Lockheed Martin plans to complete a major restructuring of its US Air Force contract for the last two production lots of C-130J Hercules airlifters by the end of this month, says Jack Crisler, head of air mobility business development.
Lockheed and USAF officials have agreed on traditional government contracting terms for the new deal, but still await final approval from the White House Office of Management and Budget. Pressure from Congress prompted USAF officials to negotiate a new contract with Lockheed earlier this year. The USAF had been buying C-130Js under commercial contracting rules, which Congress had criticised for avoiding the government’s cost accounting requirements.
The conversion process was complicated by negotiations with Lockheed’s third- and fourth-tier suppliers, says Crisler.
Source: Flight International
