Entropy: Not so much a reduction to the budget. It's being couched as a “re-balancing” and I would be surprised if there wasn't a net increase in the Defense budget for POM-10. As to CSAR-X, I wouldn't necessarily say goodbye to it. Together with the cut to the Presidential helos I believe what the SecDef is getting at is we have to stop reinventing the wheel (or helicopter) every time we want to make a system better. IMO he feels we should leverage on the existing airframes to fill the requirement, i.e. build more of X rather than create a whole new Y. As it says he doesn't want to buy “another single-service solution with a single purpose aircraft.” The C-130 is a prime example of one airframe that is built with an eye towards fulfilling a plethora of roles. Ken's belief that both program will rise phoenix like from the ashes in much more expensive mode should also be of concern to the SecDef. Better to get both programs realigned with existing airframe designs as soon as possible.

Stevely – The contractor reductions are initially targeted at those who work in the Building. I agree that the contractor force in acquisitions should completely be GS. Can you say conflict of interest. As to the others, and those outside of the P'gon, it is a tough call reducing them until the government personnel system is revamped and the union rules change.

Two issues IMO drive the government's appetite for on-site contractors. First is speed. Most contractors can reply to an RFP in a week or two, a contract can be let, and people in place (if they aren't already) in a much shorter time than the existing personnel system. Sometimes it is just a matter of adjusting an existing contract, then folks are on site with an even quicker turn. Second is divestiture. Once a contract requirement is fulfilled, or even before, the contractors can be let go, since most fee for service contracts are written with the Government as an “at will” employer. Try getting rid of a GS in a day, a week, a month. Some who have nearly criminal conduct can take years to get rid of (ask almost any lawyer in the DoD GC).

The fear mongering has already begun: Heritage Foundation fired a nice propaganda salvo and it's posted over at Abu Muqawama. Can't wait to see who's next.