* In the Quadrennial Defense Review 2010 the Pentagon seeks to rebalance the US military and to institutionalize DoD reforms.
* President Obama FY 2011 budget contains a record $708 billion in defense spending, including a 3.4% increase in the Pentagon’s base budget and $159 billion to fund US military missions in Iraq, Afghanistan and Pakistan, Reuters reports. At the same time, the Pentagon may be targeting at least 7 programs for cancellation.
* US defense firms felt the economic pressure this quarter, as Rockwell Collins’ profits fell 20% and Lockheed Martin’s earnings were flat, notes the Wall Street Journal. Bucking the trend, Raytheon’s profit rose 20% for the quarter.
* Morgan Keegan analyst Brian Ruttenbur predicts a wave of cyber security firm acquisitions by big defense companies in the next 12 – 24 months, because more federal money is going into that area.
* Research and Markets: The market for military tactical radio systems is predicted to grow substantially in the coming years. Also, technical issues with JTRS are driving the need for more legacy radios.
* Boeing unveils plans to provide up to $2 billion in subcontracting work to Canadian companies for in-service support for 15 CH-47F Chinook helicopters purchased by the Canadian government.
* General Dynamics Electric Boat says it will lay off 434 workers at its Groton, CT, shipyard due to lost submarine maintenance, overhaul and repair work.
* USAF is undertaking a massive restructuring of the C-17 Globemaster Sustainment Partnership after 2012, which the service predicts will save $9-12 billion over 30 years.
* The Obama administration is working with Saudi Arabia and other Persian Gulf allies to speed up arms sales and upgrade defenses for oil terminals and other key infrastructure, in a bid to thwart future military attacks by Iran.
* DARPA’s Cyber Genome Program is developing “digital fingerprint” technology to track down cyber terrorists.
* The Pentagon is looking to cut its greenhouse gas emissions for non-combat activities, such as buildings and fleet vehicles, by 34% by 2020.