United Tech Wins $215 Million Contract for F-35 Jet Engines
The Department of Defense announced a staggering 51 new contracts Monday, the most contracts it's awarded on any single day, at any time this year. In total, the value of these contracts exceeded $2.14 billion, and while defense contractor United Technologies didn't win the biggest of these contracts, it did win what was arguably the second-biggest.
UTC's award, a contract modification worth $214.8 million, will provide additional funds to its Pratt & Whitney subsidiary to make advance acquisition of parts needed to produce Lot VI Low Rate Initial Production Lot VI of the Lockheed Martin F-35 Lightning II fighter jet. Specifically, the initial spare modules, initial spare parts, replenishment spare parts, and production non-recurring efforts, including tooling funded by the contract modification relate to the Pratt & Whitney F135 engines that UTC is producing to power the jet.
These parts will be used to build F-35s not only for the U.S. Air Force, Navy, and Marines, but also F-35s on order by international customers Australia, Canada, Denmark, Italy, Norway, the Netherlands, Turkey, and the United Kingdom.
This contract is scheduled for completion by April 2016.
The article United Tech Wins $215 Million Contract for F-35 Jet Engines originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.