Most expensive Block 70 F16 costs around 60 million dollars a piece. But the price of the plane varies according to the variant being bought and the “country” buying it.
Amraam aim 120D costs 1.1 million dollars
JSOW costs 720 thousand dollars
JDAM kits cost 40thousand dollars
Aim 9X costs 470thousand dollars.
Greece is paying 2,4 billion dollars for 84 V70 kits.
The math doesn’t work out when you add up all the bombs and missiles plus the planes with the kits. That 20 billion dollar figure can not be justified.
A course calculation :
2.4 billion for kits
2.4 billion for 40 planes
1-1.5 billion for various bombs and missiles (900 missiles and 800 bombs)
Total cost is around 6 billion dollars. This is before we negotiate to manufacture the planes and the engines in house.
Can someone explain how this 20 billion dollar figure is reached?
In general, FMS purchases can provide an international partner contract administrative services that may not be available through the private sector and may help lower unit costs by consolidating purchases for FMS customers with those of DoD.
Turkey buys through FMS, so whatever US army is paying to lockeed martin we or another FMS purchaser pay the same price. No overpaying or underpaying. Whatever Bulgaria pays for F-16 block 70s we will pay around same price, whatever US air force is paying to jdam we will pay the exact same. IF US air force is buying 10.000 if we want to buy 1000 and Bulgaria wants to buy 1000jdams, US DoD will order 12.000 jdams. We will pay the 1000/12000 of that total negotiated price.
As of yet, We don't know what exactly the deal is, if it is only f-16s and bombs or more, it could be more. It could also be that the price is less than 20b$ like 5-6b$ but POTUS could pile up some 3-4 countries FMS sales and send a single letter of notification that could be 20b$ total. I read some reports Biden is thinking of binding Turkish f-16s and Greek f-35s to single letter of notification so that corrupt Menendez who is now Chairman of the Senate Foreign Relations Committee would not block this sale.
So, Until Biden formally sent the letter to congress we will not know what the exact list of items and price.
The procedure about licence production or off-set aggrements is a little bit complex but it wont change the initial price. If TAI and Lockeed Martin agrees on that deal it will be like on paper TAI exporting that materials to LM.