Interesting article on the
Defense News website with Bogdan talking about the possibility of a 'block buy' for the partner nations and FMS customers:
F-35 Heading Toward Block Buy | Defense News | defensenews.com
The paragraphs that I thought were interesting are:
With the negotiations over LRIP 8 at a conclusion, Lt. Gen. Chris Bogdan, the head of the F-35 joint program office, is planning on negotiating LRIP 9 and 10 together. And come LRIP 11, he wants a whole new model of procurement in place.
And:
A number of partner nations have already committed to large procurements of the fifth-generation stealthy jet, so bundling their orders together is just logical, Bogdan said.
“If you were to take their requirements and put them together, you could actually have a substantial number of airplanes, starting in LRIP 11 and spanning LRIP 11, 12 and 13, bought as a block of airplanes, almost as if it was a multi-year [buy] for the US,” he said.
Participation in a block buy would be open to all international partners or foreign military sales customers who are interested, and Bogdan said he expects “substantial savings” for those involved.
But while a block buy could benefit international partners, the US would not be able to participate in such a buy due to acquisition rules barring a multi-year procurement until the jet enters full-rate production.
In other words, the United States would be paying more per F-35 model than a country such as, for argument’s sake, South Korea, which has pledged to procure 40 F-35A fighters through foreign military sales.
And this paragraph:
Which is another wrinkle to be navigated. The US is by far the largest customer for the F-35 program, and while a block buy of international customers will lead to savings, the greatest savings possible would come from getting the US on a multi-year once the program enters full-rate production.
The things that stood out for me are:
* LRIP 9 & 10 to be negotiated together - (good, should lead to further reduction in price).
* From LRIP 11 the new 'Block Buy' procurement model should be in place - (again good news, should lead to more savings).
* Talk of LRIP 12 & 13 - (as I had previously understood it, LRIP 11 was to be the last LRIP before MYP started, is this a change to the program and is MYP being deferred for two years?).
If I'm reading the article correctly (and assuming it is accurate!) it appears to be a bit of a 'double edged sword' in that on the one hand, negotiating LRIP 9 & 10 together, should lead to more savings and from LRIP 11 that the new procurement model of a 'Block Buy' might be in place to add further savings for Partner nations and FMS customers, but on the other hand, what appears to be new, the addition of LRIP 12 & 13 will prevent the US (the largest customer) from participating in Multi-year buys until full rate MYP starts.
From an Australian perspective, as I understand the 72 F-35A's currently approved are to be procured as follows (information from
Australian Aviation, June 2014):
Lot .. US FY .. CY .. Aircraft
LRIP 6 .. 2012 .. 2014 .. 2
LRIP 10 .. 2016 .. 2018 .. 8
LRIP 11 .. 2017 .. 2019 .. 15
MYP .. 2018 .. 2020 .. 15 (will this now be LRIP 12?)
MYP .. 2019 .. 2021 .. 15 (will this now be LRIP 13?)
MYP .. 2020 .. 2022 .. 15
MYP .. 2021 .. 2023 .. 2
TOTAL 72
Again if the article is accurate and two further LRIP lots (12 & 13) are to be included, then the majority of aircraft for the RAAF will be purchased without the US being able to participate in the MYP and therefore not being able to commit to multi-year procurement, so I wonder what the impact will be on the unit price for the RAAF and other nations until the US is able to participate in multi-year procurement?
Not being negative about the F-35 or the F-35 program, but I do wonder what negative impact the addition of two more LRIP's will have on some of the more 'price sensitive' nations when it comes to how and when they will buy their aircraft and specifically regarding the RAAF what extra cost per airframe a possible delay in MYP could do too, maybe that is why Bogdan is 'taking up' the possibility of a 'Block Buy' for Partner Nations and FMS customers?