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Raytheon Wins US Civilian Cyber Contract Worth $1 Billion

Tokolosh writes: Raytheon is a company well-known in military-industrial and political circles, but not so much for software, networking and cybersecurity. That has not stopped the DHS awarding it a $1 billion, five year contract to help more than 100 civilian agencies manage their computer security. Raytheon said DHS selected it to be the prime contractor and systems integrator for the agency's Network Security Deployment (NSD) division, and its National Cybersecurity Protection System (NCPS). The contract runs for five years, but some orders could be extended for up to an additional 24 months, it said. Dave Wajsgras, president of Raytheon Intelligence, Information and Services, said the company had invested over $3.5 billion in recent years to expand its cybersecurity capabilities. He said cybersecurity incidents had increased an average of 66 percent a year worldwide between 2009 and 2014. As you might expect, Raytheon spends heavily on political contributions and lobbying.

62 comments

  1. Excellent news by serviscope_minor · · Score: 2

    This is good news. Sure the $1bn is going down the drain, but at least it's not going to improve the DHS's effectiveness. That's not as good as abolishing the DHS, but it's a start.

    So think of it as $1bn well spent...

    --
    SJW n. One who posts facts.
    1. Re:Excellent news by ITRambo · · Score: 2

      Better than selecting Oracle or Microsoft, each of which would have securely used the information for their own purposes. MS would use it to target suggested apps. Oracle would make sure it didn't work quite right, until you give them another billion dollars.

    2. Re:Excellent news by Anonymous Coward · · Score: 0

      ... $1bn well spent ...

      Only in the USA would unproductive corporate welfare be considered an improvement. Raytheon is hiring, so a few lucky Americans who pass the security checks and polygraphs will get a miniscule portion of that welfare. I imagine you may have to wait 6 months for your clearance or accept a below-average salary.

      Their "defense-grade cyber-security" promises to defend, detect, decide, defeat. I'm interested in knowing how much of that is AI. It seems Raytheon has some 'big data' skills but realizes that "actionable intelligence requires the right balance of human and automated data analysis".

    3. Re:Excellent news by AmiMoJo · · Score: 1

      They are likely providing expertise about the process of security, rather than security software. They might actually be competent at that. Might.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    4. Re:Excellent news by Fire_Wraith · · Score: 1

      You're looking at it the wrong way. This doesn't hurt or hinder DHS in the slightest - in fact, DHS would shrivel up and choke without contractors. They're an essential part of its workforce, and they always have been since day 1.

      No, this is just DHS being used as a giant cash cow by the national security contracting industry. See that reference to lobbying by Raytheon et al? It's not just lobbying to try and get contracts, it's also lobbying to have those contracts, and the agencies issuing them, to exist in the first place. It's things like this that make sure politicians want to keep lumbering hulks like DHS around.

    5. Re:Excellent news by ebh · · Score: 1

      That's not the way it works. You get hired to do the job you're going to do, at full salary, and you do it initially under a provisional clearance, while your full clearance is being processed. If the work is sensitive enough that provisionally clearing people is too dangerous, then already having the appropriate clearance is made a prerequisite for the job.

    6. Re:Excellent news by Penguinisto · · Score: 2

      Well, you got Oracle pegged pretty solid..

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
    7. Re:Excellent news by Penguinisto · · Score: 1

      This is the same Raytheon that managed to spam-block their own SMTP traffic (I worked with them on a project about 10 years ago), and was generally so rotten at the job that the DoD kicked them clean off of the EMALL project.

      Things may have changed in the ensuing 10 years, but I wouldn't be so quick to use "competent" in any sentence that refers to Raytheon...

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
    8. Re:Excellent news by The+Grim+Reefer · · Score: 1

      Their "defense-grade cyber-security" promises to defend, detect, decide, defeat.

      The cool thing is that this, being Raytheon, they have the hardware to back this up.

      I can see it now:

      Raytheon Cyber Security has located the source of the threat. Please choose how to defeat it:

    9. Re:Excellent news by epyT-R · · Score: 1

      Right... and governments aren't known for (ab)using taxpayer's funds for their own purposes? How quickly people have forgotten the lessons of the cold war (on both sides!).

    10. Re:Excellent news by davester666 · · Score: 1

      Yes it will. Data from all these private companies will be shared with DHS. Just think of all the terrorists they will catch because of this bold new program!

      --
      Sleep your way to a whiter smile...date a dentist!
    11. Re:Excellent news by zlives · · Score: 1

      they just bought websense... i think that's part of the parcel.

  2. $1 billion for 5 months? by Anonymous Coward · · Score: 2, Insightful

    This sounds like a lot, but it really is a relative pittance to what these types of government contractors were getting 10-20 years ago. I live in the D.C. area and the big defense IT contractors have been laying off staff like crazy. It used to be if you had clearance you could write your own ticket.

  3. Bureaucrats need work after they retire! by Anonymous Coward · · Score: 1

    Retiring bureaucrats and old generals couldn't go suck the government teet for more money from a small security firm...it just looks better if they go and work for Raytheon, so, Raytheon may not have the name in security...but, it does have the niche for hiring old bureaucrats and ex-military!

  4. No worries... by Anonymous Coward · · Score: 1

    If their cybersecurity system is as good as the other software they produce, we don't have to worry about the cybersecurity getting any better :) It'll be both old fashioned, unusable and inefficient...

  5. PHB Site by avandesande · · Score: 4, Informative
    --
    love is just extroverted narcissism
    1. Re:PHB Site by Anonymous Coward · · Score: 0

      Buzzword, buzzword Buzzword Menu -> Buzzword -> Cyber Defense Initiative Command buzzword.

    2. Re:PHB Site by Anonymous Coward · · Score: 1

      If my curious what?

  6. Really? by Anonymous Coward · · Score: 2, Interesting

    Why don't we just streamline things and stop sending our tax money to the government and start sending it to all these military defense businesses? Surely this money could be better spent by agencies staffing their own employees. One billion dollars could hire a lot of people, but instead majority of that will go into the pockets of big business moguls at the taxpayers expense.

    1. Re:Really? by Anonymous Coward · · Score: 0

      One billion dollars? Hire a lot of people?

      No it couldn't. We must cut spending, and that way more people will be free from taxes, especially the rich, who have suffered enough.

      It's the only way to be sure.

      Think of the children. Think of the children of the corn.

    2. Re:Really? by thinkwaitfast · · Score: 1

      One billion would hire about 5,000 people for one year.

    3. Re:Really? by Anonymous Coward · · Score: 0

      @ 200k a year...
      or it can employ 5000 people for 5 years (the length of the contract) @ 40k a year

  7. Raytheon IS known for software by Anonymous Coward · · Score: 5, Informative

    I don't really agree with the summary. I've always associated Raytheon with software. I'm a meteorologist. The US National Weather Service uses a software suite called AWIPS for many of their operations. AWIPS is created and maintained by Raytheon. I've always thought that, because my tax dollars pay Raytheon to do this, the software should be open source and publicly available. Sadly, that's not the case, and it's virtually impossible to learn to use the same software in many NWS offices without actually working for the NWS. Thankfully, AWIPS will be replaced by the (partly) open source AWIPS II. But I've always thought this contract with Raytheon was pretty shady and bad for taxpayers. As for why Raytheon got the contract rather than the NWS using GEMPAK (the standard for some of their national offices), it may well be the explanation given in the summary that lobbying won out.

    1. Re:Raytheon IS known for software by RabidReindeer · · Score: 1

      I was told that apparently at one time, if the taxpayers paid for it, the taxpayers owned it (subject to military restrictions). And that Prime Computer was founded on exploiting that fact - taking some NASA software, designing hardware to run it more optimally, and making a product line out of it.

      Likewise the RBase DBMS, which was supposedly developed by Boeing under government contract.

      True or not, those were products that date from before the days when certain political powers pushed to privatize everything and universities weren't out to monetize everything they did.

    2. Re:Raytheon IS known for software by asavage · · Score: 1

      This is also news to me. I had a work term in university writing test scenarios to verify features of their military air traffic control software.

    3. Re:Raytheon IS known for software by hotchai · · Score: 1

      More importantly, to speak of Raytheon's networking and security capabilities, they acquired BBN a few years ago.

  8. This about project management, not security by phayes · · Score: 5, Informative

    Anyone claiming that because Raytheon isn't a well known name in software, networking, cyber security that this contract was awarded for cronyism, lobbying etc, has clearly never managed a large governmental project like this one is and knows nothing of how these projects are awarded. These projects are not looking for the prime contractor to be technically proficient in any of these technical fields but to have the best project management skills & to farm the technical parts out to subcontractors/suppliers.

    That /. admins have promoted such a basic misunderstanding of what the issues are speaks to how far /. has fallen.

    --
    Democracy is a sheep and two wolves deciding what to have for lunch. Freedom is a well armed sheep contesting the issue
    1. Re:This about project management, not security by avandesande · · Score: 1

      You should append 'in a government environment' to everything... it's like nothing in the private space. A good company with no government experience would fail miserably, even if they understood how to write a proper proposal.

      --
      love is just extroverted narcissism
    2. Re:This about project management, not security by RabidReindeer · · Score: 1

      Military-Industrial Complex.

    3. Re:This about project management, not security by Anonymous Coward · · Score: 0

      Yes, because government IT projects have a long and glowing history of going exactly according to plan. They definitely don't need specialist knowledge, and can be run by any of the buddies you've made at the local golf club!

    4. Re: This about project management, not security by Bing+Tsher+E · · Score: 1

      In that same Farewell Address where Eisenhower warned about the rise of the military-industrial complex, he also warned of the rise of a scientific-technological elite.

      Naturally, the guys in the lab brush that part off.

    5. Re:This about project management, not security by Anonymous Coward · · Score: 0

      Have you ever read how government projects work? They're the epitome of precise language. In the documents I've read, they define words like "should" so that expectations are well defined. Personally I think the heading is just plain lacking in that they don't know who Raytheon so therefore it's part of a corrupt plot to spend taxpayers money. The existence of the DHS does that all by itself, it's doesn't need Raytheon.

      If anything, you should worry that Raytheon is part of this project because it will probably succeed. Nothing good comes out of the DHS.

    6. Re:This about project management, not security by phayes · · Score: 1

      Boogeyman, BOO!

      There are valid reasons for an entity with lots of experience working for the government to win contracts like this. "Bob's corner firewall shop, viruses killed ded" isn't going to win any 1B multi department government contracts & would fail miserably if they tried.

      --
      Democracy is a sheep and two wolves deciding what to have for lunch. Freedom is a well armed sheep contesting the issue
    7. Re: This about project management, not security by RabidReindeer · · Score: 1

      From what I've seen, the bulk of the "scientific-technological elite" are working 80-100 hour weeks in fear of losing their soon-to-be-offshored jobs and have no time to meddle with the running of the country.

      Unless you want to count people like Mark Zuckerberg as "technological elite".

    8. Re:This about project management, not security by RabidReindeer · · Score: 1

      There are valid reasons for an entity with lots of experience working for the government to win contracts like this. "Bob's corner firewall shop, viruses killed ded" isn't going to win any 1B multi department government contracts & would fail miserably if they tried.

      And this is a good thing?

    9. Re:This about project management, not security by Anonymous Coward · · Score: 0

      Uh huh. And have you ever read about a goverment project involving IT that came in under budget and under time? Hell, name one that came in ON budget and on time.

      Instead what we always read about are multi-million/billion dollar boondoggles that never seem to get finished and never do meet expectations.

      Expectations are great. Delivering functional software, or even an environment, that does what is required is something else entirely.

    10. Re:This about project management, not security by Anonymous Coward · · Score: 0

      Phayes is quite correct. Also, government contractors know how to deal with the waves of government procedures and policies. There's an incredible amount of mechanism required to formally bid work and be scored well. The more expensive the work, the more complex that mechanism becomes. Most outfits aren't familiar with that process and don't want to be -- the overhead is enormous, equivalent to a very high ante in poker.

    11. Re:This about project management, not security by phayes · · Score: 1

      You've never seen multi-million dollar projects face-plant because the project management was deficient. I've seen a few.

      This story is much akin to the whipped up outrage on AF toilet seats that cost thousands, Macdonalds coffee lawsuit, Monsanto GMO lawsuit, etc. Someone with an axe to grind cherry picks a few details, whips up indignation with an inflammatory & extremely one sided resume, submits it to facebook, reddit & unfortunately more & more often /. and awaits trumped up steam from those ignorant of the full context.

      But for you the ignorant whipped up indignation may be just what you're looking for.

      --
      Democracy is a sheep and two wolves deciding what to have for lunch. Freedom is a well armed sheep contesting the issue
    12. Re:This about project management, not security by Anonymous Coward · · Score: 0

      >> Most outfits aren't familiar with that process and don't want to be -- the overhead is enormous, equivalent to a very high ante in poker.

      Which tends to lead to the same players remaining the in the game. Instead of giving up a seat, they buy out the occasional up-and-comer (with owners ready to check out for a nice retirement or use the money to start a new venture).

      NOTE: I worked for a company bought by Raytheon (IIS even) as well as other USG contractors. Still looking to get out of the game.

    13. Re:This about project management, not security by RabidReindeer · · Score: 1

      Settle down and let the drugs wear off. You're dripping foam on the carpet.

      If there's any "whipped-up" indignation I have, it's because the whole Federal process is so infamously turgid that it doesn't support democratic participation and shoulders aside the Main Street businessman in favor of specialized Big Businesses. Basically, if you want to deal with Uncle Sam, you have to dedicate a significant amount of resources specifically to dealing with Uncle Sam. Not to mention a fair amount of expertise in Federal-specific processes and interactions. A pet Congresscritter or 2 won't hurt either.

      In IT, depending on where you get your stats, how bad things have to come short to be defined as "fail", and how you define "big", somewhere between two-thirds and 90% of all IT projects fail. That's irrespective of whether the customer is the New York Times, the State of California or the Federal Government. So the idea that simply being a Big Business contracting to the Feds magically makes for success carries no weight with me. The Big Business vendors who have repeatedly failed at some of the previously-mentioned project sites carry Big names like IBM, Oracle and SAP.

    14. Re:This about project management, not security by Anonymous Coward · · Score: 0

      These projects are not looking for the prime contractor to be technically proficient in any of these technical fields but to have the best project management skills & to farm the technical parts out to subcontractors/suppliers.

      That /. admins have promoted such a basic misunderstanding of what the issues are speaks to how far /. has fallen.

      That sounds like a great way to end up with shithole projects like the obamacare website. Just because there are some justifications for the decision doesn't mean cronyism isn't at play and it doesn't mean that they're good justifications.

      The government works closely with IBM and X-Force is well respected. Maybe they were the first choice but it just couldn't happen. I'd even shrug if honeywell got the contract. raytheon.... please they helped put us in the mess we're in now. There are numerous large corporations that have done lots of work with the government on big contracts who seem to be a better fit than raytheon.

    15. Re:This about project management, not security by Anonymous Coward · · Score: 0

      it doesn't support democratic participation and shoulders aside the Main Street businessman in favor of specialized Big Businesses

      Oh come on, https://www.sbir.gov/ is there for you. Lots of start-ups take advantage of SBIRs. Big businesses are actually banned because the government wants to support start-ups.

      You do kind of need to specialize. If you want to do both government and non-government, put a pair of businesses under a holding company. This just keeps the accounting separate.

    16. Re:This about project management, not security by phayes · · Score: 1

      Somebody called "Rabidreindeer" cannot see why project management is more important than technical chops for a large government contract. Then accuses me of being rabid when I point out how this story is clearly click bait...

      That many IT projects of all sizes fail is no surprise, but do try to get over your indignation when hearing that a big multi-department contract clearly setting out to standardize and upgrade government IT security needs project management of a type you are unfamiliar with. You just look ignorant to those who aren't. The organization that Raytheon is bringing does not guarantee that the project will be successful just that it will be accountable.

      --
      Democracy is a sheep and two wolves deciding what to have for lunch. Freedom is a well armed sheep contesting the issue
    17. Re:This about project management, not security by theCoder · · Score: 1

      That's just seletion bias. You hear about the multibillion dollar boondoggles, but not the quietly working projects. Kind of like how people think kidnappings are up because they hear about them on the news when in reality children are much less likely to be abducted now than they were 40 years ago.

      And I've spent several years working on a software project for the government that stayed within the budget and delivered multiple releases on time. There are many projects like this. But the failing ones get all the press.

      --
      "Save the whales, feed the hungry, free the mallocs" -- author unknown
    18. Re: This about project management, not security by Bing+Tsher+E · · Score: 1

      The scientific-technological elite, as opposed to the scientific-technological masses, are hanging out in their labs and offices. They have tenure at elite academies, in research facilities, and at corporations.

      The people working 80-100 hours in fear are the masses. Same as always.

  9. My Prediction About How That Will Go Down by Greyfox · · Score: 0

    Just so I can say "I told you so." Just from the summary, $1 billion really isn't enough for the scope of work that has to be involved. I suspect they'll burn through that in the first year and come back looking for more. I also wouldn't be holding my breath for anything useful to ever actually get done. Although, as bad as civilian agencies are at security, they might actually accidentally improve the security at a few of them.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  10. Throw Bushitler out! by mi · · Score: 0

    As you might expect, Raytheon spends heavily on political contributions and lobbying.

    This is why we must elect a young, smart, well-educated politician with multi-cultural background and compelling life-story to Presidency. Someone, who knows, how to use a computer himself. Who is not beholden to KKKorporate interests. Someone loved and respected overseas. Someone, who cares... Someone, who thrills men and whom women can imagine finding in their showers and be excited, rather than frightened. Someone, who is serious about ending Washington's culture of corruption !

    Yes we can!

    --
    In Soviet Washington the swamp drains you.
  11. Raytheon spends heavily on political contributions by thinkwaitfast · · Score: 1

    Raytheon also employs over 60,000 people in high tech, high paying positions.

  12. Idiotic by Anonymous Coward · · Score: 1

    "Raytheon is a company well-known in military-industrial and political circles, but not so much for software, networking and cybersecurity"

    Horse crap, Raytheon was at the leading edge of cyberspace decades before anyone else ever heard of it.

    1. Re: Idiotic by Anonymous Coward · · Score: 0

      Raytheon probably made the transistors in the first solid-state mainframe.

  13. why taxpayers don't get source code by Anonymous Coward · · Score: 1

    That "taxes paid for it, taxpayers own it" has never really applied to anything. Sure, the "taxpayers" own it in the sense that it's a national asset owned by all citizens collectively, but not in the "you can get a free copy" sense.

    In any case, there's no "ownership" to speak of here: as soon as the computer folks started "leasing" computers and software, (e.g. IBM) you were paying only for the "right to use" (i.e. a license). Just as you don't get unlimited rights and source code when you fork out a few hundred bucks for a copy of windows, neither does the government.

    The government rarely pays the *full cost* of development: usually, the vendor is leveraging some past experience, software libraries, etc. so the product being generated for the government is a mish-mash of old code and new. Furthermore, the vendors claim (whether justifiably or not is hard to tell) that they are giving the government a discounted price, in exchange for being able to retain most of the rights.

    Software and technology that is developed by a educational institution (not the case here, with Raytheon), likely falls under the Bayh-Dole act: the institution retains the rights and the government gets a fully paid, royalty free, non-exclusive license for use for government purposes. Again, this does not mean "anyone can request the source code", it means that for a "government purpose" they can use it.

  14. Odd summary by mu51c10rd · · Score: 1

    I don't get the summary. Large government contractors like this just sub out and/or hire who they need to. It has nothing to do with cronyism. Granted, we could discuss why the same handful of companies get all government contracts...but that is a separate issue.

  15. Raytheon does artillery targetting software by Anonymous Coward · · Score: 0

    See subject & AFATDS -> http://www.raytheon.com/capabi...

    * I know this since my brother used it during the IRAQ conflict (when he was a O2/O3 rank - now's he's "field-grade" & either a Major or a Colonel now...) - he not only used it, but had to debug/troubleshoot it as well.

    APK

    P.S.=> They're HUGE on software - @ least for the military's purposes... apk

    1. Re:Raytheon does artillery targetting software by Anonymous Coward · · Score: 0

      They also provide a lot of hardware and sodtware for commercial radio over ip, allowing many remote transmitters to be operated from basically anywhere. great for the mining, forestry, and other industries where companies have small groups of people needing to keep in touch via radio, while making it easier to staff dispatchers and safety checks 24 hours to make sure any remote workers who miss a check in have someone check up on them or to radio in for medevac.

      its some slick shit.

  16. Raytheon Owns Websense, $500M commercial cyber bus by Koreantoast · · Score: 1

    Based on the posts, I think people don't realize that Raytheon owns computer security firm Websense through a joint venture, a deal where Raytheon merged their own $400M valuation commercial cybersecurity business into the Websense to create a half a billion dollar commercial cyber business. That doesn't even cover their existing government networks, communications and cyber business which is a very different animal altogether. Therefore, the statements that the firm somehow doesn't have any software and cybersecurity chops as stated by the OP is a bit absurd.

  17. Makes me almost interested enough by Anonymous Coward · · Score: 0

    ... to contemplate going back. As a SW Eng. who has long desired to work (and invested time to learn & build skills) in AppSec / InfoSec. I worked for a company acquired by Raytheon. They botched the acquisition / transition / assimilation (an HR person actually used that word in one person's exit interview) pretty badly. Pretty much everyone jumped ship (I know, shocker ... right?!?!?). Those still there are looking to jump ship.

    Can't say I'm overly happy to have my tax money go in this direction.

  18. Air Gaps by Anonymous Coward · · Score: 0

    They will build an air gap network for you by re-using JLENS. Boom! Made JLENS useful and made a billion dollars.

  19. Lobbying by Anonymous Coward · · Score: 0

    I used to work for Raytheon. I remember an email coming from upper management right before the US 2012 election suggesting employees vote for certain candidates that are friendly to the company.

  20. Au contraire.. by brennz · · Score: 1

    Raytheon has been doing defense & intelligence community security software for as long as I can remember....

    Here is a good example of some of their work, which was quite a few years ahead of commercial sector equivalent work in tools like Niksun or Netwitness

  21. Re:Raytheon Owns Websense, $500M commercial cyber by zlives · · Score: 1

    yup Raytheon went out and bought the tools recently, the shuffle at websense is still causing issues which hopefully they will figure out SOON!!.
    as always it depends on who is managing the deployment and their expertise level. the tools themselves are pretty good.

  22. isn't Raytheon into many failed conversions? by swschrad · · Score: 1

    FAA and FBI is what I seem to remember... things that drag on for years and years and years and the agencies are still running a lot of the creaky old software they were trying to modernize.

    --
    if this is supposed to be a new economy, how come they still want my old fashioned money?