GE, UTC Awarded Air Force Adaptive Engine Design, Testing Support Contracts

turbine-aircraftA General Electric (NYSE: GE) subsidiary and United Technologies Corp. (NYSE: UTX) have each received a potential five-year, $1 billion contract to provide design, fabrication, testing and integration support services for the U.S. Air Force’s turbofan adaptive engines.

The service branch awarded the sole-source contracts with priced options to GE Aviation and UTC through the Adaptive Engine Transition Program, the Defense Department said Thursday.

The program seeks to advance the development of adaptive engine components and reduce risks related to the development of propulsion systems for multiple fighter aircraft applications.

Both contractors are scheduled to complete work under the cost-plus-incentive-fee contracts through Sept. 30, 2021, according to DoD.

The Air Force Life Cycle Management Center will obligate $39.1 million to GE and $36 million to UTC from the military branch’s research and development funds for fiscal 2016 at the time of award.

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