UTC Aerospace Systems, a unit of United Technologies Corporation (UTX), obtained an aftermarket contract worth $70 million from the U.S. Navy. The contract involves Constant Frequency Generator (CFG) repairs and retrofits and delivery of upgraded spares for the U.S. Navy's V-22 program. The V-22's design incorporates mature technology deployed in XV-15 tiltrotor demonstrators, V-22 Full Scale Development (FSD) models and V-22 Engineering and Manufacturing Development (EMD) models. V 22 is primarily an American multi-mission, tiltrotor aircraft with both a vertical takeoff and landing (VTOL) and short takeoff and landing (STOL) capability. It is specially designed to combine the functionality of a conventional helicopter with the long-range, high-speed cruise performance of a turboprop aircraft.
United Technologies is the exclusive provider of CFG application for the V-22 program. This upgrade program is a result of the long-standing collaboration between NAVAIR, Boeing (BA), Bell, NAVSUP Weapon Systems Support and UTC Aerospace Systems. The upgrade program is expected to enhance the product and deliver a higher ROI for the Naval Supply Systems Command (NAVSUP).
The V-22 CFG is a combination of three products, namely, Constant Speed Drive, Generator and Generator Control Unit. V-22 is currently used by both the U.S. Navy/Marine Corps team and the U.S. Air Force. This upgrade will further improve the reliability of CFG and also improve the overall operational readiness of the aircraft.
As per the initial contract signed by the two companies earlier in September 2011, UTC Aerospace Systems supplied kits to NAVSUP Weapon Systems Support Philadelphia for a period of 20 months in support of the V-22 CFG Loss of Lube retrofit.
UTC Aerospace Systems is one of the world's largest suppliers of technologically advanced aerospace and defense products. They design, manufacture and service systems and components. Additionally, they also provide integrated solutions for commercial, regional, business and military aircraft, helicopters and other platforms.
United Technologies prime competitor GE Aviation, a unit of General Electric (GE), recently won an award from the U.S. Naval Supply Systems Command Weapon Systems Support, Philadelphia. The contract primarily involved repairs, replacement and program support for 35 F404 engine (F/A 18 A-D) aircraft components.
United Technologies Corporation, based in Hartford, CT, is a diversified company that provides a broad range of high-technology products and services to the global aerospace and building systems industries. United Technologies Corporation currently carries a Zacks #3 Rank, which implies a short-term Hold rating on the stock.