Tuesday, February 5, 2013
Reuters reports that Pratt & Whitney finalized a contract with the Pentagon for 32 engines to power a fifth batch of F-35s, according to sources familiar with the negotiations. The agreement was reached after more than a year of negotiations. Pratt & Whitney agreeing to lower its price by about $20 million, said one of the sources. The Pentagon awarded PW a preliminary contract or "undefinitized contract action" valued at $1.12 billion for 30 engines in December 2011, and industry and military officials have been trying to work out the details since then. PW had an additional $9.5 million added to the preliminary contract in August 2012 for the two extra engines. (Source: Reuters, 02/04/13) Gulf Coast note: Eglin Air Force Base, Fla., is home of the F-35 training center.