United States President Barack Obama and all the congressional leaders have not reached an agreement regarding the compromise and the plans to cut spending costs. Analysts fear that the disagreements within the congress will force a Friday midnight government shutdown. No one, however, seems to want a shutdown.

The President, Senate Majority Leader, and Speaker of the House John Boehner said that during two meetings in the White House, some of the differences have been narrowed down. They worked through the night to come up with a deal. Right after the meeting, Obama said in the White House’s briefing room that he wants and answer by sun up.

The president fears that a shutdown will cause a huge blow to the already improving U.S economy. In the last months, the economy has started to create jobs for a lot of people and Obama believes it is unacceptable to put a stop on the improvement just because Washington can’t get it right.

Because coming up with an agreement seems to be a long shot, Republicans passed a legislation to fund the Pentagon for another six months but cut $12 billion on domestic spending. Boehner said that there is no reason that the Senate should not follow the House in making sure that the government remains open.

Obama, however, threatened to veto the bill even before the said bill passed. The White House said that the legislation looks like a distraction from what the congress should be focusing on.

The Senate is yet to pass its own bill. In the mean time, the Congress passed two short-term measures just to keep the government running. Moreover, they also approved $10 billion worth of budget cuts.

The Boeing Company had finalized their $5.3 billion agreement with the U.S Navy to create 124 F/A-18 fighter jets, as well as electronic attack planes. The deal extends for four years, which is expected to make over $600 million savings.

Boeing and the Pentagon announced the deal on Tuesday, which requires the Boeing Company to deliver 66 F/A-18 “Super Hornet” fighters and 58 EA-18G airframes that are intended for electronic attacks to the U.S Navy from year 2012 to 2015.

According to the Pentagon, the multiyear deal was based on a fixed-price terms with additional incentive fees. Since it is a fixed-price term, the government will not be charged with extra fee if there are any cost overruns.

Boeing also made a $249 million contract for their F/A-18 fighters to have logistics support. These F/A 18 fighter jets operate worldwide including the progressing missions in Afghanistan.

Since the agreement will run for four years, this will save them more than $600 million in costs, for they would be able to buy the materials in bulk and allow their suppliers to plan ahead of time. This will make the production more efficient as opposed to a single-year contract.

The agreement is based on a $42.7 million price per plane, but the engine and other government-furnished equipment is not included in the price.

Boeing is the largest aircraft manufacturer around the world and this contract is the third multiyear agreement that Boeing Company has signed with the U.S Navy for their F/A-18 fighter jets.