AEROSPACE

IRS Cancels $1.3-Billion Lockheed Martin Contract: Lockheed Martin Corp. said it received a letter of “partial termination for the convenience of the government” from the Internal Revenue Service for a sophisticated computer imaging system. The contract originally was supposed to go through 2011. The agency’s budget was cut by Congress this year, and Deputy Treasury Secretary Lawrence Summers said the decision to drop the Lockheed Martin contract reflects that. The IRS could reactivate the contract later, agency spokesman Frank Keith said. Bethesda, Md.-based Lockheed Martin inherited the contract to develop a system to capture tax returns on laser disc for the IRS as part of its merger with Loral Corp.