A United Technologies Corp. (NYSE: UTX) subsidiary has reached an agreement with the Defense Department to produce lots 9 and 10 of F135 engines for the Lockheed Martin-built (NYSE: LMT) F-35 Lightning II aircraft.
Pratt & Whitney will build 167 F135 low-rate initial production propulsion engines for the three F-35 variants and provide spare parts, modules, engineering, production non-recurring and program management support under two LRIP contracts, the subsidiary said Friday.
Pratt & Whitney will announce the value of the LRIP contracts once its transaction with DoD is finalized.
According to the new agreement, LRIP engine prices for lots 9 and 10 of carrier variant and conventional takeoff and landing aircraft are 3.4 percent less than the previous LRIP 8 negotiated price.
Pratt & Whitney added that negotiated unit prices for lots 9 and 10 of short takeoff and vertical landing propulsion engines are 6.4 percent lower than LRIP 8.
The UTC subsidiary said it will start to deliver LRIP 9 propulsion systems this year followed by LRIP 10 engines in 2017.