The Department of Defense awarded 10 defense contracts Friday, worth $298.5 million altogether. The biggest of these contracts, consuming more than two-thirds of the funds on offer, went to two of America's biggest defense contractors: Lockheed Martin (NYSE: LMT ) and United Technologies (NYSE: UTX ) .
UTC's award was the larger by a hair, a $105.2 million fixed-price-incentive-fee advance acquisition contract awarded to subsidiary Pratt & Whitney Military Engines to fund the purchase of long-lead components, parts, and materials needed to build 53 low-rate initial production Lot IX F-135 engines for installation aboard F-35 Lightning II Joint Strike Fighters. These parts will be used to build:
- 26 F-135-PW-100 engines for the U.S. Air Force
- six F-135-PW-600 engines for the U.S. Marine Corps
- two F-135-PW-100 engines for the U.S. Navy
- 13 F-135-PW-100 and 6 F135-PW-600 engines for international partners and foreign military sales customers
Deliveries should be completed sometime in September 2017.
For its part, Lockheed Martin won two contracts:
- The day's second largest -- a $91.8 million firm-fixed-price contract modification to pay for spare parts that will be used in the C-5 Reliability Enhancement and Re-engining Program (RERP) . This contract will be completed by July 29, 2016.
- A $12.2 million cost-plus-fixed-fee, foreign military sales contract to upgrade aircraft mission systems aboard two Royal Norwegian Air Force (RNoAF) P-3C sub-hunting aircraft by October 2015.