Microcosm Inc. believes that it is out of the running for a Pentagon contract to demonstrate a quick response small launch vehicle, and has begun making layoffs as a result, according to a senior company official.

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Brian Berger is editor in chief of SpaceNews.com and the SpaceNews magazine. He joined SpaceNews.com in 1998, spending his first decade with the publication covering NASA. His reporting on the 2003 Space Shuttle Columbia accident was recognized with...