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HOMELAND SECURITY

08 Oct 10. Raytheon Co has embarked on a new low-cost, high-volume strategy to make gains in the homeland security market in the United States and abroad as it looks for ways to offset flatter U.S. military demand. Eighteen months after losing a $3.5bn Saudi Arabian border security contract to Europe’s EADS, Raytheon has dropped the “gold-plating” approach once associated with weapons programs in favor of less expensive approaches that save cutting edge equipment for areas where it is truly needed. Raytheon is one of many U.S. defense companies that are betting on foreign sales and growth in adjacent markets like homeland security, an area where analysts expect tens of billions of dollars in new orders in coming years. Raytheon hopes its focus on off-the-shelf, “plug and play” solutions will set it apart from other companies, allowing it to respond more quickly to a rapidly changing market while giving customers the benefit of its expertise on missiles, intelligence sensors and air traffic control operations. Seagrave gave no details on Raytheon’s current homeland security revenue, but Homeland Security Today magazine estimated its sales in the sector reached $1bn in 2009. Homeland security is not a separate division for Raytheon, but that could change once the company doubles current revenue, Seagrave said, citing plans to bid for work in a dozen countries in coming years and to grow through acquisitions. Raytheon aims to boost foreign sales to about 25 percent of its $25bn in annual revenue from about 20 percent now. Seagrave said his strategy for the security market was to use local representatives and small contracts to get a foothold in areas like India, the Middle East and eastern Europe. (Source: Reuters)

13 Oct 10. The United States is spending up to $2.8 billion to shore up its defenses against biological warfare, according to a drugmaker who expects to get a government contract to supply smallpox antiviral drugs.
SIGA Technologies Inc (SIGA.O) shares jumped 50 percent to their lifetime high on Wednesday after the company said it expects to get a contract to supply 1.7 million courses of its smallpox drug for the strategic national stockpile, with the base contract worth about $500 million in revenue. The contract value can go up to $2.8 billion if all options are exercised, the company said. (Source: Reuters)

13 Oct 10. President Barack Obama’s administration announced steps
Wednesday to boost civil-military coordination against cyber threats said to be mounting against sensitive U.S. computer networks. Defense Secretary Robert Gates and Homeland Security Secretary Janet Napolitano spelled out fresh arrangements between their departments to synchronize their response to a wide range of threats. A memorandum of agreement signed by the two secretaries and made public Wednesday puts Defense Department cyber analysts within the Department of Homeland Security-led National Cybersecurity and Communications Integration Center. It also sends a full-time DHS leader to the Defense Department’s super-secretive
National Security Agency, or NSA, along with a support team comprised of DHS privacy, civil liberties and legal personnel. NSA is responsible for protecting U.S. national security systems and intercepting communications overseas. The agreement will facilitate the NSA’s intelligence-sharing with Homeland Security, which retains the lead responsibility for protecting vital systems like power grids, financial services and water purification, a senior Defense Department official said in a conference call. (Source: Reuters)

08 Oct 10. Harris Corporation is participating in National Cybersecurity Awareness Month with public presentations by its cyber thought leaders and a special Website devoted to helping people better understand how to defend themselves against cybersecurity challenges.
“Cyberspace is the engine for much of the U.S. economy,” said Dale W. Meyerrose, vice president and general manager, Harris

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