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.
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 don't all hold the same opinions, but we all believe that considering a diverse range of insightsmakes us better investors. The Motley Fool has a disclosure policy.