The U.S. Department of Defense ended the work week with a bang Friday, handing out awards for $4.95 billion in new work to government contractors in the form of 45 separate contracts. United Technologies (NYSE:UTX) didn't win the most dollars of any defense contractor Friday, but it came very close to winning the most contracts, period.
All four of its firm-fixed-price, sole-source contract awards went to UTC's Pratt & Whitney airplanes division. All four concern the company's F100 afterburning turbofan engine, which powers Air Force F-15 and F-16 fighter jets, and all four state their contract values as "minimum" amounts, implying that if more parts are needed, the dollar value of these contracts will grow:
- $23.6 million: to supply the Air Force with spare F100 aircraft engine fan rotors through Aug. 30, 2015.
- $13.8 million: also for spare aircraft engine fan rotors, but with a February 2016 performance completion date.
- $19.4 million: to supply F100 aircraft engine spare part-diffuser cases, with deliveries running through June 2017.
- $14.1 million: also for engine spare-part diffuser cases, but with a February 2016 performance completion date.
In total, therefore, UTC's subsidiary stands to generate a minimum of $70.9 million from these four contracts, and possibly more.
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