The Department of Homeland Security (DHS) recently awarded a $1 billion cybersecurity contract to Raytheon and the Office of Personnel Management (OPM) in response to the alarming OPM data breach that put a bull’s eye on the need for better federal cybersecurity capabilities.
In the process, not surprising to anyone, it has expanded the market opportunity for federal cybersecurity contractors.
Over the last three years, the federal government has spent more than $50 billion on unclassified cybersecurity programs and initiatives — an amount that will grow exponentially as civilian agencies look to procure Defense Department (DOD)-grade solutions and to leverage commercial technology.
Cyber is a hotly contested environment — one that changes very quickly within the federal domain. Recent cyber breaches against government enterprises like OPM and commercial entities like Sony Pictures have sent federal policy and procurement decision makers struggling to react to cybersecurity incidents and breaches on a daily basis.
Govini, a firm that creates proprietary analytics from big data in the public sector, identified the possible capabilities DHS is looking to acquire through the Raytheon contract. Govini provided Homeland Security Today with an exclusive look at its analysis of the entire federal cyber market “which no one has ever compiled or categorized at this level of detail before,” the company claimed.
"The competition between Raytheon and Northrop signals a shift in buying preferences by DHS from complete custom-built cyber solutions, which is the Northrop Grumman approach, to utilizing a portfolio of DoD and commercial products wrapped in services, which Raytheon is doing," Govini founder and CEO Eric Gillespie told Homeland Security Today.
Explaining what this award means for Raytheon and its subcontractors, Gillespie said, "Raytheon has made investments in managed security services and the DOMino program might be the closest proxy to running that business model in government.”
But, "To support DOMino, Raytheon will need more commercial technology products and will likely become the go-to prime for cyber technology vendors in the space," he added.
Govini said its “analysis extends into all elements of the procurement process to provide deep insights into the cybersecurity capabilities agencies have sought and the companies receiving that work.”
Explaining what “this award means for Raytheon and [subcontractors],” Gillespie said Govini analyzed the entire federal cyber market and created a comprehensive cybersecurity taxonomy of 11 segments, from training and awareness to proactive cyber solutions.
“While the requirements for DOMino are classified,” he explained, he said “an analysis of similar but unclassified programs identifies the possible capabilities that DHS looks to acquire.”
Govini said it examined similar programs such as Continuous Diagnostic and Mitigation (CDM), other Einstein programs and Raytheon’s product portfolio to identify what DHS may seek from this program. Using its database of record to capture relevant federal spend beyond budgeted numbers, Govini provided a broad definition of cyber and then categorized federal cyber spend into six key segments that may mirror the DOMino program.
The firm said, “Spend in those segments, which include Incident Response, Security Monitoring, Endpoint Defense, Secure Systems Engineering, Boundary Defense and Active Defense, quadrupled from 2011 to 2014. The Active Defense segment represents the largest spend, increasing 60 percent from $6 billion in 2013, to $15 billion in 2014.”
“Several factors contribute to this jump in spend: the increased priority of cyber, and the inclusion of Secure Systems Engineering of DoD equipment,” the company said.
Editor’s note: Click on graphic for larger view.