Nothing reveals the political nature of this year's debate over across-the-board budget cuts as much as the dramatic change of discourse in the weeks leading to the deadline for preventing them. After a year of hearings, press conferences and road shows clamoring for a stop to sequestration, lawmakers and the Obama administration are now met with the deadline. Late last week, they appeared to have rationalized missing it.

Aurigny is first European operator to use satellite approach system

Unmanned vessels are about to take a leap in capability, on the surface and beneath. The desire for persistent sensing is driving the need to develop fully autonomous, long-duration vehicles that can covertly patrol coastal waters or overtly follow submerged submarines. The U.S. Office of Naval Research plans to build prototypes of the Large-Displacement Unmanned Underwater Vehicle (LDUUV) to address the autonomy, sensing and energy challenges of a vessel able to operate independently for months.

To lower costs, Pentagon could turn milsat procurement on its head.

North Korea's successful launch of a satellite in December after 14 years of attempts put the hermit kingdom one step closer toward deploying an intercontinental ballistic missile. And Iran's nuclear weapons program—and the threat of an Israeli attack to cripple it—will keep tensions simmering in the Middle East.

When I began writing this column eight years ago, airlines were reeling as oil prices soared above $50 a barrel. Lockheed Martin was hoping to ramp up production of the Joint Strike Fighter in 2009, and Wall Street analysts were beginning to question whether a run-up in defense stocks had much steam left. Airbus was preparing to launch development of the A350 in response to Boeing's 7E7 (now 787), and the business jet market was embarking on a sales surge that would end in a spectacular crash.

The bifurcation of the business jet market is expected to continue in 2013, with strong demand for larger and pricier jets and sluggish sales of small and mid-sized aircraft. A Chinese company's failed bid in 2012 to acquire bankrupt Hawker Beechcraft is unlikely to slow Beijing's bid to become a significant player in the market.

Can ad hoc design teams collaborating via the Internet produce a better infantry fighting vehicle quicker than traditional industry engineering organizations? Darpa aims to find out when it launches the first of three Fast, Adaptable Next-Generation (FANG) ground-vehicle design challenges in January 2013. Using new model-based design tools, virtual collaboration and foundry-style manufacturing, FANG aims to produce an amphibious combat vehicle in one-fifth the time of a conventional program.