How Budget Cuts Are Impacting The U.S. Military Space Program

Budget Cuts, Barriers Slow U.S. Military Space Shakeup -- Andrea Shalal-Esa, Reuters

Oct 20 (Reuters) - The U.S. Air Force has talked for years about attracting more companies to the military satellite business to stir competition and cut costs. But progress has been halting at best.

Now, just as the U.S. military is finally revamping its approach, cuts in defense spending threaten to undermine even the modest progress that is being made.

Billions of dollars of new contracts are at stake, both for legacy satellite and rocket launch providers such as Lockheed Martin Corp and Boeing Co, and newcomers trying to break into the market.

The Government Accountability Office, a congressional research arm, last month estimated that the U.S. military, NASA and other government agencies would spend $44 billion just to launch satellites over the next five years. Billions more would be spent on building the spacecraft.

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My Comment: How can you plan and spend the money on a program that may eventually be cut because of budget cuts. This is an unworkable business model.