The Air Force Friday awarded General Electric [GE] and Pratt & Whitney $350 million and $335 million contracts, respectively, for its Adaptive Engine Technology Development (AETD) program, according to a Defense Department statement.

Pratt & Whitney is a division of United Technologies Corp. [UTX]

Pratt & Whitney and General Electric are vying for the AETD contract award. The Air Force Oct. 10 issued Pratt & Whitney a $30 million contract vehicle to allow the service to award Pratt & Whitney an AETD contract for an amount up to the $400 million ceiling. The Air Force awarded General Electric a $349.7 million ID/IQ contract Sept. 21 as part of the AETD program (Defense Daily, Sept. 25).

AEDT is designed to improve combat jet engines’ fuel efficiency, durability and thrust performance. The program will also include un-refueled range for several platforms engaging in Anti-Access/Area Denial (A2/AD) environments. Rolls-Royce also entered a bid for AETD, but was not selected.

Phase 1 of the AETD program, which runs through mid-fiscal year 2015, includes completing preliminary design, testing a full annular combustor rig, high-pressure compressor rig and components using ceramic matrix composite materials (CMC). Phase 2 of the program, to be completed in FY ’16, consists of fan rig testing and a full engine core test, allowing for a notional first full engine test as early as 2017.