P&W and F-35 Program Office Announce Contract Award for 135 F135 Engines

Pratt & Whitney, a division of United Technologies Corp. (NYSE: UTX), and the U.S. Department of Defense today announced a contract award for the 11th lot of F135 propulsion systems, powering all three variants of the F-35 Lightning II aircraft.

The latest contract continues to support program affordability initiatives with reduction in propulsion system price. The 11th low rate initial production (LRIP) contract will cover 135 engines, as well as program management, engineering support, production support, spare modules, and spare parts.

"This agreement for the next lot of F135 engines represents a fair deal for the U.S. Government, the international partnership and industry," said Vice Admiral Mat Winter, F-35 Program Executive Officer. "Affordability is our number one priority, and by working together, we are making steady progress in reducing F-35 propulsion costs."

The total award for the Lot 11 propulsion systems is approximately $2 billion. In general, the unit recurring flyaway (URF) price for the 110 LRIP Lot 11 conventional takeoff and landing (CTOL) and carrier variant (CV) propulsion systems will be reduced 0.34 percent from the previously negotiated LRIP Lot 10 URF. The URF price for the 25 LRIP Lot 11 short takeoff and vertical landing (STOVL) propulsion systems (including lift systems) will be reduced 3.39 percent from the previously negotiated LRIP Lot 10 URF.

"Pratt & Whitney and our supply chain remain committed to continual cost reduction for the F135 engine and to providing a superior product at the best value for our U.S. and international customers," said John Wiedemer, vice president, F135 Program, Pratt & Whitney. "Since 2009, we have reduced the production cost of the F135 by more than half and are now pursuing additional affordability initiatives to drive down engine production and sustainment costs even further throughout the F-35's planned lifecycle."

To date, Pratt & Whitney has delivered 375 F135 engines. Deliveries of LRIP 11 engines will start this year.