RTX Wins up to $230.56m Deal for F135 Lot 20 Long-Lead Materials

Why It Matters

The contract secures the supply chain for the F‑35’s powerplant, safeguarding U.S. and allied operational readiness. It also reinforces RTX’s position as the sole sustainment provider for the F135 engine family.

Key Takeaways

• RTX receives up to $230.56 M for F135 Lot 20 materials.
• Contract covers 138 propulsion units for U.S. and foreign customers.
• Funding sourced from Air Force, Navy, partner, and FMS allocations.
• Production spans 15+ U.S. sites, finishing by May 2031.
• Non‑competitive award underscores RTX’s unique F135 expertise.

Pulse Analysis

The F135 engine powers every variant of the F‑35 Lightning II, the cornerstone of U.S. and allied air superiority. RTX’s latest contract, valued at up to $230.56 million, targets long‑lead‑time materials essential for Lot 20, a batch of 138 propulsion units slated for delivery to the Marine Corps, Navy, Air Force and foreign partners. By locking in these supplies, the defense department mitigates the risk of production bottlenecks that could delay aircraft deliveries, a critical factor given the F‑35’s high sortie rates and global deployment schedule.

Supply chain resilience is a central theme of the award. The contract spreads manufacturing across more than fifteen sites—from Connecticut to California and Washington—leveraging regional expertise while reducing single‑point‑failure exposure. The fixed‑price‑incentive and cost‑plus‑incentive‑fee structure aligns contractor performance with cost efficiency, encouraging RTX to manage material costs and schedule adherence aggressively. With a May 2031 completion horizon, the program provides a clear timeline for stakeholders to plan maintenance, training, and fleet integration activities, ensuring that the F‑35 fleet remains mission‑ready throughout the next decade.

Strategically, the deal underscores the intertwined nature of U.S. defense procurement and foreign military sales. Over half of the contract’s value—$168.71 million—originates from non‑U.S. DoD partner and FMS funds, highlighting the engine’s export significance and the broader coalition reliance on the F‑35 platform. This financial mix not only diversifies revenue for RTX but also strengthens interoperability among allied air forces. As the industrial base evolves, such long‑lead contracts will be pivotal in sustaining the high‑tempo production and sustainment cycles demanded by modern air combat doctrines.