The Pentagon’s 10-year F-35 deal outruns the five-year limit on multiyear contracts, leaving Congress to set its terms

By Calvin Strand

WASHINGTON — The Department of War and Lockheed Martin on Thursday announced a 10-year “framework agreement” for the F-35 Lightning II. It guarantees a floor of 850 U.S. aircraft and commits the company to self-fund at least $7 billion in initiatives supporting the program. The deal is not yet a contract, and the federal law that governs such deals does not allow a single multiyear contract to run 10 years.

Both announcements say so in their own words. The Pentagon release says execution “remains subject to Congressional authorization and appropriations.” Lockheed’s release says the Joint Program Office and the company will finalize “contract terms, pricing, and schedules through a formal contract award” only “if granted multiyear authority and associated appropriations in the coming months.” Neither release gives a dollar value or a unit price.

What the framework covers

According to the two releases, the framework covers 850 U.S. aircraft over 10 years with initial spares, 10 years of modification kits and sustainment of the global F-35 fleet, and international orders across production Lots 21 through 30. Lockheed says the production rate stays at 156 aircraft a year. In exchange for what the Pentagon calls a “decade-long commitment,” Lockheed will put at least $7 billion of its own money into the program. The releases do not break that figure down.

“We have fundamentally changed how we stabilize the American defense industrial base to produce at speed and scale,” Under Secretary of War Michael P. Duffey said in the Pentagon release. “By aligning financial incentives with actual performance, we are ensuring our warfighters are equipped with the lethal capabilities they need to fight and win.”

Lockheed Chairman and CEO Jim Taiclet said the “greater certainty” lets the company “make the upfront investments needed to expand capacity, improve efficiency, and build a more resilient supply chain.” The company says the program supports 317,000 U.S. jobs and about $79 billion a year in economic activity.

An average of 85 U.S. jets a year would match the Pentagon’s fiscal 2027 request of 85 aircraft. Military Times reported that Congress funded 47 in fiscal 2026. Military Times also noted that the Pentagon has signed similar frameworks this year for PAC-3 and THAAD interceptors and, on Oct. 19, with BAE Systems for APKWS rockets.

The five-year ceiling

Multiyear procurement is governed by 10 U.S.C. § 3501. The statute defines a multiyear contract as one covering “more than one, but not more than five, program years.” It also requires specific authorization in an act other than an appropriations act, and appropriations-act authority, for any multiyear contract of $500 million or more. Before award, the secretary must certify the expected savings to Congress at least 30 days ahead, and the contract must be fixed-price. Cancellation ceilings above $100 million require notice to Congress.

Congress can override the five-year limit for particular programs. It did so in last year’s defense authorization, which allowed longer terms for certain munitions. Neither pending F-35 provision does that. A 10-year buy would therefore require back-to-back five-year contracts or new legislation. The releases do not say which approach the department plans.

The House version is stricter. Its Sec. 162 bars a contract until the under secretary for acquisition and sustainment certifies that a multiyear buy will save at least 5% compared with annual contracts, a figure the Pentagon’s cost-assessment office must validate. It also requires a report on funding the fleet to required readiness rates. The Senate committee’s Sec. 132 instead deems the statutory findings met and requires a report within 90 days. The full Senate has not passed its bill. Congress.gov lists the last action as a July 27 motion to proceed.

Readiness record

The framework arrives four months after a Government Accountability Office report found that the fleet’s mission-capable rate fell from 67% in fiscal 2021 to 44% in fiscal 2025. Over the same period, the full-mission-capable rate fell from 38% to 25%. The GAO said the program office’s sustainment “reset” will cost an estimated $13.7 billion more than planned through fiscal 2031. It relies on the private sector to deliver more than $7 billion in additional parts and material. The GAO also found that the office paid contractor incentive fees for performance that did not match service requirements. Neither release says whether the $7 billion Lockheed pledged Thursday overlaps with that parts figure.

Lockheed’s release says the framework will “directly translate into higher mission capable rates,” citing real-time visibility into parts inventories and readiness data. The House bill’s readiness-report requirement would put such claims before the defense committees before any award.

Requests for comment

Diana Maurer, director of defense capabilities and management at the Government Accountability Office, said the GAO has not specifically reviewed the new framework. She said Congress would need to approve 10-year buys, through the defense authorization act or another statute. Maurer pointed to a 2016 GAO report that found block buys and multiyear contracts could reduce costs but limit funding flexibility, and she raised concerns about multiyear sustainment contracts. She also cited open GAO recommendations on a transfer of sustainment responsibilities due by October 2027 and the fleet’s continuing availability shortfalls.

Taxpayers for Common Sense said in an email that “a 10-year contract for a plane that, 20 years after its first flight, is only fully operational a quarter of the time, speaks for itself,” and that “this agreement doesn’t outline any new solutions.”

The Inquisitor is seeking comment from the Department of War press office, Lockheed Martin Aeronautics, the GAO’s defense capabilities team, the office of Sen. Jack Reed (D-R.I.), ranking member of the Senate Armed Services Committee, the Project On Government Oversight and Taxpayers for Common Sense. The questions cover the contract structure, the $7 billion pledge and expected savings. The GAO and Taxpayers for Common Sense responded; their comments are included above. This story will be updated with any other replies.

Update, Oct. 23, 2026: This story has been updated with responses from the Government Accountability Office and Taxpayers for Common Sense.

Photo: An F-35A Lightning II from the 33rd Fighter Wing and an F-22A Raptor over Florida’s Emerald Coast, Sept. 19, 2012. U.S. Air Force photo by Master Sgt. Jeremy T. Lock via Wikimedia Commons, public domain.