Unit Cost for a Potentially Operationally Useable F-35 in 2018 Based on F-35 Appropriations Costs Identified in 2018 DOD, USAF and USN Budget Request Materials located at DOD Comptroller Website at http://comptroller.defense.gov/Budget-Materials/Budget2018/ (Includes all hardware, modification/upgrade, and basing appropriation accounts specifically labelled to be for F35s.) FY 2018 Dollars, Millions Appropriation Account USAF F-35A (46 Requested) USMC F-35B (20 Requested) USN F-35C (4 Requested) 4,544.7 404.5 2,398.1 233.6 582.3 80.9 780.3 413.5 263.1 Modification of Aircraft 68.3 35.0 31.7 Initial & Replenishment Spares O&M Beddown, Spares, Depot Maintenance, Contractor Logistics Support, Aviation Logistics. 320.8 144.8 77.2 701.9 435.7 87.1 Procurement Aircraft Procurement Long Lead from Previous Year Long Lead for Future Years Comments FYI only: Intended for future year purchases, this money is not counted here as a 2018 F-35 unit price expense. Intended for software and “concurrency” modifications (i.e. fixes for discovered design flaws) for previous aircraft, this money is a surrogate for likely future fixes and upgrades for the F-35s purchased in 2018. See also O&M Depot Maintenance and Aviation Logistics and R&D Follow-on Modernization below. Funds identified to be for F-35 flight operations, such as training, are not included. Funds for F-35 hardware, “beddown,” depot maintenance (elsewhere identified as a “concurrency” cost), etc. are included. Navy budget materials identified $522.9 million for both Navy and Marine Corps F-35 “Aviation Military Construction 305.5 15.7 None Identified Research & Development Engineering, Manufacturing & Development 292.9 152.9 108.9 “Squadrons” and “Follow On Modernization” 334.5 144.9 143.8 Total Amount for Potentially Operationally Useable F-35 Variant Potentially Operationally Useable F-35 Unit Cost (See Comments sections for what costs are not included.) 6680.2 3407.8 1003.0 145.2 170.4 250.7 Caveats: Logistics,” not otherwise broken down. That amount is distributed here commensurate with the ratio of Navy and Marine Corps aircraft requested. Locations specifically identified for F-35 MilCon expenses in 2018 were Eielson, Eglin, Lakenheath and Cherry Point. F-35 MilCon amounts vary significantly by amount, location and military service from year to year. FYI-only: These amounts are for the SDD phase, including developmental and operational testing and are not included in the calculation of unit acquisition cost for hardware and upgrades. These amounts mostly are for panned upgrades and fixes for discovered deficiencies and are included in the calculation of unit acquisition cost. The total for the three variants is $11,091.1 million. The weighted average cost of a generic 2018 F-35 is $158.4 million. Funds not explicitly identified for the F-35 program, such as operational flying hour costs, squadron level maintenance unit repairs and upgrades, civilian and military personnel costs and munitions developed for the F-35 fleet, are not included. The cost over time of these 2018 F-35s may be higher, as the cost to fix problems discovered in final developmental and initial operational testing may likely increase over the surrogate values used here for “concurrency costs:” i.e. Modification of Aircraft, Follow-on Modernization, and O&M Depot Maintenance. Because past contract announcements for F-35 contractors show that DOD uses appropriations from multiple fiscal years, both before and after the fiscal year of the purchase in question, the unit expenses for the 2018 aircraft purchase will also change, most likely upwards.