WASHINGTON, Aug 2 (Reuters) – The U.S. Air Force has delayed
the award of a contract valued at up to $6.8 billion for a new
combat search and rescue helicopter program until the first
quarter of fiscal year 2014, which begins Oct. 1, spokesman Ed
The expected winner is Sikorsky Aircraft, a unit of United
Technologies Corp, after all other potential bidders
dropped out of the competition last December.
WASHINGTON, Aug 1 (Reuters) – The U.S. military on Thursday
downplayed concerns it could cancel the F-35 fighter and a new
stealth bomber, after leaked documents from a budget review
suggested the programs might be eliminated as one way to deal
with deep budget cuts.
Defense Secretary Chuck Hagel said on Wednesday that finding
$500 billion in budget cuts required by law over the next
decade, on top of $487 billion in cuts already being
implemented, required tough trade-offs between the size of the
military and high-end weapons programs.
WASHINGTON (Reuters) – Defense Secretary Chuck Hagel’s rollout Wednesday of a long-awaited strategic budget review left big weapons programs unscathed for now, focusing more on cuts to Pentagon overhead, compensation packages and troop levels.
But the review did not resolve the budget uncertainties that have plagued U.S. weapons makers for nearly two years, and even cuts in the overall size of the military will result in fewer new equipment purchases in years to come, analysts said.
WASHINGTON (Reuters) – Defense Secretary Chuck Hagel on Wednesday pledged $40 billion in new Pentagon spending reductions over the next decade, but warned that additional cuts required by law posed stark choices that could bend or break the president’s defense strategy.
Hagel, unveiling the results of his four-month Strategic Choices and Management Review, said the Pentagon would cut $40 billion in overhead from its agencies and headquarters units over the next decade. He also said it would propose compensation reforms to try to save about $50 billion.
WASHINGTON, July 31 (Reuters) – The U.S. Navy on Wednesday
defended the way it structured a competition for development of
a new presidential helicopter, even as all but one of the
companies interested in the multibillion-dollar program pulled
out of the running.
Officials at AgustaWestland, a unit of Italy’s Finmeccanica
SpA, and Boeing Co, which had considered
proposing its V-22 tiltrotor plane or H-47 Chinook helicopters,
said Wednesday they do not plan to submit bids. AgustaWestland
had teamed with Northrop Grumman Corp to pursue a
WASHINGTON, July 30 (Reuters) – U.S. Senator John McCain,
who has railed for years against wasteful Pentagon arms
programs, on Tuesday took aim at the Navy’s new Littoral Combat
Ship program, urging better oversight and a pause in funding
until certain concerns are lifted.
Speaking on the Senate floor, the Arizona Republican said he
worried that the Navy would have bought half of a planned total
of 52 of the new warships before they and their interchangeable
mission packages had been fully tested and proved effective – a
milestone they are not expected to reach until 2019.
WASHINGTON (Reuters) – Lockheed Martin Corp (LMT.N: Quote, Profile, Research) and the Pentagon on Tuesday said they reached an agreement for 71 more F-35 fighter jets, with lower pricing to allow the U.S. government to buy all the planes it had planned despite budget cuts.
The deal, which will become final over the next month, came as a Senate appropriations panel proposed limiting funding for a ramp-up in production of the radar-evading warplane in fiscal 2015 to ensure the plane’s software and design are fully tested.
WASHINGTON (Reuters) – Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) and the Pentagon on Tuesday said they reached an agreement for 71 more F-35 fighter jets, with lower pricing allowing the U.S. government to buy all the planes it had planned despite budget cuts that took effect in March.
The agreement, which was first reported by Reuters on Monday, covers 36 jets in a sixth batch, with each warplane to cost about 4 percent less than the previous lot, and 35 planes in a seventh batch, also at a 4 percent discount, Lockheed and the Pentagon’s F-35 program office said in a statement.
WASHINGTON (Reuters) – Lockheed Martin Corp and the Pentagon have reached agreement on orders for the next two batches of F-35 fighter jets, a deal worth over $7 billion, a person briefed on the discussions told Reuters on Monday.
The deal covers 71 of the radar-evading planes, with 36 jets to be purchased in the sixth production lot, and 35 in the seventh. The total includes 60 F-35s for the U.S. military, and 11 for Australia, Italy, Turkey and Britain.
WASHINGTON (Reuters) – Aggressive moves by China to assert territorial claims run the risk of “miscalculations” but are also helping Washington strengthen ties with other countries in the region, the general who oversees U.S. air forces in the Pacific said Monday.
“Being fairly aggressive runs the risk of creating the potential for miscalculation,” Air Force General Herbert Carlisle told defense reporters in Washington. “That’s something we think about every day.”