Exclusive: United Tech, Pentagon in $1 billion-plus deal for F-35 engines

http://www.reuters.com/article/2013/08/26/us-unitedtechnologies-fighter-engines-idUSBRE97P0JR20130826


Exclusive: United Tech, Pentagon in $1 billion-plus deal for F-35 engines
By Andrea Shalal-Esa

WASHINGTON | Mon Aug 26, 2013 1:42pm EDT

(Reuters) - Pratt & Whitney, a unit of United Technologies Corp, has reached an agreement in principle with the Pentagon on a contract to build 39 engines for a sixth batch of F-35 Joint Strike Fighters, three sources familiar with the deal said on Monday.

The agreement - which Pratt had expected to reach over a month ago - is valued at more than $1 billion, said the sources, who were not authorized to speak publicly.

The Pentagon agreed on the terms of a contract for the sixth and seventh orders of F-35s with Lockheed Martin Corp, which builds the jets, in late July. The government buys the engines separately from Pratt & Whitney, which is the sole producer of engines for the radar-evading warplane.

The negotiations between Pratt and the Pentagon's F-35 program office had focused only on engines for the sixth batch, with separate discussions planned for a seventh batch of F135 engines.


unhappycamper comment: I like the way Lockheed tries to get the cost of the F-35 down.

$1 billion dollars / 39 = $25,641,025 per engine.