“Suspect Counterfeit”: Fake Electronics in US Defense Equipment

The steady rise in the number and variety of electronic systems in military equipment has spawned 2 trends. One has been reduced readiness, as multiplying points of failure consistently push readiness rates down and maintenance costs up, for each successive generation of advanced equipment. The other is a security issue, as equipment “obsoletes itself every 18 months, is made in unsecure locations and [in an industry where] we have absolutely no market share influence [any more].”

The defense industry that played such a big role in building Silicon Valley now grapples with ways to ensure that chips and circuits don’t have hidden design codes in them. They’re also grappling with the issue of counterfeit electronics.

Up to $791M to Support the USAF’s Intranet, 2011-2018

The USAF’s Global Combat Support System is their internal web portal, supporting over 800,000 registered users and usinga services-oriented I.T. architecture to deliver everything from information to mission applications and collaboration tools. See this Power Point presentation for more. Lockheed Martin has been GCSS-AF’s prime contractor since 1996, and a recent contract worth up to $791 million could extend that to 2018.

Under the recent award, Lockheed Martin is responsible for maintaining the portal’s underlying IT infrastructure, while extending it with new applications, data services, and infrastructure improvements. The initial contract is for 3 years, with 4 more 1-year options, and most work will take place at Maxwell AFB, AL. Supporting operations and engineering locations will be found at Hill AFB, UT; Wright-Patterson AFB, OH; and Owego, NY. The ESC/HIIK at Maxwell AFB, AL, manages this contract (FA8771-11-D-1006). See also Lockheed Martin.

Chinese Controversy 2? US Army Buying Lenovo Computers

Tabula Rasa?

On Aug 24/11, the Tobyhanna Army Depot in Tobyhanna, PA announced over $20 million in contracts for 12,263 computers and tablets, to be delivered by the end of November 2011. No eyebrows were raised over Dell’s $7.5 million contract for 354 Latitude E6520 computers and 6,295 Dell OptiPlex small form factor computers (W91QUZ-06-D-0006), but a $13.6 million contract to Iron Bow Technology in Chantilly, VA may attract more scrutiny.

Iron Bow is asked to deliver 5,096 Lenovo tablets; 217 Lenovo think pads; 520 Lenovo think centre computers; 261 Fujitsu computers; and 40 Wyse computers (W91QUZ-06-D-0010). Because the Chinese government owns a significant share of Lenovo’s parent firm, Lenovo computers have been a source of controversy in the past. The US State Department was forced to backtrack on a 2006 purchase of 16,000 computers, pledging to keep them off of networks that handle classified government messages and documents. Iron Bow refused to comment on the deal, or on any security measures they might be able to undertake.

The Virtual Armed Forces: US Military Turns to Virtualization

USS Abraham Lincoln
going virtual

The US Department of Defense (DoD) and the individual services are turning more and more to virtualization to improve the efficiency and flexibility of their IT networks. This technology allows multiple virtual machines with different operating systems to run side-by-side on the same physical machine. The main benefit is a decrease in needed hardware, space, and power to perform the same IT operations, thus saving money and weight on military IT systems and platforms.

At the same time, virtualization raises security concerns because traditional IT security products, such as firewalls, do not work in the virtual environment.

• Virtualization: What Does It Mean?
  
• DISA Out in Front
  
• GD’s TVE Project
  
• Navy’s Virtual Strike Force
  
• Air Force Goes Virtual Early
  
• Security Challenges/Benefits
  
• Key Contacts
  
• Additional Reading
  

Rapid Fire Morning 2011-06-15: Pulsed Power

• The Chairman and Ranking Member of the Senate Armed Services Committee accuse China of hampering a congressional probe into how counterfeit electronics ended up in the U.S. military supply chain.

• Russia and France sign a protocol of intent, but not a final contract, on the purchase of Mistral Class helicopter carriers.

• Raytheon acquires key business assets of pulsed power engineering systems firm Ktech. Terms of the acquisition agreement were not disclosed.

DoD Cybersecurity Spending: Where’s the Beef?

24th Air Force

As the US defense budget is seeing targeted cuts, one area that seems to be getting more money is cybersecurity. The US military has announced plans to spend billions on technology to secure its networks.

In response to this shift in priorities, traditional defense contractors, such as BAE Systems, General Dynamics, Lockheed Martin, and Northrop Grumman have been on a buying spree, snatching up cybersecurity firms left and right. At the same time, a number of these companies have proven vulnerable to cyber attacks themselves, with some analysts seeing a tie to a security breach at RSA, which provides technology for remote access of employees to their corporate networks.

This article examines this shift in the US defense industry and defense spending regarding cybersecurity. In particular, the article examines where the money being earmarked for cybersecurity is going and what kind of initiatives are being undertaken by the US military.

• Buying Spree
  
• Where’s the Money Going?
  
• US Cyber Command
  
• Pentagon’s Cyber 3.0
  
• Is the Boom a Bust?
  
• Key Contacts
  
• Additional Reading
  

Is It Smart for the US Army to Develop Smartphones?

Smartphone: Good Idea?

The US Army soldier is burdened with C4ISR technology. The soldier uses a handheld radio to talk to other soldiers and commanders, Blue Force Tracker to track friendly and enemy forces, a portable GPS receiver to determine location, a ROVER system to receive UAV video feeds, and, if he or she is lucky enough, an Afghan interpreter to communicate with the locals.

What if all these things could be brought together on one device – a smartphone that millions use every day in civilian life. The US Army has undertaken an effort, called Connecting Soldiers to Digital Applications (CSDA), to develop smartphones for the office and the battlefield, such as tracking enemy movements, determining locations of fellow soldiers, sending intelligence reports, and receiving live UAV video.

There are a number of obstacles to this bold vision, however, not the least of which is security. How will the Army ensure that all of this classified information is protected using open source commercial technology?

SPAWAR Lets 2011 Contracts for Cyber-Defense Research & Infrastructure

As cyber-security becomes a greater focus for militaries around the world, contracts are following. The US Space and Naval Warfare Systems Center Pacific in San Diego, CA recently issued a set of multiple award contracts aimed at shaping the USA’s cyber-defense and cyber-warfare infrastructure.

Note that these are multiple-award contracts, hence not cumulative. The highest figure below is the highest possible total for the entire program, under circumstances that are basically impossible. These are 2 year contracts running to Jan 30/13, plus 3 more 12-month option periods. The contracts were competitively procured via publication on the Federal Business Opportunities website and posting to the Space and Naval Warfare Systems e-Commerce Central website, with 14 offers received. The 4 winners, and their terms, were:

Sector Outperforms: Grant Thornton Lookback on Defense M&A 2009

Guest Article by Ian Cookson

If 2008 can be characterized as a year in which private equity buyers battled to acquire aircraft component manufacturers, then 2009 was a time of strategic acquirers fighting to secure defense technologies.

2009 was a relatively strong year for mergers and acquisitions. Defense technology saw a 6% increase in M&A activity in 2009 with a particularly strong second half of the year. This contrasts with M&A activity as a whole, which showed a 9% decline in the number of U.S. transactions across all sectors. M&A activity is likely to continue as the DoD, shaped by the 2010 QDR, shifts away from “big iron” and focuses on high-demand, low density assets such as unmanned aircraft, cyber security, and Command, Control, Communication, intelligence, Surveillance and Reconnaissance (C3ISR) technology. Defense contractors and government IT providers, mirroring these shifts in spending priorities, are actively looking to acquisitions to enhance their capabilities. Earnings for our defense IT company index rose 8% (EBITDA) during the year, and defense electronics company earnings rose 5%…

G’day Mate: Australian Defence Force Deploys Integrated RF Communication System

MHFCS Fixed Network Nodes
(click to view larger)

Boeing announces completion of the final milestone for the MHFCS project. (July 8/10)

To provide Australian armed forces with an integrated communications system, the Australian Defence Force contracted with Boeing Defence Australia, a subsidiary of US-based Boeing, to deploy an integrated HF communications system throughout the country, replacing the separate HF communications systems operated by each service.

The A$628 million (US$547 million) system – called the Modernized High Frequency Communications System (MHFCS) – provides the ADF with a nation-wide secure command and control network for all of the armed forces. The project is divided into two phases [pdf] – the MHFCS core system and the final system. The core system was delivered in October 2004, and the final system was introduced into service on Sept 24/09. The Australia Minister of Defence Material and Science formally accept the final system from Boeing on May 13/10.