NATO and Armenia strengthen their defence education cooperation

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  January 30, 2019 | International, Land

  With shutdown over, Japan cleared to spend $2.15 billion on Aegis Ashore

  By: Aaron Mehta WASHINGTON — The U.S. Defense Security Cooperation Agency announced Tuesday that Japan has been cleared to buy a pair of land-based Aegis ballistic missile defense systems, the first Foreign Military Sales announcement since the end of a government shutdown that stalled the FMS process. The sale, worth an estimated $2.15 billion, would bolster Japan's existing sea-based Aegis capabilities. The island nation is in the process of increasing its missile defense capabilities, both through additional Aegis buys and through the co-development of the SM-3 missile with the U.S. Although not specified in the DSCA announcement, a government official confirmed these two systems are for Japan's planned Aegis Ashore sites, which are expected to be operational by 2023. Included in the potential package: two Aegis weapon systems, two multimission signal processors, and two command-and-control processor refreshes, alongside radio navigation equipment, ordnance, identification friend or foe systems, and construction services for six vertical launch system launcher module enclosures. Tuesday's announcement is the first DSCA notification to be posted since Dec. 18, just days before the longest government shutdown in U.S. history began. Speaking to reporters last week, Andrea Thompson, the U.S. State Department official who oversees the FMS process, said the shutdown was slowing down the process of clearing sales requests from foreign customers — notable, as the Trump administration has made increasing weapon sales abroad a key part of both its foreign policy and economic growth strategy. “There will be a bit of a bump — a gap, if you will — just because we haven't had the engagement with [Capitol] Hill” normally seen in the process, Thompson said then. “We'll be able to make up some ground, but I am a realist. We have to work harder if we are going to have the numbers we had last year.” Japan has recently spent heavily on American defense items. In September, the nation was cleared to spend $3.14 billion on nine E2-D Advanced Hawkeye aircraft, and in October it agreed to pay more than half a billion dollars for SM-3 missiles. In the recently released Missile Defense Review, the U.S. Department of Defense identified that working with partners in the Pacific — notably Japan and South Korea — is the “cornerstone” of American security in the region. “Japan is one of our strongest missile defense partners, and works together with the United States to strengthen cooperative missile defenses against regional missile threats,” the review states. “Going forward, DoD will work with allies and partners to prioritize these types of missile defense integration opportunities that contribute to more effective protection of the United States, its allies and deployed forces.” DSCA announcements do not mean sales are final. The announcement serves as notification to Congress about the potential sale, which can be vetoed by the Senate; once cleared, negotiations between the customer and contractor can lead to changed quantities or dollar figures from the original announcement. https://www.defensenews.com/global/asia-pacific/2019/01/29/with-shutdown-over-japan-cleared-to-spend-215-billion-on-aegis-ashore

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  February 3, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Pentagon finalizes first set of cyber standards for contractors

  Mark Pomerleau The Pentagon has finalized the long anticipated cybersecurity standards contractors will have to follow before winning contracts from the Department of Defense, a new process called the Cybersecurity Maturity Model Certification (CMMC) 1.0. The model is a tiered cybersecurity framework that grades companies on a scale of one to five based on the level of classification and security that necessary for the work they are performing. “The government and the contractor community must keep working together to address real and growing cybersecurity threats, and we need a robust response to protect our infrastructure, information, and supply chains,” said David Berteau, president and chief executive of the Professional Services Council, a trade association for federal contractors. “With today's announcement, DoD has achieved a significant milestone. Here's what industry officials need to know about the version finalized Jan. 31. Why it was needed Previously, the Pentagon did not have unified standard for cybersecurity that businesses needed to follow when bidding for contracts. Companies could claim to meet certain industry standards for cybersecurity, but those assertions were not tested by auditors, nor did the standards take into account the type of work a company was bidding to complete. Since then, defense officials have said that cybersecurity is not a one size fits all approach. In the meantime, adversaries have discovered it is easier to target unsuspecting down tier suppliers, rather than prime contractors. “Adversaries know that in today's great power competition environment, information and technology are both key cornerstones and attacking a sub-tier supplier is far more appealing than a prime,” Ellen Lord, the under secretary of defense for acquisition and sustainment, told reporters in a briefing at the Pentagon Jan. 31. Officials have said cyber theft by adversaries costs the United States about $600 billion a year. What will change? Contracts will mandate bidders reach a certain level of certification to win specific jobs. For example, if businesses aren't bidding on a contract that has extremely sensitive information, they must only achieve the first level of certification, which involves basic cybersecurity such as changing passwords and running antivirus software. More sensitive programs will require more stringent controls. Smaller companies down the supply chain will not, however, have to have the same level of certification as primes, said Katie Arrington, chief information security officer for the Office of the Under Secretary of Defense for Acquisition and the point person for the certification. Another significant change with the new process is the creation of an accreditation board and assessors. The board is an outside entity, separate from DoD, that will be charged with approving assessors to certify companies in the process. The accreditation body was formed earlier this month and officials are working on identifying and training the assessors, which will be called Certified Third-Party Assessment Organizations (C3PAO). What's next? Officials explained Jan. 31 that CMMC will follow a crawl, walk, run approach to ensure companies aren't unprepared for the change. The accreditation board is in the process of training the auditors that will oversee the certificaion. Once the requirements are met, a company's certification is good for 3 years. In the meantime, DoD plans to release 10 requests for information and 10 requests for proposals that will include the new cyber standards this year. The first solicitation could come as early as June. Arrington said earlier this week that she expects 1,500 companies to be certified by the end of 2021. She added that all new contracts starting in fiscal year 2026 will contain the cybersecurity requirements, however, Lord noted that they will not be not retroactive to previous contracts. https://www.fifthdomain.com/dod/2020/01/31/pentagon-finalizes-first-set-of-cyber-standards-for-contractors/

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  January 9, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

  US government shutdown creating angst for defense contractors

  By: Valerie Insinna WASHINGTON — As the U.S. government shutdown continues into its 18th day, defense firms and industry advocates are beginning to worry that the pause in business could eat into companies' cash flow. The Defense Department is funded for fiscal 2019, with Congress having passed a spending bill for the new fiscal year in September. That means work on the military's weapons programs continue apace, but many defense companies also hold contracts with agencies that are not currently funded, like the Department of Homeland Security — which includes the Coast Guard as well as Customs and Border Protection — and NASA. The Aerospace Industries Association, a lobbying group that represents defense and commercial aviation companies, warned that impacts to the aerospace sector extend beyond the 800,000 federal workers who are furloughed or working without pay. For example, weapons sales and transfers to U.S. allies and partners are stalled as a result of the closure of the departments of State and Commerce, AIA said in a Jan. 8 statement. Research projects at NASA, the Federal Aviation Administration, and National Oceanic and Atmospheric Administration are suspended, “setting back development of game changing technologies.” And meetings between the government and industry have been canceled or delayed. “Every day the shutdown lasts, the impacts grow and become more difficult and more expensive to fix,” said AIA President and CEO Eric Fanning. “It's time to get these dedicated public servants back to work.” Tony Moraco, the CEO of government service and information technology firm SAIC, told investors Jan. 7 that the effects of the shutdown are expected to be short term and primarily affecting accounts with NASA, the FAA and the U.S. Department of Agriculture. Moraco characterized the effect on SAIC and Engility — the latter of which is set to merge with the former this year — as a “modest impact on revenues and potentially cash collection, which we think we can recover — mostly — if this is resolved in the near term.” But SAIC Chief Financial Officer Charlie Mathis said the government is already behind on payments to the two companies by about $40 million to $50 million. “If we get through this quickly, they could catch up,” he said, but the shutdown would have to be resolved within a week for the companies to hit their cash-flow goals for their fiscal year ending Jan. 31. Furthermore, the companies are seeing a hit of about $10 million per week in revenue as the shutdown progresses, and “if it continues, that number could increase,” Mathis said. The probability of an extended shutdown seems to be rising. The government shutdown started Dec. 22 amid disagreements between President Donald Trump and Congress over funding for a border wall that would separate the United States and Mexico. But with Democrats now controlling the House of Representatives, a deal on funding for the wall may take weeks and could propel this shutdown past the 21-day mark of the 1995 shutdown, currently the longest on the books, according to CNN. Defense contractors will eventually get paid back for work accomplished while the government was shut down, but there could be long-standing consequences. If the shutdown persists for a protracted amount of time, there could be repercussions for the federal government's recruiting pipeline, as well as the balance of federal employees and contractors, said Byron Callan, an analyst for Capital Alpha Partners. “How will this shutdown impact the ability of federal agencies impacted by the shut-down to recruit and retain skilled individuals?” he wrote in an emailed analysis of SAIC's investor meeting. “There might be near-term collateral damage if people leave government service, but a 1-3 year factor to consider is how this shutdown and the potential for future ones accelerates reliance on federal service contractors.” https://www.defensenews.com/industry/2019/01/08/us-government-shutdown-creating-angst-for-defense-contractors