United Technologies Agrees With Pentagon on More F-35s

United Technologies Corp. (UTX) and the Pentagon have reached an “agreement in principle” for the company to produce the next batch of engines for the F-35 fighter, the Defense Department’s largest weapons program.

The company’s Pratt & Whitney unit will supply 32 engines, spare parts and engineering support for the fifth lot of the Joint Strike Fighter made by Lockheed Martin Corp. (LMT), according to a Pentagon statement.

The Pentagon didn’t announce a value for the contract. The Pentagon estimates that engine work on the F-35 is valued at about $63.8 billion of the $395.7 billion research and acquisition program for the fighter.

“Reaching this agreement is fair and beneficial to the government and Pratt & Whitney,” said Lieutenant General Chris Bogdan, the Pentagon’s F-35 program executive officer. “Engine prices have decreased, and I appreciate everyone’s commitment to drive cost out of the program.”

Matthew Bates, a spokesman for Pratt & Whitney, said in an e-mailed statement that “we offered significant cost reduction over” the fourth production contract, and “we leaned forward to assume 100 percent risk for any cost overruns.”

To contact the reporter on this story: Tony Capaccio in Washington at acapaccio@bloomberg.net

To contact the editor responsible for this story: John Walcott at jwalcott9@bloomberg.net

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