Biologists Program E. Coli To Patrol For Pathogens
MTorrice writes "When hospital patients develop nasty, antibiotic-resistant infections, the bacterium Pseudomonas aeruginosa is often the culprit. In a new approach to killing the pathogen, researchers genetically modified harmless Escherichia coli bacteria to detect and destroy P. aeruginosa. The E. coli spot a specific chemical released by the pathogen and then secrete a toxin to kill it (abstract)."
That's basically what normal flora is.
The military funds far more than weapons R&D. I've worked on a project to develop insecticides against mosquitoes that was funded by the US military. There are no weapon aspects, it was to protect American troops against diseases (dengue, malaria, etc.) that some species of mosquitoes can spread. The military has funded things that seem off the wall, like marine biology research trying to figure out a why jellyfish light up in the wake of a ship. Naval aviators have found their way back to carriers by following the carrier's fluorescent wake, but the same could be used by an enemy and the Navy wanted a way to make it stop. Didn't work out, but there is some interesting basic research on jellyfish and Green Fluorescent Protein that was produced as a result. The military also funds vaccine and antibiotic research, research into new surgical techniques, prosthetics, renewable energy sources (ie biodiesel), and a lot of other non-weapons research.