Lockheed adds that the F-35 industry team, which includes BAE Systems and Northrop Grumman, has met funding targets for the first two annual lots of the low-rate initial production (LRIP) phase. The team is now developing its proposal for the LRIP-3 contract. Wood says her information about Lockheed's new financial proposal comes from a senior JPO official. The JPO currently bills each of the three major F-35 contractors separately. This unique arrangement is designed partly to limit the amount of overhead feeds charged by each of the contractors, which can amount to hundreds of millions of dollars over time. Lockheed's proposal, however, would bundle all of the industry team's charges into a single billing process for submitting to the JPO for payment. Each charge submitted by BAE and Northrop would include a discrete fee to cover their own overhead costs. Lockheed would then add its own overhead for the aggregated bill.