Largest taxpayer investment with the backbone of us and ally fifth generation inventory for the foreseeable future. The joint Program Office are laser focus to drive cost ou out, quality up and achieving timely deliveries to our war fighters. With respect to ontime deliver delivery, we exceeded the total aircraft quantity we delivered to the war fighter last year and have 96 percent ontime delivery rate. A tremendous improvement for one from where we were last year with an average ontime delivery rate of 64 percent. While we made progress there is significant opportunities for improvement and we continue to communicate specific concerns to lockheed based on the data we collect. The 34 billiondollar agreement f 35 production includes the delivery of 478 f 35 aircraft 149 lot 12160 lot 13169 lot 14 in support of Us Military Services our partner nations and sales customers this represents our continued commitment to reduce the f 35 cost to deliver advanced capabilities to our war fighters at the best value to taxpayers. There are several notable achievements that the contract represents. First the first time the f 35 joint Program Office will award a significant f 35 procurement in the same fiscal year as the congressional appropriations. Second to reach a unit flyaway cost per aircraft of 80 million for the us f 35 price which is one earlier than planned which is a significant milestone the f 35 enterprise will continue to stay in the contract award for example the f35 unit cost represents an estimated overall 12. 8 percent reduction from the 11 cost from the content on conventional landing variants of 35 b landing costs and overall 12. 3 percent reduction for the short takeoff and landing variants. The f35 c unit cost and overall reduction over the 11 cost for the carrier with an average of 12. 7 percent savings across all three variants a lot lots 11 to 14 these are the biggest achieved savings. This contract will allow us men and women in uniform alongside the f35 partners to maintain a competitive advantage with the unmatched fifth generation capability. Understandably there will be questions today on the deviation i told you about earlier this month delaying to integrate the f35 into the joint environment infrastructure and we will provide more detail on that shortly. I have full faith and confidence in the f35 program and our ability to deliver combat capability anywhere in the world. Make no mistake the f35 is the worlds most advanced, lethal and interoperable aircraft ever developed. Thank you to congress for their continued support for the Fighter Program i look forward to speak with members and staff to provide updates and answer questions so their leadership is greatly appreciated. As the f35 continues to grow we are also growing our sustainment capabilities to ensure these aircraft are ready and capable. Due to the efforts across the f35 enterprise, dod operational unit capability increase from 55 percent october 2018 from 73 percent september 2019. We were making progress we are not where we need to be industries commitment on accelerating improvement. Our focus is on improved f35 readiness and with the affordability goals we play a focus on accelerating our repair capability with sleep modifications and improving logistics Information Systems with functionality and responsiveness as of last month 440 aircraft have been delivered at 17 bases worldwide with 850 pilots and 8200 maintain turkey the f35 there has been no change to return to the f35 program the Defense System which is incompatible remains in turkey and as i said previously turkey makes nearly 1000 parts and will continue to do so until those responsibilities transfer until the end of march Lockheed Martin is responsible for that supply chain i will defer any questions to them. In closing i want to reiterate how regrettable it is that we are under a continuing resolution. Causing great damage to military readiness to disrupt our ability to modernize our Strategic Forces for i strongly urge congress to pass appropriations and offer a bill now so we can move forward with the many important programs needed for our adversaries. And with a twoyear budget agreement to provide that budgetary certainty to implement the National Defense strategy. Now i will let the Lieutenant General make a statement that i will answer questions. Thank you ladies and gentlemen for your interest in the f35 program. What we announced yesterday in a number of ways not the least of which 478 aircraft and 34 million it in includes International Partners totaling f35 bees and 41 f35 c. I am proud to be here representing the enterprise to share my thoughts on the state of the program. Are initial and Development Effort came to a close after the evaluation but as you are aware with that decision as such time as available to have the assessment of the program we are working hard with Lockheed Martin to fully integrate the complex synthetic environment is not only critical to the completion but is important to future modernization efforts. To that end when the program has reached Operational Capability for all Services United kingdom italy japan, and israel and is about to do so in norway, we understand the need to continue to stay say it stays relevant over time. That mandate capabilities is on a very tight timeline and strongly influenced that is a standard industry today that Capability Development we have for Software Releases using these primarily on the correction of minor deficiencies but also have resulted in deliveries the knife lifesaving capabilities of the automatic ground forces. To work with those Operational Requirements the process will mature and continue to deliver that capability over time to ensure they stay ahead of the threat for go to capture well yesterday significant savings for taxpayers the joint Program Office of Lockheed Martin we work tirelessly on this deal and im very proud for the work they have done. With this award we will see from the production perspective the most dramatic rate increase of the production line is behind us 149 aircraft representing only a 6 percent increase over the quantity of the delta for lot 14 and 13. You will recall it was a full 50 percent higher than lot ten to 65 percent greater this dramatic production rate for the supply chain with the quantity changes should give some breathing room as we move forward. The stabilization will help with the production line in the hybrid support has reached full operation and is currently sustaining 440 aircraft around the world including the us, norway, israel, ital us, norway, israel, italy, uk, d japan and operating around the world the netherlands will join us later this week. From the performance perspective the secretary of Defense Mission capability mandate we definitely continue to move the needle with the operational fleet up from october 2018. So within that same time frame Mission Capable levels well above 80 percent are we finished quack snow. But not all of that progress is due to what is implemented as a result of the sustainment plan unlike many other plans like it this is executable. And with that modification it with that repair capacity enhancing that reliability. All of those actions are ongoing today. And that is attributable to operating and sustaining the suppressive air system. They are doing with airmen and marines sailors do and continue to work closely with that war fighting potential. And going from initial Development High reproduction as a partner with Lockheed MartinCost Effective awardwinning capabilities in these departments as well to transition away from the cost focus incentives that for the Development Contracts so with that process that i mentioned previously the production contracts than those that drive Cost Reduction and improve production line velocity and those that ensure war fighters of the assistant that they need including multiyear contracts and then to define the parameters that operational demand taxpayers best value demand with greater organic involvement so let me be here to represent the men and the women and im looking forward to your question. A couple weeks ago someone that involved would ask why they are putting out a contract with forward production if thats suitable. So thats for the general. Was at the First Tranche of the 34 billion or 6 billion on in that joint simulation environment cracks. First of all the department has full confidence the air force and marine corps have squadrons and they are very happy with the capability the criteria in terms of getting out is to test against the threats we will see ten years from now we can only do that that is only 90 percent of the testing with that configuration of the aircraft and the public should be actually careful bull one comfortable the aircraft is out there today to codify the capability of the aircraft when we get to the testing. So this is part of a series of contracts so if we look at what was previously announced and then worked on previously associated with the ongoing work the announcement yesterday added 114 aircraft and an obligation of 7 billion and in addition to that obligation that was not included as it was already made. We are still roughly left with 100 aircraft to go in with those services so we dont have that budget yet. Until we have such time. It has been obligated piecemeal. So the jsd on eallows us those capabilities of wide range of air and surface that the director of operational in his role to assess the current threat and then getting into the environment like the js e but the integration of the f35 as was mentioned previously the validation of verification will begin this fall and then it will continue throughout the spring. Thank you for doing this. Could you explain to the layperson for the aircraft of all the parts that we need to have this conversation from aircraft. Let me give that a shot. Traditionally we try to get a deal but then we build the sustainment behind that. Right now as eric mentioned throughout the integrated supply chain and what we have found we did not have the throughput so we are lagging in some of those. And to have issues in these areas. And then wingtip lenses. Those are the areas that are holding us back. We believe we are making very good progress. And then if you replace them with another but in my prepared remarks it would be a celebration not just lockheed and how they process aircraft in their production line but it is adding parts at a dramatically increasing rate and then not just from production but from another perspective and then putting additional purchases on contract. But then also to take action within the existing supply chain and then to repair those parts as they come available thats been a huge part of the effort. I have a few numbers questions. If i heard you write, you said 149 aircraft cracks is that correct cracks if so the original number was 157 aircraft so what is the reason for the difference . Is it security cracks and they say theres an average 12. 8 percent reduction and again with a handshake deal it said there was a drop of around 15 percent. So is that non apples to apples comparison quick. I cannot address the 157. Ill have to go back and figure out where that number came from but relative to the discrepancy of the reduction that you may have heard the air Vehicle Production for the a models was 15. 3 percent in the c models 14. 6 percent and adding in the reductions of the overall unit recurring flyaway cost those engine rates are only down on the order so if you pull that together its the overall reduction of cost about 12 percent roughly. They think in five years they can have the airplane at the next logical generation can you explain for us maybe the other services how they will accommodate and how that will also be squared. With the f35 the air force team is doing innovative things in terms of developing new fighter aircraft. We are looking at total capability versus adversary and we find places the f35 and the f15. So we continue and optimize and then we take all of this with that engineering approach. At this point there is no revision. No. Can you provide more details on the technical issues with that joint simulation environment cracks if you mention those agreements and to say if that was in place by 2025 so with that position as well do you not think thats going on with that quick. First relative i would not characterize that technically challenging to overcome theres just a lot of smaller hurdles ultimately we have a digital representation to integrate into that space with those weapons and environmental effects and we are integrating them together. Thats just a very large task. There could be some disagreements with Lockheed Martin and then we would go back but then lockheed proprietary and then agreed to work out of that proprietary environment. And with that facility in the js ewould allow us to work with that aircraft. Thats the reason we went there again because there was a lot of work to be done to do that integration. But now the system rules lose pieces into which is relative to those interactions. I dont know if we underestimated in particular but that relationship is sidebyside and i think were making decent progress. Both predecessors talk about the relationship and your thoughts on how you characterize that relationship. Between myself and everyone else the relationship is much improved. I know at my level they talk regularly and i will let you speak for your own relationship but i have a very open and trusting relationship with my counterpart. It is still a business and we work through that balance every day between taxpayer and war fighter with a friendly solution. And then working with the prime contractor. Thanks for doing this. Going back to turkey, couple of questions what about the deployment and is turkeys slow rolled or delayed as were working on this through march as those costs are increased quick. First of all we enjoy very good relationships with turkey and they are an excellent supplier. At this point i lost some of your questions and we anticipate to be fully operational by the end of the year. You said no delay quick. Turkey had been very forthcoming to be on the path of march 2022 transition. We, the us because we took responsibility to move those out that is a 600 milliondollar bill for that we are still working through any price adjustments that would be relatively modest of any adjustment that could take plac place. When will the delay of the decision actually start to affect production cracks is it inevitable it will delay down the line quick. I will issue documents before the holiday. What role is osd . Doesnt sound like the air force is doing a whole lot of talking with the navy and i know how messed up the navy j s eis. So the wonderful functions is to act as the corporate entity so thats the reason i have a technical staff so what we do is bring Services Together to pass along critical information and i do that was Service Acquisition executives where waldo may not be totally up to speed with everything going on in the navy i will tell you members of the team are very involved in that with both air force and navy in the joint Program Office to cycle in and out also integration offices. One of the reasons osd exist is to have that cross pollination. And to have International Demand and then maybe a little bit further afield. Let me say there is no significant change in pricing to drive decisions one way or the other. We have quite a few active discussions. We do among others who are interested in pursuing overall. I will not rattle them off now but you can think of them as potential customers. We will stop there do you have Closing Remarks quick. Thank you for coming today and you will see a renewed focus over the next 12 months out of my Office Working and we are taking a data driven approach so we are working hard the Mission Capability where the flights per hour are driven and that we come up with a situation with the war fighter as well as a taxpayer. Individual parts. Thank you. [inaudible] i would not characterize that. I would not characterize that