DOD Wants To Chop $30 Billion Over Six Years
This could get ugly -- word of plans
that the Pentagon wants to cut $30 billion out of the budgets of
companies like Lockheed-Martin and Northrop-Grumman. Those two
companies would reportedly bear the brunt of cuts to weapons
systems across the board.
But of those cuts, InsideDefense.com and Reuters report about
$18 billion would come out of Lockheed's pocket. All the cuts were
defined in a Program Budget Decision signed by Deputy Defense
Secretary Paul Wolfowitz, according to Reuters.
But the White House, under the
pressure of mounting budget deficits, is looking to cut spending
government-wide, according to the reports. Among the cuts:
The USAF would get fewer F/A-22s than originally called for.
Production of the Raptor would reportedly end in 2008, after
delivery of 180 aircraft. The Pentagon originally wanted 277 of the
The Pentagon would also end production of the Lockheed C-130J in
an effort to save approximately $4.9 billion.
The Joint Common Missle would be cut, saving $2.3 billion,
The F-35 Joint Strike Fighter would be spared in the search for
cuts -- at least for now.
"If reductions do occur, most would not take effect for several
years and, in the case of the FA-22 for example, we believe the
aircraft will prove its value," Lockheed spokesman Thomas Jurkowsky
Northrop would be hit by deep cuts
in the submarine program, as well as the next-generation destroyer
project and others.
Boeing would lose out in a shuffling of the Missle Defense
Agency. Boeing and Bell/Textron would see a major reduction in
production of the V-22 Osprey. The Pentagon proposes cutting
production of that line by 22 aircraft, according to Reuters.