08:59 AM EST, 02/23/2026 (MT Newswires) -- Kratos Defense & Security Solutions (KTOS) and GE Aerospace (GE) said Monday that they have received a $12.4 million US Air Force contract to design a next-generation engine for small Collaborative Combat Aircraft.

The companies said the initial phase will focus on completing the preliminary design of the GEK1500 engine, a 1,500-lb thrust jet engine to meet high performance requirements while keeping costs low for scalable production.

They added that an optional contract phase would allow testing of key design risks and evaluation of engine performance under flight and installation conditions.