Raytheon holds onto $920M DHS cyber contract as protests end

Raytheon keeps the estimated seven-year, $920 million DHS cyber services contract known as "DOMino" after a long series of protests from rival Northrop Grumman.

Raytheon will hold onto an almost $1 billion Homeland Security Department cyber services contract as an almost two-year battle with rival Northrop Grumman over that award involving multiple protests throughout appears to be over.

DHS issued the more recent re-award of the seven-year, $920 million contract known as "Domino" on June 9. A Raytheon spokesperson confirmed to Washington Technology Monday the company has an "imminent" start date for work under the contract.

This latest award from DHS ends Northrop's fight to wrestle the contract away since the initial Domino decision in September 2015 and subsequent protest. DHS made a second attempt in June 2016 when it upheld the initial award to Raytheon.

Northrop then filed four protests against that decision that were dismissed in August, because DHS said it would take another look via a corrective action. Northrop also lost another protest in February of this year that sought reimbursements of its protest costs. Northrop did not respond to a request for comment.

Domino covers cyber services to at least 100 civilian agencies in an effort to defend networks, websites and email addresses on the .gov domain from hackers and other intrusions. Raytheon said in a release it will incorporate automation and analytics functions into DHS' National Cybersecurity Protection System that is used to defend civilian IT networks.

Automation and analytics have been cornerstones of Raytheon's acquisition strategy since the mid-2000s to significantly diversify into the cyber market beyond its longstanding brand as a missile and weapons maker. The Waltham, Mass.-based company has made more than a dozen cyber acquisitions and put $1.9 billion into the Forcepoint commercial cyber product venture, which Raytheon holds an 80-percent stake in.

The Domino award validates Raytheon's strategy on those fronts to "develop a stronger cyber posture that includes a predictive component," Joey Cresta, public sector IT analyst at Technology Business Research, told Washington Technology in an email. Domino's size and scope also gives Raytheon an avenue to grow its exposure and create new agency relationships for business development, he said.

"This is a big statement for Raytheon and indicates that they kind of have the inside track when it comes to the major national security priority of shoring up cyber weakness across government," Cresta wrote. "We’ve always viewed Raytheon as an innovative leader in the federal cyber market, and now that the protracted protest situation is cleared up, they can really reap the benefits of their targeted investment approach, which has always kind of shied away from traditional lower-end enterprise IT-type services."

Domino also figures to add a growth platform for Raytheon's $6.2 billion intelligence, information and services business segment that projects an approximate 3.2-percent decline this year. The contract can help mitigate the winding down of Raytheon's "Warfighter Focus" training services contract with the Army in the second half of this year and help IIS' 2018 outlook, Cresta told Washington Technology.

From Northrop's perspective, the company differs from Raytheon in that it focuses its cyber portfolio largely on government agencies compared to Raytheon's footprint in both public sector and commercial. The opportunity for Northrop in cyber extends beyond network security and includes electronic warfare, according to Cresta.

"There’s going to be plenty of opportunity for Northrop to support cyber and electronic warfare initiatives as victory in the cyber domain remains an underpinning of the Third Offset Strategy," he said.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.