US-VISIT win bolsters Raytheon

The Accenture team includes Raytheon, The
Titan Corp, and SRA International Inc. Raytheon will support Accenture,
based in Reston, Va., on systems architecture engineering and in
biometrics. Raytheon already has developed the Immigration and
Naturalization Service’s automated biometric fingerprint identification
system, used to identify illegal aliens.

Given the importance of US-VISIT to
Raytheon’s building its homeland-security business, it is putting the
strongest possible team on the program. Raytheon’s highest levels of
management are watching to ensure that all goes smoothly, according to
Ed Wollen, Raytheon’s vice president for business development for
homeland security.

Another important win for Raytheon this
summer came with the Herndon, Va.-based Northrop Grumman Information
Technology’s selection of Raytheon to provide infor- mation security
systems for its Homeland Secure Data Network program, a classified
information network. Raytheon will play the key role in protecting the
network against possible attack by hackers or even terrorists.

Validating new structures

The US-VISIT and information-security awards
appear to show the success of Raytheon’s new management structure. The
company created several Strategic Business Areas, one of which is in
homeland security, in mid-2002. The intent was to promote horizontal
integration by bringing together different business units to win
competitions.

The Homeland Security Strategic Business Area
focuses on several market segments, including information analysis and
infrastructure protection; border, transportation and high-value
facility security; and emergency response. It identifies key business
opportunities and pursues them with its own developmental money. Once
the contract is won, it is given to a business unit to implement. For
example, the Intelligence and Information Systems unit will be
responsible for the US-VISIT contract.

Raytheon executives would not comment on
their annual homeland security sales; recent estimates by outsiders put
the figure at approximately $400 million.

Raytheon’s growing strength in homeland
security follows several early key losses for the company. In June
2002, Raytheon, teamed with Northrop Grumman Corp., lost a $1.37
billion contract to Boeing Co.-Siemens Corp. team to install and
maintain explosive detection systems at 438 U.S. airports. The loss was
an upset. Raytheon’s management felt it had a high probability of
winning the contract since it was already installing 140
checked-baggage screening systems at more than 50 airports.

Raytheon lost another high-profile contract
to Science Applications International Corp. (SAIC), which in May 2003
won  the competition to provide command and control technology for the
Greek Olympics.

New frontiers

Much of Raytheon’s homeland security work
takes place in the shadowy world of intelligence, where it competes
with Lockheed Martin Corp., Northrop Grumman, General Dynamics Corp.
and SAIC. Raytheon provides information collection and data analysis.

While Raytheon executives say little about
their intelligence work, one capability the company has developed is a
Web crawler system, which can identify patterns that might indicate
potential terrorist activity. The Web crawler is capable of searching,
analyzing and translating literature in multiple languages.

Raytheon purchased JPS Communications Inc.,
Raleigh, NC, in December 2002 for $10 million cash to bolster its
homeland-security capabilities. JPS provides communications
interoperability technologies for civilian command and control. Its
technology enables radios, telephones and cellular phones to talk.
Indeed, it enables both voice and data interoperability, which means
police, firefighters and hospitals can talk to each other without
replacing existing equipment.

The next frontier for Raytheon may be in port
and maritime security. Raytheon has been down-selected by the New
York/New Jersey Port Authority for a contract that would involve
perimeter security. Port security is an area that is attracting the
attention of other contractors, as well, as they look beyond the
current focus on aviation security. Lockheed Martin Corp., Northrop
Grumman Corp., SAIC and Boeing have all expressed an interest in
developing a port security business.

Raytheon Co. Integrated Defense Systems this
summer also won an important $6 million contract from the US Department
of Defense’s Counter-Narcoterrorism Technology Program Office. Raytheon
will demonstrate an integrated systems approach for the defense of
maritime domains. Raytheon’s demonstration, the first site of which
will be at Rhode Island’s Narragansett Bay, will integrate radar, sonar
and surveillance data to identify possible threats to ports and the
shore. HST

Philip Finnegan is
director of corporate analysis at the Teal Group, a firm based in
Fairfax, Va., that provides strategic and market analysis to major
corporations.

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The Government Technology & Services Coalition's Homeland Security Today (HSToday) is the premier news and information resource for the homeland security community, dedicated to elevating the discussions and insights that can support a safe and secure nation. A non-profit magazine and media platform, HSToday provides readers with the whole story, placing facts and comments in context to inform debate and drive realistic solutions to some of the nation’s most vexing security challenges.

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