The deadly ISIS attacks in Paris last week will be an important factor that might push for a sharper rise in the defense budget. House GOP leaders are looking to boost spending in campaign against the ISIS. Again, the State Department has approved a big foreign military sales (FMS) deal of U.S. weapons to Saudi Arabia to help the latter to restock supplies for its battle against the Islamic State in Syria.

The Pentagon’s prime contractor, Lockheed Martin (LMT – Analyst Report), clinched a big contract to build 17 C-130J military transport aircraft.

Northrop Grumman (NOC – Analyst Report) has been asked by the U.S. Air Force to halt its work on the multi-billion dollar contract for the Long Range Strike-Bomber (“LRS-B”).

(Read Defense Stock Roundup for NOV 10, 2015 here.)

Recap of the Week’s Most Important Stories

1.  House Republicans are seeking to lift funding for combating the ISIS through Overseas Contingency Operations or OCO, per the Chairman of the House Armed Services Committee. Not specifying any defense budget, he said that he and others have been tasked by the House leadership “to work together on a response to ISIS and terrorism” that might involve moving money within the existing OCO account this year or next year.

Meanwhile, the Pentagon’s Defense Security Cooperation Agency has notified lawmakers last week that the State Department has approved the proposed $1.29 billion FMS deal pertaining to U.S. weapon sales to Saudi Arabia. This sale would help Saudi Arabia to restock supplies used in its battle against insurgents in Yemen and air strikes against the Islamic State in Syria.

The proposed sale comprises 22,000 smart and general-purpose bombs, including 1,000 GBU-10 Paveway II Laser Guided Bombs from Raytheon (RTN – Analyst Report) and over 5,000 Joint Direct Attack Munitions kits from Boeing (BA – Analyst Report) to turn older bombs into precision-guided weapons using GPS signals.

In October, the Pentagon notified the Congress of a planned sale to Saudi Arabia of as many as four Littoral Combat Ships made by Lockheed for $11.25 billion.

2.    Lockheed Martin Corp. has landed up with a $968.7 million contract to build 17 C-130J military transport aircraft. The company’s Aeronautics business unit won this modification contract under which it will deliver the aircraft in various configurations: nine MC-130J, six C-130J-30, one HC-130J, and one KC-130J. The work will be performed in Marietta, GA, and is slated for completion by Apr 30, 2020.