Decline in Federal spending may reduce business for contractors

This article in FederalTimes.com states that due to cutbacks in spending in the President’s 2009 budget the Federal government will reduce what it spends on contractors a substantial percentage. This is not only in DoD but also in Homeland Security and the State Department as well. Part of this is budget cuts to the various programs but also the predicted removal of US troops from Iraq. Whether this will really pan out will have to be seen. The final 2009 budget won’t be out until October-December, and there also may be various supplementals to support the war in Iraq and Afghanistan. At some point the wars will be winding down and this will have a significant effect on Defense’s spending. Historically the US budget for these activities have gone from boom to bust very quickly.

UK awards contract for equivilant of Blue Force Tracker

The British government gave Lockheed Martin a contract worth $200 M for a system similar to Blue Force Tracker. See the article here. The Land Environment Air Picture Provision (LEAPP) provides situational awareness for troops so that they may minimize friendly fire incidents. Blue Force Tracker (BFT) is the equivalent type of system for the US military. Read more