United Technologies Scores a Billion Dollar Contract
Pratt & Whitney (NYSE:UTX) has won an undefinitized contract award from the U.S. Department of Defense for a maximum of $1,122,306,649 for F135 production engines to power the F-35 Lightning II. Pratt & Whitney and the DoD have consented to a provisional arrangement on key terms for the low rate initial production 5 contract which contains fixed-price and cost-plus incentive fee aspects.
A total of $358,597,078 will be obligated at the time of the award, as well as the $138,800,000 obligated in 2011 for advanced acquisition materials. This LRIP contract includes production engines, spare parts, program management, sustainment and field support for the F135 engines and engineering support for production.