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Pratt & Whitney Gets $2B Navy Contract Modification for Lot 11 F-35 Propulsion Engines

United Technologies Corp.’s (NYSE: UTX) Pratt & Whitney subsidiary has received a potential three-year, $2 billion contract modification from the U.S. Navy to produce the 11th batch of F135 engines for all three variants of the Lockheed Martin-built (NYSE: LMT) F-35 Lightning II aircraft.

Pratt & Whitney said Thursday it will build 135 F135 propulsion engines and provide spare modules, parts, engineering support, program management and production assistance in support of the low-rate initial production of lot 11 F-35 fighter jets.

The modification awarded by the Naval Air Systems Command covers purchases from the Navy, U.S. Air Force, U.S. Marine Corps, non-DoD participants and foreign military sales customers, the Defense Department said Thursday.

Work will occur in Connecticut, Indiana and the U.K. through May 2021.

Pratt & Whitney said the unit recurring flyaway price of 110 LRIP engines for lot 11 carrier variant and conventional takeoff and landing aircraft will be 0.34 percent lower than the previous LRIP lot 10 negotiated price.

The URF price for 25 LRIP propulsion systems of lot 11 short takeoff and vertical landing jets will be 3.39 percent lower than the previously negotiated price for LRIP lot 10 engines.

Pratt & Whitney has supplied 375 units of F135 propulsion systems and will begin deliveries of LRIP lot 11 engines this year.

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