The Obama administration will commit $200 million from five federal agencies to create three new manufacturing innovation institutions in 2013. Building on the Additive Manufacturing pilot initiative launched in Youngstown, OH, last year, the Department of Defense will lead two new institutes focused on Digital Manufacturing and Design Innovation and Lightweight and Modern Metals Manufacturing. A third institute, led by the Department of Energy, will focus on Next Generation Power Electronic Manufacturing. Competition for these new institutes is open immediately.

Last week, the Obama administration announced that it would commit $200 million to establish three new manufacturing innovation institutions in 2013 (see the May 8, 2013 issue of the digest).

Are we on the threshold of a new federal acquisitions process? Instead of the traditional Request for Proposal (RFP) process, federal agencies have been turning slowly to crowdsourcing as a model to address some of the most pressing problems for both federal agencies and the nation. Through crowdsourcing, a collaborative method of design, government entities like the Department of Defense's Defense Advanced Research Projects Agency (DARPA) and NASA hope to create a more innovative, streamlined design-to-production process at a fraction of the cost.

Unless Congress and the White House take action by the end of the year, across-the-board spending reductions will go into effect for all federal agencies as a result of provisions in the Budget Control Act of 2011. The budget sequestration would reduce defense discretionary funding by 9.4 percent and non-defense funding by 8.2 percent from the 2011 baseline.