Pratt & Whitney Awarded Contract for F135 Engine Production Worth Up To $1.12B
The U.S. Department of Defense has awarded Pratt & Whitney an undefinitized contract award (UCA) not to exceed $1,122,306,649 for F135 production engines to power the F-35 Lightning II. Pratt & Whitney and the DoD have reached a tentative agreement on key terms for the low rate initial production (LRIP) 5 contract which contains fixed-price and cost-plus incentive fee elements. A total of $358,597,078 is being obligated at time of award, in addition to the $138,800,000 obligated in 2011 for advanced acquisition materials. This LRIP contract includes production engines, spare parts, program management, engineering support for production, sustainment and field support for the F135 engines. Pratt & Whitney is a United Technologies Corp. (NYSE:UTX) company.
“This UCA is a vital step to allow Pratt & Whitney and our STOVL lift system partner, Rolls-Royce, to continue meeting key milestones toward LRIP 5 production deliveries,” said Bennett Croswell, president of Military Engines, Pratt & Whitney. “We anticipate contract negotiations with the F-35 Joint Program Office that will reflect the great progress being made on F135 affordability.”
The fifth lot of engines includes 21 conventional take-off and landing (CTOL) engines for the U.S. Air Force; six carrier variant (CV) engines for the U.S. Navy; and three short take-off and vertical landing (STOVL) propulsion systems for the U.S. Marine Corps. The engines in LRIP 5 will support the U.S. Services with main engine deliveries slated to begin in late-2012.
Pratt & Whitney has designed, developed and tested the F135 to deliver the most advanced fifth-generation fighter engine for the United States and its allies around the world.
About Pratt & Whitney
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and building industries.
This press release contains forward-looking statements concerning future business opportunities. An undefinitized contract includes key terms to define the outer boundaries of the contract and permits the contractor to undertake work to meet delivery requirements pending negotiation of a definitized contract. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to changes in the U.S. Government funding related to the F-35 and F135 programs, changes in government procurement priorities and practices or in the number of aircraft to be built; challenges in the design, development, production and support of technologies; as well as other risks and uncertainties, including but not limited to those detailed from time to time in United Technologies Corporation’s Securities and Exchange Commission filings.