General Electric Receives $326 Million Addition to U.S. Air Force Contract

General Electric’s (NYSE: GE) Aircraft Engines unit, based in Lynn, MA, received a $326 million boost to a previously awarded fixed-price contract, exercising an option to purchase 80 F-414-GE-400 engines and modules, as well as 2 spare engines for the U.S. Navy.

The engines will be installed in the F/A-18E/F Super Hornet fighter and EA-18G Growler electronic warfare aircraft.

This latest contract modification provides advanced procurement funding for parts of the engines that require long-lead time to acquire for future F414-GE-400 engines.

The addition to the contract provides for the procurement of an engine fan module, 8 engine high pressure turbine modules, 33 combuster modules and 80 engine device kits.

The majority of the work will take place in Lynn, Massachusetts and Madisonville, Kentucky. Additional work on the contact will take place in Hooksett, New Hampshire, Albuquerque, New Mexico, Rutland, Vermont, Dayton, Ohio, Wilmington, North Carolina, Evendale Ohio and Bromont, Canada.

The contract is expected to be completed in May 2012.

The Naval Air Systems Command in Patuxent River, MD issued the contract.