18 septembre 2018 | International, C4ISR

Pentagon spending could lead to consolidation of cybersecurity industry

By:

Spurred in part by Russia's campaign of hybrid warfare in Ukraine, the Pentagon will purchase more electronic warfare equipment, a move that could lead to consolidation in the cybersecurity industry, an analyst said in a new report.

Russia's use of electronic warfare combined with conventional combat tactics during its 2015 invasion of Ukraine exposed how the Department of Defense needed to increase its spending on cybersecurity, Brad Curran, an analyst at Front & Sullivan told Fifth Domain.

Greater use of offensive cyber and electronic weapons by Russia means that the U.S. is expected to boost defense of its communications systems, and possibly look to increase its own offensive weapons.

A September report from Frost & Sullivan projected a 2.9 percent compound annual growth rate in cybersecurity spending from the Pentagon through 2023.

Securing electronic communications “is a high priority,” Curran said. The Defense Department is “just getting started” and it will be “a continuous effort to make sure our combat networks are secure.”

The focus could benefit firms like Raytheon, which have invested heavily in electronic warfare, Curran said.

Curran said that government purchases of enterprise systems will likely stay the same or even shrink because many of the acquisitions are meant to boost efficiency. One example is the government's investment in the cloud. But he predicts an increase in purchases of electronic warfare and offensive cyber capabilities, which will favor larger defense firms. The result will be consolidation of the cybersecurity industry among the biggest companies.

During the Black Hat conference, one cybersecurity firm described the industry as “cut-throat” and added they expected industry consolidation because of purchases from the largest contractors.

In 2017, the Pentagon awarded more than $1.22 billion to cyber contractors. That money went to 69 prime contractors and 50 different companies.

The Pentagon's 2019 budget request for cybersecurity totals $3.6 billion, according to the report, half of which is dedicated to operations and management. The Air Force has the largest share of cybersecurity programs, at $2.19 billion.

Booz Allen Hamilton was the top recipient of public contracts from the Pentagon in 2017 with a total of $115.4 million in awards, according to the report. In August, the Pentagon awarded Booz Allen Hamilton a $91 contract to manage cybersecurity for the Ballistic Missile Defense System.

But while artificial intelligence will be an area that the U.S. government focuses its investments on the future, Curran said it is not currently a major factor in acquisition.

“The future is AI but right now it is more of a concept," he said.

https://www.fifthdomain.com/industry/2018/09/17/pentagon-spending-could-lead-to-consolidation-of-cybersecurity-industry

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  • Contract Awards by US Department of Defense - December 3, 2018

    7 décembre 2018 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - December 3, 2018

    NAVY The Navy is awarding 1,870 indefinite-delivery/indefinite-quantity, multiple-award contracts (MACs) to businesses in multiple locations across 46 of the 50 United States, the District of Columbia, and Guam for future competition of support service requirements to be solicited by Department of the Navy activities under the SeaPort Next Generation (SeaPort-NxG) multiple-award contract vehicle. All work under the contracts will fall under two categories (engineering support services and program management support services), which are further divided into 23 functional areas. The government estimates approximately $5,000,000,000 of services will be procured per year via orders issued under the SeaPort-NxG multiple award contracts. These awards contain provisions to set aside requirements for small businesses, service-disabled veteran-owned small businesses, 8(a) business development program participants, woman-owned small businesses and historically-underutilized business-zoned small businesses. Under these multiple-award contracts, each contractor will be provided a fair opportunity to nationally compete for individual task orders. The MACs have a five-year base period of performance with an additional five-year ordering period option. No contract funds will be obligated on the basic MAC awards. Contract funds will be obligated at time of task order award. Multiple funding types may be used. The funding for task orders to be issued under these contracts will come from a variety of sources and will be consistent with the purpose for which the funds were appropriated. These contracts were competitively procured via the Federal Business Opportunities website, with 1,894 offers received. The Naval Sea Systems Command, Naval Surface Warfare Center, Dahlgren Division, Dahlgren, Virginia is the contracting activity (N00178-18-R-7000). NOTE: For a list of contractors receiving awards please visit: https://www.navsea.navy.mil/Portals/103/Documents/Small_Business_Forum/SeaPort%20NxG%20Awardees%20List.pdf?ver=2018-11-28-123322-177 Austal USA, Mobile, Alabama, is awarded a $40,369,095 cost-plus-fixed-fee undefinitized contract action for procurement of long lead time material and production engineering for the Expeditionary Fast Transport (EPF) 14. The EPF class provides high speed, shallow draft transportation capability to support the intra-theater maneuver of personnel, supplies and equipment for the Navy, Marine Corps, and Army. Work will be performed in Novi, Michigan (39 percent); Houston, Texas (12 percent); Chesapeake, Virginia (10 percent); Mobile, Alabama (9 percent); Rhinelander, Wisconsin (7 percent); and Iron Mountain, Michigan (3 percent), with other efforts performed at various locations (each less than 1 percent) throughout the U.S. (4 percent); and various locations (each less than 1 percent) outside the U.S. (16 percent), and is expected to complete by July 2022. Fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $20,184,547 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively solicited via Federal Business Opportunities website, with one offer received. The Naval Sea Systems Command, District of Columbia, is the contracting activity (N00024-19-C-2227). The Concourse Group, LLC,* Annapolis, Maryland, is awarded a maximum amount $29,000,000 indefinite-delivery/indefinite-quantity contract for professional services in support of the Department of Navy's (DoN) Public Private Venture (PPV) and Real Estate (RE) Programs. The work to be performed will require the contractor to bring professional knowledge, skills, and experience in residential and commercial real estate development and large scale real estate portfolio management to the DoN's PPV and RE programs. The contractor shall provide advice and assistance to the DoN and conduct the necessary research and analysis to present DoN decision-makers with accurate and relevant information. The contractor will bring best business practices from the private sector to assist the DoN with all aspects of the special venture acquisitions, including family and unaccompanied housing public private ventures, enhanced use leasing, and other public-private venture opportunities such as energy, utilities, and lodging, as well as real estate. The work includes technical advisory services to the Naval Facilities Engineering Command (NAVFAC) Headquarters Special Venture Acquisition Office and the NAVFAC component commands for the purpose of providing professional services, project development, execution, portfolio management advice and support consistent with the privatization approach adopted by the DoN, as well as technical advisory services to the NAVFAC RE. Work will be performed in Annapolis, Maryland. The term of the contract is not to exceed 36 months, with an expected completion date of November 2021. Fiscal 2019 operations and maintenance (Navy) contract funds in the amount of $10,000 are obligated on this award and will expire at the end of the current fiscal year. No task orders are being issued at this time. Future task orders will be primarily funded by operations and maintenance (Navy); and family housing, (Navy), operations and maintenance. This contract was competitively procured via the Navy Electronic Commerce Online website, with four proposals received. The Naval Facilities Engineering Command, Atlantic, Norfolk, Virginia, is the contracting activity (N62470-19-D-8008). Northrop Grumman Systems Corp., Military Aircraft Systems, Melbourne, Florida, is awarded $20,987,258 for firm-fixed-price modification P00002 to a previously issued order (N0001918F2334) placed against basic ordering agreement N00019-15-G-0026. This order provides for the installation of aerial refueling retrofit kits on four E-2D Advanced Hawkeye aircraft. Work will be performed in St. Augustine, Florida, and is expected to be completed in June 2020. Fiscal 2019 aircraft procurement (Navy) funds in the amount of $20,987,258 are being obligated on this 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. The Boeing Co., St. Louis, Missouri, was awarded $10,526,671 for modification P00002 to delivery order N0001918F0520 previously placed against basic ordering agreement N00019-16-G-0001. This modification exercises an option to provide calendar year 2019 Harpoon/SLAM-ER integrated logistics and engineering support services for Navy and Foreign Military Sales (FMS) customers. Work will be performed in St. Charles, Missouri (91.84 percent); St. Louis, Missouri (5.47 percent); Yorktown, Virginia (2.64 percent); and Oklahoma City, Oklahoma (0.05 percent), and is expected to be completed in November 2019. Fiscal 2019 operations and maintenance (Navy); and FMS funds in the amount of $10,526,671 will be obligated at time of award, $2,530,961 of which will expire at the end of the current fiscal year. This modification combines purchases for the Navy ($2,530,961; 24 percent); and FMS ($7,995,710; 76 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. (Awarded Nov. 29, 2018) The Boeing Co., St. Louis, Missouri, was awarded $10,526,671 for modification P00002 to delivery order N0001918F0520 previously placed against basic ordering agreement N00019-16-G-0001. This modification exercises an option to provide calendar year 2019 Harpoon/SLAM-ER integrated logistics and engineering support services for Navy and Foreign Military Sales (FMS) customers. Work will be performed in St. Charles, Missouri (91.84 percent); St. Louis, Missouri (5.47 percent); Yorktown, Virginia (2.64 percent); and Oklahoma City, Oklahoma (0.05 percent), and is expected to be completed in November 2019. Fiscal 2019 operations and maintenance (Navy); and FMS funds in the amount of $10,526,671 will be obligated at time of award, $2,530,961 of which will expire at the end of the current fiscal year. This modification combines purchases for the Navy ($2,530,961; 24 percent); and FMS ($7,995,710; 76 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. (Awarded Nov. 29, 2018) MTU America Inc. (formerly known as Tognum America Inc.), Novi, Michigan, is awarded $7,946,893 for sole-source firm-fixed-price, delivery order N0002419FB028 under previously awarded basic purchase agreement N00024-14-A-4101 to provide the government of Israel with MTU engines and engine components to support the Israeli marine vessels under Foreign Military Sales (FMS) case IS-P-GPB involving FMS to Israel. MTU engines and engine components will be applicable but not limited to the following MTU engine series: M90, M94, TB54, TB82, TB93, TB94, TE83, TE94, and SE84. Work will be performed in Brownstown Township, Michigan, and is expected to be completed by September 2019. Fiscal 2018 FMS funding in the amount of $7,946,893 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured, in accordance with 10 U.S. Code 2304(c)(4) (international agreement). The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Raytheon Co. Missile Systems, Tucson, Arizona, was awarded a $51,895,419 cost-plus-fixed-fee completion contract for a Defense Advanced Research Projects Agency (DARPA) research project. Work will be performed in Tucson, Arizona (78 percent); McKinney, Texas (12 percent); Tewksbury, Massachusetts (5 percent); Richardson, Texas (2 percent); Huntington Beach, California (1 percent); and Ontario, New York (2 percent), with an expected completion date of December 2021. Fiscal 2019 research, development, test and evaluation funds in the amount of $3,242,000 are being obligated at time of award. This contract was a sole-source acquisition. DARPA, Arlington, Virginia, is the contracting activity (HR0011-19-C-0008). U.S. TRANSPORTATION COMMAND Farrell Lines Inc., Reston, Virginia, has been awarded a one-time only task order under indefinite-delivery/indefinite-quantity contract HTC711-15-D-R044 in the amount of $15,747,387. This task order provides cargo transportation services support to the Surface Deployment and Distribution Command, U.S. Army. The task order is in support of an Army unit deployment from Fort Bliss, Texas, to multiple forward operating bases in Afghanistan. Work will be performed in the U.S. and Afghanistan. The period of performance is from Dec. 3, 2018, to Feb. 11, 2019. Fiscal 2019 Transportation Working Capital Funds were obligated at award. This modification brings the total cumulative face value of the contract to $150,886,391 from $135,139,004. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. DEFENSE LOGISTICS AGENCY Centron Industries Inc.,* Gardena, California, has been awarded a maximum $13,908,602 firm-fixed-price with economic-price-adjustment, indefinite-quantity contract for cables and lighting products. This was a competitive acquisition and three offers were received. This is a three-year base contract, with one two-year option period. Location of performance is California, with a Nov. 25, 2021, performance completion date. Using military services are Army, Air Force, Navy, and Marine Corps. The type of appropriation is fiscal 2019 through 2021 defense working capital funds. The contracting activity is Defense Logistics Agency Aviation, Richmond, Virginia (SPE4AX-19-D-0005). AIR FORCE Utah State University Research Foundation/Space Dynamic Laboratory, North Logan, Utah, has been awarded an $11,477,222 cost-plus-fixed-fee task order (FA9453-19-F-0013) to previously awarded contract FA9453-16-D-0004 for a small satellite utility demonstration. The contractor will provide necessary research and development to maintain essential engineering, research and development capability in the areas of sensor development, image processing and data analysis. Work will be performed at North Logan, Utah, and is expected to be completed by March 14, 2023. This award is the result of a sole-source acquisition. Fiscal 2018 research, development, test, and evaluation funds in the amount of $557,437 are being obligated at the time of award. Air Force Research Laboratory, Kirtland Air Force Base, New Mexico, is the contracting activity. (Awarded Nov. 30, 2018) ARMY General Dynamics Land Systems Inc., Sterling Heights, Michigan, was awarded a $9,430,158 modification (P00007) to contract W56HZV-17-C-0108 to install sensors on doors, build wire harness assemblies, and package all components as part of the Single Channel Ground and Airborne Radio System adapter kits, return sliding ramp assembly material for the vehicles and procure additional drop out factor material items on the Abrams SEPv3 45/60 vehicle production. Work will be performed in Lima, Ohio, with an estimated completion date of Aug. 30, 2019. Fiscal 2018 other procurement, Army funds in the amount of $9,430,158 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1704107/source/GovDelivery/

  • Special US fund to replace Russian equipment in Europe is shifting its strategy

    19 mars 2020 | International, Aérospatial

    Special US fund to replace Russian equipment in Europe is shifting its strategy

    By: Aaron Mehta WASHINGTON — A U.S. State Department fund to help European nations replace Russian-made weapons with American equipment has expanded to eight countries, but will be eschewing a second wave of funding in favor of targeted investments. In 2018, the State Department quietly launched a new effort known as the European Recapitalization Incentive Program, or ERIP, a new tool developed alongside U.S. European Command to speed up the process of getting allied nations off Russian gear. The U.S. benefits both strategically — getting partners and allies off Russian equipment to improve interoperability and deny Moscow funds for maintenance — and financially, thanks to the sale of American weapons abroad. ERIP funds, reprogrammed from unused dollars such as regional Foreign Military Financing, come in one-time bursts to help a country buy American-made alternatives to Russian kit. To get the money, the European nation must pledge to not buy Russian equipment in the future, while also at least matching the dollar value of the ERIP grant with domestic funding. The initial funding round consisted of six countries, totaling $190 million in reprogrammed fiscal 2017 dollars. As of last May, the State Department was considering a second round of ERIP grants and was at least in early discussions with Latvia about the funding. But in the time since, the department decided there won't be a second round, but rather ERIP will become a tool best used on a rolling basis. (Discussions with Latvia turned to different pots of money other than ERIP, according to a source.) “There was a lot of discussions about a second round, but the way it's kind of evolving is, rather than look at it as rounds is, look at it as opportunities,” a senior State Department official told Defense News on condition of anonymity. “It's a tool that we can use when opportunities arise for us to work with a partner to make a difference.” All told, the department has given out roughly $277 million in ERIP grants in the last two years — but, the official said, those relatively small dollars helped lock in roughly $2.5 billion in U.S. weapons sales. That's a win in “pure economic terms,” the official said, even before getting into the hard-to-quantify policy and political benefits. “It was a pretty bold decision in trying to help some of these countries acquire a pretty high capability capital intensive, and for some of them it's their first major [Foreign Military Sales] case, period.” Going forward, there may be tie-in money from EUCOM, which could kick in $1-3 million in small grants to nations that received ERIP dollars in order to help nations with maintenance costs on the newly bought American equipment. That money would likely come from DoD's Section 333 authority. Asked about that potential. DoD spokesman Lt. Col. Uriah Orland said the department "continues to work closely with the Department of State in the planning of security assistance with our European partner nations that enables them to reduce their dependencies on Russia's defense industry and build and/or sustain their own defense capabilities.” Targeted, ongoing funding Bulgaria presents a notable example for how the thinking on ERIP is evolving. The country spent several years debating what fighter jet to purchase, with the finalists coming down to new F-16s from Lockheed Martin, secondhand F-16s from Portugal, Eurofighter Typhoons from Italy and Saab Gripens from Sweden. As ERIP was envisioned, it would be used only for rotorcraft or ground vehicles. But with the government in Sofia teetering on the edge of rejecting the Lockheed deal, the U.S. State Department stepped in and used $56 million in ERIP dollars to push the F-16s over the edge and finalize a deal that could exceed $1.6 billion in costs. “For countries where it's a politically contentious issue, whether for economic or political reasons” the fund can help make a deal happen, the official said. “We were able to close that gap with an ERIP grant that enabled them to make the purchase and acquire the capability.” The second nation to get a targeted ERIP grant has been Lithuania, which in October announced plans to buy six UH-60 Black Hawk helicopters to replace its Soviet-made Mi-8 fleet. The State Department kicked in $30 million of ERIP funding to help complete that deal. In fact, no one piece of equipment has benefited from ERIP as much as the UH-60, of which three of the eight ERIP grants has helped procure. The eight projects to date are: Albania: $30 million for UH-60 procurement. The UH-60 is produced by Sikorsky, a Lockheed Martin subsidiary. Bosnia and Herzegovina: $30.7 million for the Bell Huey II. Croatia: $25 million for Bradley fighting vehicles, manufactured by BAE Systems. Croatia is also working to stand up local maintenance for the equipment. North Macedonia: $30 million for Stryker vehicles, produced by General Dynamics. Slovakia: $50 million for UH-60 procurement. Greece: $25 million earmarked, but the government is still debating what to buy. Likely to either be Bradley vehicles or the M1117 Armored Security Vehicle from Textron. Greece stands out because, as a higher-income nation, they are technically ineligible for Foreign Military Financing dollars, but a political decision was made to support them with ERIP anyway, the official said. Lithuania: $30 million for UH-60 procurement. Bulgaria: $56 million for eight Lockheed-produced F-16s. All of those deals except Greece and Lithuania are under contract, with a letter of request from Lithuania expected in the next few weeks. As to future opportunities, “we always kind of have our eye open, and we rely on the country teams out in the field to bring us these opportunities and think about them,” the official said. Although at the moment there are no potential ERIP projects in the works. “We continue to look at the Baltics, we look at the Balkans,” the official said, adding that “countries within Eastern Europe, the Baltics, the Balkans moving towards a new ground mobility or rotorwing systems with something to divest would be our top candidates.” All of those deals except Greece and Lithuania are under contract, with a letter of request from Lithuania expected in the next few weeks. As to future opportunities, “we always kind of have our eye open, and we rely on the country teams out in the field to bring us these opportunities and think about them,” the official said. Although at the moment there are no potential ERIP projects in the works. “We continue to look at the Baltics, we look at the Balkans,” the official said, adding that “countries within Eastern Europe, the Baltics, the Balkans moving towards a new ground mobility or rotorwing systems with something to divest would be our top candidates.” https://www.defensenews.com/global/europe/2020/03/18/special-us-fund-to-replace-russian-equipment-in-europe-is-shifting-its-strategy

  • Can machine learning decipher an overcrowded radio spectrum?

    10 juillet 2019 | International, C4ISR, Autre défense

    Can machine learning decipher an overcrowded radio spectrum?

    By: Kelsey Reichmann The Department of Defense is pursuing a $4.7 million initiative to use machine learning to decipher radio signals. The Defense Advanced Research Projects Agency awarded funding to BAE Systems, a British defense company, for its Controllable Hardware Integration for Machine-learning Enabled Real-time Adaptivity (CHIMERA) solution. The CHIMERA solution uses machine learning to interpret radio frequency signals in crowded electromagnetic spectrum environments. “CHIMERA brings the flexibility of a software solution to hardware,” said Dave Logan, vice president and general manager of Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance Systems at BAE Systems in a news release. “Machine-learning is on the verge of revolutionizing signals intelligence technology, just as it has in other industries.” This contract is contingent on the completion of preset milestones and works alongside the Radio Frequency Machine Learning Systems (RFMLS) program, which was previously awarded to integrate data-driven machine learning algorithms. https://www.c4isrnet.com/artificial-intelligence/2019/07/09/can-machine-learning-decipher-an-overcrowded-radio-spectrum/

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