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The US Department of Defense is nearing an agreement with Lockheed Martin Corp (NYSE: LMT) to buy around 375 F-35 fighter jets over three years, Reuters reported on Monday, citing three sources familiar with the matter.
Although talks had stalled in recent weeks over data rights, a Monday midday meeting in Washington could yield a "handshake" decision on both a price range and quantity, the report said.
If an agreement is reached, it would cost the US government in the range of around $30 billion.
Reuters report said a pre-pandemic forecast for this three-year buy showed around 485 jets could be included, but the 22% volume decrease would undoubtedly impact the overall cost of the jet.
The F-35 comes in three configurations, the A-model is for the US Air Force and US allies; an F-35 B-model, which can handle short takeoffs and vertical landings; and F-35C jets are designed for aircraft carrier landings.
Pentagon's previous three-year "block buy," which was signed in 2019, was for 478 F-35 fighter jets, allowing Lockheed to buy larger quantities of components to reduce costs by about 8%, to $34 billion, versus negotiating annual contracts.
The F-35 has had several recent successes in jet fighter competitions, including in Finland, Switzerland and Germany.
Last month, Lockheed Martin said it could deliver its first F-35As fighter jets to Germany in 2026 if government deals can be signed off promptly. Greece and the Czech Republic are also on the list of potential customers.
The F-35 jet program represents about 27% of Lockheed's revenue.
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