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Murray Brewster · CBC News Online attacks on Canada's financial system could become far more destructive as more militaries around the globe get involved in cyber operations, a security expert and former CIA analyst told a House of Commons committee Wednesday. Christopher Porter, the chief intelligence strategist for the cyber security company Fireeye, Inc., testified that as NATO countries share their expertise on how to defend against and defeat online threats, "major cyber powers outside the alliance" will likely do the same. The consequences, he said, could be dire. The West's imposition of sanctions on "some countries" has in the past been met with denial-of-service attacks on financial services websites, he said — attacks that have only been disruptive. "In the future, they may respond with destructive attacks aimed at permanently disabling financial services or altering data in ways that undermine trust in the global financial system, such as by delaying or impairing the trustworthy settlement of collateralized government debt," Porter said. "For countries sufficiently sanctioned and therefore increasingly outside that financial system anyway, there is little incentive not to do so during a confrontation." Where the threat comes from He did not name the countries he believes pose an imminent threat, but North Korea, Russia and Iran are widely known to possess sophisticated cyber capabilities and — in some cases — loose associations with groups of private hackers. The Commons public safety committee is studying security in the financial sector. Wednesday's hearing focused on online threats. "I am gravely concerned about the militarization of cyber operations," said Porter, who spent nearly nine years at the CIA and served as the cyber threat intelligence briefer to White House National Security Council staff. "(The) proliferation of cutting-edge offensive cyber power, combined with an increased willingness to use it with minimal blowback and spiraling distrust, has set the stage for more disruptive and destabilizing cyber events, possibly in the near future." The cyber espionage threat Canada faces is still "moderate," said Porter, but his organization has noted at least 10 groups from China, Russia and Iran that have targeted Canada in the last few years. His grim assessment was echoed by another private sector expert who appeared before the committee. Jonathan Reiber, head of cybersecurity at Illumio, an American business data center, said most of Washington's efforts to get everyone to step back from the cyber-warfare brink have gone nowhere. He also suggested that online militarization was inevitable. "Adversaries have escalated in cyberspace, despite U.S. efforts at deterrence," he said. The United States, Canada and other western nations must take a more aggressive stance to deter cyber aggression by "defending forward" and conducting offensive cyber operations to disrupt hacking, Reiber said. The Liberal government's defence policy, released in June 2017, gave the Canadian military permission to conduct those kinds of operations. "Nation states have the right to defend themselves in cyberspace just as they do in other domains," Reiber said. Mutual defence Determining the point at which a online attack provokes a real world military response is something that NATO and many western countries have been grappling with over the last five years. The alliance has a mutual assistance clause, known as Article 5, which requires NATO nations to aid an ally under attack. Liberal MP John McKay, head of the public safety committee, asked whether NATO's decision-making mechanisms are nimble enough to keep pace with cyber attacks. Porter said he believes the system is sound. The challenge, he said, is to get all allies on the same page. "I think a bigger issue is who is going to call for such a response and under what circumstances," he said. "In the States, I think, you're always waiting for a cyber Pearl Harbour destructive event." Such a massive attack is still less likely than a series of smaller events, he said, "a death by a thousand cuts" that might not rise to the level of provoking allies. https://www.cbc.ca/news/politics/cyber-warfare-could-be-entering-a-new-and-alarming-phase-ex-cia-analyst-tells-mps-1.5008956

Today, machine learning (ML) is coming into its own, ready to serve mankind in a diverse array of applications – from highly efficient manufacturing, medicine and massive information analysis to self-driving transportation, and beyond. However, if misapplied, misused or subverted, ML holds the potential for great harm – this is the double-edged sword of machine learning. “Over the last decade, researchers have focused on realizing practical ML capable of accomplishing real-world tasks and making them more efficient,” said Dr. Hava Siegelmann, program manager in DARPA's Information Innovation Office (I2O). “We're already benefitting from that work, and rapidly incorporating ML into a number of enterprises. But, in a very real way, we've rushed ahead, paying little attention to vulnerabilities inherent in ML platforms – particularly in terms of altering, corrupting or deceiving these systems.” In a commonly cited example, ML used by a self-driving car was tricked by visual alterations to a stop sign. While a human viewing the altered sign would have no difficulty interpreting its meaning, the ML erroneously interpreted the stop sign as a 45 mph speed limit posting. In a real-world attack like this, the self-driving car would accelerate through the stop sign, potentially causing a disastrous outcome. This is just one of many recently discovered attacks applicable to virtually any ML application. To get ahead of this acute safety challenge, DARPA created the Guaranteeing AI Robustness against Deception (GARD) program. GARD aims to develop a new generation of defenses against adversarial deception attacks on ML models. Current defense efforts were designed to protect against specific, pre-defined adversarial attacks and, remained vulnerable to attacks outside their design parameters when tested. GARD seeks to approach ML defense differently – by developing broad-based defenses that address the numerous possible attacks in a given scenario. “There is a critical need for ML defense as the technology is increasingly incorporated into some of our most critical infrastructure. The GARD program seeks to prevent the chaos that could ensue in the near future when attack methodologies, now in their infancy, have matured to a more destructive level. We must ensure ML is safe and incapable of being deceived,” stated Siegelmann. GARD's novel response to adversarial AI will focus on three main objectives: 1) the development of theoretical foundations for defensible ML and a lexicon of new defense mechanisms based on them; 2) the creation and testing of defensible systems in a diverse range of settings; and 3) the construction of a new testbed for characterizing ML defensibility relative to threat scenarios. Through these interdependent program elements, GARD aims to create deception-resistant ML technologies with stringent criteria for evaluating their robustness. GARD will explore many research directions for potential defenses, including biology. “The kind of broad scenario-based defense we're looking to generate can be seen, for example, in the immune system, which identifies attacks, wins and remembers the attack to create a more effective response during future engagements,” said Siegelmann. GARD will work on addressing present needs, but is keeping future challenges in mind as well. The program will initially concentrate on state-of-the-art image-based ML, then progress to video, audio and more complex systems – including multi-sensor and multi-modality variations. It will also seek to address ML capable of predictions, decisions and adapting during its lifetime. A Proposers Day will be held on February 6, 2019, from 9:00 AM to 2:00 PM (EST) at the DARPA Conference Center, located at 675 N. Randolph Street, Arlington, Virginia, 22203 to provide greater detail about the GARD program's technical goals and challenges. Additional information will be available in the forthcoming Broad Agency Announcement, which will be posted to www.fbo.gov. https://www.darpa.mil/news-events/2019-02-06

Rachel Aiello, Ottawa News Bureau Online Producer OTTAWA -- Over the next year, the top-secret National Security and Intelligence Committee of Parliamentarians plans to probe the threat foreign interference poses to Canada, and examine how the military collects and uses information about Canadians. The committee gave notice this week of its planned studies for the year, all of which will happen behind closed doors. The high-level oversight body was created in 2017, and mirrors similar committees set up in the other "Five Eyes" alliance countries. Members include MPs and Senators, who must have the highest level, or “top secret” security clearance. The committee garnered a higher profile in Canada and abroad after then-member Tony Clement stepped down from all parliamentary roles after revealing he sent sexually explicit images and a video of himself to someone he thought was a consenting female, but who was actually a "foreign actor" seeking to financially extort the long-time MP. Months later, two men in West Africa were arrested and accused of being behind the blackmail attempt. This situation prompted questions over potential security ramifications and the vetting of members of the committee. As the committee looks to the year ahead the first study on its agenda will be a look at the threat of foreign interference to Canada's national security and the measures currently in place to counter it. Then the plan is to move on to a probe of the Canada Border Services Agency's national security and intelligence activities related to enforcing immigration and customs laws. Next up will be a review of "issues of diversity and inclusion in Canada's security and intelligence community." Specifically the committee will look at federal security agencies' progress and consult leaders in these offices to recommend ways to improve the culture and representation within the highest levels of the intelligence community. Lastly, the committee is looking to examine the way the Department of National Defence and the Canadian Armed Forces collect, use, and disseminate information about Canadian citizens as it conducts defence intelligence activities. The committee's findings and recommendations on the military's treatment of citizens' data will be submitted to the prime minister and the minister of national defence before the end of 2019. Of course, all this work could be usurped by other issues that may arise. The committee can undertake special studies at any time, as it did with the prime minister's troubled India trip in 2018. "Our planned reviews for 2019 will continue to build a picture of the various parts of the security and intelligence community and how it works together to protect our security, our freedoms and our institutions," said chair of the committee Liberal MP David McGuinty in a statement. The 11-member committee has continued to meet despite being having vacancies in both of the spots reserved for Conservative MPs. In addition to Clement's vacancy, the spot held by late-Conservative MP Gord Brown has been vacant since May 2018. There has already been a byelection in the riding he held, where a new Conservative MP has been named. The appointments and necessary clearances rest with the Privy Council Office and Prime Minister Justin Trudeau. "The Committee is continuing to meet, but is looking forward to welcoming two new members from the Official Opposition as soon as possible," executive director of the committee told CTVNews.ca in a statement. Asked about when the new Conservative members will be named, PMO spokesperson Eleanore Catenaro told CTV News.ca that the processing is "almost complete" and they expect the new additions will be named "in short order." Just before Christmas, the committee issued its first annual report to the prime minister, and a declassified version will be tabled in Parliament within 30 sitting days, meaning it could be April before that happens. https://www.ctvnews.ca/politics/top-secret-committee-to-study-foreign-meddling-military-use-of-canadians-info-1.4285158

NAVY BAE Systems Information and Electronic Systems Integration Inc., Hudson, New Hampshire, is awarded $225,034,247 for firm-fixed-price delivery order N0001919F2701 against a previously awarded indefinite-delivery/indefinite-quantity contract (N00019-17-D-5517) to procure 9,999 additional Lot 7, full-rate production units of the Advanced Precision Kill Weapon System (APKWS) II. The procurement of the additional APKWS II weapons will upgrade the current 2.75-inch rocket system to a semi-active laser guided precision weapon in support of the Army, Navy, Marine Corps, Air Force and the governments of Nigeria and the Netherlands. Work will be performed in Hudson, New Hampshire (70 percent); and Austin, Texas (30 percent), and is expected to be completed in September 2020. Fiscal 2019 procurement of ammunition (Army, Navy and Marine Corps and Air Force); and Foreign Military Sales funds in the amount of $225,034,247 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. BAE Systems Norfolk Ship Repair, Norfolk, Virginia, was awarded an $114,563,249 firm-fixed-price contract for the execution of USS Bulkeley (DDG 84) fiscal 2019 depot maintenance period Chief of Naval Operations availability. This availability will include a combination of maintenance, modernization, and repair of USS Bulkeley. This is a “long-term” availability and was competed on a coast-wide (East coast) basis without limiting the place of performance to the vessel's homeport. BAE will provide the facilities and human resources capable of completing, coordinating, and integrating multiple areas of ship maintenance, repair, and modernization. This contract includes options which, if exercised, would bring the cumulative value of this contract to $136,226,668. Work will be performed in Norfolk, Virginia, and is expected to be completed by June 2020. Fiscal 2019 operations and maintenance (Navy); and fiscal 2019 other procurement (Navy) funding in the amount of $114,563,249 will be obligated at time of award, $85,275,770 of which will expire at the end of the fiscal year. This contract was competitively procured using full and open competition via the Federal Business Opportunities website, with three offers received in response to Solicitation No. N00024-18-R-4448. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-4448). (Awarded Feb. 1, 2019) Marine Hydraulics International Inc. (MHI), Norfolk, Virginia, was awarded a $103,384,447 firm-fixed-price contract for the execution of USS Gunston Hall (LSD 44) fiscal 2019 Chief of Naval Operations-scheduled dry-docking selected restricted availability. This availability will include a combination of maintenance, modernization and repair of USS Gunston Hall. This is a “long-term” availability and was competed on a coast-wide (East Coast) basis without limiting the place of performance to the vessel's homeport. MHI will provide the facilities and human resources capable of completing, coordinating and integrating multiple areas of ship maintenance, repair and modernization. This contract includes options which, if exercised, would bring the cumulative value of this contract to $149,237,975. Work will be performed in Norfolk, Virginia, and is expected to be completed by April 2020. Fiscal 2019 operations and maintenance (Navy) funding; and fiscal 2019 other procurement (Navy) funding in the amount of $103,384,447 will be obligated at time of award, and $103,159,625 will expire at the end of the current fiscal year. This contract was competitively procured using full and open competition via the Federal Business Opportunities website, with three offers received in response to solicitation N00024-18-R-4448. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-4450). (Awarded Feb. 1, 2019) General Dynamics NASSCO-Norfolk, Norfolk, Virginia, was awarded a $67,179,025 firm-fixed-price contract for the execution of USS Arleigh Burke (DDG 51) fiscal 2019 dry-docking selected restricted availability Chief of Naval Operations availability. This availability will include a combination of maintenance, modernization, and repair of USS Arleigh Burke. This is a “long-term” availability and was competed on a coast-wide (East Coast) basis without limiting the place of performance to the vessel's homeport. NASSCO will provide the facilities and human resources capable of completing, coordinating, and integrating multiple areas of ship maintenance, repair, and modernization. This contract includes options which, if exercised, would bring the cumulative value of this contract to $74,718,063. Fiscal 2019 operations and maintenance (Navy) funding in the amount of $67,179,025 will be obligated at time of award and will expire at the end of the current fiscal year. Work will be performed in Norfolk, Virginia, and is expected to be complete by November 2019. This contract was competitively procured using full and open competition via the Federal Business Opportunities website, with three offers received in response to solicitation No. N00024-18-R-4448. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-4449). (Awarded Feb. 1, 2019) Group W Inc., Vienna, Virginia, is awarded a $24,999,999 indefinite-delivery/indefinite-quantity, firm-fixed-price contract with a five-year ordering period for research and innovative technical analysis support services for the Marine Corps Operations Analysis Directorate. Work will be performed in Vienna, Virginia. Work is expected to be completed within the delivery dates set forth in each task order. The ordering period will commence on Feb. 5, 2019 and end on Feb. 4, 2024. No funds will be obligated at the time of award. Funding on this contract will be obligated at the task order level. Operations and maintenance (Marine Corps), and research and development (Marine Corps and Navy) funding will be used for the task orders. Fiscal 2019, operations and maintenance (Marine Corps) funds in the amount of $950,200 will be obligated for task orders one and two and will expire at the end of the current fiscal year. This contract was competitively procured via solicitation on the Federal Business Opportunities website, with three proposals received. The Marine Corps Installations Command, National Capital Region, Regional Contracting Office Quantico, Virginia, is the contracting activity (M00264-19-D-0007). PAE Aviation and Technical Services LLC, Arlington, Virginia, is awarded a $23,000,000 firm-fixed-price, indefinite-delivery, requirements contract. This contract provides continued Contractor Instruction, Maintenance, Operations and Training Support (CIMOTS). CIMOTS will support the national strategic sealift Cargo Offload Discharge System requirements and facilitate training for the Improved Navy Lighterage System powered and non-powered craft at Expeditionary Warfare Training Groups, Pacific and Atlantic. Work will be performed in Coronado, California (90 percent);and Norfolk, Virginia (10 percent), and is expected to be completed in December 2023. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposal; one offer was received. The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity (N61340-19-D-1020). General Atomics, San Diego, California, is awarded $8,417,378 for ceiling-priced delivery order N00383-19-F-NA05 under previously awarded basic ordering agreement (N00383-18-G-NA01) for the manufacture of 17 various line items for initial spares acquisition in support of the Electromagnetic Aircraft Launch System for use on aircraft carriers. Work will be performed in Tupelo, Mississippi, and work will be completed by January 2022. Working capital funds (Navy) in the amount of $6,313,034 will be obligated at the time of award and funds will not expire at the end of the current fiscal year. One source was solicited for this non-competitive requirement, and one offer was received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity. ARMY MDM Construction,* Rockford, Illinois (W911SA-19-D-2005); Greenstone Construction,* Fargo, North Dakota (W911SA-19-D-2006); Richard Group,* Glenview, Illinois (W911SA-19-D-2007); Allcon Construction,* Butler, Wisconsin (W911SA-19-D-2008); Progressive Construction Services,* Janesville, Wisconsin (W911SA-19-D-2009); JMJ Construction,* Baraboo, Wisconsin (W911SA-19-D-2010); Relyant Global,* Maryville, Tennessee (W911SA-19-D-2011); RHI Construction Services,* West Haven, Utah (W911SA-19-D-2012); Platt Construction,* Franklin, Wisconsin (W911SA-19-D-2013); and Signature Renovations,* Capitol Heights, Maryland (W911SA-19-D-2014), will compete for each order of the $45,000,000 firm-fixed-price contract for Fort McCoy, Wisconsin, Department of Public Works construction. Bids were solicited via the internet with 11 received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 14, 2024. U.S. Army Mission and Installation Contracting Command, Fort McCoy, Wisconsin, is the contracting activity. Raytheon/Lockheed Martin Javelin JV, Tucson, Arizona, was awarded a $26,182,720 modification (P00136) to contract W31P4Q-13-C-0129 to procure Command Launch Unit retrofits. Work will be performed in Tucson, Arizona, with an estimated completion date of Aug. 31, 2021. Fiscal 2018 other procurement, Army funds in the amount of $26,182,720 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Social Services Missouri Dept., Jefferson City, Missouri, was awarded a $19,195,300 modification (P00003) to contract W911S7-18-C-0011 for full food service. Work will be performed in Fort Leonard Wood, Missouri, with an estimated completion date of Aug. 5, 2019. Fiscal 2019 operations and maintenance Army funds in the amount of $19,195,300 were obligated at the time of the award. U.S. Army Mission and Installation Contracting Command, Fort Leonard Wood, Missouri, is the contracting activity. Valiant Government Services LLC, Hopkinsville, Kentucky, was awarded a $16,255,102 modification (P00009) to contract W91278-18-C-0011 for operations and maintenance services. Work will be performed in Natick, Massachusetts; Daleville, Alabama; Silver Spring, Maryland; Aberdeen, Maryland; Frederick, Maryland; and Dover, Delaware, with an estimated completion date of Feb. 6, 2020. Fiscal 2019 operations and maintenance Army; and research, development, test and evaluation funds in the amount of $16,255,102 were obligated at the time of the award. U.S. Army Corps of Engineers, Mobile, Alabama, is the contracting activity. Panamerican Consultants Inc.,* Memphis, Tennessee, was awarded a $7,500,000 firm-fixed-price contract for cultural resources related services. Bids were solicited via the internet with nine received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 6, 2024. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-19-D-0003). R. Christopher Goodwin & Associates Inc.,* New Orleans, Louisiana, was awarded a $7,500,000 firm-fixed-price contract for cultural resources related services. Bids were solicited via the internet with nine received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 6, 2024. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-19-D-0006). Coastal Environments Inc.,* Baton Rouge, Louisiana, was awarded a $7,500,000 firm-fixed-price contract for cultural resources related services. Bids were solicited via the internet with nine received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 6, 2024. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-19-D-0007). MISSILE DEFENSE AGENCY General Atomics Electromagnetic Systems, San Diego, California, is being awarded a $30,900,000 cost-plus-fixed-fee contract modification (P00013) to a previously awarded contract (HQ0277-l 7-C-0001). The value of this contract is increased from $37,850,000 to $68,750,000. Under this modification, the contractor will continue to demonstrate passive Missile Defense Agency configured MQ-9 unmanned aerial vehicles in Ballistic Missile Defense System tests. The work will be performed in San Diego, California. Fiscal 2019 research, development, test and engineering funds in the amount of $l,445,000 are being obligated at the time of award. The Missile Defense Agency, Albuquerque, New Mexico, is the contracting activity (HQ0277-17-C- 0001). *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1750408/source/GovDelivery/

NAVY Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $90,345,180 modification to a previously awarded cost-plus-incentive-fee contract (N00019-17-C-0001). This modification provides for the identification and execution of cost reduction initiatives to reduce the cost of the F-35 Lightning II Air System. Work will be performed in Fort Worth, Texas, and is expected to be completed in June 2022. Fiscal 2017 aircraft procurement (Air Force, Navy, and Marine Corps) funds in the amount of $90,345,180 will be obligated at time of award, all of which will expire at the end of the current fiscal year. This modification combines purchases for the Air Force ($44,929,818; 50 percent); Navy ($26,000,000; 29 percent); and the Marine Corps ($19,415,362; 21 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Q.E.D. Systems Inc., Virginia Beach, Virginia, was awarded an $11,503,892 cost modification to previously-awarded contract N00024-15-C-4400 for third party advanced planning services in support of Chief of Naval Operations availabilities, Continuous Maintenance Availabilities (CMAVs), inactivation CMAVs, sustainment availabilities, phased modernization availabilities, re-commissioning availabilities, continuous maintenance and emergent maintenance windows of opportunity for Navy surface combatant ship classes (CG 47/DDG 51). Work will be performed in Norfolk, Virginia (53 percent); San Diego, California (36 percent); and Everett, Washington (11 percent), and is expected to be completed by February 2020. Fiscal 2019 operations and maintenance (Navy); and fiscal 2019 other procurement (Navy) funding in the amount of $6,282,400 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. (Awarded Feb. 1,2019) ARMY CACI-ISS Inc., Arlington, Virginia, was awarded a $37,234,235 modification (P00048) to contract W15QKN-15-C-0049 for the Integrated Personnel and Pay System. Work will be performed in Arlington, Virginia, with an estimated completion date of May 31, 2019. Fiscal 2019 research, development, test and evaluation funds in the amount of $35,387,111 were obligated at the time of the award. U.S. Army Contracting Command, New Jersey, is the contracting activity. DEFENSE LOGISTICS AGENCY SOPAKCO Inc., Mullins, South Carolina, has been awarded a maximum $26,214,300 firm-fixed-price contract for religious and halal Meal Ready to Eat. This was a competitive acquisition with three responses received. This is a five-year contract with no option periods. Location of performance is South Carolina, with a Feb. 4, 2024, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE3S1-19-DZ117). UPDATE: Hoist Liftruck Manufacturing,* East Chicago, Indiana (SPE8EC-19-D-0038), has been added as an awardee to the multiple-award contract for commercial trucks and trailers, issued against solicitation SPE8EC-17-R-0008, announced April 20, 2017. DEFENSE HEALTH AGENCY Bluewater Federal Solutions Inc., Chantilly, Virginia, was awarded a firm-fixed-price contract for $8,194,502 on Jan. 22, 2019. The contract has an effective date of Feb. 1, 2019 and was awarded following a competitive solicitation conducted amongst small businesses in accordance with Federal Acquisition Regulation 8.405, using General Services Administration eBuy Schedule 70, Special Item Number 132-56. This award provides for non-personal information technology services in support of mobile application development, web design, web development, and necessary support (to include testing, information assurance compliance and risk mitigation in accordance with Department of Defense standards) for Military Health System internet, intranet, and extranet websites, web applications, and mobile applications. The contractor place of performance is Falls Church, Virginia. In addition, this contract provides for four option periods, if exercised. This contract is funded with fiscal 2019 operations and maintenance appropriations in the amount of $8,194,502. The Defense Health Agency, Contracting Office – Health Information Technology, San Antonio, Texas, is the contracting activity (HT0015-19-F-0022). *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1749121/source/GovDelivery/

By: Vivek Raghuvanshi NEW DELHI – India's defense budget for 2019 included a marginal 6.87 percent bump to $49.68 billion, which is unlikely to meet modernization demands or ‘Make in India' manufacturing increases. Out of the total allocation, $16.91 billion has been set aside to buy new weapons and other military hardware, compared to $14.68 billion in the previous financial year. But not accounted for are the liabilities, say some defense analysts, which could chip away at available funds. “As of now, one doesn't know about the extent of committed liabilities to be able to say how much money will be available for new purchases,” said Amit Cowshish, former financial advisor for the Ministry of Defence acquisition. "But it can be said with reasonable certainty that the allocation must be much less than the requirement projected by the ministry. That being the case, the ministry will have to make do with whatever money they have got, just the way they have been managing in the past.” India's defence budget is more than five times that of Pakistan, pegged at $9.6 billion — barely enough to maintain its basic operational capability. Presenting the interim budget for 2019-20 in parliament, Union Minister for Finance and Corporate Affairs Piyush Goyal said additional funds, if necessary, would be provided to secure India's borders and maintain its defense preparedness. Under capital outlay, the Army was granted $4.60 billion and the Navy granted $3.61 billion — both nearly flat compared to the year before. The Indian Air Force was allocated $6.14 billion, combared to $5.58 billion in the previous year. One MoD official said the majority of funds will go towards past committed liabilities for Rafale fighters, S-400 missile systems, warships and helicopters. Still, the fact that the budget saw an increase is noteworthy to some. “The allocation for defense, which for the first time has crossed the $49 billion threshold is encouraging," said Baba Kalyani, chairman of leading private sector defense enterprise Bharat Forge Ltd. In terms of manufacturing, "we hope that ‘Make in India' will result in a greater role for the private industry in this critical sector of the country's economy.” Cowshish is less encouraged, seeing very few noteworthy programs on the horizon. “It doesn't seem likely that many big contracts for fighters, helicopters, submarines, etc. will get concluded in the coming year," he said. "This is not because of paucity of funds but on account of the fact that none of these procurement proposals are likely to reach anywhere near the contract conclusion stage any time soon. “ https://www.defensenews.com/global/asia-pacific/2019/02/05/indias-new-defense-budget-falls-way-short-for-modernization-plans/

By: William Schneider, Jr The public discussion of 5th generation (5G) mobile telephone service has been seen by many – perhaps most – in the United States as just another step in the evolution of mobile communications, a remarkable scientific and commercial development that has wrought a wide range of benefits world-wide over the preceding quarter-century. More recently, the focus has shifted to 5G as a proxy for the U.S.-China trade and technology rivalry. The Trump administration's effort to change the terms-of-trade with China has brought the subject of commercial and international trade consequences of the proliferation of advanced technologies into sharp relief. The U.S. efforts to extradite the chief financial officer of the Chinese telecommunication equipment developer and producer, Huawei from her detention in Canada for export control violations have added a geopolitical spin to what has become an increasingly tangled issue. These aspects of the story, while true, do not begin to describe why 5G is such a big deal. The technologies of 5G communication will create a backbone technology for high speed low latency telecommunication. It will serve as the basis for the global internet-based “Internet of Things” (IoT) with fundamental changes in how goods and services of every imaginable types (and many, perhaps most not yet imagined) can be developed, employed, supported, and replaced. The importance of new technologies is not their ability to do what existing technology can do now, only faster, better, and cheaper even though that is a likely consequence. In the case of 5G, its ultra-low latency (potentially hundreds of times faster than current 4G LTE) produced by its vast bandwidth that allows users to do things that previously could not be done by any practical application of existing technologies. The enormous scale of capital expenditure involved in rapidly bringing 5G technology to market – $325 billion by 2025 – to develop and produce the hardware and software needed to deliver early 5G capabilities is unlike any other infrastructure project. Reflecting its national commitment to 5G, nearly half of the world-wide investment in 5G development and employment will be made by China. The extraordinarily low latency of 5G will allow services such as augmented and virtual reality and an immersive and tactile internet that cannot be delivered by 4G or earlier technology. 5G technology also inverts the classic paradigm of computational scarcity at the network's edge (e.g. the mobile device) and computational abundance at the center. With computational abundance now at the network edge, the employment of computationally intense emerging technologies (e.g. AI, quantum computing and cryptography, facial recognition) can be performed by mobile devices throughout the network. 5G as part of China's belt-and-road initiative While Western governments have tended to see 5G as an important but incremental extension of existing telecommunications services, China has recognized the value of 5G technology with its belt-and-road initiative (BRI). That effort is China's $1 trillion global infrastructure project to expand its economic presence and support for its interests on a global scale. China sees it as a key step in becoming the world's leading economic power by 2049, the 100th anniversary of the founding of the Communist state. The project has several components, one of which has become known as the “digital road.” It anticipates projecting the deployment of China's 5G telecommunication infrastructure over the dozens of countries now affiliated with the initiative. The 5G telecommunications network would be integrated with another Chinese project, its Beidou (“Big Dipper”) precision navigation and timing system (now in the latter stage of fielding) to displace the U.S. Global Positioning System enabling China's telecommunications and PNT system to dominate the future IoT and other in areas affected by China's belt-and-road project. 5G as an instrument of China's international security policy China's global security ambitions overlap its economic aspirations. The 19th Congress of the Communist Party of China, the belt-and-road initiative and its associated activities were incorporated in the Chinese Constitution at the 19th CPC. In that context belt and road is a project of the Party, and not the State which significantly elevates its security role and importance to its national leadership. The BRI creates a global economic presence that has become a combination of commercial enablers for its “Maritime Silk Road” and forward air and naval installations for China's armed forces. These include air and naval facilities in Djibouti in the Horn of Africa, Jiwani, Pakistan (~80-km west of its large commercial port at Gwadar, and a naval base in Sri Lanka (Hambantota, which China acquired in a debt-for-sovereignty swap when Sri Lanka could not service its BRI debt to China). China's switch from a regional to an aspiring global power reflect its aspirations that have shaped the CPC's rule since Mao: the deconstruction the old-world order in favor of one which gives China its rightful place at the zenith of a new international order. The incorporation of the technology 5G telecommunication and Chinese controlled PNT parallels a trend in US military practice. DoD military communications, like China's is moving to a wireless, mobile, and cloud-based IT systems built around 5G technology. China's convergence of its 5G, BRI presence (military and civil), PNT and dominant role in the BRI member states are aimed at becoming the world's leading economic and military power by the 100th anniversary of the founding of the Communist State in 2049. 5G is both an enabler and product of China's remarkable economic growth since 1979 and is likely to become a central element of China's economic and military power for the 1st half of the 21st century. William Schneider, Jr. is a senior fellow at the Hudson Institute and former under secretary of State and chairman of the Defense Science Board. https://www.c4isrnet.com/opinion/2019/02/05/why-5g-is-a-big-deal-for-militaries-throughout-the-world

By: Sebastian Sprenger COLOGNE, Germany — Germany may be unable to deliver on its pledge to increase the defense budget due to smaller-than-expected economic growth, according to a new Finance Ministry analysis. The projections peg the military budget to be several billion euros short of the trajectory to meet the government's goal of reaching 1.5 percent of gross domestic product by 2024. Analysts even see the current spending curve unable to sustain 1.35 percent in the years ahead. NATO members in 2014 agreed to boost their defense spending to 2 percent of GDP within 10 years. Germany's defense budget is roughly €43 billion (U.S. $49 billion) for 2019, or about 1.2 percent of GDP. That is a boost of €4 billion over the previous year. Defence Minister Ursula von der Leyen on Monday said Germany remains committed to hitting the self-declared 1.5 percent target in 2024. She portrayed the Finance Ministry's analysis as a mere first step toward a budget proposal negotiated by Cabinet secretaries. The government is expected to unveil such a plan in late March. The Trump administration has often criticized Germany for underspending on defense, arguing Berlin rides on American coattails when it comes to security. News that the country's spending target is at risk is sure to embolden the narrative in Washington that Europe is somehow taking advantage of the United States. It could weaken the negotiating position of German government delegates at two high-profile events in mid-February: a meeting of NATO defense ministers in Brussels, and the Munich Security Conference. The Finance Ministry's economic outlook estimates that agencies will have to reconcile new spending priorities within their previously established budget targets. That means no fresh money would become available for the government's push on artificial intelligence, for example, according to the document. https://www.defensenews.com/global/europe/2019/02/05/germanys-plan-to-boost-defense-spending-hits-a-snag/

DEFENSE COMMISSARY AGENCY Coast Produce Co., Los Angeles, California, is being awarded an indefinite-delivery, requirements type contract to provide fresh fruits and vegetable products for commissaries located in the west areas of the continental U.S. The award amount is estimated at $153,648,855 for the base year. Actual obligations using resale stock activity group, defense capital funds, will occur upon issuance of delivery orders during the period of performance. Contract funds will not expire at the end of the current fiscal year. The contract is for a 24-month base period beginning Feb. 25, 2019, through Feb. 21, 2021. The contract includes three one-year option periods. If all three option periods are exercised, the contract will be completed Feb. 21, 2024. The Defense Commissary Agency, Fort Lee, Virginia, is the contracting activity (HDEC02-19-D-0002). NAVY General Dynamics Bath Iron Works (BIW), Bath, Maine, was awarded a $126,171,106 cost-plus-award-fee contract for DDG 51 class integrated planning yard services. BIW will provide expert design, planning and material support services for both maintenance and modernization. This contract includes options which, if exercised, would bring the cumulative value of this contract to $719,178,832. Work will be performed in Bath, Maine, and is expected to be completed by January 2024. Fiscal 2019 operations and maintenance (Navy); and fiscal 2019 other procurement (Navy) funding in the amount of $21,022,460 was obligated at time of award, and $4,549,434 will expire at the end of the current fiscal year. This contract was not competitively procured, in accordance with 10 U.S. Code 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-4452). (Awarded Jan. 30, 2019) Swiftships LLC,* Morgan City, Louisiana, is awarded a $26,683,722 modification to previously awarded fixed-price incentive contract N00024-18-C-2401 to exercise an option for construction of Landing Craft, Utility (LCU) 1701 and 1702. LCU 1700 will replace the existing LCU 1610 class of amphibious landing craft on a one for one basis. LCU 1700 will be a similarly rugged steel craft which will recapitalize the LCU 1610 capabilities and have a design life of 30 years. LCU 1700 craft will be a highly reliable and fuel efficient heavy lift platform whose capability will be complementary to the faster air cushion landing craft which have a significantly shorter range, smaller payload capacity, no habitability, and operating hour limitations. Work will be performed in Morgan City, Louisiana, and is expected to be completed by May 2021. Fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $26,683,722 will be obligated at time of award, and will not expire at the end of the current fiscal year. The Naval Sea Systems Command Washington, District of Columbia, is the contracting activity. Kingfisher Systems Inc., Falls Church, Virginia, is awarded a $14,236,278 cost-plus-fixed-fee contract for advanced cyber support services in support of the Marine Corps Cyberspace Operations Group. This one-year contract includes four one-year option periods which, if exercised, would bring the potential value of this contract to an estimated $73,344,685. Work will be performed in Quantico, Virginia. The period of performance of the base period is from Feb. 4, 2019, through Feb. 3, 2020. If all options are exercised, the period of performance would extend through Feb. 3, 2024. Fiscal 2019 operations and maintenance (Marine Corps) funds in the amount of $5,500,000 will be obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via request for proposal N66001-18-R-0011 which was published on the Federal Business Opportunities website and the Space and Naval Warfare e-Commerce Central website, with five offers received and one selected for award. The Space and Naval Warfare Systems Center Pacific, San Diego, California, is the contracting activity (N66001-19-C-3406). Northrop Grumman Systems Corp., Military Aircraft Systems, Melbourne, Florida, is awarded $11,654,051 for modification P00068 to a previously awarded cost-plus-incentive-fee contract (N00019-13-C-9999). This modification provides for non-recurring engineering to incorporate the Multifunctional Information Distribution System/Joint Tactical Radio System into the E-2D Advanced Hawkeye aircraft in support of the government of Japan. Work will be performed in Melbourne, Florida (75.15 percent); Norfolk, Virginia (8.98 percent); Ronkonkoma, New York (8.42 percent); St. Augustine, Florida (6.34 percent); Misawa, Japan (.32); and various locations within the continental U.S. (.79 percent), and is expected to be completed in June 2020. Foreign Military Sales funds in the amount of $11,654,051 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Canadian Commercial Corp., Ottawa, Ontario, Canada, is awarded an $11,382,478 firm-fixed-price, cost-reimbursable indefinite-delivery/indefinite-quantity contract. This contract provides services in support of Navy ship and weapons systems test events such as target presentations, planning and conducting of test, and analysis and evaluation of the assigned surface weapons systems during test events as well as systems engineering and program management support. Work will be performed at Point Mugu, California (85 percent); Ridgecrest, California (6 percent); Las Cruces, New Mexico (3 percent); Kauai, Hawaii (2 percent); Salt Lake City, Utah (2 percent); Lompoc, California (1 percent); and various locations outside the continental U.S. (1 percent), and is expected to be completed in February 2024. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(1). The Naval Air Warfare Center Weapons Division, China Lake, California, is the contracting activity (N68936-19-D-0008). UPDATE: The contract deductive modification awarded to Gilbane Federal, Concord, California (N39430-15-D-1634) on Jan. 16, 2019, to decrease the value of the contract for the cleaning, inspection and repair of Fuel Storage Tanks 305, 307, and 308 at Defense Fuel Support Point, Tsurumi, Japan, was not signed on that actual date. The modification for $10,966,383 will now be executed Feb. 4, 2019. Work on Tanks 305, 307, and 308 is being removed from the contract by mutual agreement of the parties. DEFENSE LOGISTICS AGENCY Beacon Point & Associates LLC,** Cape Coral, Florida, has been awarded a maximum $49,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for hospital equipment and accessories. This is a five-year contract with no option periods. This was a competitive acquisition with 71 responses received. Location of performance is Florida, with a Feb. 3, 2024, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-19-D-0010). AIR FORCE Akima Logistics Services LLC, Herndon, Virginia, has been awarded a $13,536,602 firm-fixed-price contract for fuels and supply services. This contract provides for services to support all management, personnel and equipment to perform fuels and supply services. Work will be performed at Joint Base Andrews, Maryland, and is expected to be completed by Feb. 29, 2020. This award is the result of a competitive acquisition and five offers were received. Fiscal 2019 operations and maintenance funds in the amount of $6,768,301 are being obligated at the time of award. The 11th Contracting Squadron, Joint Base Andrews, Maryland, is the contracting activity (FA2860-19-C-0004). DEFENSE ADVANCED RESEARCH PROJECTS AGENCY General Dynamics Mission Systems Inc., San Antonio, Texas, has been awarded an $11,816,042 modification (P00037) to previously awarded contract HR0011-16-C-0001 for classified information technology services. The modification brings the total cumulative face value of the contract to $116,832,430 from $105,016,388. Work will be performed in Arlington, Virginia, with an expected completion date of February 2020. Fiscal 2019 research and development funds in the amount of $5,430,798 are being obligated at time of award. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity. *Small Business **Service-Disabled Veteran Owned Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1747970/