Pratt & Whitney Gets $2B F-35 Aircraft Engine Contract Modification

Raytheon Technologies‘ (NYSE: RTX) Pratt & Whitney business has secured a $2 billion contract modification for lot 17 F-35 aircraft engine manufacturing services in support of U.S. and international defense customers.

The award from the U.S. Navy’s Naval Air Systems Command will fund the procurement of propulsion system materials, parts and components, the Department of Defense said Monday.

Pratt & Whitney closed on an $8 billion deal with the Pentagon in March to supply 15th to 17th batches of the F135 engine that powers Lockheed Martin-made (NYSE: LMT) fighter aircraft.

Naval Air Systems Command is ordering spare hardware, engines, and power modules on behalf of the U.S. Air Force, Navy and Marine Corps. The order will also fulfill foreign military sales and transactions with non-DOD participants and cooperative program partners.

Pratt & Whitney has until December 2025 to complete the work to be performed in Connecticut, Indiana, Washington, Maine, California, Michigan, Oregon, Georgia, Virginia, New Jersey, and other locations outside the continental U.S.

Funds to be obligated at the time of the award will come from the fiscal 2022 and 2023 budget of the Navy and Air Force, as well as FMS and non-DOD customers. The Navy will obligate a total of $646 million upfront, while the Air Force will invest a total of $558 million. FMS obligations at the time of the award amount to $400.5 million, while non-DOD funds amount to $417.5 million.

The modification award comes three days after Pratt & Whitney broke ground on its $255 million military engines sustainment facility in Oklahoma City.

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