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Argos Media

Contracting Boom Could Fizzle Out - washingtonpost.com - 0 views

www.washingtonpost.com/...AR2009040604049.html

Robert Gates Pentagon CACI Boeing Lockheed Martin F-22 Joint Strike Fighter TSAT Future Combat Systems SAIC F-35

shared by Argos Media on 07 Apr 09 - Cached
  • The recent surge in the Washington area's defense-contracting workforce would begin to ebb under Defense Secretary Robert M. Gates's latest budget proposal as the Pentagon moves to replace legions of private workers with full-time civil servants.
  • The budget would reverse a contracting boom, beginning after the 2001 terrorist attacks, in which the proportion of private contractors grew to 39 percent of the Pentagon's workforce. Gates said he wants to reduce that percentage to a pre-Sept. 11 level of 26 percent.
  • Roughly 7.5 percent of metropolitan Washington's labor force -- about 291,000 jobs -- is tied to Pentagon contracting. Defense analysts and government contracting experts said Gates's move could affect companies such as CACI and SAIC, which do large amounts of government contracting work, offering technical services, administrative support, database outsourcing and contract management.
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  • Local giants Lockheed Martin and General Dynamics also run substantial government-support operations and would see some weapons projects cut, while other programs would receive budget increases.
  • In particular, the proposed budget would sharply reduce the number of contractors who help the Pentagon oversee and manage its vast weapons-buying apparatus following a string of reports chronicling cost overruns and other problems.
  • A CACI executive said the company is waiting for further details before commenting. The Arlington company has 12,300 employees, half of whom are in the D.C. region. Ninety-five percent of its $2.4 billion in revenue last year came from federal contracts for technical services and information technology and contracting oversight for the Army and Navy, as well as such Pentagon offices as the Defense Advanced Research Projects Agency and the Missile Defense Agency.
  • Overall, the budget Gates proposed calls for major cuts to the weapons programs of some of the largest contractors.
  • One of the hardest-hit defense firms was Boeing. The Chicago company's $150 billion Future Combat Systems, a family of Army vehicles linked by high-tech communications, came under criticism from Gates for being costly and plagued by development problems. He proposed canceling the $87 billion vehicle part of the system -- a move that would hurt Boeing, SAIC and their subcontractors, BAE and General Dynamics.
  • Gates also proposed canceling some of Boeing's missile defense programs, including one to equip a modified 747 aircraft with a laser that can shoot down missiles soon after they're launched, saying the program "has significant affordability and technology problems and the program's proposed operational role is highly questionable."
  • Boeing would also be hurt because it makes one-third of the F-22 fighter jet and the Pentagon plans to stop ordering additional aircraft. Gates would also cancel the Air Force's program to build a new search-and-rescue helicopter, which had been awarded to Boeing. And it would not order more of Boeing's C-17 cargo planes. Boeing could also see a military satellite program, known as TSAT, end.
  • Lockheed Martin, of Bethesda, the biggest defense contractor in the world, also took hits on several of its major programs.
  • Gates said he would kill the company's bid to build the presidential helicopter, known as the VH-71, citing the fact that the program is six years late and has gone from initial estimates of $6 billion to $13 billion.
  • Lockheed was also hit by the move to not order more F-22 fighter jets. Perhaps hoping for support in Congress, the company has taken out newspaper ads explaining how its F-22 supports roughly 25,000 jobs around the country.
  • But the Pentagon proposed ordering more of Lockheed's F-35 known as the Joint Strike Fighter, and it would increase from two to three the number of littoral combat ships being built by Lockheed and General Dynamics to patrol near enemy coastlines.
Argos Media

Computer Spies Breach Fighter-Jet Project - WSJ.com - 0 views

online.wsj.com/...SB124027491029837401.html

US Cyber Attacks Cyber Security F-35 Joint Strike Fighter Pentagon Lockheed Martin BAE Systems Northrop Grumman China Joel Brenner

shared by Argos Media on 22 Apr 09 - Cached
  • Computer spies have broken into the Pentagon's $300 billion Joint Strike Fighter project -- the Defense Department's costliest weapons program ever -- according to current and former government officials familiar with the attacks.
  • Similar incidents have also breached the Air Force's air-traffic-control system in recent months, these people say. In the case of the fighter-jet program, the intruders were able to copy and siphon off several terabytes of data related to design and electronics systems, officials say, potentially making it easier to defend against the craft.
  • The latest intrusions provide new evidence that a battle is heating up between the U.S. and potential adversaries over the data networks that tie the world together. The revelations follow a recent Wall Street Journal report that computers used to control the U.S. electrical-distribution system, as well as other infrastructure, have also been infiltrated by spies abroad.
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  • Attacks like these -- or U.S. awareness of them -- appear to have escalated in the past six months, said one former official briefed on the matter.
  • while the spies were able to download sizable amounts of data related to the jet-fighter, they weren't able to access the most sensitive material, which is stored on computers not connected to the Internet.
  • The Joint Strike Fighter, also known as the F-35 Lightning II, is the costliest and most technically challenging weapons program the Pentagon has ever attempted. The plane, led by Lockheed Martin Corp.
  • A Pentagon report issued last month said that the Chinese military has made "steady progress" in developing online-warfare techniques. China hopes its computer skills can help it compensate for an underdeveloped military, the report said.
  • The Chinese Embassy said in a statement that China "opposes and forbids all forms of cyber crimes." It called the Pentagon's report "a product of the Cold War mentality" and said the allegations of cyber espionage are "intentionally fabricated to fan up China threat sensations."
  • The U.S. has no single government or military office responsible for cyber security. The Obama administration is likely to soon propose creating a senior White House computer-security post to coordinate policy and a new military command that would take the lead in protecting key computer networks from intrusions, according to senior officials.
  • The Bush administration planned to spend about $17 billion over several years on a new online-security initiative and the Obama administration has indicated it could expand on that.
  • Former U.S. officials say the attacks appear to have originated in China. However it can be extremely difficult to determine the true origin because it is easy to mask identities online.
  • Six current and former officials familiar with the matter confirmed that the fighter program had been repeatedly broken into. The Air Force has launched an investigation.
  • Foreign allies are helping develop the aircraft, which opens up other avenues of attack for spies online. At least one breach appears to have occurred in Turkey and another country that is a U.S. ally, according to people familiar with the matter.
  • Joint Strike Fighter test aircraft are already flying, and money to build the jet is included in the Pentagon's budget for this year and next.
  • Computer systems involved with the program appear to have been infiltrated at least as far back as 2007, according to people familiar with the matter. Evidence of penetrations continued to be discovered at least into 2008. The intruders appear to have been interested in data about the design of the plane, its performance statistics and its electronic systems, former officials said.
  • The intruders compromised the system responsible for diagnosing a plane's maintenance problems during flight, according to officials familiar with the matter. However, the plane's most vital systems -- such as flight controls and sensors -- are physically isolated from the publicly accessible Internet, they said.
  • The intruders entered through vulnerabilities in the networks of two or three contractors helping to build the high-tech fighter jet, according to people who have been briefed on the matter. Lockheed Martin is the lead contractor on the program, and Northrop Grumman Corp. and BAE Systems PLC also play major roles in its development.
  • The spies inserted technology that encrypts the data as it's being stolen; as a result, investigators can't tell exactly what data has been taken. A former Pentagon official said the military carried out a thorough cleanup.
  • Investigators traced the penetrations back with a "high level of certainty" to known Chinese Internet protocol, or IP, addresses and digital fingerprints that had been used for attacks in the past, said a person briefed on the matter.
  • As for the intrusion into the Air Force's air-traffic control systems, three current and former officials familiar with the incident said it occurred in recent months. It alarmed U.S. national security officials, particularly at the National Security Agency, because the access the spies gained could have allowed them to interfere with the system, said one former official. The danger is that intruders might find weaknesses that could be exploited to confuse or damage U.S. military craft.
  • In his speech in Austin, Mr. Brenner, the U.S. counterintelligence chief, issued a veiled warning about threats to air traffic in the context of Chinese infiltration of U.S. networks. He spoke of his concerns about the vulnerability of U.S. air traffic control systems to cyber infiltration, adding "our networks are being mapped." He went on to warn of a potential situation where "a fighter pilot can't trust his radar."
Pedro Gonçalves

U.S. seals $3.48 billion weapons deal with United Arab Emirates - Haaretz Daily Newspap... - 0 views

www.haaretz.com/...-united-arab-emirates-1.404721

US UAE Saudi Arabia Military Kuwait

shared by Pedro Gonçalves on 31 Dec 11 - No Cached
  • The deal includes 96 missiles, along with supporting technology and training support
  • The deal includes a contract with Lockheed Martin to produce the highly sophisticated Terminal High Altitude Area Defense, or THAAD, weapon system for the U.A.E.
  • it was the first foreign military sale of the THAAD system.
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  • Wary of Iran, the U.S.has been building up missile defenses of its allies, including a $1.7 billion deal to upgrade Saudi Arabia's Patriot missiles and the sale of 209 Patriot missiles to Kuwait, valued at about $900 million. On Thursday, the Obama administration announced the sale of $30 billion worth of F-15SA fighter jets to Saudi Arabia.
  • Under the fighter jet agreement, the U.S.will send Saudi Arabia 84 new fighter jets and upgrades for 70 more.
  • All the sales are part of a larger U.S.effort to realign its defense policies in the Persian Gulf to keep Iran in check.
Pedro Gonçalves

U.S. Is Still Using Private Spy Ring, Despite Doubts - NYTimes.com - 0 views

www.nytimes.com/...16contractors.html

US Afghanistan Pakistan AfPak Army Intelligence

shared by Pedro Gonçalves on 16 May 10 - Cached
  • Top military officials have continued to rely on a secret network of private spies who have produced hundreds of reports from deep inside Afghanistan and Pakistan, according to American officials and businessmen, despite concerns among some in the military about the legality of the operation.
  • Earlier this year, government officials admitted that the military had sent a group of former Central Intelligence Agency officers and retired Special Operations troops into the region to collect information — some of which was used to track and kill people suspected of being militants. Many portrayed it as a rogue operation that had been hastily shut down once an investigation began.
  • But interviews with more than a dozen current and former government officials and businessmen, and an examination of government documents, tell a different a story. Not only are the networks still operating, their detailed reports on subjects like the workings of the Taliban leadership in Pakistan and the movements of enemy fighters in southern Afghanistan are also submitted almost daily to top commanders and have become an important source of intelligence.
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  • The American military is largely prohibited from operating inside Pakistan. And under Pentagon rules, the army is not allowed to hire contractors for spying.
  • Military officials said that when Gen. David H. Petraeus, the top commander in the region, signed off on the operation in January 2009, there were prohibitions against intelligence gathering, including hiring agents to provide information about enemy positions in Pakistan. The contractors were supposed to provide only broad information about the political and tribal dynamics in the region, and information that could be used for “force protection,” they said.
  • Some Pentagon officials said that over time the operation appeared to morph into traditional spying activities. And they pointed out that the supervisor who set up the contractor network, Michael D. Furlong, was now under investigation.
  • But a review of the program by The New York Times found that Mr. Furlong’s operatives were still providing information using the same intelligence gathering methods as before. The contractors were still being paid under a $22 million contract, the review shows, managed by Lockheed Martin and supervised by the Pentagon office in charge of special operations policy.
Pedro Gonçalves

High-Priced F-22 Fighter Has Major Shortcomings - washingtonpost.com - 0 views

www.washingtonpost.com/...AR2009070903020.html

US Military F-22 Pentagon

shared by Pedro Gonçalves on 10 Jul 09 - Cached
  • The United States' top fighter jet, the Lockheed Martin F-22, has recently required more than 30 hours of maintenance for every hour in the skies, pushing its hourly cost of flying to more than $44,000, a far higher figure than for the warplane it replaces, confidential Pentagon test results show
  • The aircraft's radar-absorbing metallic skin is the principal cause of its maintenance troubles, with unexpected shortcomings -- such as vulnerability to rain and other abrasion -- challenging Air Force and contractor technicians since the mid-1990s, according to Pentagon officials, internal documents and a former engineer.
  • While most aircraft fleets become easier and less costly to repair as they mature, key maintenance trends for the F-22 have been negative in recent years, and on average from October last year to this May, just 55 percent of the deployed F-22 fleet has been available to fulfill missions guarding U.S. airspace, the Defense Department acknowledged this week. The F-22 has never been flown over Iraq or Afghanistan.
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  • Sensitive information about troubles with the nation's foremost air-defense fighter is emerging in the midst of a fight between the Obama administration and the Democrat-controlled Congress over whether the program should be halted next year at 187 planes, far short of what the Air Force and the F-22's contractors around the country had anticipated.
  • "It is a disgrace that you can fly a plane [an average of] only 1.7 hours before it gets a critical failure" that jeopardizes success of the aircraft's mission, said a Defense Department critic of the plane who is not authorized to speak on the record. Other skeptics inside the Pentagon note that the planes, designed 30 years ago to combat a Cold War adversary, have cost an average of $350 million apiece and say they are not a priority in the age of small wars and terrorist threats.
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