DDI for Fri. September 30, 2016, Vol. 18, Issue 37.

Norway Investing Over $1 Billion Preparing For F-35 Arrival

BODØ, Norway–Norway is investing over $1 billion to upgrade the infrastructure at an air force base in preparation for the F-35’s arrival next fall.

Norwegian Ministry of Defense spokesman Endre Lunde said Sept. 29 two separate efforts are underway at Ørland Main Air Station to make it one of the central hubs for the Norwegian Air Force. Lunde said Norway is spending about $850 million to upgrade Ørland’s infrastructure specifically to house the F-35. A Norwegian defense official told reporters in BODØ Sept. 9 this includes a new squadron and maintenance building, a runway extension, living quarters and facilities, aircraft shelters and base protection.

Lunde said Norway is also spending roughly $333 million to provide a general refurbishment of Ørland air force station for non-F-35 related parts of the base, including housing, offices, facilities for air defense and base security forces. Ørland will be the main operating base for Norway’s conventional variant F-35s and, along with Bodø Main Air Station, is one of two air force stations hosting Norway’s entire fighter jet force, including F-16s.

Norway is buying 52 F-35s. While the first one arrives in Norway in 2017, the initial operational capability (IOC) goal is 2019 with 2025 being the full operational capability (FOC) target.

Norway started taking F-35 deliveries last year, accepting two in 2015 and two in 2016. These four aircraft are currently at Luke AFB, Ariz. Starting in 2017, Norway will start taking delivery of six F-35s per year annually through 2024, according to Norwegian briefing slides. Endre said of the six aircraft Norway plans to receive in 2017, only three will be brought back to Norway as the other three will remain at Luke until 2024 when the build-up of pilots and crew is complete. Those will then return to Norway, leaving four aircraft permanently at Luke for training purposes. For 2018 through 2024, the six annual deliveries will be sent to Norway.

The Joint Strike Missile (JSM), a joint effort of Kongsberg and Raytheon [RTN], will be on both the Norwegian F-35s and United States F-35s. F-35 Joint Program Office (JPO) spokesman Joe DellaVedova said Sept. 29 the JSMs are not on the IOC-declared F-35s but will be on aircraft as part of a follow-on modernization program. The JSM is a long-distance anti-ship fire-and-forget missile designed to take on high value, heavily defended targets.

Norway’s military anticipates a long-term budget boost being approved by its parliament in early November. The nation plans to increase its budget gradually over the next four years to eventually reach $874 million more than what it spent in 2016. Though the Norwegian defense official said a public debate is taking place in Norway over military spending priorities, some argue for additional army manpower while others argue for additional naval and air force platforms. He added that new submarines could possibly arrive in 2026.

Norway, in June, released a new long-term defense plan. Norway’s defense budget is roughly $5.5 billion.


 
 

U.K. Government Partners With Start-Ups To Operate Two Cyber Accelerator Facilities

The United Kingdom (U.K.) government selected Wayra UK to operate the first of two cyber accelerator facilities meant to help tech start-ups take a lead in producing new cybersecurity technologies and systems, the UK Department for Culture, Media and Sport (DCMS) said Sept. 23.

The government is acting jointly through the DCMS and Government Communications Headquarters (GCHQ), a government intelligence agency that focuses on cyber and signals intelligence, akin to the United States’ NSA. The DCMS is allocating about $64.8 million over the next five years for both cyber innovation centers. The cyber accelerator facilities are part of the UK government’s larger $2.46 billion National Cyber Security Program.

Wayra UK, part of Telefónica Open Future, will operate the first facility and act to help guide U.K. tech start-ups grow and produce new cybersecurity solutions. The facilities will provide start-ups with access to GCHQ’s personnel and technological experience to allow them to expand capability, improve ideas, and create new cutting-edge products to outpace current and emerging threats, the DCMS said.

Wayra UK, launched in 2012, gives funding, acceleration, and pre-acceleration services to start-ups to promote growth and increase innovation. Parent company Telefónica Open Futureis is an international acceleration service company.

The accelerator program intends to help start-ups boost and scale initial sales and business development with relevant partners and secure follow-on third-party investment. At the first facility Wayra UK will give start-ups a grant and physical space to work in. Members will also be given the opportunity to learn about cybersecurity best practices and gain Cyber Essential accreditation, DCMS said.

The program will also provide insights into government procurement processes, IP management, export controls, and information assurance architecture. It will give a “highly prized opportunity to gain a fast-track cyber product assessment that is not available elsewhere while also pitching products and services to government department, including the Ministry of Defence, the department said.

GCHQ will also offer access to its national and international commercial partners in the cybersecurity sector.

The first accelerator will be based at a new Cheltenham Innovation Centre and is set to open around the turn of the new year to 2017. The second center is planned to open in London in 2017. 

“Our two new Cyber Innovation Centres will bring together government, academic and business expertise, and will be invaluable in helping support start-up companies and develop world-class cyber technology,” MP Matt Hancock, Minister of State for Digital and Culture, said in a statement.

“Wayra and Telefonica Open Future are immensely proud to be working in partnership with GCHQ on bringing further growth and opportunity to the UK’s cyber security ecosystem. Our shared vision will not only safeguard the country against cyber threats but also increase opportunities for UK-based start-ups and help establish the UK as a global hub for cyber talent,” Gary Stewart, Director at Wayra UK and Telefonica Open Future’s UK division, added.

Chris Ensor, Deputy Director for Cyber Skills and Growth at GCHQ, expressed excitement at the new project. “Combining the knowledge and experience of GCHQ staff with some of the country’s newest start-ups and most creative entrepreneurs is really powerful combination and one I’m confident will deliver benefits to the cyber security of the U.K.,” he said.

Start-ups can apply to join the innovation centers via wayra.co.uk/gchq. The closing date for entries is Oct. 17 and successful applicants will begin to work at the accelerator in early 2017.


 
 

Brazil Still Pursuing Nuclear Subs, Aircraft Carrier Despite Economic Woes

Economic struggles in Brazil have slowed but not stopped the country’s quest to add nuclear-powered submarines and an aircraft carrier to its naval capabilities, the head of the Brazilian navy said Sept. 26.

Achieving a nuclear submarine force is the navy’s top modernization priority and could become a reality in eight to 10 years, said Adm. Eduardo Bacellar Leal Ferreira. Design work has been conducted, and Brazil plans to develop and test a prototype before building operational submarines.

“The dream fleet would be six” submarines, said Ferreira, who spoke on a maritime security panel in Washington, D.C. “I don’t think we’re going to have a major fleet.”

Ferreira insisted that Brazil has no plans to use its nuclear propulsion expertise to develop nuclear weapons. The country has opened its nuclear propulsion work to international monitoring agencies to allow them to confirm there is no diversion, he said.

Meanwhile, Brazil, which acquired a used carrier from France, is working to renew the propulsion and catapult systems to get the ship up and running, Ferreira said. The Navy bought aging McDonnell Douglas A-4 Skyhawk carrier-capable attack aircraft for training and is having them updated by Embraer.

Embraer announced in May 2015 that it had delivered the first modernized A-4, now called the AF-1, to the Brazilian navy. The company indicated it plans to outfit a total of 12 A-4s with new computers, multimode radar, navigation, power, sensors, tactical communications and weapons.

Ferreira said Brazil needs the submarines and carrier to better protect its maritime interests, such as oil production and trade.


 
 

NATO Report Analyses Chinese Cyber Structures And Policy Approaches

The NATO Cooperative Cyber Defence Centre of Excellence (CCDCOE) on Sept. 29 released an analytical overview of China’s cyber structures and developments as part of a series of international studies.

China and Cyber: Attitudes, Strategies, Organisation” examines the country’s approach to internet governance and cyber security in three main sections: cyber background and related challenges, the country’s cyber strategy and main goals, and China’s strategic cyber governance.

The report was written by Mikk Raud, a visiting researcher at the CCDCOE as part of a series on national organizations models for ensuring cyber security. The series summarize national cyber security strategy objectives and outline the division of cyber security tasks and responsibilities between agencies. Previous reports in the series cover the Czech Republic, Estonia, France, Hungary, Italy, Lithuania, the Netherlands, Slovakia, Spain, the United Kingdom, and the United States.

The CCDCOE is a NATO-accredited Tallinn, Estonia-based knowledge hub that focuses on interdisciplinary applied research and development concerning cyber security. It includes consultations, training, and information-sharing among NATO members, allies, and partners in cyber defense.

The report highlighted that China stands out in the cyber realm for its approach to internet governance, extensive industrial espionage, and increasing military focus on cyberspace operations. China particularly perceives a disproportionate Western dominance in shaping the future of the global internet so in response the country promotes a sovereignty-based internet governance that allows states to regulate cyberspace however they wish, Raud argues.

China also sees information as a strategic weapon to achieve an asymmetric advantage in comparison to Western countries like the U.S. “China’s regime is likewise highly aware of the potential threat information constitutes when left uncontrolled,” the report said.

The reports aim to provide an overview of the mandate, tasks, and competences of the relevant organizations and of coordination between them, the center said. The scope of the reports include the mandates of political and strategic cyber security governance, national cyber incident management coordination, military cyber defence, and cyber aspects of crisis prevention and crisis management.

“China’s cyber developments, including the espionage, must be placed into the general context of governance which drives society towards informatisation while maintaining firm political control,” Raud said in a statement.

The reports are edited by Kadri Kaska, a researcher at the CCDCOE who has over 15 years of experience as a legal and policy analyst in cyber issues. She emphasized the report concludes China does not treat cyber as a distinct policy, but part of their integral approach to attain the country’s long-term geopolitical objectives. Those objectives are economic and military superiority and an “axiomatic influence” in world affairs.


 
 

Elbit Cyberbit To Help Start Cybersecurity Training Center In Baltimore

Cyberbit is partnering with the Maryland-based Electronic Technology Associates (ETA) to deliver the ETA Cyber Range cybersecurity training center in Baltimore, Md., the companies said Sept. 21 during an economic development trade mission by Gov. Larry Hogan (R) to Israel.

The ETA Cyber Range is set to be a training center to instruct cybersecurity professionals in how to protect national assets and infrastructure against cyber attacks. It will be powered by the Cyberbit Range Platform, a cybersecurity simulation and training environment that allows teams to train in a realistic setting.

“Such training allows the teams to respond faster and more effectively to complex and advanced attacks, such as ransomware, and to perform better as a team,” the governor’s office said.

The ETA Cyber Range will be the first live, standalone, hands-on cybersecurity training center in the U.S., Hogan’s office said. The center will be owned and operated by ETA, a woman-owned, federally-certified HUBZone enterprise that specializes in IT technology. ETA’s headquarters is in Baltimore.

Cyberbit is a wholly owned subsidiary of the Israeli company Elbit Systems [ESLT] that focuses on cybersecurity solutions. The announcement came during a meeting among Hogan; Bruce Spector, founder and CEO of ETA; Bash Kazi, president and CEO of Kazi Investment Group LLC; Adi Dar, CEO of Cyberbit; and Barry Bogage, executive director of the Maryland/Israel Development Center (MIDC).

“We’re very pleased to welcome the ETA Cyber Range to our state and, in particular, to Baltimore City. The city is fast becoming a hotbed of cybersecurity activity, and these companies’ investment in Baltimore is the latest sign that cyber innovation has found a home in Charm City,” Hogan said in a statement.

“We appreciate the assistance of the MIDC in bringing this project to fruition. As a lifelong resident of Baltimore, I’m excited to bring high-paying cybersecurity jobs to my hometown. The training center, powered by Cyberbit, will accelerate our local security professionals’ certification and improve their ability to confront today’s advanced attacks,” Spector added.

“By training and simulating the response process in advance, security staff can dramatically improve their performance. I am looking forward to helping Baltimore’s industry create top-notch security experts by means of the Range platform,” Adi Dar of CyberBit said.

The ETA Cyber Range is scheduled to open before the end of the 2016 calendar year. It will initially employ 20 cybersecurity professionals but the governor’s office said they expect it to employ up to 100 personnel by the end of 2017.

“The Maryland/Israel Development Center is proud to have helped Cyberbit come to Maryland,” Bogage of MIDC said.

The MIDC is a non-profit membership organization that promotes bilateral trade and investment between Maryland and Israel. It acts as a partnership between the Maryland Department of Commerce, Israel’s Ministry of Economy, and The Associated: Jewish Community Federation of Baltimore.


 
 

Rocket Lab Completes New Zealand Launch Site

Rocket Lab completed its launch site in New Zealand, which the company called the world’s first private orbital launch complex.

Located on the Mahia Peninsula, Launch Complex 1 will be the primary site for launches of Rocket Lab’s Electron vehicle, designed to lift a 150 kg payload to a 500 km sun-synchronous orbit. Construction of the launch complex started in December and saw the upgrade of 3 km of roads as well as local internet infrastructure, according to a company statement.

Rocket Lab completed major milestones in 2016 with the qualification of the 3D-printed Rutherford engine, qualification of the second stage of the vehicle and the development of major infrastructure, including remote tracking, test facilities and the launch site. The company is currently working through the qualification of the first stage of the Electron rocket and will look to begin the test flight phase once qualification and launch licensing are complete.

Rocket Lab believes New Zealand’s remote island location and low volume of marine and air traffic create ideal conditions for frequent launch opportunities. In addition, launches from the site can access a uniquely wide range of orbital inclinations, from 39 degrees through sun-synchronous.


 
 

Advent To Acquire Safran’s Identity Business And Join It With Oberthur

The France-based private equity firm Advent International on Sept. 29 said it has agreed to acquire the identity and security business of France’s Safran Group for $2.7 billion, a deal that will combine Safran’s strong presence in biometric products and identity solutions with Advent’s portfolio company Oberthur Technologies (OT), a leader in embedded digital security technology.

Safran said in March that it planned to divest its detection business, which is being acquired by Britain’s Smiths Group, and review options for its identity business. Advent’s deal for Safran’s Identity and Security business is expected to close in 2017 and is subject to regulatory approvals in Europe and the United States and by workers’ councils in Europe.

The combination of Safran’s Identity & Security (I&S) business with OT will create a $3.1 billion company with a strong portfolio of identity technologies with a large presence in France. Safran’s business also has a strong presence in the U.S., particularly with the MorphoTrust business it acquired from the former L-1 Identity Solutions.

Safran said that through the combination with OT it’s I&S business will better “meet customers’ requirements at a time when security in the digital world and emerging needs for public security are major challenges.”

OT, which is based in France, has digital security technology products and solutions for mobile, authentication, and payment applications, and produces smart cards. OT is the top provider of chip and PIN, called EMV, cards in the U.S. The company has customers worldwide.

OT has 6,500 employees and Safran’s I&S business 7,800. The I&S business had about $1.8 billion in sales in 2015 and OT about $1.3 billion.

Advent, the majority shareholder in OT, said that by combining the two companies they “will be uniquely positioned to accelerate the convergence between government and commercial markets.”

In the U.S. Safran’s I&S business provides solutions such as biometric capture technology and biometric matching capabilities to federal, state and local customers.

Safran’s pending divestitures of its detection and I&S businesses will free it to focus on its core aerospace and defense business. The company also said it will realize a pre-tax gain on the sale.

“Upon the closing of this transaction, which would follow our agreement to sell our detection activities, Safran would be a group entirely focused on aerospace and defense and concentrated on its on path of strong growth and high profitability,” Ross McInnes, chairman of Safran, said in a statement.

Bpifrance, a subsidiary of the French state, will also make an equity investment in Safran’s I&S business alongside Advent.


 
 

Rheinmetall Wins $27 Million Germany Armed Forces Contract To Modernize Army Training Center

Rheinmetall was awarded multiple contracts worth $27 million by the German Bundeswehr (armed forces) to modernize and expand the system technology of the German Army Combat Training Center (GÜZ) in staggered projects, the company said Sept. 29.

The GÜZ, located in the Altmark district of Saxony-Anhalt, Germany is a facility where military formations of all types can train and prepare for tasks and missions. The German Bundeswehr intends for the center to eventually include training for military operations in urban terrain, or MOUT.

The contract orders were booked in the second quarter of 2016. The modernization effort includes a special expansion of the headquarters software to enable execution and evaluation of training sequences in the site’s “Schnöggersburg” urban combat environment and modernization of the area’s data communication system.

The “Schnöggersburg” is a specially created urban environment featuring the infrastructure elements of a large modern city where the German armed forces can practice MOUT operations. The Bundeswehr’s Office of Equipment, Information Technology and In-Service Support assigned Rheinmetall’s Simulation and Training unit the task of readying the GÜZ for MOUT exercises.

Expansion and modernization of the GÜZ includes two specific projects: upgrading the hardware of the existing GÜZ system technology in the headquarters cell; and regeneration of the communication system to include modernization of the software and hardware for connecting tactical radio systems and network technology, Rheinmetall said.

Also Rheinmetall will equip the GÜZ headquarters cell with new capabilities to direct and evaluate exercises in built-up areas like the Schnöggersburg.

Exercises at the GÜZ do not use live rounds, but every weapon is fitted with a laser transmitter with sensors on potential targets to indicate hits that are visible to soldiers and trainers. The learning impact of the after action briefings and evaluation phase are maximized by networking all exercise participants in the system, Rheinmetall said.

Rheinmetall clarified that simulation-supported training for operations in built-up terrain is particularly demanding because GPS-based systems cannot track and depict the position of exercise participants in narrow alleyways or inside buildings. Simulation of the effects of weapons on buildings or the personnel inside are also impossible with laser-simulated fire alone, so additional instrumentation in the facility is necessary.

“Near real-time transmission of massive amounts of data to the headquarters element and its subsequent evaluation pose additional challenges,” Rheinmetall said in a statement.”

“Preparing for these challenging scenarios requires adequate technical exercise infrastructure that adds vital new capabilities to previously deployed live simulation technology,” the company added.


 
 

MBDA, Lockheed Submit Air Defense Proposal To Germany

An MBDALockheed Martin [LMT] team said Sept. 29 that it has submitted a proposal to the German government in hopes of paving the way for a contract to develop the TVLS air and missile defense system.

The offer, presented Sept. 28 to the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), will form the basis of negotiations with German officials, said Thomas Gottschild, managing director of MBDA Deutschland. The aim is to negotiate a contract that the German parliament can review in spring 2017.

The German government selected TVLS over Raytheon’s [RTN] Patriot system in 2015. The ground-based TVLS, which will provide 360-degree coverage, is based on Medium Extended Air Defense System (MEADS) technology, which MBDA and Lockheed Martin have been developing for years through the MEADS International joint venture.


 
 

Israeli Cyber Startup SecBi Raises $5 Million In Funding

SecBi, an Israeli cybersecurity startup company, raised $5 million in Series A funding, the company said Sept. 27.

The funding round was led by new investors Orange Digital Ventures, Connecticut Innovations, and Amichai Shulman, and was joined by existing investor Jerusalem Venture Partners. The company plans to use funding proceeds to launch its debut product and increase its marketing and sales footprint in North America and Europe.

SecBi’s product plans to automate threat detection and incident investigation by using proprietary machine learning technology to analyze all network security log data, the company said. These resources allow the product to detect advanced and hidden threats, reveal the full scope of attacks, and create a comprehensive incident storyline with autonomous investigation.

SecBi was founded in 2014 in JVP Cyber Labs in Be’era Sheva, Israel.

The company asserts it is the first solution to deliver a full narrative and cyber incident report that includes all affected users, domains, and assets.

“The solution is in production, processing billions of network logs a day, attracting global enterprises and financial institutions,” Gilad Peleg, CEO of SecBI, said in a statement.

“The renewed support of JVP and our new investors Orange Digital Ventures, Connecticut Innovations and Amichai Shulman, will allow SecBI to seize these opportunities, accelerate sales and marketing efforts on a global scale, and establish the right partnerships to provide customers with state-of-the-art solutions,” he added.

Peter Longo, senior managing director at Connecticut Innovations, said the company intends to eventually open its U.S. headquarters in Connecticut.

“We made the decision to invest in SecBI following a comprehensive review of its technology and initial customer feedback. We are committed to supporting and nurturing cyber security innovation, and SecBI represents exactly the type of forward-thinking partners we are seeking,” Pierre Louette, deputy CEO and President of Orange Digital Ventures, said in a statement.

Yoav Tzruya, a partner at JVP, said SecBi’s product identifies “all the stages of the cyber kill chain, including malware infection in the network, command and control communication, and exfiltration. It also leverages unique big-data and machine learning technology, ingesting raw event data rather than relying on SIEM systems.”