Defense Department

Obama's 2012 Budget: Why Federal Spending Needs to Be Raised, Not Cut

President Obama's proposed spending plan seeks to slash $1.1 trillion from the deficit over the next decade. Republican House Speaker John Boehner says that's too little. In fact, the cuts go too far in the wrong direction: With the economy still recovering, Obama should raise federal spending.

Lockheed Martin's F-35 Could Be Delayed by Three Years

Lockheed Martin Corp.%u2019s (LMT) new F-35 fighter jet could be delayed by as long as three years, with development costs soaring by as much as $5 billion, Reuters reported. The Pentagon has estimated the cost of the F-35 program could top $380 billion, its most expensive weapons program ever. The program was restructured earlier this year, adding 13 months to the development phase.

U.S. Plans to Sell F-15 Fighter Jets to Saudi Arabia

The U.S. plans to sell advanced F-15 fighter jets to Saudi Arabia in a $30 billion, 10-year arms package. The 84 Boeing Co. (BA) F-15s could help the Saudis deal with skirmishes with Yemeni rebels on the country%u2019s southern border, The Wall Street Journal said. The planes will have onboard targeting systems similar to those offered to other foreign governments, but will not be as sophisticated as the F-15s flown by the U.S. military.

Lockheed Profits Fly Past Estimates

Defense contractor Lockheed Martin posted higher fourth-quarter earnings that exceeded expectations, boosted by sales of its fighter jets and satellite systems. The earnings per share results, however, were boosted by a share buyback.

Pentagon to KBR: Cut workforce in Iraq

The Iraq war is getting too expensive, according to Defense Department auditors, and KBR is part of the problem. The contractor faces close to $200...