WASHINGTON (Reuters) – The U.S. Defense Department aims to tighten
ties with its cybersecurity contractors in an effort to better protect
sensitive computer networks against growing cyber threats.

The department's use of top-level system integrators and entrepreneurs
will continue to grow, along with the need for so-called "active"
defenses that scan incoming code to shield network perimeters, Robert
Butler, the Pentagon's top official for cyber policy, said on
Wednesday.

"And as we thread those together, what we want to do is a very very
tight partnership with industry," Butler, the deputy assistant
secretary of defense for cyber policy, told reporters at a breakfast
session.

One key goal, Butler said, was to cut the lag between development of
new protective technology and its deployment.

He said the department also wants to promote supplier diversity,
partly to guard its information technology supply chain against
compromise.

The Pentagon's biggest suppliers -- including Lockheed Martin Corp,
Boeing Co, Northrop Grumman Corp, BAE Systems Plc and Raytheon Co --
all have big and growing cyber-related product and service lines for a
market that has been estimated at $80 billion to $140 billion a year
worldwide, depending on how broadly it is defined.

Butler declined to comment directly on newly expressed concerns by
U.S. lawmakers about buying telecommunications hardware from companies
such as Huawei Technologies Co, a China-based network equipment maker
founded by a retired Chinese military officer.

"Supply chain is a big issue that we are tracking," he said. Part of
the approach involves screening to verify components and
sub-components, he said. The department is also seeking to understand
how manufacturing processes are taking place and to manage risks,
Butler said.

A group of lawmakers including Senator Joseph Lieberman, chairman of
the Senate Homeland Security Committee, asked the Federal
Communications Commission on Tuesday to detail any security risks from
network equipment made by Huawei and ZTE Corp, both based in Shenzhen,
China.

The two "are aggressively seeking to supply sensitive equipment for
U.S. telecommunications infrastructure and/or serve as operator and
administrator of U.S. networks, and increase their role in the U.S.
telecommunications sector through acquisition and merger," Lieberman
said in a letter also signed by Senators Jon Kyl and Susan Collins and
Representative Sue Myrick.

A report commissioned by the congressionally chartered U.S.-China
Economic and Security Review Commission said last year that Beijing,
at odds with Washington over Taiwan arms sales among other things,
appeared to be conducting "a long-term, sophisticated, computer
network exploitation campaign" against the U.S. government and U.S.
defense industries.

China has denied the charge, made in a survey carried out for the
commission by Northrop Grumman, the Pentagon's third-biggest supplier
by sales.

Deputy Defense Secretary William Lynn, who is leading the overall
effort to protect the military's 15,000-plus computer networks, has
said more than 100 foreign intelligence outfits are attempting to
break in, and some "already have the capacity to disrupt" U.S.
information infrastructure.

Butler cited what he called a growing threat from malicious software
and "botnets," or code that can drive automated tasks over the
Internet without computers' owners knowing.

Walling off power grids, the "defense industrial base" and other
critical industries from the rest of the Internet is "one idea of a
series of operating concepts that we are working through," he said.
"Over the course of the next several months, I think we'll sort
through a lot of this."

U.S. Senator Sheldon Whitehouse, who led a task force on the cyber
threat for the Senate Select Committee on Intelligence, said the
private sector is an essential partner in federal efforts to boost
cybersecurity, with as much as 90 percent of Internet infrastructure
in private hands.

"But the government has unique capabilities against the highest-order
threats, and Congress has important work to do to coordinate public
and private defenses against cyber threats to our critical
infrastructure," the Rhode Island Democrat told Reuters.

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