"Lockheed Martin Corp., Marietta, Ga., was awarded a $98,649,000
contract which will provide one C-130J aircraft for the government of
Israel," the Pentagon said on April 30.
Officials said Obama approved the C-130J for Israel amid heavy pressure
by Congress. They said several members of Congress warned that Obama's
continued withholding of weapons and platforms approved by Bush was illegal
unless the White House declared an arms embargo on the Jewish state.
"The C-130J was deemed a platform that was not an offensive weapon," an
official said.
The Pentagon contract, announced amid a crisis between Jerusalem and
Washington, marked a significant reduction in the Israeli C-130J request
approved by the Bush administration. In 2008, the administration and
Congress approved an Israeli request for up to nine C-130J aircraft along
with engines and electronic warfare systems in a project estimated at $1.9
billion.
In March 2009, Israel and the United States signed an agreement for the
export of the C-130J to the Jewish state. Neither the Pentagon nor Israel's
Defense Ministry announced the accord.
The Pentagon said the C-130J contract also stipulated additional
non-developmental items for the aircraft. They said the Pentagon has
approved $18.4 million under the Foreign Military Financing Program.
Israel was set to receive about $2.5 billion in U.S. military aid in
fiscal 2011. Industry sources said the C-130J costs about $75 million, but
the contract was believed to include the installation of Israeli systems on
the aircraft.