The U.S. Department of Defense announced a total of 22 new defense contracts worth a combined $7.59 billion on Tuesday.
Notwithstanding the large headline number, one single contract for the supply of solar energy to the U.S. Army accounted for 92% of the funds on offer. The other contracts awarded were, accordingly, mostly small in size. One that stands out from the pack, though, is the $69.6 million deal that United Technologies (NYSE:UTX) secured. According to the Pentagon's news release, UTC is being awarded funds to purchase long-lead components, parts and materials necessary to build propulsion systems for a total of 39 F-35 Joint Strike Fighters that Lockheed Martin (NYSE:LMT) is building for the U.S. and its allies.
Specifically, the fighter jets (and the UTC-built engines that propel them) are to be allocated as follows:
- 19 Conventional Take Off and Landing (CTOL) F-35As to the U.S Air Force;
- 6 Short Take-off and Vertical Landing (STOVL) F-35Bs to the U.S. Marine Corps;
- 4 Carrier variants -- F-35Cs featuring larger wingspans and foldable wingtips -- to the U.S. Navy.
- Also, 4 F-35As will be going to Italy;
- 4 F-35Bs to the United Kingdom;
- and two F-35As to Norway.
These fighter jets and engines are all being built as part of Low-Rate Initial Production (LRIP) Lot VII. Work on this production lot is expected to be complete by September 2016.
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.