Jet engine manufacturer Pratt & Whitney says it has signed a $1.1 billion Pentagon contract for fighter jet propulsion systems that include cost-cutting of as much as 9.5 percent.
The United Technologies Corp. subsidiary said Thursday the contract covers 38 engines and program management, engineering support and spare parts.
Pratt & Whitney, based in East Hartford, said the contract reflects cost reduction initiatives. The propulsion systems power the F-35 Lightning II.
The prices for 32 of the engines were reduced by about 2.5 percent compared with a previous contract. The unit prices for six propulsion systems were cut by about 9.6 percent.
Lt. Gen. Chris Bogdan, F-35 program executive officer, said the price has been going down and the trend will continue.
Engine deliveries will begin in the fourth quarter.
