The U.S. Department of Defense awarded Pratt & Whitney a contract not to exceed $1.12 billion for F135 production engines to power the F-35 Lightning II. P&W and the DOD reached a tentative agreement on key terms for the low rate initial production (LRIP) 5 contract that contains fixed-price and cost-plus incentive fee elements. A total of $358.6 million is being obligated at time of award, in addition to the $138.8 million obligated in 2011 for advanced acquisition materials. This LRIP contract includes production engines, spare parts, program management, engineering support for production, sustainment, and field support for the F135 engines. The engines in LRIP 5 will support the U.S. Services with main engine deliveries slated to begin in late 2012.