Pentagon finalizes $7.8 billion in F-35 contracts with Lockheed

The Pentagon on Friday said it had finalized two contracts with Lockheed Martin Corp valued at $7.8 billion for 71 more F-35 fighter jets, citing what it called significant reductions in the cost of the new radar-evading warplane.

The U.S. Defense Department said it signed a $4.4 billion contract for a sixth batch of 36 F-35 aircraft, with the average cost of the planes down 2.5 percent from the previous deal. All but $743 million of that amount had already been awarded to the company under a preliminary contract.

The two sides also signed a $3.4 billion contract for 35 aircraft in a seventh batch, which reflected a 6 percent drop in the average price from the fifth group, it said in a statement.

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