The Naval Air Systems Command awarded the contract modification to exercise an option under a previously awarded firm-fixed-price contract, the Defense Department said Tuesday.
The AE 1107 engine works to power the USMCs MV-22 tiltrotor aircraft and the U.S. Air Forces CV-22 planes and has a two-shaft axial compressor design, self-contained oil system and two Full Authority Digital Engine Controls.
The MV-22 Osprey aircraft is designed for use in cargo lift, raid and expeditionary assault support missions.
Work will occur in Indianapolis through November 2017.
DoD said the modification consists of 76 percent Navy purchases worth $89.6 million and 24 percent foreign military purchases from the Japanese government worth $28.1 million.