The Department of Defense awarded 10 defense contracts Monday, totaling a nice, round $1 billion in combined value. One company, however, reaped nearly 65% of the available funds -- in one fell swoop.
That company was United Technologies (NYSE: UTX), whose Pratt & Whitney subsidiary snagged a $648.8 million contract, modifying a previously awarded cost-plus-incentive-fee contract related to the production of F135 jet engines for Lockheed Martin's (NYSE: LMT) F-35 Lightning II Joint Strike Fighter. Monday's award extends the period for performing technical baseline review design, verification, validation, and qualification work on the new engine. The awarded funds will also pay for the production of two spare flight test engines and associated spare parts.
Although part of the work on this contract is expected to be performed in the U.K., this is not considered a "foreign military sale" contract. Rather, the engine work is being done to benefit the U.S. Navy's Naval Air Systems Command, Patuxent. The additional work should be completed by December 2016.