Firms Bid on NATO Cyberwar

NATO, fresh from its battlefield success in Libya, is focusing on the next front: cyberwar.

The North Atlantic Treaty Organization on Dec 19 will collect bids from some of the world's top defense companies, including Lockheed Martin Co. and Northrop Grumman Corp., to update and expand the alliance's cybersecurity abilities. The €32 million ($42 million) contract, although valued at less than the price of one fighter jet, holds great significance because it cements the alliance's role in protecting cutting-edge infrastructure, say NATO officials. "It's a small amount of money but it's technically ambitious," said Suleyman Anil, head of NATO's Cyber Defense Section, in an interview. The systems being developed will need to collect and sift through vast amounts of data across NATO networks stretching from the U.S. to Afghanistan. The unit, NATO's Computer Incident Response Capability center, must also be able to assist member governments facing major cyberattacks. Defense contractors and technology companies from across the 28-country alliance are preparing to compete fiercely for the contract. Traditional military spending is getting slashed on both sides of the Atlantic, but cybersecurity remains one area where governments continue to invest. The NATO contract is unusual because it lacks the domestic politics that sway most national-defense procurements.