SubscribeThe ‘handshake deal’ is an informal initial agreement between Lockheed Martin and the F-35 JPO, covering the next two F-35 production lots (Lots 18 and 19). Previous contracts have tended to include three production lots, but Lot 20 will be part of the first multi-year production agreement, and will therefore be negotiated separately. The final agreement is expected to cover roughly 300 aircraft, since Lockheed Martin has said that its Fort Worth final assembly line can output 156 F-35s annually. A joint statement issued by Lockheed Martin and the F-35 Joint Program Office (JPO) said that: “We have reached an initial agreement as part of ongoing negotiations for the Lot 18/19 Air Vehicle Production Contract. The JPO withheld payments of US $7 million per aircraft during the delivery hold, and Lockheed Martin forfeited $60 million in fees.
