Gates plan raises questions for firms, military

By Andrea Shalal-Esa

WASHINGTON (Reuters) - Defense Secretary Robert Gates' ambitious plan to overhaul Pentagon weapons programs has raised a wide range of thorny questions for industry executives, congressional aides and the military services.

At weapons plants around the country, in the halls of Congress, and in the corridors of the Pentagon, company, military and government officials struggled on Tuesday to understand the sweeping delays, cancellations and funding increases that Gates is recommending.

Army, Navy, Air Force and Marine Corps officials were reluctant to go into specifics on their respective programs, noting the fiscal 2010 budget plan must still be approved by the White House before it goes to Congress in early May.

"It is important that public discussion not get out in front of the important work that still has to be done at the service level," said Army spokesman Lieutenant Colonel Christopher Garver.

He said the Army was trying to understand the impact of Gates' recommendation to cancel the ground vehicles portion of Future Combat Systems modernization program, which is valued at $87 billon.

Industry officials were also tight-lipped, saying they needed more details about the proposed changes before they could assess the impact on orders, balance sheets, manufacturing facilities or workforce levels.

Lawmakers fired back at Gates on Monday and Tuesday, criticizing his proposed cuts to missile defense, the Lockheed Martin Corp F-22 fighter jet program, and Boeing Co's Airborne Laser, a modified 747 jumbo jet designed to destroy enemy missiles shortly after they are launched.

Rep. John Murtha, who heads the House Appropriations Subcommittee on Defense, applauded Gates' comprehensive review and called the proposals "an important first step in balancing the Department's wants with our nation's needs."