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Cybersecurity Could Make or Break Defense Contractors’ Chances of Future Awards

Government Contracts Navigator

Cost, schedule, and performance, the three pillars of defense procurement, may soon be accompanied by a fourth pillar: cybersecurity. As the nature of warfare evolves away from pure kinetic capabilities to the asymmetric, cyber realm, the Department of Defense (“DoD”) has had to grapple with the reality that its defense contractors are prime targets for infiltration. Indeed, in the February 2018 Worldwide Threat Assessment, Director of National Intelligence Daniel Coats specifically identifies defense contractors and IT communications firms as the primary focal points of China—one of the United States’ primary cyber adversaries. As a result of this new reality, DoD has begun the process of revamping the defense procurement system to place greater emphasis on cybersecurity. In response to these moves by DoD, contractors should take a fresh look at their current operations to identify their own cyber vulnerabilities as well as the vulnerabilities of their subcontractors, suppliers, and other partners. Without adequate preparation, contractors risk finding themselves at a significant disadvantage during future contract bids.

Last month, the defense industry finally got a glimpse into possible changes DoD is considering to the defense procurement system. A new report titled Deliver Uncompromised outlines the steps DoD should take to identify, detect, mitigate, and protect the military’s supply chain against cyberattacks. One of the chief recommendations of the report is to elevate cybersecurity to an evaluation factor on par with cost, schedule, and performance.

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