Pentagon notifies Congress of Israeli ship deal

The Defense Department has notified Congress of a proposed contract worth up to $1.9 billion to supply as many as four naval combat ships to the Israeli government.

The Defense Security Cooperation Agency, which handles foreign military sales, selected Bethesda, Md.-based Lockheed Martin Corp., General Dynamics Corp. and Raytheon Co. as principle contractors.

The agency is required to provide Congress with formal notification of any arms sales agreement. An official notice will kick off a 30-day review, during which lawmakers could move to block it.

The Littoral Combat Ship, which is smaller than the Navy's next-generation surface combat ship the Zumwalt, is capable of operating in shallow, coastal waters to meet threats including modern-day pirates and terrorists.

According to the Pentagon's notice late Wednesday, the Israeli government has requested the LCS variant currently being built by Lockheed Martin for the Navy.

General Dynamics is a weapon system supplier to the ships that may be sold to Israel, said Rob Doolittle, a spokesman for the Falls Church, Va.-based company.

Raytheon will be providing services on operation systems including those used for self-defense, according to a spokesman for the Waltham, Mass.-based company.

Both General Dynamics and Lockheed Martin are currently under contract to supply one ship each to the U.S. Navy. The ships are a key element of the service's goal of increasing the size of its fleet to 313 vessels.

In April, the Navy requested bids from Lockheed Martin and General Dynamics to build three additional ships. The service envisions awarding a contract for two ships to the winning bidder, with the other company building the third. The ships for Israel would be in addition to those orders.

A decision on the Navy contract is expected later this year, a service spokesman said Thursday.

Shares of Lockheed Martin fell 59 cents to $100.15 in afternoon trading, while General Dynamics dropped 47 cents to $81.70 and Raytheon added 11 cents to $55.99.