December 2015 SAR

F-35 Aircraft

Schedule Events

Events

Concept Demonstration Contract Award

Milestone B

EMD Contract Award

Preliminary Design Review

CDR

CDR (CTOL&Common)

CDR (STOVL&Common)

CDR (CV&Common)

DAE (IPR 1)

1st Flt CTOL

DAE (IPR 2)

1st Flt STOVL

1st Flt CV

1st Production Aircraft Delivered

Milestone B Re-approval

Block 2B Fleet Release

USMC IOC

USAF IOC

Block 3F Fleet Release

USN IOC

Completed IOT&E

Full Rate Production Decision

DAB Milestone C

Change Explanations

None

Feb 2006

Jun 2007

Mar 2006

Dec 2006

Apr 2007

Jun 2008

Jun 2010

May 2011

Mar 2012

Mar 2015

TBD

Aug 2017

TBD

Feb 2019

Apr 2019

Feb 2006

Jun 2007

Mar 2006

Dec 2006

Apr 2007

Jun 2008

May 2010

May 2011

Nov 2011

Mar 2015

Jul 2015

Aug 2016

Aug 2017

Aug 2018

Feb 2019

Apr 2019

Feb 2006

Jun 2007

Mar 2006

Dec 2006

Apr 2007

Jun 2008

May 2010

May 2011

May 2012

Sep 2015

Dec 2015

Dec 2016

Feb 2018

Feb 2019

Aug 2019

Oct 2019

Feb 2006

Jun 2007

Mar 2006

Dec 2006

Apr 2007

Jun 2008

May 2010

May 2011

Mar 2012

Jun 2015

Jul 2015

Aug 2016

Aug 2017

Aug 2018

Feb 2019

Apr 2019

SAR Baseline

Development

Estimate

Nov 1996

Oct 2001

Apr 2003

Current APB

Development

Objective/Threshold

Nov 1996

Oct 2001

Mar 2003

Nov 1996

Apr 2002

Oct 2001

Mar 2003

Current

Estimate

Nov 1996

Oct 2001

Mar 2003

UNCLASSIFIED

F-35

December 2015 SAR

Acronyms and Abbreviations

CDR - Critical Design Review

CTOL - Conventional Takeoff and Landing

CV - Aircraft Carrier Suitable Variant

Flt - Flight

IOT&E - Initial Operational Test and Evaluation

IPR - Interim Progress Review

STOVL - Short Takeoff and Vertical Landing

USAF - United States Air Force

USMC - United States Marine Corps

USN - United States Navy

UNCLASSIFIED

F-35

December 2015 SAR

F-35 Engine

Schedule Events

Events

See Note

Change Explanations

None

Notes

Schedule milestones for the F-35 Engine subprogram are captured as part of the system-level schedule milestones

reflected in the F-35 Aircraft subprogram.

SAR Baseline

Development

Estimate

N/A

Current APB

Development

Objective/Threshold

N/A

Current

Estimate

N/A

UNCLASSIFIED

F-35

December 2015 SAR

Performance

F-35 Aircraft

Performance Characteristics

SAR Baseline

Development

Estimate

With four 1000# JDAMs

and two internal AIM-120s,

full expendables, execute

a 600 foot (450 UK

STOVL) STO from LHA,

LHD, and aircraft carriers

(sea level, tropical day, 10

kts operational WOD) and

with a combat radius of

550 nm (STOVL profile).

Also must perform STOVL

vertical landing with two

1000# JDAMs and two

internal AIM-120s, full

expendables, and fuel to

fly the STOVL Recovery

profile.

Current APB

Development

Objective/Threshold

With four 1000# JDAMs

and two internal AIM-

120s, full expendables,

execute a 600 foot (450

UK STOVL) STO from

LHA, LHD, and aircraft

carriers (sea level,

tropical day, 10 kts

operational WOD) and

with a combat radius of

550 nm (STOVL profile).

Also must perform

STOVL vertical landing

with two 1000# JDAMs

and two internal AIM-

120s, full expendables,

and fuel to fly the STOVL

Recovery profile.

690

550

730

98%

Demonstrated

Performance

Current

Estimate

STOVL Mission Performance - STO Distance Flat Deck

With two 1000# JDAMs TBD

and two internal AIM-

120s, full expendables,

execute a 600 foot (450

UK STOVL) STO from

LHA, LHD, and aircraft

carriers (sea level,

tropical day, 10 kts

operational WOD) and

with a combat radius of

450 nm (STOVL profile).

Also must perform

STOVL vertical landing

with two 1000# JDAMs

and two internal AIM-

120s, full expendables,

and fuel to fly the STOVL

Recovery profile.

590

450

600

93%

95%

TBD

Execute 558

ft. STO with 2

JDAM

(internal), 2

AIM-120

(internal), fuel

to fly 467nm

(Ch-1)

Combat Radius NM -CTOL Variant

690

550

730

98%

625

467

630

97%

98%

Less than or

equal to 8 C-

equivalents

(Ch-2)

(Ch-1)

Combat Radius NM -STOVL Variant

(Ch-1)

Combat Radius NM -CV Variant

(Ch-1)

Mission Reliability - CTOL Variant

Mission Reliability - CV Variant

Mission Reliability - STOVL Variant

Logistics Footprint - CTOL Variant

Less than or equal to 6 C- Less than or equal to 6 C Less than or equal to 8 C TBD

17 equivalents

-17 equivalents

-17 equivalent loads

UNCLASSIFIED

F-35

December 2015 SAR

Logistics Footprint - CV Variant

Less than or equal to

34,000 cu ft., 183 ST

Less than or equal to

34,000 cu ft., 183 ST

Less than or equal to

46,000 cu ft., 243 ST

TBD

Less than or

equal to

38,800 cu ft.,

217 ST

Less than or

equal to 7 C-

equivalents

Less than or

equal to

17,400 cu ft,

100 ST

3.4/3.0/2.0

2.5 ASD

3.0/3.0/1.0

1.8 ASD

5.2/4.0/2.0

1.1 ASD

Vpa.

Maximum

approach

speed (Vpa)

at required

carrier

landing

weight

(RCLW) of

less than 144

knots.

(Ch-2)

Logistics Footprint - STOVL Variant

Less than or equal to 4 C- Less than or equal to 4 C Less than or equal to 8 C TBD

17 equivalents

-17 equivalents

-17 equivalent loads

(Ch-2)

Logistics Footprint - STOVL Variant L-Class

Less than or equal to

15,000 cu ft, 104 ST

Less than or equal to

15,000 cu ft, 104 ST

Less than or equal to

21,000 cu ft, 136 ST

TBD

(Ch-2)

Sortie Generation Rates - CTOL Variant

4.0/3.0/2.0 2.5 ASD

3.0/2.0/1.0 2.5 ASD

TBD

(Ch-2)

Sortie Generation Rates - CV Variant

4.0/3.0/1.0 1.8 ASD

3.0/2.0/1.0 1.8 ASD

TBD

(Ch-2)

Sortie Generation Rates - STOVL Variant (USMC)

6.0/4.0/2.0 1.1 ASD

4.0/3.0/1.0 1.1 ASD

TBD

(Ch-2)

CV Recovery Performance (Vpa)

Vpa. Maximum approach

speed (Vpa) at required

carrier landing weight

(RCLW) of less than 140

knots.

Vpa at required carrier

landing weight (RCLW)

of less than 140 knots.

Vpa at required carrier

landing weight (RCLW)

of less than 145 knots.

TBD

Classified Performance information is provided in the classified annex to this submission.

Requirements Reference

Operational Requirements Document (ORD) Change 3 dated August 19, 2008 as modified by Joint Requirements

Oversight Council Memorandum 040-12 dated March 16, 2012

UNCLASSIFIED

F-35

December 2015 SAR

Change Explanations

(Ch-1) Performance characteristic current estimate updated to reflect a change in the Combat Radius and STOVL Mission

Performance characteristics. Fuel use margin was reduced from 4% to 3% based on refined understanding of drag and

installed propulsion performance. Program anticipates further margin reduction and concomitant performance

improvements as flight test draws to a conclusion over the next 18 months.

(Ch-2) The PEO completed the initial portion of a more comprehensive and accurate assessment of the SGR and Log

Footprint KPPs. This update more accurately reflects the capability of the design when operated in accordance with current

fleet policies and procedures. This differs from the prior, contractual analysis by capturing the demonstrated and predicted

performance of the air system design (vice modeled) and adding operationally representative fleet policies and procedures

(in the SGR case).

Notes

The F-35 Program is currently in developmental testing, and will provide demonstrated performance with the Block 3F full

capability aircraft.

Acronyms and Abbreviations

ASD - Average Sortie Duration

CTOL - Conventional Takeoff and Landing

CU FT - Cubic Feet

CV - Aircraft Carrier Suitable Variant

JDAM - Joint Direct Attack Munitions

KTS - Knots

NM - Nautical Miles

RCLW - Required Carrier Landing Weight

SGR - Sortie Generation Rate

ST - Short Tons

STO - Short Takeoff

STOVL - Short Takeoff and Vertical Landing

Vpa - Max Approach Speed

WOD - Wind Over the Deck

UNCLASSIFIED

F-35

December 2015 SAR

F-35 Engine

Performance Characteristics

SAR Baseline

Development

Estimate

See Note

N/A

Requirements Reference

Operational Requirements Document (ORD) Change 3 dated August 19, 2008 as modified by Joint Requirements

Oversight Council Memorandum 040-12 dated March 16, 2012

N/A

TBD

N/A

Current APB

Development

Objective/Threshold

Demonstrated

Performance

Current

Estimate

Change Explanations

None

Notes

Performance characteristics for the F-35 Engine subprogram are captured as part of the system-level performance

characteristics reflected in the F-35 Aircraft subprogram.

UNCLASSIFIED

F-35

December 2015 SAR

Track to Budget

F-35 Aircraft

General Notes

F-35 is DoD's largest cooperative development program. In addition to DoD's funding lines, eight International Partners are

providing funding in the System Development and Demonstration (SDD) Phase under a Memorandum of Understanding

(MOU): United Kingdom, Italy, The Netherlands, Turkey, Canada, Australia, Denmark, and Norway. All but Turkey and

Australia were partners in the prior phase. Associated financial contributions are reflected in the Annual Funding section

as Appropriation 9999, RDT&E Non-Treasury Funds. RDT&E cost excludes Follow-on Modernization Funding: F-35A/B/C

Follow-on Development (FOD); F-35B/C Sustainment/Capability Enhancements; F-35A Deployability and Suitability

Enhancements; and F-35A Dual Capable Aircraft Enhancements.

RDT&E

Appn

Navy

1319

Project

2209

1319

Project

2262

1319

Project

2261

3194

Air Force

3600

Project

2025

3600

Project

0603800N

Name

RDT&E, Navy CDP

0604800M

Name

Joint Strike Fighter - EMD

0604800N

Name

JT Strike Fighter - EMD

RDT&E, Navy EMD/Joint Reprogramming

Center

0603800F

Name

RDT&E, Air Force CDP

0604800F

Name

F-35 - EMD

0603800E

Name

RDT&E, DARPA

Procurement

Appn

Navy

Name

(Sunk)

Navy

(Sunk)

Air Force

3831

Defense-Wide 0400

Project

1506

01 0204146N

Line Item

Navy

0147

Joint Strike Fighter CV

1506

01 0204146M

Line Item

Name

UNCLASSIFIED

F-35

December 2015 SAR

Navy

0152

JSF STOVL

1506

05 0204146M

Line Item

0592

F-35 STOVL Series

1506

05 0204146N

Line Item

0593

F-35 CV Series

1506

06 0204146M

Line Item

Name

Navy

Name

Navy

Name

(Shared)

Navy

0605

Spares and Repair Parts

1506

06 0204146N

Line Item

Name

0605

Spares and Repair Parts

3010

06 0207142F

Line Item

Name

000999

Initial Spares/Repair Parts

3010

01 0207142F

Line Item

Name

ATA000

F-35

3010

05 0207142F

Line Item

F03500

F-35 Modifications

1205

Project

1205

Project

1205

Project

3300

Project

3300

Project

3300

Project

0212576N

Name

MILCON, USN

0216496M

Name

MILCON, USN

0816376N

Name

MILCON, USN

0052635F

Name

MILCON, AF

0207142F

Name

MILCON, AF

0207597F

Name

MILCON, AF

(Shared)

Air Force

(Shared)

Air Force

Name

MILCON

Appn

Navy

(Shared)

Navy

(Shared)

Navy

(Shared) (Sunk)

Air Force

(Shared)

Air Force

(Shared)

Air Force

(Shared)

UNCLASSIFIED

F-35

December 2015 SAR

F-35 Engine

General Notes

F-35 is DoD's largest cooperative development program. In addition to DoD's funding lines, eight International Partners are

providing funding in the System Development and Demonstration (SDD) Phase under a Memorandum of Understanding

(MOU): United Kingdom, Italy, The Netherlands, Turkey, Canada, Australia, Denmark, and Norway. All but Turkey and

Australia were partners in the prior phase. Associated financial contributions are reflected in the Annual Funding section

as Appropriation 9999, RDT&E Non-Treasury Funds. RDT&E cost excludes Follow-on Modernization funding: F-35A/B/C

Follow-on Development (FOD); F-35B/C Sustainment/Capability Enhancements; F-35A Deployability and Suitability

Enhancements; and F-35A Dual Capable Aircraft Enhancements.

RDT&E

Appn

Navy

1319

Project

2209

1319

Project

2262

1319

Project

2261

3194

9999

3600

Project

2025

3600

Project

3831

Defense-Wide 0400

Project

0603800N

Name

RDT&E, Navy CDP

0604800M

Name

RDT&E, Marine Corps

0604800N

Name

RDT&E, Navy EMD/JSF

RDT&E, Navy EMD/Joint Reprogramming

Center

RDT&E, Navy EMD/Congressional Adds

0603800F

Name

RDT&E, Air Force CDP

0604800F

Name

RDT&E, Air Force EMD/Joint Strike Fighter

Quantity of RDT&E Articles

0603800E

Name

RDT&E, DARPA

Procurement

Appn

Navy

Name

(Sunk)

Navy

Air Force

(Sunk)

Air Force

1506

01 0204146N

Line Item

0147

JSF (Navy)

1506

01 0204146M

Line Item

0152

JSF (Marine Corps)

Navy

Name

UNCLASSIFIED

F-35

December 2015 SAR

Navy

1506

06 0204146M

Line Item

Name

(Shared)

Navy

0605

Initial Spares (Marine Corps)

1506

06 0204146N

Line Item

Name

0605

Initial Spares (Navy)

3010

06 0207142F

Line Item

(Shared)

Name

(Shared)

Air Force

000999

Initial Spares (Air Force)

3010

01 0207142F

Line Item

Name

ATA000

JSF (Air Force)

3010

05 0207142F

Line Item

F03500

Mods (Air Force)

Air Force

Name

UNCLASSIFIED

F-35

December 2015 SAR

Cost and Funding

Cost Summary - Total Program

Total Acquisition Cost - Total Program

BY 2012 $M

Appropriation

SAR Baseline

Current APB

Development

Estimate

Objective/Threshold

59677.3

266665.8

4168.0

0.0

330511.1

59398.1

266665.8

4168.0

0.0

330231.9

N/A

Current

Estimate

59491.2

249667.8

222668.7

197002.0

25666.7

26999.1

16223.6

10775.5

4101.4

0.0

313260.4

TY $M

SAR Baseline Current APB

Current

Development Development

Estimate

Objective

55233.8

335680.7

4797.3

0.0

395711.8

55182.9

335680.7

4797.3

0.0

395660.9

55133.0

319115.7

286951.9

255294.7

31657.2

32163.8

19225.3

12938.5

4793.3

0.0

379042.0

RDT&E

Procurement

Flyaway

Recurring

Non Recurring

Support

Other Support

Initial Spares

MILCON

Acq O&M

Total

UNCLASSIFIED

F-35

December 2015 SAR

Cost and Funding

Cost Summary - F-35 Aircraft

Total Acquisition Cost - F-35 Aircraft

BY 2012 $M

Appropriation

SAR Baseline

Current APB

Development

Estimate

Objective/Threshold

47982.1

224332.9

4168.0

0.0

276483.0

46457.5

224332.9

4168.0

0.0

274958.4

51103.3

246766.2

4584.8

0.0

N/A

Current

Estimate

46368.6

211290.9

189120.8

166222.4

22898.4

22170.1

14549.0

7621.1

4101.4

0.0

261760.9

TY $M

SAR Baseline Current APB

Current

Development Development

Estimate

Objective

44410.1

282647.8

4797.3

0.0

331855.2

43360.7

282647.8

4797.3

0.0

330805.8

43170.1

270427.5

244057.7

215735.2

28322.5

26369.8

17248.4

9121.4

4793.3

0.0

318390.9

RDT&E

Procurement

Flyaway

Recurring

Non Recurring

Support

Other Support

Initial Spares

MILCON

Acq O&M

Total

Current APB Cost Estimate Reference

Cost Assessment and Program Evaluation (CAPE) Independent Cost Estimate (ICE) dated March 09, 2012

Confidence Level

Confidence Level of cost estimate for current APB: 50%

This estimate, like all previous Cost Analysis Improvement Group (CAIG) and Cost Assessment and Program Evaluation

(CAPE) estimates, is built upon a product-oriented work breakdown structure; is based on historical actual cost

information to the maximum extent possible; and, most importantly, is based on conservative assumptions that are

consistent with actual demonstrated contractor and government performance for a series of acquisition programs in which

the Department has been successful.

It is difficult to calculate mathematically the precise confidence levels associated with life-cycle cost estimates prepared

for Major Defense Acquisition program (MDAPs). Based on the rigor in methods used in building estimates, the strong

adherence to the collection and use of historical cost information, and the review of applied assumptions, we project that it

is about equally likely that the estimates will prove too low or too high for execution of the program described.

UNCLASSIFIED

F-35

December 2015 SAR

Quantity

RDT&E

Procurement

Total

Total Quantity - F-35 Aircraft

SAR Baseline

Current APB

Development

Estimate

2443

2457

2443

2457

Current Estimate

2443

2457

UNCLASSIFIED

F-35

December 2015 SAR

Cost Summary - F-35 Engine

Total Acquisition Cost - F-35 Engine

BY 2012 $M

Appropriation

SAR Baseline

Current APB

Development

Estimate

Objective/Threshold

11695.2

42332.9

0.0

54028.1

12940.6

42332.9

0.0

55273.5

14234.7

46566.2

0.0

N/A

Current

Estimate

13122.6

38376.9

33547.9

30779.6

2768.3

4829.0

1674.6

3154.4

0.0

51499.5

TY $M

SAR Baseline Current APB

Current

Development Development

Estimate

Objective

10823.7

53032.9

0.0

63856.6

11822.2

53032.9

0.0

64855.1

11962.9

48688.2

42894.2

39559.5

3334.7

5794.0

1976.9

3817.1

0.0

60651.1

RDT&E

Procurement

Flyaway

Recurring

Non Recurring

Support

Other Support

Initial Spares

MILCON

Acq O&M

Total

Current APB Cost Estimate Reference

Cost Assessment and Program Evaluation (CAPE) Independent Cost Estimate (ICE) dated March 09, 2012

Confidence Level

Confidence Level of cost estimate for current APB: 50%

This estimate, like all previous Cost Analysis Improvement Group (CAIG) and Cost Assessment and Program Evaluation

(CAPE) estimates, is built upon a product-oriented work breakdown structure; is based on historical actual cost

information to the maximum extent possible; and, most importantly, is based on conservative assumptions that are

consistent with actual demonstrated contractor and government performance for a series of acquisition programs in which

the Department has been successful.

It is difficult to calculate mathematically the precise confidence levels associated with life-cycle cost estimates prepared

for Major Defense Acquisition program (MDAPs). Based on the rigor in methods used in building estimates, the strong

adherence to the collection and use of historical cost information, and the review of applied assumptions, we project that it

is about equally likely that the estimates will prove too low or too high for execution of the program described.

Quantity

RDT&E

Procurement

Total

Total Quantity - F-35 Engine

SAR Baseline

Current APB

Development

Estimate

2443

2457

2443

2457

Current Estimate

2443

2457

UNCLASSIFIED

F-35

December 2015 SAR

Cost and Funding

Funding Summary - Total Program

Appropriation Summary

FY 2017 President's Budget / December 2015 SAR (TY$ M)

Appropriation

RDT&E

Procurement

MILCON

Acq O&M

PB 2017 Total

PB 2016 Total

Delta

Prior

51881.1

46173.0

1489.6

0.0

99543.7

99532.9

10.8

FY 2016

1506.2

9876.8

292.7

0.0

11675.7

10959.5

716.2

FY 2017

1436.9

8703.0

571.7

0.0

10711.6

11586.7

-875.1

FY 2018

273.3

10593.3

165.7

0.0

11032.3

12093.5

-1061.2

FY 2019

14.9

10402.1

183.5

0.0

10600.5

12034.6

-1434.1

FY 2020

11.2

11278.6

135.7

0.0

11425.5

11906.9

-481.4

FY 2021

9.4

13107.0

116.2

0.0

13232.6

12358.6

874.0

Complete

Total

0.0 55133.0

208981.9 319115.7

1838.2

4793.3

0.0

210820.1 379042.0

220662.0 391134.7

-9841.9 -12092.7

UNCLASSIFIED

F-35

December 2015 SAR

Cost and Funding

Funding Summary - F-35 Aircraft

Appropriation Summary

FY 2017 President's Budget / December 2015 SAR (TY$ M)

Appropriation

RDT&E

Procurement

MILCON

Acq O&M

PB 2017 Total

PB 2016 Total

Delta

Prior

40174.4

39405.5

1489.6

0.0

81069.5

81040.1

29.4

FY 2016

1306.6

8625.9

292.7

0.0

10225.2

9508.6

716.6

FY 2017

1380.3

7194.4

571.7

0.0

9146.4

10072.4

-926.0

FY 2018

273.3

8784.0

165.7

0.0

9223.0

10305.4

-1082.4

FY 2019

14.9

8627.7

183.5

0.0

8826.1

10076.7

-1250.6

FY 2020

11.2

9366.7

135.7

0.0

9513.6

9893.0

-379.4

FY 2021

9.4

10866.2

116.2

0.0

10991.8

10216.9

774.9

Complete

Total

0.0 43170.1

177557.1 270427.5

1838.2

4793.3

0.0

179395.3 318390.9

183008.2 324121.3

-3612.9

-5730.4

Quantity Summary

FY 2017 President's Budget / December 2015 SAR (TY$ M)

Quantity

Development

Production

PB 2017 Total

PB 2016 Total

Delta

Undistributed

Prior

217

2016

2017

-3

2018

-18

2019

-10

2020

-6

2021

105

100

Complete

1754

1733

Total

2443

2457

UNCLASSIFIED

F-35

December 2015 SAR

Funding Summary - F-35 Engine

Appropriation Summary

FY 2017 President's Budget / December 2015 SAR (TY$ M)

Appropriation

RDT&E

Procurement

MILCON

Acq O&M

PB 2017 Total

PB 2016 Total

Delta

Prior

11706.7

6767.5

0.0

18474.2

18492.8

-18.6

FY 2016

199.6

1250.9

0.0

1450.5

1450.9

-0.4

FY 2017

56.6

1508.6

0.0

1565.2

1514.3

50.9

FY 2018

0.0

1809.3

0.0

1809.3

1788.1

21.2

FY 2019

0.0

1774.4

0.0

1774.4

1957.9

-183.5

FY 2020

0.0

1911.9

0.0

1911.9

2013.9

-102.0

FY 2021

0.0

2240.8

0.0

2240.8

2141.7

99.1

Complete

0.0

31424.8

0.0

31424.8

37653.8

-6229.0

Total

11962.9

48688.2

0.0

60651.1

67013.4

-6362.3

Quantity Summary

FY 2017 President's Budget / December 2015 SAR (TY$ M)

Quantity

Development

Production

PB 2017 Total

PB 2016 Total

Delta

Undistributed

Prior

217

2016

2017

-3

2018

-18

2019

-10

2020

-6

2021

105

100

Complete

1754

1733

Total

2443

2457

UNCLASSIFIED

F-35

December 2015 SAR

Cost and Funding

Annual Funding By Appropriation - F-35 Aircraft

Annual Funding - F-35 Aircraft

0400 | RDT&E | Research, Development, Test, and Evaluation, Defense-Wide

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

23.2

54.8

16.9

94.9

1996

1997

1998

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

0400 | RDT&E | Research, Development, Test, and Evaluation, Defense-Wide

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

30.1

70.2

21.5

121.8

1996

1997

1998

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

3600 | RDT&E | Research, Development, Test, and Evaluation, Air Force

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

67.5

65.4

202.3

357.2

366.5

200.3

274.3

302.6

1210.1

1584.1

1465.8

1678.6

1632.4

1359.0

1197.5

1567.4

715.4

1262.2

972.1

553.6

479.8

457.1

389.0

113.6

5.3

5.4

5.5

18490.0

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

3600 | RDT&E | Research, Development, Test, and Evaluation, Air Force

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

89.1

84.9

259.5

454.5

460.9

248.3

335.4

366.3

1443.6

1838.4

1657.5

1840.8

1747.3

1428.6

1242.9

1602.8

714.5

1240.0

945.1

530.7

454.2

425.8

355.9

101.9

4.7

19883.0

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

1319 | RDT&E | Research, Development, Test, and Evaluation, Navy

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

23.7

78.7

64.6

195.6

360.4

378.9

191.7

274.3

366.8

1090.1

1548.2

1510.3

1657.3

1470.7

1285.0

1271.2

1440.5

987.9

960.1

1081.5

683.6

773.2

832.5

969.3

132.2

9.6

5.8

3.9

19647.6

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

1319 | RDT&E | Research, Development, Test, and Evaluation, Navy

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

31.9

103.9

83.9

250.9

458.6

476.5

237.6

335.4

444.0

1300.4

1796.8

1707.8

1817.4

1574.3

1350.8

1319.4

1473.0

986.6

943.2

1051.5

655.3

731.9

775.5

886.7

118.6

8.4

5.0

3.3

20928.6

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

9999 | RDT&E | Non Treasury Funds

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

11.3

67.1

72.1

49.0

25.2

9.5

255.8

298.7

486.7

734.8

801.3

635.4

574.0

236.0

133.2

171.3

124.2

148.5

22.0

15.0

17.0

22.0

27.5

4937.6

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

9999 | RDT&E | Non Treasury Funds

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

14.7

86.1

91.7

61.6

31.2

11.6

309.6

356.3

564.8

830.9

878.7

680.1

603.4

244.9

136.2

171.1

122.0

144.4

21.1

14.2

15.8

20.1

24.7

5435.2

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

3010 | Procurement | Aircraft Procurement, Air Force

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

107.6

428.5

983.1

1009.2

1471.2

2751.2

2041.5

2074.6

2034.6

2715.8

4076.0

3339.3

3584.0

3247.9

3473.2

4300.8

6091.5

5332.8

5462.0

6101.5

6961.8

6472.7

5901.4

5990.1

6622.5

7570.5

7465.0

6998.0

7179.5

7878.9

8035.0

8150.0

6604.9

152456.6

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

80.8

172.3

277.6

355.7

569.1

375.7

76.6

617.8

625.0

561.5

649.7

1070.4

1079.3

886.9

709.3

640.6

609.7

620.7

634.5

647.4

598.4

607.9

616.6

634.0

649.8

676.1

694.7

698.4

711.8

722.5

676.7

552.2

19099.7

Total

Flyaway

107.6

509.3

1155.4

1286.8

1826.9

3320.3

2417.2

2151.2

2652.4

3340.8

4637.5

3989.0

4654.4

4327.2

4360.1

5010.1

6732.1

5942.5

6082.7

6736.0

7609.2

7071.1

6509.3

6606.7

7256.5

8220.3

8141.1

7692.7

7877.9

8590.7

8757.5

8826.7

7157.1

171556.3

Total

Support

91.1

131.5

175.8

277.7

679.6

773.0

528.9

433.0

605.0

626.3

488.5

559.4

566.2

638.0

802.1

748.4

648.7

717.2

605.3

818.1

648.5

599.3

487.4

547.0

699.2

645.3

571.2

75.3

32.9

29.1

20.7

6.2

15275.9

Total

Program

107.6

600.4

1286.9

1462.6

2104.6

3999.9

3190.2

2680.1

3085.4

3945.8

5263.8

4477.5

5213.8

4893.4

4998.1

5812.2

7480.5

6591.2

6799.9

7341.3

8427.3

7719.6

7108.6

7094.1

7803.5

8919.5

8786.4

8263.9

7953.2

8623.6

8786.6

8847.4

7163.3

186832.2

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

Subtotal

1763

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

3010 | Procurement | Aircraft Procurement, Air Force

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

116.8

452.5

1022.9

1035.7

1478.8

2711.7

1983.8

1994.5

1930.9

2539.2

3746.2

3011.8

3170.3

2816.6

2953.0

3584.9

4978.0

4272.5

4290.2

4698.6

5255.9

4790.9

4282.4

4261.5

4619.0

5176.7

5004.5

4599.4

4626.2

4935.2

4934.3

4906.7

3898.5

114080.1

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

85.4

179.3

284.7

357.6

561.0

365.1

73.6

586.3

584.4

516.1

586.0

946.7

936.1

754.1

591.2

523.5

488.5

487.6

488.6

488.7

442.9

441.2

438.6

442.2

444.3

453.2

456.6

450.0

445.8

443.6

407.4

325.9

15076.2

Total

Flyaway

116.8

537.9

1202.2

1320.4

1836.4

3272.7

2348.9

2068.1

2517.2

3123.6

4262.3

3597.8

4117.0

3752.7

3707.1

4176.1

5501.5

4761.0

4777.8

5187.2

5744.6

5233.8

4723.6

4700.1

5061.2

5621.0

5457.7

5056.0

5076.2

5381.0

5377.9

5314.1

4224.4

129156.3

Total

Support

96.2

136.8

180.5

279.1

669.8

751.1

508.5

411.0

565.6

575.6

440.6

494.9

491.0

542.4

668.6

611.6

519.7

563.3

466.1

617.7

480.0

434.8

346.8

381.5

478.1

432.6

375.4

48.5

20.6

17.9

12.5

3.7

12622.5

Total

Program

116.8

634.1

1339.0

1500.9

2115.5

3942.5

3100.0

2576.6

2928.2

3689.2

4837.9

4038.4

4611.9

4243.7

4249.5

4844.7

6113.1

5280.7

5341.1

5653.3

6362.3

5713.8

5158.4

5046.9

5442.7

6099.1

5890.3

5431.4

5124.7

5401.6

5395.8

5326.6

4228.1

141778.8

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

Subtotal

1763

UNCLASSIFIED

F-35

December 2015 SAR

Cost Quantity Information - F-35 Aircraft

3010 | Procurement | Aircraft Procurement, Air Force

End Item

Recurring

Fiscal

Flyaway

Quantity

Year

(Aligned With

Quantity)

BY 2012 $M

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

Subtotal

1763

452.5

1022.9

1035.7

1478.8

2711.7

1983.8

1994.5

1930.9

2539.2

3746.2

3011.8

3170.3

2816.6

2953.0

3584.9

4978.0

4272.5

4290.2

4698.6

5255.9

4790.9

4282.4

4261.5

4619.0

5176.7

5004.5

4599.4

4626.2

4935.2

4934.3

4906.7

4015.3

114080.1

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

1506 | Procurement | Aircraft Procurement, Navy

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

96.9

923.2

1062.0

2681.2

1494.8

1477.7

1107.3

1205.5

1115.0

2130.3

1867.2

2555.1

2648.5

3242.8

3731.8

4015.2

3511.2

3566.7

3896.6

4396.8

4131.9

3834.2

3721.1

2685.4

2180.2

63278.6

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

38.6

182.0

305.4

251.0

330.2

44.1

406.3

650.9

601.9

422.9

668.2

603.2

501.5

535.4

396.9

377.5

368.0

377.9

381.4

358.6

364.0

356.9

373.5

326.5

9222.8

Total

Flyaway

96.9

961.8

1244.0

2986.6

1745.8

1807.9

1151.4

1611.8

1765.9

2732.2

2290.1

3223.3

3251.7

3744.3

4267.2

4412.1

3888.7

3934.7

4274.5

4778.2

4490.5

4198.2

4078.0

3058.9

2506.7

72501.4

Total

Support

10.7

206.1

560.9

431.8

746.7

557.3

642.3

414.1

629.9

426.8

346.9

482.6

624.3

786.8

644.6

533.7

490.6

400.8

441.8

335.6

369.0

260.7

388.6

361.3

11093.9

Total

Program

96.9

972.5

1450.1

3547.5

2177.6

2554.6

1708.7

2254.1

2180.0

3362.1

2716.9

3570.2

3734.3

4368.6

5054.0

5056.7

4422.4

4425.3

4675.3

5220.0

4826.1

4567.2

4338.7

3447.5

2868.0

83595.3

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

Subtotal

680

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

1506 | Procurement | Aircraft Procurement, Navy

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

102.3

960.6

1089.8

2695.1

1473.3

1435.9

1064.5

1144.1

1042.5

1957.9

1684.1

2260.2

2296.8

2757.1

3110.6

3281.2

2813.1

2801.5

3000.6

3319.4

3058.3

2782.3

2647.3

1873.0

1490.8

52142.3

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

40.2

186.8

307.0

247.4

320.9

42.4

385.6

608.5

553.2

381.4

591.0

523.2

426.4

446.3

324.3

302.4

289.1

291.1

287.9

265.4

264.2

253.8

260.4

223.3

7822.2

Total

Flyaway

102.3

1000.8

1276.6

3002.1

1720.7

1756.8

1106.9

1529.7

1651.0

2511.1

2065.5

2851.2

2820.0

3183.5

3556.9

3605.5

3115.5

3090.6

3291.7

3607.3

3323.7

3046.5

2901.1

2133.4

1714.1

59964.5

Total

Support

11.1

211.5

563.8

425.6

725.6

535.8

609.5

387.2

578.9

385.0

306.9

418.5

530.8

655.8

526.8

427.6

385.3

308.6

333.6

248.4

267.7

185.5

271.1

247.0

9547.6

Total

Program

102.3

1011.9

1488.1

3565.9

2146.3

2482.4

1642.7

2139.2

2038.2

3090.0

2450.5

3158.1

3238.5

3714.3

4212.7

4132.3

3543.1

3475.9

3600.3

3940.9

3572.1

3314.2

3086.6

2404.5

1961.1

69512.1

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

Subtotal

680

UNCLASSIFIED

F-35

December 2015 SAR

Cost Quantity Information - F-35 Aircraft

1506 | Procurement | Aircraft Procurement, Navy

End Item

Recurring

Fiscal

Flyaway

Quantity

Year

(Aligned With

Quantity)

BY 2012 $M

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

Subtotal

680

960.6

1089.8

2695.1

1473.3

1435.9

1064.5

1144.1

1042.5

1957.9

1684.1

2260.2

2296.8

2757.1

3110.6

3281.2

2813.1

2801.5

3000.6

3319.4

3058.3

2782.3

2647.3

1873.0

1593.1

52142.3

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

1205 | MILCON | Military Construction, Navy and Marine

Corps

TY $M

Fiscal

Total

Year

Program

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

Subtotal

24.4

0.1

0.2

0.7

34.1

377.9

172.2

94.9

131.9

94.4

230.9

64.7

122.0

119.8

116.2

75.9

101.3

145.0

61.9

75.0

65.1

2.0

2110.6

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

1205 | MILCON | Military Construction, Navy and Marine

Corps

BY 2012 $M

Fiscal

Total

Year

Program

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

Subtotal

27.8

0.1

0.2

0.7

34.1

369.3

165.9

90.2

121.5

85.4

204.9

56.3

104.0

100.2

95.2

61.0

79.8

112.0

46.0

54.6

46.5

1.4

1857.1

UNCLASSIFIED

F-35

December 2015 SAR

All DoN MILCON funding is reflected in the Aircraft subprogram.

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

3300 | MILCON | Military Construction, Air Force

TY $M

Fiscal

Total

Year

Program

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

Subtotal

1.7

10.0

100.3

116.0

125.1

139.6

24.3

13.5

56.0

66.7

198.3

340.8

101.0

61.5

15.9

123.7

167.0

142.3

122.1

118.4

129.9

101.8

102.7

94.6

71.7

71.2

37.5

24.8

4.3

2682.7

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Aircraft

3300 | MILCON | Military Construction, Air Force

BY 2012 $M

Fiscal

Total

Year

Program

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

Subtotal

1.9

11.1

104.1

118.8

125.0

136.4

23.4

12.8

52.5

61.5

179.4

302.4

87.9

52.4

13.3

99.4

131.6

109.9

92.5

87.9

94.5

72.6

71.8

64.4

47.9

46.6

24.0

15.6

2.7

2244.3

UNCLASSIFIED

F-35

December 2015 SAR

All Air Force F-35 MILCON funding is reflected in the Aircraft subprogram.

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding By Appropriation - F-35 Engine

Annual Funding - F-35 Engine

3600 | RDT&E | Research, Development, Test, and Evaluation, Air Force

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

16.4

15.9

49.3

87.1

89.4

48.8

66.9

409.8

400.5

435.8

614.3

586.3

441.6

596.0

544.6

466.1

216.2

101.8

143.6

52.0

54.5

58.4

14.5

5509.8

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Engine

3600 | RDT&E | Research, Development, Test, and Evaluation, Air Force

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

21.7

20.6

63.2

110.8

112.4

60.5

81.8

496.0

477.8

505.8

694.7

643.0

472.7

626.5

565.2

476.6

215.9

100.0

139.6

49.8

51.6

54.4

13.3

6053.9

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Engine

1319 | RDT&E | Research, Development, Test, and Evaluation, Navy

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

5.8

19.3

15.8

47.7

87.8

92.4

46.7

66.9

350.4

550.8

533.2

573.5

528.1

639.1

563.9

433.1

445.7

252.9

187.6

199.2

116.1

173.7

141.2

42.1

6113.0

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Engine

1319 | RDT&E | Research, Development, Test, and Evaluation, Navy

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

7.8

25.5

20.5

61.2

111.7

116.2

57.9

81.8

424.1

657.1

618.8

648.5

579.1

684.1

592.8

449.5

455.8

252.6

184.3

193.7

111.3

164.4

131.5

38.5

6668.7

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Engine

0400 | RDT&E | Research, Development, Test, and Evaluation, Defense-Wide

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

5.7

13.4

4.0

23.1

1994

1995

1996

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Engine

0400 | RDT&E | Research, Development, Test, and Evaluation, Defense-Wide

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

7.7

17.7

5.2

30.6

1994

1995

1996

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Engine

9999 | RDT&E | Non Treasury Funds

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

2.7

3.9

5.1

5.7

1.8

0.5

43.3

124.3

54.1

0.3

75.0

0.3

317.0

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Engine

9999 | RDT&E | Non Treasury Funds

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

Total

Flyaway

Total

Support

Total

Program

3.5

5.0

6.5

7.2

2.2

0.6

52.4

148.3

62.8

0.3

80.3

0.3

369.4

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Subtotal

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Engine

3010 | Procurement | Aircraft Procurement, Air Force

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

9.8

47.5

123.6

127.0

176.7

353.2

275.3

262.5

282.1

386.7

606.1

606.7

651.2

590.1

631.1

781.4

1066.3

976.1

997.2

1094.6

1123.6

1068.0

977.9

996.6

1091.1

1237.8

1185.7

1090.4

1110.8

1219.4

1241.5

1243.9

902.2

24534.1

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

6.9

35.0

63.9

72.6

91.6

65.7

11.9

31.2

15.5

23.2

48.9

80.6

81.2

66.8

53.4

48.2

45.9

46.7

47.8

48.7

45.0

45.8

46.4

47.7

48.9

50.9

52.3

52.6

53.6

54.4

50.9

41.6

1575.8

Total

Flyaway

9.8

54.4

158.6

190.9

249.3

444.8

341.0

274.4

313.3

402.2

629.3

655.6

731.8

671.3

697.9

834.8

1114.5

1022.0

1043.9

1142.4

1172.3

1113.0

1023.7

1043.0

1138.8

1286.7

1236.6

1142.7

1163.4

1273.0

1295.9

1294.8

943.8

26109.9

Total

Support

27.7

30.9

33.3

59.1

136.6

123.0

89.6

47.5

116.2

126.7

116.7

135.8

145.4

153.6

172.1

178.5

189.3

177.6

184.4

218.3

135.7

130.3

119.0

122.4

153.9

143.0

137.1

18.8

3.7

3.2

2.3

0.5

3432.2

Total

Program

9.8

82.1

189.5

224.2

308.4

581.4

464.0

364.0

360.8

518.4

756.0

772.3

867.6

816.7

851.5

1006.9

1293.0

1211.3

1221.5

1326.8

1390.6

1248.7

1154.0

1162.0

1261.2

1440.6

1379.6

1279.8

1182.2

1276.7

1299.1

1297.1

944.3

29542.1

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

Subtotal

1763

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Engine

3010 | Procurement | Aircraft Procurement, Air Force

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

10.6

50.2

128.6

130.3

177.6

348.1

267.5

252.4

267.7

361.6

557.1

547.2

576.0

511.7

536.6

651.3

871.4

782.0

783.3

842.9

848.3

790.5

709.6

709.0

761.0

846.4

794.9

716.7

715.8

763.8

762.4

748.9

532.5

18353.9

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

7.3

36.4

65.6

73.0

90.3

63.8

11.4

29.6

14.5

21.3

44.1

71.3

70.4

56.8

44.5

39.4

36.8

36.7

36.8

33.3

33.2

33.0

33.3

33.4

34.1

34.4

33.9

33.6

33.4

30.6

24.6

1277.6

Total

Flyaway

10.6

57.5

165.0

195.9

250.6

438.4

331.3

263.8

297.3

376.1

578.4

591.3

647.3

582.1

593.4

695.8

910.8

818.8

820.0

879.7

885.1

823.8

742.8

742.0

794.3

879.8

829.0

751.1

749.7

797.4

795.8

779.5

557.1

19631.5

Total

Support

29.2

32.2

34.2

59.4

134.7

119.6

86.1

45.1

108.6

116.4

105.3

120.1

126.2

130.6

143.5

145.8

151.7

139.4

142.0

164.8

100.4

94.6

84.7

85.4

105.3

95.9

90.0

12.1

2.3

2.0

1.4

0.3

2809.3

Total

Program

10.6

86.7

197.2

230.1

310.0

573.1

450.9

349.9

342.4

484.7

694.8

696.6

767.4

708.3

724.0

839.3

1056.6

970.5

959.4

1021.7

1049.9

924.2

837.4

826.7

879.7

985.1

924.9

841.1

761.8

799.7

797.8

780.9

557.4

22440.8

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

Subtotal

1763

UNCLASSIFIED

F-35

December 2015 SAR

Cost Quantity Information - F-35 Engine

3010 | Procurement | Aircraft Procurement, Air Force

End Item

Recurring

Fiscal

Flyaway

Quantity

Year

(Aligned With

Quantity)

BY 2012 $M

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

Subtotal

1763

50.2

128.6

130.3

177.6

348.1

267.5

252.4

267.7

361.6

557.1

547.2

576.0

511.7

536.6

651.3

871.4

782.0

783.3

842.9

848.3

790.5

709.6

709.0

761.0

846.4

794.9

716.7

715.8

763.8

762.4

748.9

543.1

18353.9

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Engine

1506 | Procurement | Aircraft Procurement, Navy

TY $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

27.4

246.1

298.0

599.0

400.5

191.4

236.9

227.1

259.5

362.7

568.4

742.3

750.5

840.1

937.1

994.1

910.7

926.6

1012.3

1006.6

970.3

910.7

865.2

442.9

299.0

15025.4

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

1.3

54.3

118.5

112.5

57.7

26.6

21.6

27.6

22.3

87.3

138.0

124.6

103.6

110.6

82.0

76.0

89.5

85.4

89.5

61.5

57.4

60.8

71.8

78.5

1758.9

Total

Flyaway

27.4

247.4

352.3

717.5

513.0

249.1

263.5

248.7

287.1

385.0

655.7

880.3

875.1

943.7

1047.7

1076.1

986.7

1016.1

1097.7

1096.1

1031.8

968.1

926.0

514.7

377.5

16784.3

Total

Support

1.2

65.6

127.6

122.3

62.0

169.8

142.4

68.0

109.9

80.6

61.4

82.6

116.7

186.2

117.3

117.0

93.2

93.6

104.3

82.5

90.6

67.5

95.9

103.6

2361.8

Total

Program

27.4

248.6

417.9

845.1

635.3

311.1

433.3

391.1

355.1

494.9

736.3

941.7

957.7

1060.4

1233.9

1193.4

1103.7

1109.3

1191.3

1200.4

1114.3

1058.7

993.5

610.6

481.1

19146.1

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

Subtotal

680

UNCLASSIFIED

F-35

December 2015 SAR

Annual Funding - F-35 Engine

1506 | Procurement | Aircraft Procurement, Navy

BY 2012 $M

Fiscal

Year

Quantity

End Item

Recurring

Flyaway

28.9

256.1

305.8

602.1

394.8

186.0

227.8

215.5

242.6

333.4

512.7

656.6

650.8

714.3

781.1

812.4

729.6

727.8

779.5

759.9

718.2

660.9

615.5

308.9

204.5

12425.7

Non End

Item

Recurring

Flyaway

Non

Recurring

Flyaway

1.4

55.8

119.2

110.8

56.0

25.6

20.5

25.8

20.5

78.7

122.1

108.1

88.1

92.2

67.0

60.9

70.3

65.8

67.7

45.5

41.7

43.3

50.1

53.6

1490.7

Total

Flyaway

28.9

257.5

361.6

721.3

505.6

242.0

253.4

236.0

268.4

353.9

591.4

778.7

758.9

802.4

873.3

879.4

790.5

798.1

845.3

827.6

763.7

702.6

658.8

359.0

258.1

13916.4

Total

Support

1.2

67.3

128.2

120.6

60.3

163.2

135.2

63.6

101.0

72.7

54.3

71.6

99.2

155.2

95.8

93.8

73.2

72.1

78.7

61.1

65.6

48.0

66.9

70.9

2019.7

Total

Program

28.9

258.7

428.9

849.5

626.2

302.3

416.6

371.2

332.0

454.9

664.1

833.0

830.5

901.6

1028.5

975.2

884.3

871.3

917.4

906.3

824.8

768.2

706.8

425.9

329.0

15936.1

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

Subtotal

680

UNCLASSIFIED

F-35

December 2015 SAR

Cost Quantity Information - F-35 Engine

1506 | Procurement | Aircraft Procurement, Navy

End Item

Recurring

Fiscal

Flyaway

Quantity

Year

(Aligned With

Quantity)

BY 2012 $M

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

Subtotal

680

256.1

305.8

602.1

394.8

186.0

227.8

215.5

242.6

333.4

512.7

656.6

650.8

714.3

781.1

812.4

729.6

727.8

779.5

759.9

718.2

660.9

615.5

308.9

233.4

12425.7

UNCLASSIFIED

F-35

December 2015 SAR

Low Rate Initial Production

F-35 Aircraft

Item

Approval Date

Approved Quantity

Reference

Start Year

End Year

465

Milestone B ADM

2006

2015

Initial LRIP Decision

10/26/2001

5/23/2015

518

LRIP Approval ADM

2006

2019

Current Total LRIP

The Current Total LRIP Quantity is more than 10% of the total production quantity due to the necessity to prevent a break in

production and to ramp up to FRP.

F-35 Engine

Item

Approval Date

Approved Quantity

Reference

Start Year

End Year

465

Milestone B ADM

2006

2015

Initial LRIP Decision

10/26/2001

5/23/2015

518

LRIP Approval ADM

2006

2019

Current Total LRIP

The Current Total LRIP Quantity is more than 10% of the total production quantity due to the necessity to prevent a break in

production and to ramp up to FRP.

UNCLASSIFIED

F-35

December 2015 SAR

Foreign Military Sales

F-35 Aircraft

Date of

Sale

9/14/2015

Total

Cost $M

Country

Japan

Quantity

Description

Israel

2/15/2015

Korea

Notes

9/14/2014

4360.4 Japan signed an amendment to add 6 F-35A's in

September 2015. Japan has an option to purchase

26 additional F-35A aircraft.

5008.0 Israel signed an amendment to add 14 F-35A's in

February 2015. Israel has an option to purchase 17

additional F-35A aircraft.

6277.0 All 40 aircraft will be the F-35A aircraft.

F-35 Engine

Notes

FMS information for the F-35 Engine subprogram are reflected in the F-35 Aircraft subprogram.

Nuclear Costs

F-35 Aircraft

None

F-35 Engine

None

UNCLASSIFIED

F-35

December 2015 SAR

Unit Cost

F-35 Aircraft

Unit Cost Report

BY 2012 $M

Item

Current UCR

Baseline

(Jun 2014 APB)

274958.4

2457

111.908

224332.9

2443

91.827

BY 2012 $M

Item

Revised

Original UCR

Baseline

(Mar 2012 APB)

276482.2

2458

112.483

224333.7

2443

91.827

BY 2012 $M

Current Estimate

(Dec 2015 SAR)

% Change

Program Acquisition Unit Cost

Cost

Quantity

Unit Cost

Average Procurement Unit Cost

Cost

Quantity

Unit Cost

261760.9

2457

106.537

211290.9

2443

86.488

BY 2012 $M

Current Estimate

(Dec 2015 SAR)

-4.80

-5.81

% Change

Program Acquisition Unit Cost

Cost

Quantity

Unit Cost

Average Procurement Unit Cost

Cost

Quantity

Unit Cost

261760.9

2457

106.537

211290.9

2443

86.488

-5.29

-5.81

The DoD average F-35 Aircraft Unit Recurring Flyaway (URF) Cost consists of the Hardware (Airframe, Vehicle Systems,

Mission Systems, and Engineering Change Order) costs over the life of the program. The URF assumes the quantity

benefits of 115 FMS aircraft and 612 International Partner aircraft.

F-35A (Conventional Take Off and Landing) URF - $65.7 M (BY 2012)

F-35B (Short Takeoff and Vertical Landing) URF - $77.3M (BY 2012)

F-35C (Carrier Variant) URF - $78 M (BY 2012)

UNCLASSIFIED

F-35

December 2015 SAR

F-35 Aircraft

Unit Cost History

Item

Original APB

APB as of January 2006

Revised Original APB

Prior APB

Current APB

Prior Annual SAR

Current Estimate

Date

Oct 2001

Mar 2004

Mar 2012

Jun 2014

Dec 2014

Dec 2015

BY 2012 $M

PAUC

74.567

94.837

112.529

111.908

107.755

106.537

APUC

60.632

73.845

91.827

87.889

86.488

PAUC

TY $M

APUC

68.934

81.826

115.697

113.208

110.695

81.298

100.407

135.065

134.638

131.918

129.585

SAR Unit Cost History

Current SAR Baseline to Current Estimate (TY $M)

Initial PAUC

Development

Estimate

135.065

Changes

Econ

0.422

Qty

0.000

Sch

1.592

Eng

0.744

Est

-4.257

Oth

0.000

Spt

-3.981

Total

-5.480

PAUC

Current

Estimate

129.585

UNCLASSIFIED

F-35

December 2015 SAR

Current SAR Baseline to Current Estimate (TY $M)

Initial APUC

Development

Estimate

115.697

Changes

Econ

0.427

Qty

0.000

Sch

1.602

Eng

0.748

Est

-3.775

Oth

0.000

Spt

-4.004

Total

-5.002

APUC

Current

Estimate

110.695

SAR Baseline History

Item

Milestone I

Milestone B

Milestone C

IOC

Total Cost (TY $M)

Total Quantity

PAUC

SAR

Planning

Estimate

N/A

Mar 2001

TBD

24800.0

N/A

SAR

Development

Estimate

Nov 1996

Mar 2012

Apr 2019

TBD

331855.2

2457

135.065

SAR

Production

Estimate

N/A

Current

Estimate

Nov 1996

Mar 2012

Apr 2019

Jul 2015

318390.9

2457

129.585

The Service IOC reflected in the above table is the U.S. Marine Corps Objective date. In addition, the U.S. Air Force IOC

objective date is August 2016, and the U.S. Navy IOC objective date is August 2018.

UNCLASSIFIED

F-35

December 2015 SAR

F-35 Engine

Unit Cost Report

BY 2012 $M

Item

Current UCR

Baseline

(Jun 2014 APB)

55273.5

2457

22.496

42332.9

2443

17.328

BY 2012 $M

Item

Original UCR

Baseline

(Mar 2012 APB)

53916.4

2458

21.935

42332.9

2443

17.328

BY 2012 $M

Current Estimate

(Dec 2015 SAR)

% Change

Program Acquisition Unit Cost

Cost

Quantity

Unit Cost

Average Procurement Unit Cost

Cost

Quantity

Unit Cost

51499.5

2457

20.960

38376.9

2443

15.709

BY 2012 $M

Current Estimate

(Dec 2015 SAR)

-6.83

-9.34

% Change

Program Acquisition Unit Cost

Cost

Quantity

Unit Cost

Average Procurement Unit Cost

Cost

Quantity

Unit Cost

51499.5

2457

20.960

38376.9

2443

15.709

-4.44

-9.34

The DoD average F-35 Engine Unit Recurring Flyaway (URF) Cost consists of the Hardware (Propulsion and Engineering

Change Order) costs over the life of the program. The URF assumes the quantity benefits of 115 FMS engines and 612

International Partner engines.

F-35A (Conventional Take Off and Landing) URF - $11 M (BY 2012)

F-35B (Short Takeoff and Vertical Landing) URF - $27.7 M (BY 2012)

F-35C (Carrier Variant) URF - $10.9 M (BY 2012)

UNCLASSIFIED

F-35

December 2015 SAR

F-35 Engine

Unit Cost History

Item

Original APB

APB as of January 2006

Revised Original APB

Prior APB

Current APB

Prior Annual SAR

Current Estimate

Date

Mar 2012

N/A

Mar 2012

Jun 2014

Dec 2014

Dec 2015

BY 2012 $M

PAUC

21.989

N/A

21.989

22.496

22.626

20.960

APUC

17.328

N/A

17.328

17.378

15.709

PAUC

TY $M

APUC

21.708

N/A

21.708

22.526

19.930

25.990

N/A

25.990

26.396

27.274

24.685

SAR Unit Cost History

Current SAR Baseline to Current Estimate (TY $M)

Initial PAUC

Development

Estimate

25.990

Changes

Econ

0.054

Qty

0.000

Sch

0.303

Eng

0.000

Est

-0.501

Oth

0.000

Spt

-1.161

Total

-1.305

PAUC

Current

Estimate

24.685

UNCLASSIFIED

F-35

December 2015 SAR

Current SAR Baseline to Current Estimate (TY $M)

Initial APUC

Development

Estimate

21.708

Changes

Econ

0.048

Qty

0.000

Sch

0.305

Eng

0.000

Est

-0.963

Oth

0.000

Spt

-1.167

Total

-1.777

APUC

Current

Estimate

19.930

SAR Baseline History

Item

Milestone A

Milestone B

Milestone C

IOC

Total Cost (TY $M)

Total Quantity

PAUC

SAR

Planning

Estimate

N/A

SAR

Development

Estimate

N/A

63856.6

2457

25.990

SAR

Production

Estimate

N/A

Current

Estimate

N/A

60651.1

2457

24.685

UNCLASSIFIED

F-35

December 2015 SAR

Cost Variance

F-35 Aircraft

Summary TY $M

Procurement

282647.8

Item

SAR Baseline (Development

Estimate)

Previous Changes

Economic

Quantity

Schedule

Engineering

Estimating

Other

Support

Subtotal

Current Changes

Economic

Quantity

Schedule

Engineering

Estimating

Other

Support

Subtotal

Total Changes

Current Estimate

RDT&E

MILCON

4797.3

Total

331855.2

44410.1

+24.6

-1507.9

-1483.3

-36.7

+280.0

+243.3

-1240.0

43170.1

+2886.2

+3425.5

-7348.4

-5043.7

-6080.4

-1842.6

+487.2

+1826.8

-1873.1

-4738.2

-6139.9

-12220.3

270427.5

+29.5

-199.7

-170.2

-25.2

+191.4

+166.2

-4.0

4793.3

+2940.3

+3425.5

-9056.0

-5043.7

-7733.9

-1904.5

+487.2

+1826.8

-1401.7

-4738.2

-5730.4

-13464.3

318390.9

UNCLASSIFIED

F-35

December 2015 SAR

Item

SAR Baseline (Development

Estimate)

Previous Changes

Economic

Quantity

Schedule

Engineering

Estimating

Other

Support

Subtotal

Current Changes

Economic

Quantity

Schedule

Engineering

Estimating

Other

Support

Subtotal

Total Changes

Current Estimate

Previous Estimate: December 2014

RDT&E

Summary BY 2012 $M

Procurement

224332.9

MILCON

4168.0

Total

276483.0

47982.1

-1870.0

+256.5

-1613.5

46368.6

-5117.6

-4502.9

-9620.5

+1346.4

-1349.7

-3418.2

-3421.5

-13042.0

211290.9

-238.6

+172.0

-66.6

4101.4

-7226.2

-4502.9

-11729.1

+1346.4

-921.2

-3418.2

-2993.0

-14722.1

261760.9

UNCLASSIFIED

F-35

December 2015 SAR

RDT&E

Current Change Explanations

Revised escalation indices. (Economic)

Adjustment for current and prior escalation. (Estimating)

Realignment of cost between the aircraft subprogram and engine subprogram (Air Force

(AF)). (Estimating)

Realignment of cost between the aircraft subprogram and engine subprogram (Navy).

(Estimating)

Revised estimate for Small Business Innovation Research in FY 2015 (Navy). (Estimating)

Revised estimate for additional operational testing requirements (AF). (Estimating)

Revised estimate for additional operational testing requirements (Navy). (Estimating)

Revised estimate to reflect application of new outyear inflation indices (Non- Treasury

Funds). (Estimating)

Increase due to realignment of program funding, congressional addition, and actual funding

investment (AF). (Estimating)

Decrease due to realignment of program funding, congressional reductions, and actual

funding investment (AF). (Estimating)

Increase due to realignment of program funding, congressional addition, and actual funding

investment (Navy). (Estimating)

RDT&E Subtotal

Procurement

Current Change Explanations

Revised escalation indices. (Economic)

Adjustment for current and prior escalation. (Estimating)

Stretch-out of procurement buy profile in FY 2016 to FY 2038 (Aircraft Procurement, AF

(APAF)). (Schedule)

Acceleration of procurement buy profile in FY 2016 to FY 2031 (Aircraft Procurement, Navy

(APN)). (Schedule)

Revised estimate for International procurement quantity profile adjustments (APAF).

(Estimating)

Revised estimate for International procurement quantity profile adjustments (APN).

(Estimating)

Revised estimate of Airframe cost due to the incorporation of the latest prime and

subcontractor actuals and labor/exchange rates (APAF). (Estimating)

Revised estimate of Airframe cost due to the incorporation of the latest prime and

subcontractor actuals and labor/exchange rates (APN). (Estimating)

Update for fact of life changes for prior years/lots 2006-2016 (APAF). (Estimating)

Update for fact of life changes for prior years/lots 2006-2016 (APN). (Estimating)

Decrease based on revised estimating assumptions for Block Buy and Multi-Year

Procurement (APN). (Estimating)

Decrease based on revised estimating assumptions for Block Buy and Multi-Year

Procurement (APAF). (Estimating)

Revised estimate of non-recurring costs (APAF). (Estimating)

Revised estimate of non-recurring costs (APN). (Estimating)

Base

Year

Base

Year

Then

Year

-36.7

+27.8

+64.3

-46.2

-25.4

+81.2

+161.7

+0.8

+9.1

-0.8

+7.5

+243.3

N/A

+26.7

+60.5

-44.4

-24.1

+74.3

+147.7

+1.3

+8.6

-0.8

+6.7

+256.5

Then

Year

-1842.6

+128.9

+1446.0

-958.8

-160.6

-23.7

+131.1

+676.1

-291.1

-75.5

-922.1

-1713.6

+254.6

+122.8

N/A

+120.5

0.0

-128.1

-18.1

+11.7

+572.8

-266.9

-71.4

-733.8

-1259.9

+224.3

+199.2

UNCLASSIFIED

F-35

December 2015 SAR

Additional funding for Band 2/5 requirements (APAF) (Engineering)

Additional funding for Band 2/5 requirements (APN). (Engineering)

Revised estimate for Other Support due to maturation of technical baseline, definition of

customer requirements, and further definition of Service beddown plans (APAF). (Support)

Adjustment for current and prior escalation. (Support)

Revised estimate for Other Support due to maturation of technical baseline, definition of

customer requirements, and further definition of Service beddown plans (APN). (Support)

Revised estimate for Initial Spares due to maturation of technical baseline, definition of

customer requirements, and further definition of Service beddown plans (APAF). (Support)

Revised estimate for Initial Spares due to maturation of technical baseline, definition of

customer requirements, and further definition of Service beddown plans (APN). (Support)

Procurement Subtotal

MILCON

Current Change Explanations

Revised escalation indices. (Economic)

Adjustment for current and prior escalation. (Estimating)

Revised estimate as a result of refined requirements (AF). (Estimating)

Revised estimate as a result of refined requirements ( Navy). (Estimating)

MILCON Subtotal

+945.2

+401.2

+1.8

+25.7

-494.5

-2480.8

-470.4

-3421.5

Base

Year

N/A

+5.1

+313.1

-153.8

+7.6

+172.0

+1313.8

+513.0

+92.0

+27.1

-544.4

-3648.8

-664.1

-6139.9

Then

Year

-25.2

+5.4

+361.9

-185.3

+9.4

+166.2

UNCLASSIFIED

F-35

December 2015 SAR

Cost Variance

F-35 Engine

Summary TY $M

Procurement

53032.9

Item

SAR Baseline (Development

Estimate)

Previous Changes

Economic

Quantity

Schedule

Engineering

Estimating

Other

Support

Subtotal

Current Changes

Economic

Quantity

Schedule

Engineering

Estimating

Other

Support

Subtotal

Total Changes

Current Estimate

RDT&E

MILCON

Total

63856.6

10823.7

+21.2

+1136.7

+1157.9

-4.7

-14.0

-18.7

+1139.2

11962.9

+489.3

+645.6

+1695.7

-831.7

+1998.9

-373.1

+98.5

-4048.7

-2020.3

-6343.6

-4344.7

48688.2

+510.5

+645.6

+2832.4

-831.7

+3156.8

-377.8

+98.5

-4062.7

-2020.3

-6362.3

-3205.5

60651.1

UNCLASSIFIED

F-35

December 2015 SAR

Item

SAR Baseline (Development

Estimate)

Previous Changes

Economic

Quantity

Schedule

Engineering

Estimating

Other

Support

Subtotal

Current Changes

Economic

Quantity

Schedule

Engineering

Estimating

Other

Support

Subtotal

Total Changes

Current Estimate

Previous Estimate: December 2014

RDT&E

Summary BY 2012 $M

Procurement

42332.9

MILCON

Total

54028.1

11695.2

+1440.8

-13.4

+1427.4

13122.6

+888.6

-766.3

+122.3

-2670.3

-1408.0

-4078.3

-3956.0

38376.9

+2329.4

-766.3

+1563.1

-2683.7

-1408.0

-4091.7

-2528.6

51499.5

UNCLASSIFIED

F-35

December 2015 SAR

RDT&E

Current Change Explanations

Revised escalation indices. (Economic)

Adjustment for current and prior escalation. (Estimating)

Realignment of cost between the engine subprogram and aircraft subprogram (AF).

(Estimating)

Realignment of cost between the engine subprogram and aircraft subprogram (Navy).

(Estimating)

Decrease due to realignment of program funding, congressional reductions, and actual

funding investment (AF). (Estimating)

RDT&E Subtotal

Procurement

Current Change Explanations

Revised escalation indices. (Economic)

Adjustment for current and prior escalation. (Estimating)

Stretch-out of procurement buy profile in FY 2016 to FY 2038 (Engine Procurement, AF).

(Schedule)

Acceleration of procurement buy profile in FY 2016 to FY 2031 (Engine Procurement,

Navy). (Schedule)

Revised estimate for International procurement quantity adjustments (Engine Procurement,

AF). (Estimating)

Revised estimate for International procurement quantity adjustments (Engine Procurement,

Navy). (Estimating)

Revised estimate to reflect actuals (Engine Procurement, AF). (Estimating)

Revised estimate to reflect actuals (Engine Procurement, Navy). (Estimating)

Decrease based on revised estimating assumptions for Block Buy and Multi-Year

Procurement (Engine Procurement, AF). (Estimating)

Decrease based on revised estimating assumptions for Block Buy and Multi-Year

Procurement (Engine Procurement, Navy). (Estimating)

Update for fact of life changes for prior years/lots 2006-2016 (Engine Procurement, AF).

(Estimating)

Update for fact of life changes for prior years/lots 2006-2016 (Engine Procurement, Navy).

(Estimating)

Adjustment for current and prior escalation. (Support)

Revised estimate for Other Support due to maturation of technical baseline, definition of

customer requirements, and further definition of Service beddown plans (Engine

Procurement, AF). (Support)

Revised estimate for Other Support due to maturation of technical baseline, definition of

customer requirements, and further definition of Service beddown plans (Engine

Procurement, Navy). (Support)

Revised estimate for Initial Spares due to maturation of technical baseline, definition of

customer requirements, and further definition of Service beddown plans (Engine

Procurement, AF). (Support)

Revised estimate for Initial Spares due to maturation of technical baseline, definition of

Base

Year

Base

Year

Then

Year

-4.7

+4.3

-64.3

+46.2

-0.2

-18.7

N/A

+4.3

-60.9

+43.4

-0.2

-13.4

Then

Year

-373.1

+19.0

+293.2

-194.7

-12.5

-5.1

-2326.2

-547.2

-643.3

-343.0

-52.1

-138.3

+5.0

-11.6

N/A

+17.8

0.0

-9.2

-3.8

-1445.7

-330.6

-457.1

-266.8

-47.9

-127.0

+4.8

-17.7

-85.3

-96.7

-1143.5

-1680.7

-166.3

-236.3

UNCLASSIFIED

F-35

December 2015 SAR

customer requirements, and further definition of Service beddown plans (Engine

Procurement, Navy). (Support)

Procurement Subtotal

-4078.3

-6343.6

UNCLASSIFIED

F-35

December 2015 SAR

Contracts

General Notes

The Israel System Development and Demonstration and F135 LRIP 7 contracts no longer meet the threshold for the six

largest contracts.

Contract Identification

Appropriation:

Contract Name:

Contractor:

Contractor Location:

Contract Number:

Contract Type:

Award Date:

Definitization Date:

Procurement

F-35 LRIP 6

Lockheed Martin

1 Lockheed Boulevard

Ft. Worth, TX 76108

N00019-11-C-0083

Fixed Price Incentive(Firm Target) (FPIF), Cost Plus Incentive Fee (CPIF)

December 28, 2012

September 27, 2013

Contract Price

Current Contract Price ($M)

Target

7233.6

Ceiling

N/A

Qty

Initial Contract Price ($M)

Target

4392.1

Ceiling

N/A

Qty

Estimated Price At Completion ($M)

Contractor

7093.6

Program Manager

7233.6

Target Price Change Explanation

The difference between the Initial Contract Price Target and the Current Contract Price Target is due to definitization of

Production Non Recurring, Annualized Sustainment, Non-Annualized Sustainment, Depot, and Spares scope.

Contract Variance

Cost Variance

-131.2

-183.0

+51.8

Item

Cumulative Variances To Date (12/31/2015)

Previous Cumulative Variances

Net Change

Cost and Schedule Variance Explanations

Schedule Variance

-203.4

-193.0

-10.4

The favorable net change in the cost variance is due to sustainment supplier rate underruns, staffing shortfalls and material

procurement efficiencies.

The unfavorable net change in the schedule variance is due to the remaining two Italian aircraft performing behind schedule

and due to tooling delays.

Notes

As a whole, the CLIN consist of multiple contract types including Fixed Price Incentive Fee as well as Cost Plus Incentive

Fee and Cost Plus Fixed-Fee. For this reason, the overall contract type is mixed and there is not a true contract ceiling.

UNCLASSIFIED

F-35

December 2015 SAR

Contract Identification

Appropriation:

Contract Name:

Contractor:

Contractor Location:

Contract Number:

Contract Type:

Award Date:

Definitization Date:

Procurement

F135 LRIP 6

Pratt & Whitney

400 Aircraft Road

Middletown, CT 06457

N00019-12-C-0090

Fixed Price Incentive(Firm Target) (FPIF), Cost Plus Incentive Fee (CPIF)

January 06, 2012

February 15, 2013

Contract Price

Current Contract Price ($M)

Target

1131.9

Ceiling

1139.0

Qty

Initial Contract Price ($M)

Target

1122.0

Ceiling

1128.8

Qty

Estimated Price At Completion ($M)

Contractor

1099.3

Program Manager

1091.6

Target Price Change Explanation

The difference between the Initial Contract Price Target and the Current Contract Price Target is due to the incorporaton of

a contract modification that extended the period of performance for CLIN 12 Service Specific Site Activation and added

some additional support equipment.

Contract Variance

Cost Variance

-10.9

-8.6

-2.3

Item

Cumulative Variances To Date (12/31/2015)

Previous Cumulative Variances

Net Change

Cost and Schedule Variance Explanations

Schedule Variance

-36.5

-31.0

-5.5

The unfavorable net change in the cost variance is due to general and administrative rate changes, additional costs with

design changes with Low Observables Advanced Baseline Acceptance Radar Inspection System work and the Low

Pressure Turbine Rotor hardware is over cost due to not enough cost reduction initiatives or engineering changes

implemented or better pricing from suppliers to support the baseline cost targets.

The unfavorable net change in the schedule variance is due to to the Low Pressure Turbine and High Pressure Turbine

casting tools are late and the initial spares deliveries are late as the contractor is managing the demand requirements and

prioritizing the deliveries between the production requirements and spares.

UNCLASSIFIED

F-35

December 2015 SAR

Notes

The contract is a combination if Fixed Price Incentive Fee and Cost Plus Incentive Fee CLINs. For this reason, the overall

contract type is mixed and there is not a true contract ceiling. This contract includes both engines and Sustainment work

scope. All engines have been delivered and the remaining work is for tooling, support equipment and spare parts.

The Current Contract Ceiling Price is estimated based on the FPIF and CPIF CLINs.

Total Quantity includes aircraft engines and spare engines = 36 installs and two whole spares.

The earned value completion date and Contractor Performance Report reporting will be determined as the contract nears

completion.

Pratt & Whitney’s EVM System was decertified on September 30, 2013 due to sixteen significant deficiencies that affect

four of the 32 EVMS Guidelines. In accordance with Defense Federal Acquisition Regulation Supplement, 5% of each

request for payment is being withheld until all significant deficiencies have been corrected.

This contract is more than 90% complete; therefore, this is the final report for this contract.

UNCLASSIFIED

F-35

December 2015 SAR

Contract Identification

Appropriation:

Contract Name:

Contractor:

Contractor Location:

Contract Number:

Contract Type:

Award Date:

Definitization Date:

Procurement

F-35 LRIP 7

Lockheed Martin

1 Lockheed Boulevard

Ft. Worth, TX 76108

N00019-12-C-0004

Fixed Price Incentive(Firm Target) (FPIF), Cost Plus Incentive Fee (CPIF)

September 27, 2013

Contract Price

Current Contract Price ($M)

Target

5640.4

Ceiling

N/A

Qty

Initial Contract Price ($M)

Target

4447.1

Ceiling

N/A

Qty

Estimated Price At Completion ($M)

Contractor

5547.1

Program Manager

5640.4

Target Price Change Explanation

The difference between the Initial Contract Price Target and the Current Contract Price Target is due to definitization of

Tech Assist, Non-Annualized Sustainment and Depot scope.

Contract Variance

Cost Variance

-78.6

-10.0

-68.6

Item

Cumulative Variances To Date (12/31/2015)

Previous Cumulative Variances

Net Change

Cost and Schedule Variance Explanations

Schedule Variance

-84.8

-46.0

-38.8

The unfavorable net change in the cost variance is due to Wing and Mate through Delivery due to part shortages driving out-

of-station work and labor inefficiencies. Unfavorable assembly cost performance is somewhat offset by Sustainment due to

supplier rate underruns, staffing shortfalls and material procurement efficiencies.

The unfavorable net change in the schedule variance is due to multiple late Fire Control and Stores deliveries.

Notes

As a whole, the CLIN consist of multiple contract types including Fixed Price Incentive Fee as well as Cost Plus Incentive

Fee and Cost Plus Fixed-Fee. For this reason, the overall contract type is mixed and there is not a true contract ceiling.

UNCLASSIFIED

F-35

December 2015 SAR

Contract Identification

Appropriation:

Contract Name:

Contractor:

Contractor Location:

Contract Number:

Contract Type:

Award Date:

Definitization Date:

Procurement

F135 LRIP 8

Pratt & Whitney

400 Aircraft Road

Middletown, CT 06457

N00019-13-C-0016

Fixed Price Incentive(Firm Target) (FPIF), Cost Plus Incentive Fee (CPIF)

August 27, 2013

October 30, 2014

Contract Price

Current Contract Price ($M)

Target

1185.1

Ceiling

1191.4

Qty

Initial Contract Price ($M)

Target

1009.1

Ceiling

1011.9

Qty

Estimated Price At Completion ($M)

Contractor

1141.7

Program Manager

1185.1

Target Price Change Explanation

The difference between the Initial Contract Price Target and the Current Contract Price Target is due to the incorporation of

many contract modifications relating to tooling, Sustainment, extra long lead hardware options, operations and maintenance

work scope and unit and depot support equipment.

Contract Variance

Cost Variance

-68.9

Item

Cumulative Variances To Date (12/31/2015)

Previous Cumulative Variances

Net Change

Cost and Schedule Variance Explanations

Schedule Variance

-9.5

The unfavorable cumulative cost variance is due to general & administrative rate changes, higher costs with the Fan

Integrally Bladed Rotors and Externals Systems due to not enough cost reduction initiatives or engineering changes

implemented or better pricing from suppliers to support the baseline cost targets.

The unfavorable cumulative schedule variance is due to Fan, Externals and Turbine Exhaust hardware delivering late to

baseline plan due to quality issue.

UNCLASSIFIED

F-35

December 2015 SAR

Notes

The contract is a combination if Fixed Price Incentive Fee, Cost Plus Incentive Fee and Firm Fixed Priced CLINs. For this

reason, the overall contract type is mixed and there is not a true contract ceiling.

This contract includes both engines and Sustainment work scope. All engines have been delivered and the remaining work

is for tooling, support equipment and spare parts.

The Current Contract Ceiling Price is estimated based on the FPIF and CPIF CLINs.

Total Quantity includes aircraft engines and spare engines = 45 installs and three whole spares.

The earned value completion date and Contractor Performance Report reporting will be determined as the contract nears

completion. Pratt & Whitney’s EVM System was decertified on September 30, 2013 due to sixteen significant deficiencies

that affect four of the 32 EVMS Guidelines. In accordance with Defense Federal Acquisition Regulation Supplement, 5% of

each request for payment is being withheld until all significant deficiencies have been corrected.

UNCLASSIFIED

F-35

December 2015 SAR

Contract Identification

Appropriation:

Contract Name:

Contractor:

Contractor Location:

Contract Number:

Contract Type:

Award Date:

Definitization Date:

Procurement

F-35 LRIP 8

Lockheed Martin

1 Lockheed Boulevard

Ft Worth, TX 76108

N00019-13-C-0008

Fixed Price Incentive(Firm Target) (FPIF), Cost Plus Incentive Fee (CPIF)

February 28, 2013

November 21, 2014

Contract Price

Current Contract Price ($M)

Target

5171.3

Ceiling

N/A

Qty

Initial Contract Price ($M)

Target

5153.5

Ceiling

N/A

Qty

Estimated Price At Completion ($M)

Contractor

5162.2

Program Manager

5171.3

Target Price Change Explanation

The difference between the Initial Contract Price Target and the Current Contract Price Target is due to authorization of

Reprogramming Center West Prime Mission Equipment.

Contract Variance

Cost Variance

-65.0

Item

Cumulative Variances To Date (12/31/2015)

Previous Cumulative Variances

Net Change

Cost and Schedule Variance Explanations

Schedule Variance

-136.1

The unfavorable cumulative cost variance is due to overruns within quality labor and material allocations. In addition,

unfavorable performance is due to ongoing part shortages within Forward Fuselage and Wing driving out-of-station work

and labor inefficiencies.

The unfavorable cumulative schedule variance is due to late spares and tool deliveries as well as assembly delays.

Notes

As a whole, the CLIN consist of multiple contract types including Fixed Price Incentive Fee as well as Cost Plus Incentive

Fee and Cost Plus Fixed-Fee. For this reason, the overall contract type is mixed and there is not a true contract ceiling.

UNCLASSIFIED

F-35

December 2015 SAR

Contract Identification

Appropriation:

Contract Name:

Contractor:

Contractor Location:

Contract Number:

Contract Type:

Award Date:

Definitization Date:

Procurement

FY15 Annualized Sustainment

Lockheed Martin

1 Lockheed Boulevard

Ft Worth, TX 76108

N00019-15-C-0031

Cost Plus Incentive Fee (CPIF)

October 28, 2014

November 01, 2014

Contract Price

Current Contract Price ($M)

Target

5171.3

Ceiling

N/A

Qty

Initial Contract Price ($M)

Target

5153.5

Ceiling

N/A

Qty

Estimated Price At Completion ($M)

Contractor

5162.2

Program Manager

5171.3

Target Price Change Explanation

The difference between the Initial Contract Price Target and the Current Contract Price Target is due to Delta driven by

authorization of Reprogramming Center West Prime Mission Equipment.

Contract Variance

Cost Variance

-65.0

Item

Cumulative Variances To Date (12/31/2015)

Previous Cumulative Variances

Net Change

Cost and Schedule Variance Explanations

Schedule Variance

-136.1

The unfavorable cumulative cost variance is due to overruns within quality labor and material allocations. In addition,

unfavorable performance is due to ongoing part shortages within Forward Fuselage and Wing driving out-of-station work

and labor inefficiencies.

The unfavorable cumulative schedule variance is due to late spares and tool deliveries as well as assembly delays.

Notes

As a whole, the CLIN consist of multiple contract types including Fixed Price Incentive Fee as well as Cost Plus Incentive

Fee and Cost Plus Fixed-Fee. For this reason, the overall contract type is mixed and there is not a true contract ceiling.

UNCLASSIFIED

F-35

December 2015 SAR

Deliveries and Expenditures

F-35 Aircraft

Deliveries

Delivered to Date

Development

Production

Total Program Quantity Delivered

Planned to Date

148

162

Actual to Date

146

160

Total Quantity

2443

2457

Percent

Delivered

100.00%

5.98%

6.51%

Expended and Appropriated (TY $M)

Total Acquisition Cost

Expended to Date

Percent Expended

Total Funding Years

318390.9

66171.9

20.78%

Years Appropriated

Percent Years Appropriated

Appropriated to Date

Percent Appropriated

51.11%

91294.7

28.67%

The above data is current as of February 03, 2016.

Totals reflect U.S. aircraft only-no International Partner aircraft.

F-35 Engine

Deliveries

Delivered to Date

Development

Production

Total Program Quantity Delivered

Planned to Date

148

162

Actual to Date

146

160

Total Quantity

2443

2457

Percent

Delivered

100.00%

5.98%

6.51%

Expended and Appropriated (TY $M)

Total Acquisition Cost

Expended to Date

Percent Expended

Total Funding Years

60651.1

17008.4

28.04%

Years Appropriated

Percent Years Appropriated

Appropriated to Date

Percent Appropriated

51.11%

19924.7

32.85%

The above data is current as of February 03, 2016.

Engines planned and actual to date only include production installs.

UNCLASSIFIED

F-35

December 2015 SAR

Operating and Support Cost

F-35 Aircraft

Cost Estimate Details

Date of Estimate:

Source of Estimate:

Quantity to Sustain:

Unit of Measure:

Service Life per Unit:

Fiscal Years in Service:

March 07, 2016

CAPE ICE

2443

Flying Hour

32.00 Years

FY 2011 - FY 2070

Quantity to Sustain 2443 does not include 14 development aircraft.

Sustainment Strategy

The F-35 Product Support Manager (PSM) has developed and is executing a Sustainment Strategy that is consistent with

warfighter requirements, technical specifications, extant contracts, government policies, and best practices. The F-35

Sustainment Strategy expressly states that the F-35 Program will:

- Design, develop, deliver and sustain a single, integrated, and global system of sustainment products, processes, and

business practices. These actions will enable the F-35 Air System to achieve a high degree of effectiveness at an

affordable cost.

- Tailor the global system to meet warfighter-defined and PSM-supported readiness and cost objectives. This action will

ensure that the global system is responsive and flexible as operational needs vary over time.

- Maintain life-cycle focus, including the reduction of costs. This action will provide critical affordability benefits and further

supports a high degree of effectiveness as Air System maturity grows.

- Create a mutually-beneficial enterprise that – with relevant metrics and incentives – operates, manages, and supports

the global system. This action further improves responsiveness and enhances affordability.

- Leverage the global resource base – government and commercial – to take advantage of stakeholder capabilities,

human capital, best practices, and similar critical contributions. This action increases robustness and scalability as the F

-35 fleet grows and matures.

Antecedent Information

The F-35 family of aircraft variants will replace the following current aircraft: F-16C/D, A-10, F/A-18C/D, and AV-8B. The

F-35 O&S estimate is based on legacy fleet history only when F-35 specific data is not available.

Comparing the costs of the 5th Generation F-35 to legacy aircraft is challenging. The cost table above compares an

adjusted F-16C/D Cost per Flying Hour (CPFH) to a forecast of the CPFH for the F-35A variant. The F-35A CPFH figure

is based on the Conventional Takeoff and Landing (CTOL) variant only. The F-35A CTOL variant will make up the

majority of the DoD F-35 aircraft procurement, accounting for 1,763 of 2,443 total aircraft currently planned for U.S.

forces.

The F-16C/D CPFH figures were developed in a joint effort between CAPE and the Air Force Cost Analysis Agency. The

UNCLASSIFIED

F-35

December 2015 SAR

figures have been normalized for comparison to the F-35A CPFH forecast. The starting point for the F-16C/D CPFH is

an average of actual cost incurred for this fleet during FY 2008 through FY 2010. In order to enable the direct comparison

of the CPFH figures, the actual F-16C/D CPFH is adjusted to reflect the cost of fuel, the number of flight hours forecast

for the F-35A, and FY 2013 inflation indices. The F-16C/D figures include costs that F-16 shares with other Air Force

platforms: Systems Engineering/Program Management (SEPM), maintenance training costs, certain software

development efforts, and information systems. Costs for mission planning are included in the F-35A CPFH figure, but

equivalent costs for the F-16C/D are not available, and no adjustment was made for this element of cost. Finally, the F-

16C/D figures assume full funding of requirements consistent with the F-35A CPFH figures.

Annual O&S Costs BY2012 $K

Cost Element

Unit-Level Manpower

Unit Operations

Maintenance

Sustaining Support

Continuing System Improvements

Indirect Support

Other

Total

F-35 Aircraft

Average Annual Cost Per Flying

Hour

8.470

4.923

11.126

3.179

2.108

0.000

29.806

F-16C/D (Antecedent)

Cost Per Flying Hour ($)

10.042

5.632

5.501

2.075

2.291

0.000

25.541

The F-35A CTOL unitized cost figure shown in the table above decreased slightly relative to the comparable 2014 SAR

figure. There are three considerations that result in a slight decrease for the F-35A unitized cost shown above: 1) a

decrease in the assumed cost per gallon of JP-8 fuel; 2) a decrease in the fuel burn rate for the F-35A variant; and 3) a

revised cost estimating relationship for hardware modifications.

Given the significant increase in military capabilities provided, it is reasonable to expect F-35A to cost more to operate

and sustain than 4

generation legacy aircraft.

Total O&S Cost $M

Item

F-35 Aircraft

Current Development APB

Objective/Threshold

Base Year

Then Year

617000.0

1113272.6

678700.0

N/A

Current Estimate

620805.4

1123844.0

F-16C/D (Antecedent)

N/A

The Total O&S Cost figures above reflect the CAPE ICE estimate of O&S costs updated in 2015 in accordance with

tasking from Congress. The O&S cost estimate includes all three U.S. aircraft variants, is based on a forecast 30-year

service-life, and is based on planned usage rates provided by each relevant military service. The planned F-35 usage

rates, in terms of aircraft flight hours per year, are as follows: F-35A CTOL @ 250 hrs./yr.; F-35B STOVL @ 302 hrs./yr.;

and F-35C CV @ 316 hrs./yr. The total life-cycle cost estimate is not a simple extrapolation of the F-35A flying hour cost

shown in the unitized O&S cost table above. Total O&S costs are updated using FY 2015 inflation indices, and include

revised forecasts of labor escalation rates for military, civilian, and contractor personnel. A comparable total cost figure

for the antecedent system (i.e., F-16C/D) is not available.

The 2015 CAPE estimate of F-35 total life cycle O&S costs incorporates updated information regarding several key cost

UNCLASSIFIED

F-35

December 2015 SAR

elements relative to the CAPE O&S cost estimate shown in the 2014 SAR. This includes updated fuel burn rates for all

variants, a reduction in the assumed price per gallon of both JP-5 and JP-8, use of updated escalation forecasts for

government personnel, a revised cost estimating relationship for hardware modifications, new Service bed down plans for

all variants, and updated depot-level repairable (DLR) costs. The updated information results in increased cost forecasts

for certain cost elements, and decreased cost forecasts for other elements. The 2015 CAPE total O&S estimate is

approximately 3.8% higher (in BY 2012 $) than the total O&S cost estimate in the 2014 SAR.

Not included in the 2015 CAPE estimate are the intermediate maintenance costs for the Marine Corps as observed with

the operational squadron at Marine Corps Air Station Yuma. Although the program of record (POR) acknowledges only

unit and depot levels of maintenance, it appears that the Department of Navy (DoN) is moving towards incorporating

some form of intermediate maintenance for its squadrons. However, the DoN has not made the decision to change the

POR at this point. While the extent of the additional maintenance level is currently unclear, a change in F-35

maintenance strategy appears to be likely for at least the DoN. CAPE recommends that the Services develop business

case analyses to determine the impact of intermediate maintenance levels on the respective F-35 variants, in terms of

both cost and readiness.

As in 2014, the CAPE O&S cost estimate incorporates actual information on component reliabilities obtained from the

ongoing F-35 flight operations, including flight test and field operations. This program information is provided from the

DoD test community, through Director, Operational Test and Evaluation, and includes actual reliability information on

many F-35 components based on data collected during approximately 31,000 hours of flight operations. The data include

all variants and flight operations through May 2015.

The reliability information has been compared to expected reliabilities for this stage of the program, for all variants, based

on reliability growth curves. The 2015 CAPE O&S estimate continues to reflect the increased DLR costs present in

the 2014 SAR estimate, because component reliability information obtained from actual flight operations data remains

inconsistent with expectations.

CAPE will continue to work with the DoD operational test community to improve the processes and methods used to

incorporate actual data and information on component reliabilities and removal rates, obtained from ongoing flight

operations, into the CAPE life-cycle O&S cost estimate for the F-35 program. This information will be used, together with

reliability improvement forecasts, to update the O&S cost estimates as the program proceeds to and beyond IOC. In the

future, the use of actual flight operations information could result in substantial changes in forecasts of DLR costs in

CAPE O&S estimates.

Affordability remains the F-35 program office number one priority. As such, the F-35 program team is focused on

reducing sustainment costs across the program. The program continues to target O&S cost avoidance through the Cost

War Room (CWR) and Reliability and Maintainability Improvement Program (RMIP). Concurrent to CWR activity, the

program office has taken strides to transition from analogy and parametric estimating approaches toward contracted

values to improve the O&S cost estimate’s accuracy. As a result of CWR affordability initiatives, requirement refinement,

and improved cost data quality, the program has reduced the program’s annual cost per flight hour.

The 2015 O&S POE of $579.1B BY 2012$ ($1.026 Trillion TY$) has been updated to reflect the latest technical baseline

for the program and incorporates revised stakeholder requirements. Primary updates to the 2015 POE include service

requirements, JP-5 and JP-8 fuel prices and consumption, hardware modification, and government/contractor manpower.

Note: values below in parentheses represent the change from the 2014 POE to the 2015 POE.

- U.S. Air Force extended the program’s life cycle by six years. In total, DoD assumes an additional 1.6 million flight hour

(11% increase) for F-35 operations (+$54.3B CY 2012 $)

- JP-5 and JP-8 fuel prices reflect Defense Logistics Agency catalog with consumption rates updated to reflect actuals (-

$24.6B CY 2012 $)

- Hardware modifications removed costs associated with capability updates as stated in 2014 CAPE guidance (-

$14.9B CY 2012 $)

UNCLASSIFIED

F-35

December 2015 SAR

- Government / contractor manpower underwent a thorough assessment based on current LRIP requirements (+$3.7B

CY 2012 $)

The CAPE estimate incorporates the program office updates while adjusting reliability metrics and military personnel

compensation real price change. The program office does not support the CAPE’s use of actual reliability data from

ongoing flight operations. The reliability data used in the CAPE estimate is based on a mix of aircraft configurations and

represent only 9% of the hours required to reach Reliability and Maintainability maturity of the F-35 fleet. The CAPE

estimate accounted for the real price change of military personnel compensation. The program office does not have a

position on military personnel real price change and will incorporate once it becomes DoD guidance.

The F-35 PEO believes that the inherent differences between the F-35 and the F-16 estimates, such as mission planning

costs being included in F-35 but not F-16 and the fact that the F-16 is a mature weapons system with many reliability and

maintenance costs “leaned out” over the years, result in an overstating of the differences in cost per flying hour between

the two. Regardless of the difference, the F-35 program office is committed to, and has enacted multiple programs to

drive the O&S costs of the F-35 down.

Equation to Translate Annual Cost to Total Cost

The F-35 steady state cost per flying hour reflected in the annual O&S cost section does not easily translate to the Total

O&S value for the program because the total O&S costs reflect costs for all three variants of the F-35 for the U.S. Air

Force, U.S. Marine Corps, and U.S. Navy, whereas the CPFH reflects the U.S. Air Force F-35A only.

O&S Cost Variance