What follows is an example of what combat looks like in the "Rebirth" iteration of the Galaxies development track that I've been working on.
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The Federation and Klingons were fighting, as they were want to do...
In this case, the Federation has a fleet in the Alcor system (6 Capacity, 2 RAW, 4 Census, 3 Morale, 2 Productivity). The system contains 2 Constitution CA, 1 Anton CL, 3 Loknar CL, 4 Saladin FF, 4 Scorpio LF, and 5 Militias.

Constitution CA
TL 0, Cost 6, Maint 1/2, DV 5, AS 5, AF 2, CV 2

Anton CL
TL 0, Cost 5, Maint 1/2, DV 4, AS 3, AF 2, CV 1, Scout

Loknar CL
TL 0, Cost 4, Maint 1/3, DV 4, AS 4, AF 2, CV 0

Saladin FF
TL 0, Cost 3, Maint 1/4, DV 4, AS 2, AF 2, CV 0

5 Scorpio LF
TL 0, Cost 1, Maint 1/10, DV 1, AS 1, AF 2, Atmospheric
Militia LT
TL 0, Cost 1, Maint 1/8, DV 2, AS 2, AF 0
The Klingons have just moved a war fleet into the system with the intent of conquering the system. They have 1 K'el ri'anda BB, 2 K't'agga CA, 2 D'ama CL, 3 D'aka FF, 4 Kisarza DD, 8 Koreba LF, and 3 Warriors.

K'el ri'anda BB
TL 0, Cost 10, Maint 2/3, DV 8, AS 9, AF 2, CV 3, Slow

K’t’agga CA
TL 0, Cost 6, Maint 1/2, DV 5, AS 6, AF 2, CV 1

D'ama CL
TL 0, Cost 4, Maint 1/3, DV 4, AS 4, AF 1, CV 1

D'aka FF
TL 1, Cost 4, Maint 1/4, DV 3, AS 2, AF 3, CV 1, Assault

Kisarza DD
TL 0, Cost 2, Maint 1/6, DV 2, AS 2, AF 2, CV 0

Koreba LF
TL 0, Cost 1, Maint 1/10, DV 1, AS 2, AF 1, Atmospheric
Warriors
TL 0, Cost 2, Maint 1/4, DV 3, AS 3, Marines
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Detection, surprise, and readiness rules have been combined in "Rebirth" combat. Each side in an encounter rolls a d10 on the Detection Table to see what their readiness is for the encounter and this also determines what they have detected. The Klingons get a -1 to their roll because their forces just moved into the system this turn. The Federation gets a +1 because they have a Scout in their fleet.
The rolls are Federation 2 and Klingons 7.
Federation (Bad -2). They know the Klingons jumped in, but don't know what they have.
Klingons (Normal +0). They detect the Federation player has 10 ships, 5 flights, and 4 troops.
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Space combat in the encounter is now resolved in rounds, starting with high readiness and proceeding to low readiness. In each round, a player may generate a battle against an opponent or order his forces to withdraw -- with the actual withdrawal occurring during the player's action step next round.
The Klingon player has the high readiness in this encounter and gets to take an action first. The intentions are clear: take the system! He generates a battle against the Federation player using everything but his D'aka assault ships. There's no reason to expose those to the enemy without reason. This sets the commitment level to 17 for this battle, which means the Federation player must include at least 17 units of his own in the fight. This forces all of his ships into the battle.
At the start of the fight, both sides have to declare their escorts and scout use. The Federation player sets all 4 Saladin FF to escort duty. This halves their AS for the battle (round down), but these units have a total of 16 DV which is then used 1:1 to escort other ships and place them in a formation bonus. The 2 Constitution and 1 Anton CL are placed in formation bonuses (total 14 DV). The Federation player then declares that the Anton CL scout is being placed in AS mode, which gives it a +50% bonus to its AS value (+2 AS).
The Klingon player puts 4 Kisarza DD into escort mode, and has them give a formation bonus to the K'el rianda BB.
NOTE: This effectively FLIPS the old 1E formation bonus rules around, so it's the escorts that take the penalty and the ship in the formation bonus is unaffected. Being in a formation bonus doubles the cost of damaging a unit, and Ranged units (aka Missile ships) get a +50% AS bonus when they are in a formation bonus.
Ship vs. Ship Fire is first.
The Federation has 31 AS and the Klingons have 33 AS.
Combat now follows the model of Empire of the Sun, where each player rolls a d10 and adds their readiness modifier to then determine the effectiveness of their fire, getting between 25% - 100% of their total combat factor. This reduces the range of values to 4x instead of 6x as in classic VBAM.
The Klingons roll 6 + 0 = 6 for 100% effectiveness (if just barely!) and 33 hits. The Klingon player scores the damage. He first cripples 3 Loknar CL (12 hits) and 4 Saladin FF (16 hits) for a total of 28 hits. This leaves 5 hits left. 4 hits destroyed a crippled Loknar CL, and the last hit is lost.
The Federation rolls 9 - 2 =7 for 100% effectiveness and 31 hits. The Federation player is more worried about getting kills than cripples, and he spends 20 hits to kill both K't'agga CA (10 hits each). He could have tried to cripple the enemy battleship, but it's a formation bonus so it would take 16 hits to cripple, and another 16 to destroy. Best to wait it out. With the remaining 11 hits, the Federation player destroys 2 Kisarza DD (8 hits) and cripples another (2 hits). The last hit is lost.
Flights vs Flights is next.
The Federation has 8 AF and the Klingons have 8 AF.
The Klingons roll 3 + 0 = 3 for 50% effectiveness and 4 hits. 4 Scorpio LF are crippled.
The Federation rolls 9 - 2 = 7 for 100% effectiveness and 8 hits. The Fed pilots destroy 4 Koreba flights.
Flights vs. Ships is last.
The Klingon flights have 8 AS versus the Federation fleet's 12 AF. The Klingons roll 7+0 for 100% effectiveness and 8 hits. Flights ignore formation bonuses (* likely to still remain a rule) and destroy the Anton CL for 8 hits. The Federation roll 7-2 = 5 for 50% effectiveness on their return fire, for 6 AF. 3 Koreba flights are destroyed, more or less eliminating the Klingon shuttle threat (and pointing out how weak light fighters are).
The Federation flights have 1 AS against the Klingon's 6 AF. The Federation rolls 1 - 2 = -1 for 25% effectiveness (the minimum) and 1 hit. This wasn't a critical hit, and nothing in the Klingon fleet has 1 DV, so the point is lost. The Klingons roll 2 + 0 = 2 for 25% effectiveness and 2 hits. They destroy the last full strength Scorpio LF.
This battle is now over. The two fleets met, traded fire, and then disengaged to lick their wounds and prepare for the next engagement.
It's now the Federation player's turn in the encounter. The player can either attack the Klingons, withdraw from the system, or pass. He decides that he isn't willing to commit to an attack, but he's not going to abandon the colony, either. He passes, and the Klingon player then gets another chance to act.
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Let's say that somehow the Klingons are able to actually land troops in the system. They invade with their 3 Warriors. These troops are being carried by the CV on the D'aka assualt ships. Because the D'akas have the Assault ability, the Marines invade with full DV (as DV is now halved instead of AS).
The battle is handled just like a space battle. The Federation has 8 AS and the Klingons have 9 AS. The Federation player rolls 3 - 2 = 1 for 25% effectiveness or 2 hits. This is not enough to damage a Klingon Warrior and has no effect. The Klingon player meanwhile rolls 6 for 100% effectiveness and 9 hits. The Klingons destroy 2 Militias (8 hits), and the last hit is lost. Because the Klingons managed to damage at least one enemy unit they are successful in establishing a beachhead and the 3 Warriors land in the system. They can now fight there again next turn.
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This should illustrate in broad strokes what we're working on with the rules.
Conspicuously absent from the unit stats is CR/CC. Balancing those stats have been an albatross around our neck for too long, and we've jettisoned them for now in favor of trying to adapt a replacement via the commitment level rules that are inspired by rules that Jay originally developed for another project. There's always the possibility that we can use some other stat, such as Cost or DV, as a substitute for CR if necessary to constrain fleet sizes. For example, the Klingon battleship could have an effective CR of 10 based on its construction cost, which would let it bring 10 ships into a battle with it.
However, that being said, removing the artificial CR limitation means that swarm fleets would actually be viable, albeit not very economical and easily destroyed because they'd have such low DV values that every extra hit would likely damage a ship. Such attrition fleets would be great for an alpha strike, but then easily destroyed afterwards.
The tempo of encounter resolution in this model is meant to make it easier to resolve multi-empire encounters, but it may prove preferable to have battles be more like what we're used to, with a set number of units duking it out and ships then moving in or out of the fight until one side or the other withdraws.
I am trying to get us away from the arbitrary round limits, and instead rely on a more natural ebb and flow of combat, with the players deciding how many rounds of combat are fought.
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This solution isn't perfect, and it likely over corrects in the other direction by removing statistics and making special abilities more basic as a concession to faster play, but the battles do setup and resolve faster. It also helps that construction rates are severely reduced by the smaller economies. In my last few playtests, each shipyard had a fixed 12 construction capacity. With one shipyard in your home system, that limits you to building one capital ship per turn, and combat losses are likely to outpace that. So you have to invest in additional shipyards in key systems.
We've been experimenting with also keeping the Empire of the Sun rule that (barring a critical) all targets much be crippled before they can be destroyed. I think as our escort rules have matured, however, that we can get away with leaving that more up to the player.
We're still debating how this can interface with tactical rules, and that discussion will probably feed into the final version of the encounter rules.