No. 4: Raytheon extends its range

After 25 years of providing data and networkprotection services to its defense and intelligencecustomers on an as-needed basis,Raytheon Co. has taken the next step andannounced its status as an official informationsecurity vendor.In April, the Waltham, Mass.-based companyadded an information security practice to itsIntelligence and Information Systems business,a move that will allow the company tofocus more intently and bring more resourcesto bear on a long-standing but still-emergingchallenge for its federal customers.The decision was made partly becauseRaytheon's defense and intelligence customers,particularly military installations, hadan unprecedented number of ever-changingcyberattacks that areincreasingly sophisticatedand complex.Bernie Elero, vice presidentof business developmentat Raytheon, saidtapping the estimated$7 billion annual governmentinformation securitymarket will help Raytheoncontinue on its recentgrowth track. The company leapfrogged toNo. 4 on Washington Technology's 2008 listof Top 100 federal contractors, growing from$4.1 billion in prime contracting revenues in2007 to $5.2 billion."For years, we've played in pieces of the largerinformation security puzzle," Elero said."Now we're filling out the rest of the puzzle."Raytheon's core capabilities largely matchthe needs of its customers in this market, hesaid, but there are some gaps. To fill them, thecompany is making acquisitions. In October,it acquired Oakley Networks Inc., a Salt LakeCity software developer of tools that preventdata leaks and insider threats. In April,Raytheon purchased SI Government SolutionsInc., a provider of proprietarysoftware solutionsthat enable informationsecurity vulnerabilityassessments and computernetwork defense.Although additionalacquisitions are planned,the practice's strategy for success won't simplyinvolve pulling in outside companies. "We'relooking to stitch together the best and thebrightest, internally and externally, and leveragewhat we do with themost current technologiesto create synergies," Elerosaid.Initially, the companywill focus on marketing itsnew practice to existingdefense and intelligencecustomers. However, Elerosaid the goal is to expandto go after informationsecurity opportunities in civilian federal, stateand local agencies and governments of U.S.allies."We will work with the customers early onto figure out what they've been experiencingin the way of cyberattacks and cyberintrusionsand begin to figure out how we can best helpthem," he said. "We're not going to wait for a[request for proposals] to come out before wecome up with solutions to customer problems."Elero said this approach means being a missionpartner, a relationship-centric strategythat has served Raytheon well. The companywon a number of diverse contracts this pastyear that took advantage of its core capabilitiesand took it into new markets.For example, in early April, the companydelivered the first increment of the FBINational Data Exchange law enforcementinformation system that will let law enforcementagencies share incident reports, correlatecrime data and collaborate on investigations.By meeting this first milestone, Raytheon willprovide 50,000 users with the ability to capturecase data on incidents and arrest data andsearch through multiple records for knownaliases of suspects and defendants.Other highlights that illustrate Raytheon'sbroad range include a $350 million GeneralServices Administration Schedule 70 taskorder from the Navy's Fleet NumericalMeteorology and Oceanography Center toprovide information technology support foroperational and oceanographic analysis andforecast product, and a $50 million one-yearoption on the Industrial Prime Vendor indefinite-delivery, indefinite-quantity contractfrom the Defense Logistics Agency to supportArmy depots in Anniston, Ala., and Red River,Texas.Raytheon also was one of the winners ofGSA's $50 billion Alliant contract, which isdelayed as the agency re-evaluates proposals.