Baltimore, December 9, 2025
Lockheed Martin has won a $1.14 billion contract from the U.S. Department of Defense to produce materials and components for 198 F-35 fighter jets. This contract is expected to significantly benefit local businesses and stimulate the economy in Baltimore. As the program continues, with a completion date set for December 2030, it will create numerous opportunities for job growth and business expansion in the area.
Lockheed Martin Receives $1.14 Billion Contract for F-35s
New opportunities for local businesses and a boost for Maryland’s economy stem from defense contracts.
Baltimore, MD – In a significant move for both national defense and local economic growth, Lockheed Martin has secured a $1.14 billion contract modification from the U.S. Department of Defense to procure materials and components for 198 F-35 fighter jets. This contract not only reinforces the importance of the F-35 program within the context of global military strategy but also demonstrates how defense contracts can serve as a catalyst for economic activity in Baltimore and beyond.
The funding is allocated for the production of 65 Lot 20 and 133 Lot 21 aircraft, intended for various branches of the U.S. military including the Air Force, Navy, and Marine Corps, as well as international partners. Given the diverse and extensive supply chain involved in aircraft manufacturing, Maryland’s local businesses stand to benefit from the influx of revenue associated with this substantial defense contract.
Contract Breakdown and Economic Impact
Among the contract’s notable financial allocations, $188 million comes from Air Force procurement and $115.79 million from Navy procurement, both for fiscal year 2026. Additional funds from Foreign Military Sales customers and F-35 cooperative program partners further spotlight the multifaceted nature of defense spending. As the contract is carried out across various locations, with 3% of the workload designated for Baltimore, local contractors and suppliers will likely see increased demand for their products and services.
Global Collaboration and Manufacturing Locations
The contract encompasses work to be performed in multiple locations, reflecting a global approach to military manufacturing. For instance, Fort Worth, Texas, will account for the majority of production at 59%, but substantial activities will also be taking place in El Segundo, California, Warton in the United Kingdom, and Cameri, Italy. As the project runs its course with a scheduled completion date set for December 2030, the sustained economic activity will create opportunities for job growth and small business expansion.
Challenges and Cost Management
Despite the promising outlook, the F-35 program has faced its share of challenges, including cost overruns and production delays. However, Lockheed Martin has implemented various strategies aimed at reducing costs, reporting a 44% decrease in cost per flying hour over the past five years. The company’s goal is to achieve an additional 40% reduction over the next five years by enhancing efficiencies and reliability. Such proactive measures not only lower operational costs but also foster confidence in the future viability of the program.
Long-Term Investments in Defense
The overall lifetime cost of the F-35 program has come under scrutiny, with projections suggesting it may exceed $2 trillion over its service life, factoring in future operational requirements. While these figures can raise concerns, the investment in next-generation military capabilities is critical for maintaining U.S. and allied military superiority. The program’s milestone of delivering over 1,300 F-35s to domestic and international users underscores the aircraft’s instrumental role in modern aerial combat.
Supporting Local Enterprises and Future Growth
In this dynamic landscape, the synergy between government contracts and local business growth highlights the potential that exists when government initiatives align with private enterprise. Entrepreneurs and small businesses in Baltimore can take advantage of this robust defense contracting climate to seek out opportunities that can further stimulate Maryland’s economic growth. A favorable regulatory environment can help encourage these trends, ensuring that local firms can meet the demand created by such large-scale contracts.
Conclusion
The recent awarding of the $1.14 billion contract to Lockheed Martin provides significant economic opportunities for Baltimore and the surrounding areas. As defense spending on projects like the F-35 continues, we encourage local business owners to engage with this growing industry. By supporting local innovation and collaboration across sectors, Baltimore can continue to thrive in both the military and civilian domains, contributing to a vibrant and resilient economy.
Frequently Asked Questions (FAQ)
What is the value of the contract awarded to Lockheed Martin?
The U.S. Department of Defense awarded Lockheed Martin a $1.14 billion contract modification to procure materials and components for 198 F-35 fighter jets.
Which aircraft are included in this contract?
The contract supports the production of 65 Lot 20 and 133 Lot 21 F-35 aircraft, intended for the U.S. Air Force, Navy, Marine Corps, and international partners.
Where will the work for this contract be performed?
Work will be performed at multiple locations, including Fort Worth, Texas (59%); El Segundo, California (14%); Warton, United Kingdom (9%); Cameri, Italy (4%); Orlando, Florida (4%); Nashua, New Hampshire (3%); Baltimore, Maryland (3%); San Diego, California (2%); and other international sites (2%).
What is the scheduled completion date for this project?
The project is scheduled for completion by December 2030.
What is the F-35 program?
The F-35 program is a multinational effort aimed at developing a versatile, fifth-generation fighter jet to meet the needs of the U.S. and allied forces.
How many F-35s have been delivered to date?
Lockheed Martin has delivered over 1,300 F-35s to the U.S. and 20 allied nations.
What are the projected lifetime costs of the F-35 program?
A 2024 report estimated the program’s lifetime cost to exceed $2 trillion, considering factors such as extended service life and inflation.
What efforts are being made to reduce F-35 program costs?
Lockheed Martin has reduced the cost per flying hour by 44% over the previous five years and aims to achieve an additional 40% reduction in the next five years through improved efficiencies and reliability.
Key Features of the F-35 Program
| Feature | Description |
|---|---|
| Aircraft Variants | F-35A (Air Force), F-35B (Marine Corps), F-35C (Navy) |
| Global Deployment | Over 1,300 F-35s delivered to the U.S. and 20 allied nations |
| Program Cost | Lifetime cost projected to exceed $2 trillion |
| Cost Reduction Efforts | 44% reduction in cost per flying hour over the past five years; additional 40% reduction targeted in the next five years |
| Scheduled Completion | Project completion by December 2030 |
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