While there is plenty to debate about where U.S. defense budgets could settle in 2014-15, there is no debate about the Pentagon's desire to continue to compete with cutting-edge technology. It expects defense advantages to be sustained through investment in new weapons and support systems that provide a generational lead over those fielded by adversaries.

China is on its way to the first controlled lunar landing in almost four decades—a planned touchdown in the poetically named Bay of Rainbows (Sinus Iridium) to unleash a robotic rover called Yutu (see illustration), an equally poetic reference to the jade rabbit the goddess Chang'e took with her when she flew to the Moon. China's Chang'e-3 mission made it out of low Earth orbit Dec. 1 into a translunar trajectory that sets up Yutu for a landing on Dec. 14.

In an unprecedented move, the United Launch Alliance (ULA) is planning to resource its industrial base at a level beyond the number of rocket orders placed by the Pentagon.

Recent launches of two converted Soviet-era ballistic missiles have reaffirmed the vehicles' presence in the market for lofting small satellites, a sector once reserved for research and technology demonstrations that is seeing increased demand for commercial applications, including optical and radar imagery and communications.

To call launch market upstart Space Exploration Technologies (SpaceX) a change agent would not be an overstatement. The company is bursting onto the scene with the stated goal of CEO Elon Musk to break the monopoly for U.S. national security launches now held by the United Launch Alliance's (ULA) Atlas V and Delta IV rockets. Air Force officials say they are already seeing ULA take measures to become more efficient and reduce cost (see page 43). And SpaceX is infusing the market with new manufacturing and design techniques.

For years, space industry pundits have been forecasting a coming boom in the small-satellite market. The key question now is not so much the size of the business opportunity, but how best to unlock its full potential.

The big government rocket Congress has insisted be built for deep-space human exploration is on track for a 2017 first flight. So far, there are no serious technical issues in sight and it is garnering growing interest from other potential users, according to the NASA managers responsible for developing the heavy-lift vehicle known as the Space Launch System (SLS).

Outside experts are responding to NASA's call to lasso an asteroid, providing the agency's Asteroid Retrieval Mission (ARM) planners with new momentum for the two-phase strategy to resume U.S. human deep-space exploration while demonstrating capabilities to find and deflect asteroids that pose an impact threat to Earth.