Here’s an Oct-17 contract announcement from the defense.gov website.
“Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $743,169,377 fixed-price-incentive, firm target and cost-plus-fixed-fee modification to the previously awarded low-rate initial production
Lot 9 F-35
Lightening II Joint Strike Fighter advance acquisition contract
(N00019-14-C-0002).This modification provides additional funding and
will establish not-to-exceed (NTE) prices for diminishing manufacturing and
material shortages redesign and development, estimated post production
concurrency changes and country unique requirements. In addition, this modification will establish NTE
prices for one F-35A aircraft and one F-35B aircraft for a non-U.S. Department
of Defense (DoD) participant in the F-35 program.
fixed-price-incentive, firm target and cost-plus-fixed-fee modification to the previously awarded low-rate initial production Lot 9 F-35 Lightening II Joint Strike Fighter advance acquisition contract”. Huh???? Be honest, do any of you understand exactly what that means? Isn’t “cost-plus-fixed-fee an oxymoron?
Second, is the not-to-exceed (NTE) prices. I understand what the phrase “not-to-exceed” means but how does it apply here? There is no actual
Lot 9 purchase contract in effect, yet, so how can
not-to-exceed prices be established?
Why are the Lot 9 contract negotiations continuing to drag on? Probably because no one understands what the contract says!
All this tells me is that there are way too many lawyers in the world!