[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] [H.A.S.C. No. 113-17] INFORMATION TECHNOLOGY AND CYBER OPERATIONS: MODERNIZATION AND POLICY ISSUES TO SUPPORT THE FUTURE FORCE __________ HEARING BEFORE THE SUBCOMMITTEE ON INTELLIGENCE, EMERGING THREATS AND CAPABILITIES OF THE COMMITTEE ON ARMED SERVICES HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ HEARING HELD MARCH 13, 2013 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ---------- U.S. GOVERNMENT PRINTING OFFICE 80-187 PDF WASHINGTON : 2013 SUBCOMMITTEE ON INTELLIGENCE, EMERGING THREATS AND CAPABILITIES MAC THORNBERRY, Texas, Chairman JEFF MILLER, Florida JAMES R. LANGEVIN, Rhode Island JOHN KLINE, Minnesota SUSAN A. DAVIS, California BILL SHUSTER, Pennsylvania HENRY C. ``HANK'' JOHNSON, Jr., RICHARD B. NUGENT, Florida Georgia TRENT FRANKS, Arizona ANDRE CARSON, Indiana DUNCAN HUNTER, California DANIEL B. MAFFEI, New York CHRISTOPHER P. GIBSON, New York DEREK KILMER, Washington VICKY HARTZLER, Missouri JOAQUIN CASTRO, Texas JOSEPH J. HECK, Nevada SCOTT H. PETERS, California Kevin Gates, Professional Staff Member Tim McClees, Professional Staff Member Julie Herbert, Clerk C O N T E N T S ---------- CHRONOLOGICAL LIST OF HEARINGS 2013 Page Hearing: Wednesday, March 13, 2013, Information Technology and Cyber Operations: Modernization and Policy Issues to Support the Future Force................................................... 1 Appendix: Wednesday, March 13, 2013........................................ 27 ---------- WEDNESDAY, MARCH 13, 2013 INFORMATION TECHNOLOGY AND CYBER OPERATIONS: MODERNIZATION AND POLICY ISSUES TO SUPPORT THE FUTURE FORCE STATEMENTS PRESENTED BY MEMBERS OF CONGRESS Langevin, Hon. James R., a Representative from Rhode Island, Ranking Member, Subcommittee on Intelligence, Emerging Threats and Capabilities............................................... 1 Thornberry, Hon. Mac, a Representative from Texas, Chairman, Subcommittee on Intelligence, Emerging Threats and Capabilities 1 WITNESSES Alexander, GEN Keith B., USA, Commander, United States Cyber Command........................................................ 6 McGrath, Hon. Elizabeth A., Deputy Chief Management Officer, U.S. Department of Defense.......................................... 5 Takai, Hon. Teresa M., Chief Information Officer, U.S. Department of Defense..................................................... 3 APPENDIX Prepared Statements: Alexander, GEN Keith B....................................... 62 Langevin, Hon. James R....................................... 31 McGrath, Hon. Elizabeth A.................................... 54 Takai, Hon. Teresa M......................................... 33 Documents Submitted for the Record: [There were no Documents submitted.] Witness Responses to Questions Asked During the Hearing: Mr. Thornberry............................................... 77 Questions Submitted by Members Post Hearing: Mr. Franks................................................... 87 Mr. Langevin................................................. 84 Mr. Rogers................................................... 85 Mr. Thornberry............................................... 81 INFORMATION TECHNOLOGY AND CYBER OPERATIONS: MODERNIZATION AND POLICY ISSUES TO SUPPORT THE FUTURE FORCE ---------- House of Representatives, Committee on Armed Services, Subcommittee on Intelligence, Emerging Threats and Capabilities, Washington, DC, Wednesday, March 13, 2013. The subcommittee met, pursuant to call, at 3:46 p.m., in room 2212, Rayburn House Office Building, Hon. Mac Thornberry (chairman of the subcommittee) presiding. OPENING STATEMENT OF HON. MAC THORNBERRY, A REPRESENTATIVE FROM TEXAS, CHAIRMAN, SUBCOMMITTEE ON INTELLIGENCE, EMERGING THREATS AND CAPABILITIES Mr. Thornberry. The subcommittee hearing will come to order. I appreciate our witnesses and guests and their patience. There are some days that just don't work very well, and this is certainly one of them. I will ask unanimous consent to put my opening statement in the record and yield to the gentleman from Rhode Island for any comments he would like to make. STATEMENT OF HON. JAMES R. LANGEVIN, A REPRESENTATIVE FROM RHODE ISLAND, RANKING MEMBER, SUBCOMMITTEE ON INTELLIGENCE, EMERGING THREATS AND CAPABILITIES Mr. Langevin. Thank you, Mr. Chairman. I want to thank our witnesses for appearing before the subcommittee today. This is obviously an important hearing as our national security is dependent on our information systems, and those networks are critical to all aspects of our defense. Yet, one only needs to look at recent headlines, even of the day, to understand the unrelenting and sophisticated threats that we face in the cyber domain. Now we continue to see just how vulnerable such networks are in other sectors of our society, at a potential cost of billions lost to cybercrime, and we know our defense networks are at even greater risk. So obviously, though, they must be fail-proof and secure. Now we are still waiting for this year's budget, but I believe it is safe to say that IT [information technology] represents a large piece, $33 billion last year for that matter, and that is a significant figure. And we must be ever mindful of our responsibility to make the most effective use of taxpayer's investments in these capabilities. Now we are aware that the Department has experienced some challenges in acquiring certain IT systems and services in the past. So today, I would like to hear what steps we are taking to tackle those challenges in order to get the connectivity we need at a reasonable price. DOD [Department of Defense] cyber operations are quite literally a growth business, and it is one of the rare portions of the DOD that will be growing indefinitely into the future; and there have been significant developments in just one year since our last posture hearing. Now we are starting to get answers to some of the questions about how and when the United States might conduct the full range of military cyber activities, and I would like to discuss that today to the extent that this forum allows. And I understand that Cyber Command [CYBERCOM] is beginning to organize itself into mission teams, which is an exciting step. But the manpower cost is enormous and the education and training requirement significant. This is going to take, obviously, a lot of work to get right. I would be greatly interested to hear how, to hear our panelists' thoughts on how we refine the education, recruitment, retention and training of the highly specialized personnel that we need. And I would also like to hear how CYBERCOM is interfacing with combatant commanders to provide its unique capabilities wherever and whenever they are needed. Lastly, there are two other areas of vulnerability that I want to address today. The first is supply chain security for our IT systems. Now we could get IT functionality perfect and a robust defense of networks in place and still be at risk of compromise from counterfeit components as well as unknown design specifications within an approved component, particularly, also looking at things like zero-day exploits which we know our adversaries make extensive use of. So the second is the vulnerability of our critical infrastructure to cyber attacks. DOD relies on these services but they are defended by other Federal agencies or departments, or not at all. So I mention this frequently because I want to make progress in the effort to close these gaps. And today is another opportunity to see where we are on this matter. So with that, again, I want to welcome our witnesses here today. Before turning it over to you--back to you, Mr. Chairman, I just want to take this opportunity to congratulate General Alexander in particular. This is grandchild number 15 was born today. A grandson. And General, I just want to congratulate you and your family on the addition to your family. [The prepared statement of Mr. Langevin can be found in the Appendix on page 31.] General Alexander. It is probably more than---- Mr. Langevin. Thank you. And congratulations again, General. And I yield back, Mr. Chairman. Mr. Thornberry. And then what State was he born? General Alexander. Texas. [Laughter.] Mr. Thornberry. Thank you. I just want to get that on the record. Mr. Langevin. Point well taken. Mr. Thornberry. And I appreciate the gentleman's comments. And just as an administrative note, I want to remind members that next week, we have our first quarterly cyber operations briefing which is similar to the counterterrorism quarterly updates that we have been receiving. This is a new provision in the Defense Authorization Act, and we will have that classified briefing next week. Without objection, all of your statements will be made a part of the record. And we would appreciate your summarizing them. We again appreciate our witnesses, the Honorable Teresa ``Teri'' Takai, Chief Information Officer of the Department of Defense; the Honorable Elizabeth McGrath, Deputy Chief Management Officer at the Department of Defense; and General Keith Alexander, Commander of USCYBERCOM. Thank you all for being here. Ms. Takai, you may summarize your statement. STATEMENT OF HON. TERESA M. TAKAI, CHIEF INFORMATION OFFICER, U.S. DEPARTMENT OF DEFENSE Ms. Takai. Good afternoon, Mr. Chairman and distinguished members of the subcommittee. Thank you so much for giving us the opportunity to testify today on the importance of information technology to the transformation of the Department of Defense. I am responsible for ensuring the Department has access to the information, the communication networks, and the decision support tools needed to successfully execute our warfighting and business support missions. The Department's IT investments support mission critical operations that must be delivered in both an office environment and the tactical edge. Just to give you some perspective on the size and scope of what we cover, we operate in over 6,000 locations worldwide. And we support the unique needs and missions of three military departments and over 40 defense agencies and field activities, and our services are used by 3.7 million people. Included in the overall IT budget are the Department's cybersecurity activities and efforts that are designed to ensure our information systems and networks are protected against the ever-increasing cyber threats the Department and the Nation face. We are undertaking an ambitious effort to realign and restructure our ability to provide better access to information, improve our ability to defend and keep pace. This effort is the Joint Information Environment [JIE]. The Department is aligning its existing IT networks into a Joint Information Environment that will define how we are restructuring not only our networks but our computer centers, our computing networks and cyber defenses to provide a singular joint cybersecurity approach that is common across the classified, secret, and coalition networks. This is in contrast to today's networks in which each military department differs in its approach and design in cyber defense. The ultimate beneficiary is the commander in the field. The consistent network in IT and security architecture will enable innovative information technologies that keep pace with today's fast-paced operational requirements. Our standard security architecture will enable cyber operators at every level to see who is operating on our networks and what they are doing. This will enable a synchronized cyber response. And I am sure General Alexander will be speaking more to you about this in his words. The consolidation of data centers, operations centers and help desks will enable timely and secure access to the information and services needed to accomplish their assigned missions, regardless of the location. As we have refined the JIE concept, we have concluded that we can achieve all of the Department's cybersecurity goals but just as importantly, still have better joint warfighting decision support, better operational and acquisition agility, and also importantly, better efficiency. On cybersecurity we are focused on ensuring that the essential DOD missions are dependable and resilient in the face of cyber warfare. The first of the efforts that we will embark on as I have mentioned is JIE. The second effort is our deployment and use of cybersecurity identity credentials for all users of our secret network. We are currently deployed on our unclassified network and we will complete the classified network this year. The next is continuous monitoring. This will allow us much faster detection and remediation of mission vulnerability across the millions of computers that are in our networks, give us a chain of command and accountability tool, and will give the Cyber Command better ability to set remediation priorities. The fourth effort as was mentioned is our supply chain risk management. Globally sourced technology provides real benefits to the Department but it also provides the opportunity for potential adversaries to compromise our missions through subversion of the supply chain. The Department recently issued policy that makes permanent the Department's efforts to minimize the risk to DOD missions from this vulnerability. And lastly is our successful voluntary cyber information- sharing efforts with the Defense Industrial Base. We have 78 participating companies which represent a majority of our acquisition spending in the Department. We share classified and unclassified cyber threat information and companies that have been participating said that the program has significantly improved their cybersecurity efforts. We are also partnering with security service providers, for those companies that choose to use that service, they will have additional classified threat information. I would like to conclude by mentioning a few other efforts that we are working on. We have a new focus on the development of secure communications for Presidential and senior leader comms [communications], nuclear command and control, and continuity of government. We are working with other Federal agencies to ensure that we have the ability to communicate at all times. We are also working to ensure that the Department's position, navigation and timing infrastructure is robust. Next, my office recently issued the DOD commercial mobile device strategy and implementation plan which allows us to use commercial mobile devices in both a classified and unclassified environment. And finally, spectrum has become increasingly important not only to the Department's mission but to consumers and the economy of the Nation. While fully committed to the President's 500 megahertz initiative, it is important that we balance the use of our finite radio spectrum to meet national security requirements as well. Thank you so much for your interest in our efforts and I look forward to taking your questions. [The prepared statement of Ms. Takai can be found in the Appendix on page 33.] Mr. Thornberry. Thank you, Ma'am. Ms. McGrath. STATEMENT OF HON. ELIZABETH A. MCGRATH, DEPUTY CHIEF MANAGEMENT OFFICER, U.S. DEPARTMENT OF DEFENSE Ms. McGrath. Thank you, Mr. Chairman. Good afternoon. We really appreciate the opportunity to discuss with you the progress that we have made in the defense business operations. We feel they are critical enablers of our national security mission and our goal is to ensure we have effective, agile and innovative business operations that support and enable our warfighters. This work spans every organization in all functional areas. Our goals are to optimize business processes and identify key outcome-based measures. Here, information technology is a key enabler. Over the past number of years, attention to this issue has steadily increased and Congress has been instrumental in shaping the governance framework and supporting processes the Department uses to oversee these efforts. And we thank you for that. My written statement provides updates on our integrated business environment framework; therein you will see evidence of the maturation of our Business Enterprise Architecture and some of the recent successes and challenges in the implementations of our largest IT systems. I will take a few moments to highlight a few of the points. First, Section 901 of the 2012 National Defense Authorization Act included significant changes to the Department's investment management process for defense business systems. We established a single Investment Review Board which we execute through a Defense Business Council which replaced five separate functionally based boards. It also significantly expanded the scope of the systems to be reviewed by the board to include those in sustainment. Previously, it was simply modernization and development. This new investment process allows the Department for the first time to holistically manage the entire portfolio of business systems in a deliberate and organized manner. This legislation is truly serving as a catalyst for dramatic improvements across the defense enterprise. We now have functional strategies that articulate goals, outcomes, expectations, standards, mandatory solution across business lines. Military departments and defense agencies all must align with execution plans to these imperatives across their IT portfolio. As an example of the Investment Review Board's value, we identified approximately 10 percent of the systems reviewed as legacy systems that will be retired over the next 3 years. And we are using this process to both ensure architectural compliance and business process reengineering. Second, I would like to highlight the ongoing work to improve the implementation of some of the Department's most visible defense business systems, our Enterprise Resource Planning systems or ERPs. The Department is committed to learning from its successes and failures as well as learning from the findings from the Government Accountability Office and the Inspector General. In addition to a number of ongoing initiatives to improve specific aspects of our implementations, I have over the last 6 months undertaken a substantial effort to work with industry leaders to fully understand and define the leading root causes of program successes and failures across the dimension of cost, schedule and performance. Our findings reinforce the need to focus the Department on quality upfront work extremely early in a program's life cycle to include ensuring clarity of requirements, quantifiable business cases. As a result of this work, I have directed a number of actions across the Department. While we have certainly faced challenges, the Department is making steady progress in this area including having now successfully fielded a number of Enterprise Resource Planning systems. In closing, the Department remains committed to improving the management and acquisition of IT systems as well as our overarching business environment. These issues receive significant management attention and are a key part of our enterprise strategy to build better business processes that will create lasting results for our men and women in uniform and the American taxpayer. I look forward to your questions. [The prepared statement of Ms. McGrath can be found in the Appendix on page 54.] Mr. Thornberry. Thank you. General Alexander. STATEMENT OF GEN KEITH B. ALEXANDER, USA, COMMANDER, UNITED STATES CYBER COMMAND General Alexander. Chairman, Ranking Member, I would read my statement but you know I can't read so I am just going to give you the highlights from that. And I know both Ms. Takai and Ms. McGrath can read really well. Perhaps you should read my part. What I want to hit is a few things that I think it is important for the committee to know. First, you all know we have great people. We are getting great people both in our staff and the service components that have--that are building the teams that we need. And issues come up with sequester especially for the civilian folks; having to furlough those people that we are bringing in sends a wrong message. Further, the continuing resolution compounds our ability to actually conduct the training missions that we need to bring these teams on board. We talked a great deal about the threat. You know what is going on in Wall Street, what has happened over the last 6 months. What happened in Saudi Arabia with Saudi Aramco, the threat is real and growing. From our perspective, we need to be prepared for attacks against our Nation in cyberspace. In order to do this, we do it as a team. And that team includes DHS, Department of Homeland Security, FBI [Federal Bureau of Investigation] and, of course, DOD. DHS has the resilience and recovery just like it would in a kinetic operation. And it is the public interface for our industry. FBI would lead investigations, look at who is doing this inside the United States; they are the domestic handler. And DOD has responsibility to defend our Nation from an attack, to support the combatant commands and their operations in planning, defend the DOD networks and other networks as authorized. We have created roles and responsibilities between Secretary Napolitano, myself and Director Bob Mueller, we all agree on that, it has gone to the White House. I think that helps lay out the plan for how we can work with you in establishing legislation for the future. And I can talk to legislation and questions if that comes up. When is civil liberties and privacy upfront here? We know how important that is. We can protect civil liberties and privacy in our networks. This isn't one or the other, it is both. And I think we can do both. And to understand that, I think we need to get into technical details. I won't do that here, but you know we have the capacity to do that. And I just encourage you to look at the facts in this as we go forward. Five things that we are looking at from my perspective in setting up Cyber Command and the teams that we have. First and most important are people, building and training a ready workforce. The second thing, command and control and doctrine, we are establishing that and how we work with the combatant commands that I can answer more, Congressman Langevin, to your question later on about how we work with the combatant commands. Situational awareness--how do you see what is going on in cyberspace and how do you react to it. A defensible architecture, I think this is absolutely vital, especially for the Defense Department. Today, we have 15,000 enclaves. It is very difficult to defend and get situational awareness around that. We need to go the Joint Information Environment, something that we work very closely with Ms. Takai and her folks. And finally the authorities, policies and standing rules of engagement. Those are vital for the future and we need to work with you to get those right. That is a quick summary of my 26-page written--and so, Mr. Chairman, I turn it back to you. [The prepared statement of General Alexander can be found in the Appendix on page 62.] Mr. Thornberry. Thank you. I think that may be a record on shortness of your testimony. Let me just start by asking about a couple of things. General Alexander, I think the statements you just made that there is a role for the military, especially Cyber Command, to defend the country in cyberspace. I think that is a step beyond where we have been in previous years' hearings. Can you tell us a little bit more about how that--where we are in that discussion? Exactly what should we expect the military to defend us against and what sort of circumstances? And then what are the sort of circumstances that industries or us as individuals are required to defend ourselves? General Alexander. So there is two parts to this, to your question. And I will give it to you as accurately as I can from my perspective and then show you where the range of options that the administration and the Defense Department have to look at. First, I think it is reasonable that we the American people know that when our Nation is under attack, whether it is physical attack or cyber attack, that the Defense Department will do its part to defend the country. It is not going to just defend itself. Our job is to defend the country. And the focus would be, obviously, on critical infrastructure just as it would in kinetic and other things. The issue becomes when does an exploit become an attack and when does an attack become something that we respond to? Those are policy decisions and the red lines that goes to those would be policy decisions. Our job would be to set up the options that the President and the Secretary could do to stop that. And as you may recall, both the former President and the current President have both said that they would keep the options open in this area. I mean, I think that is reasonable, from using State Department to demarche all the way over to kinetic options or cyber. So they have that whole range. What we are building is the cyber options that would fit that tool kit for the administration and policymakers to determine exactly what to do. As an example, it is reasonable to expect that we would have the ability to stop a distributed denial of service attack, and so creating the tools and capabilities of that, which would get into the classified area, you would expect that we would actually go and work with our teams to do that. And those are the kinds of things that we do. So how do we defend the country in that? What kinds of capabilities that we need? We have laid that out in great detail. And I think the training on that is superb. Mr. Thornberry. Just to make an editorial comment. I appreciate your point that the authorities, policies, rules of engagement are key to deciding how to use the tools that your folks have evolved. My opinion is that the more the administration consults with Congress, the more we can make these decisions out in the open, the better result we will have and in addition, the more you will have the support of the American people. The more that is kept secret with some White House meeting or White House paper that is hard to access to, the more suspicions there will be about what the government is really doing. So I know that is kind of a different realm from yours but I think the circumstances under which the government will act and how it will act and who will act are important to be as public and transparent as we possibly can. Finally, let me ask, Ms. Takai, I have got this Defense Science Board study that came out in January that basically concludes, we cannot be confident that our critical information technology systems will work under attack from a sophisticated actor. I mean, I am sure you have seen it. Can you just make a comment about whether you think this Defense Science Board study got it right about our vulnerabilities? Ms. Takai. Well, I think, first of all, any independent report like that is useful because it does give us an independent view of a way of looking at our vulnerabilities. The report is a year old at this point in time and it really is--it does precede several of the actions that General Alexander has taken in terms of looking to remediate. It also does not consider some of the actions that we have been taking to change our cyber defense approach from looking at how we protect the perimeter and how we just protect networks to actually how we look at it from a mission perspective. So what we have done is ahead of actually the Defense Science Board report coming out, those are the same areas that we have been looking at. Those are the same areas that we are looking for remediation actions and some of the things that I described in my testimony are really a step toward actually moving forward to address some of those issues. Now, the challenge is you are never 100 percent. And so, I think the point around, really, looking at it from a mission perspective is important because we need to be sure that we are prioritizing from the standpoint of where we put our resources, looking at it from the most critical areas and making sure they are secure. Mr. Thornberry. If your folks look at this and think it appropriate, I would appreciate in a written answer some more updates as to how far you think we have come in addressing the shortfalls that they identified here. Ms. Takai. Yes, sir. Absolutely. General Alexander and I are actually working on that document, so we would be happy as we get that developed to provide that to the committee. [The information referred to can be found in the Appendix beginning on page 77.] Mr. Thornberry. Thank you. Mr. Langevin. Mr. Langevin. Thank you, Mr. Chairman. Again, thank you to our witnesses. General Alexander, I would just start with you, if I could. More of a follow-on on to the chairman's question. Can you speak to the role of CYBERCOM as defender of last resort in the event upon civilian--in the event of an attack on civilian critical infrastructure? As we know, these attacks move at network speed. And what I want to know is what the, you know, the processes that are put in place in terms of establishing rules of the road so that you know how and when you can respond--if there is an attack on critical infrastructure and CYBERCOM has to step in as the defender of last resort? General Alexander. So we are working with the Defense Department, the White House, and the interagency to set up those standing rules of engagement, put forward what I will call the way in which we would actually execute some of these. Right now, those decisions would rest with the President, the Secretary. And they would tell us to execute. I think as we go down the road, we are going to have to look at what are the things that you would automatically do, think of this as the missile defense, but missiles in real time. And I think that is an education and learning process that changes fundamentally the way that we have defended the Nation from a kinetic perspective to how we are going to have to defend the Nation in a cyber perspective. So there is a lot to learn there. Most important on that, one is the team that I talked about. But two is the partnership with industry. And that is where the legislation is going to be important. We cannot see attacks going against Wall Street today. Somebody has to tell us, and if we are going to be able to react to it in time to have favorable results, we need to know that at network speed so that we can react at network speed. So those types of information-sharing and the liability of protection that goes with them is key to this. The other part, you know, you could put under building up standards and helping people get to this, the executive order takes a great step in that direction. I think getting incentives would really help. So I think there is a partnership here, one within the administration for how we set this up and the rules of engagement, I take the chairman's comments that you put about working together in a transparent way. And the second part is we have got to have that same discussion with industry. Mr. Langevin. And let me use this as an opportunity to talk about the information-sharing, and give you an opportunity to talk about the, you know, the concerns that people have in terms of information that would be shared with the government. I understand--you and I understand that we are not actually looking at information that would be shared, it is more the bits and bytes, the ones and zeros, the attack signatures that we would be looking for. But I would like to again give you the opportunity for the public to reassure them of what this is, what information would be shared. General Alexander. Thank you, Congressman, because I do think this a key point. The issue would be if somebody were throwing an attack at Wall Street, as an example, what we would want to know is the fact of the attack and the type of attack. We don't need to read people's email or see their communications to get that information. The Internet service providers would actually see that. So we could tell them the types of attacks, the types of exploits and those things that the government needs to know. That includes DHS, FBI, NSA [National Security Agency] and the Defense Department, all together need to know that. What we are talking about is, for example, I use the car going up the New Jersey Turnpike on its way to Rhode Island and it would go through an E-ZPass lane--well, in E-ZPass what happens is the car is scanned. You don't read what is inside the car. You just get the metadata. In a similar way, if a packet were going forward, what the Internet service providers need to tell us is there was a packet, we saw bad software, malicious software in that packet, of the type you were looking for. We stopped that packet. It was coming from this IP [Internet protocol] address, going to this IP address. And it would be up to FBI if it was domestic to work with the courts to do that or to Cyber Command if it were coming from outside the United States. And so, the bottom line, there is a way to do this that ensures civil liberties and privacy and does ensure the protection of the country. And I think we ought to work towards that and help educate the American people on what we are trying to do here. Mr. Langevin. I agree and I appreciate you getting that out there. General, if I could, I would also turn our discussion to the new mission teams that are forming within your command. In testimony before the Senate Armed Services Committee on Tuesday, you noted the creation of 13 teams within--with an offensive focus. Can you lay out for us what authority these teams would be operating under and how will they interface with their Intelligence Community colleagues? General Alexander. Sure, Congressman. The key is we organize the teams into groups. So the teams that you are referencing, those 13 are what I will call the National Mission teams, that would have the mission to counter an adversary who is attacking our country. They are the counter-cyber force. I call that offensive because their job is to stop--like a missile coming into the country, their job would be to stop that and provide options for the White House and the President on what more to do. So they are the folks that would counter any cyber adversary. We also are creating teams to support combatant commanders and their missions and operations, and then we are building teams to operate and defend our networks within DOD and work with DHS and FBI as required. So those are the three sets of teams and the three general missions that they have. And then, we have supporting them, what we call direct support teams that provide the analytic support that we would need for that. All of this is integrated and works seamlessly with the Intelligence Community and with FBI to ensure we don't have duplication of effort and we are not all operating on the same place in cyberspace so that that is deconflicted. Mr. Langevin. My time is expired. I will have more questions for the witnesses in round two. I yield back. Mr. Thornberry. I thank the gentleman. And I think it is helpful that explanation of what offensive means in this context because there is a variety of definitions that people use for that. Dr. Heck. Dr. Heck. Thank you, Mr. Chairman. I thank all of you for being here. General Alexander, there have been some discussions about the roles of Cyber Command and protecting domestic critical infrastructure. How would that role differ if the attack was coming from OCONUS [outside the contiguous United States] versus CONUS [contiguous United States] and do you have the Title 10 authorities necessary to respond to a domestic attack in real time since you are really the only entity that can defend in real time. General Alexander. Congressman, thanks, because I think for clarity, from my perspective, the domestic actor would be the FBI. And the FBI, we share our tools with the FBI. They would work through the courts to have the authority to do what they need to do in domestic space to withstand an attack. We have worked very closely together. Director Mueller and his teams are absolutely superb to work with. And we have come up with a way that he would do inside, we would do outside. Now, there may be points in time where you have different--you know, significant attacks where we need to change parts of that. But the key thing is to have him do inside the country. We can support back and forth and do this at network speed. So we are practicing that. I think that is something that we can do. He would work with the courts as appropriate to do his portion of the mission. Outside the country, that is where we would operate. Dr. Heck. So you would be comfortable if there was a Saudi Aramco kind of attack that originated from within the United States at U.S. infrastructure, that the FBI would be able to respond and thwart that attack in real time? General Alexander. Assuming that we could see it because that kind of an attack is a whole different issue. And on that, where we would really depend is on working with the Internet service providers. They would stop that packet initially by some signature that we gave them. And so, that is something that would go to a domain controller that we could stop. I think that is a different set of tactics that you would use versus the distributed denial of service attack where you are trying to take out the bots and the command and control infrastructure. Dr. Heck. Okay. And then, how is the IC [Intelligence Community] supporting the cyber intelligence needs of DOD? I mean, beyond NSA, what IC organizations are the primary intelligence providers for CYBERCOM? General Alexander. Well, there are several, of course, the Central Intelligence Agency [CIA], the Defense Intelligence Agency [DIA] and NGA, the National Geospatial Agency. Tish Long and her folks have done a superb job, too. It is kind of interesting. You say, ``Well, what can you see from imagery?'' But there are some great things that you can do by bringing the actual physical infrastructure and overlaying the cyber infrastructure--so all those work. And within the military, DIA has, within our J2, people, at Cyber Command that work at--and of course, NSA has a great foundation of folks that really provide the best support that we have across that technical layer. Dr. Heck. Thank you, Mr. Chairman. Mr. Thornberry. Thank you. Mr. Kilmer. Mr. Kilmer. Thank you, Mr. Chairman. I am particularly interested in workforce issues and how we prepare the workforce to meet the needs within the cyberspace. And I have a number of questions in that regard. And I guess, Ms. Takai, I will start with you. As CIO [Chief Information Officer] you oversee the Information Technology Exchange Program that is set to expire on September the 30th, which seems like a good opportunity to leverage talent that is already in the workforce to bring industry and the Federal Government together, to knowledge share and learn best practices in cybersecurity. I was hoping you would give a little update on that program's success and then I have a few specific questions therein. Do you feel like enough private companies know about the program and have been able to take part? Can you speak to the advantages of extending and/or expanding the program? Have there been any problems with any aspects of the program that you think, if we looked at continuing it, should be addressed? And then, finally, I know to be eligible, an employee must be a GS-11 or the equivalent or above. Do you think that is an appropriate level or would you think there would a value in adding additional--involving additional workers in the mix? Ms. Takai. Well, let me see if I can take all those questions in turn. First of all, I think, we probably do need to expand our communications on that program. The program has been, I think, a great opportunity for us to bring industry technology experts into DOD and likewise, be able to look at where DOD employees can go out into industry to get experience. But to date, we really do need to think about how we expand the program and from a communication perspective. However, I think it is important to note that right now, we have a key individual who has just recently joined my department from Cisco. He is a very skilled, highly capable architect and one that is always difficult to grow. That kind of technical knowledge is something that just takes time. And so, the ability to bring that individual in and have them take a look at the work we are doing on the Joint Information Environment has really been valuable. So we are really seeing the benefit of the program and therefore it is very important to us to continue the program. I think in terms of some of the challenges that we have had in terms of moving the program forward, it has really been understanding how to get the companies to understand the security requirements and for us to be able to get them in through our fairly long security process. And I think some of that is just a part of it. But I think also we need to be in a position where we can better educate the companies on the kinds of security requirements that we are going to be asking about. And so, we are looking very much to take the lessons learned from the program, to be able to expand it. I think from a level perspective, I think starting at the GS-15s is sort of the--you know, the first level is actually a good place because it does give us the opportunity to go from the GS-11 level up through various levels, you know, into actually an SES [Senior Executive Service] level, which is the more highly skilled folks. So I think starting there is a good place and the program does give us the flexibility then to bring people in at different levels. So we are very excited about the program. As I say, we appreciate the industry participation we have had so far and would very much like to continue the program past the sunset date in September. Mr. Kilmer. Thank you. Maybe just in follow-up, I would just like to ask more generally what you feel collectively we can do as Members of Congress to help you recruit an adequate number of workers in the cybersecurity realm? Ms. McGrath. So I can say from a--again, I am more in the business space within the Department and it is always challenging to find skill sets even with the Enterprise Resource Planning and the more modern technological capability. So we are buying commercial-off-the-shelf. It is really educating the workforce to get there. The Congress has passed legislation to enable us to hire highly qualified experts. I feel the Department has not leveraged the opportunity that we have so far, or to date, as much as we could have, really bringing folks in for a term. It can be 1 to 5 years to work on some of these really sort of hard problems that we have, to ensure that our outcomes are what we need. But we do have actually a very good model in the SECDEF [Secretary of Defense] Corporate Fellows Program where we take our military and send them out to industry for a year at some of the, I would say, best and brightest companies like Cisco and Caterpillar and Google and--so we are not leaving anybody out, but I couldn't possibly mention them all. Because they are already cleared, they have, I will say those kinds of requirements already met and it seems to be an easier transition from within the Department for our military externally, but I would wholeheartedly welcome, you know, anything we could do to advance the communication because I think it helps certainly in the business space with the activities we have under way. Mr. Thornberry. Mr. Peters. Mr. Peters. Thank you, Mr. Chairman. Just maybe a follow-up on that. I think, General, it was you who may have told us a few weeks ago about some of the difficulties you were having recruiting talented individuals in light of the budget uncertainty that we had. That perhaps, people are coming to you and saying--I heard this at one testimony I think it was you--saying, ``Gee, you know we can't really depend on this for a career if we don't think that Congress is behind it.'' Last week, we took an action to relieve some of the pressure, perhaps, on the military side at the House level and that is working its way through Congress. But, do you want to update us, just to follow on Mr. Kilmer's question, how is the uncertainty around the budget or how is the budgeting continuing to affect your ability to recruit the kind of people we need to be our warriors? General Alexander. So, you have hit it right on the head, Congressman, that what we are getting from some of our people especially those who come from industry, they already take a pay cut coming to the government. And they do this because they are patriots. The issue is they have taken a pay cut and now we are saying, ``Well, you might get a pay cut again and this pay cut will be furlough and we are not sure how that is going to go, or where that is going to be.'' That uncertainty is something that truly complicates their willingness to stay with us. And we don't--we should not do this to them. You know, we are trying to get the great people into cyber. These are technically qualified people. You go out to Google, they are looking for people today. You know, I sat down with the Google HR [human relations] folks. They said, ``Look, we are paying, you know, probably twice as much as you are paying folks'' and they are having trouble getting them. We get them because they want to do something good for the Nation. So as a consequence, I do think we have to, one, give them the certainty. I would just say, two, they are our most valuable assets. You know, it is the people. That is the talent that we need and we need to let them know we care about them, all of us, and we need your support in that. Mr. Peters. Thank you. Thank you, Mr. Chairman. I yield back. Mr. Thornberry. Thank you. Mrs. Davis. Mrs. Davis. Thank you, Mr. Chairman. And I would certainly appreciate that comment because sometimes we have a perception out there that somehow Federal workers are not necessary to make everything work in this country. And I think that we know that that isn't true on just about every level. And so, I appreciate your comments. I wanted to ask about the electronic health records. I know that is not exactly on the agenda right now. But I wonder if I could do that because we know that recently it was announced that the Department of Defense was going to--no longer are we going to have parallel efforts, I think, in trying to create an interoperable system. And that the Department of Defense was going to try and work with the Veterans Administration [VA]. Can you talk a little bit about that and what is going on? We had had that strategy articulated that they were going to do that, and it is just not clear now, exactly, what we are going to do. I know that the discussion was around trying to cut costs, that we were going to create this common system, but in light of the fact that we are not going to do that, how are we going to create this interoperable system that is going to work? Ms. McGrath. So I would be happy to take that question. The Department of Defense and Veterans Affairs have been working together over probably 10 years to enable greater sharing of information between the two organizations. So when our military members transition from defense to the VA, that all their information comes with them and we could get out of a more paper-based approach to medical treatment and history. And I think we have made significant progress in terms of sharing the information over big, I'll just say, pipes of interfaces between the two organizations. Both DOD and VA were looking to modernize their legacy environment. And so, back in March of 2011, then Secretary of Defense Gates and Secretary Shinseki of the VA decided to abandon, if you will, either legacy system--so in VA it is VistA [Veterans Health Information Systems and Technology Architecture] and DOD it is AHLTA [Armed Forces Health Longitudinal Technology Application]--and move together jointly for sort of a common system, if you will, although it would probably be a family of systems that enable this capability to happen. And we moved out smartly and made sure that we were approaching the solution, if you will, with a common architecture, a common data standard which is really key toward interoperability. VA has moved their systems into our DISA [Defense Information Systems Agency], so that we are collocating as much as possible common business practices. Because if you don't have all these things, you are still, I will just say, the IT will only get you so far. And so, the foundational aspects of all these things we agreed to in 2011. What you have heard recently, is the, in December of 2012 the Interagency Program Office had completed an engineering- based or bottoms-up, if you will, lifecycle cost estimate which really put the approach, the affordability of the approach, in question. So the question Secretary Panetta and Shinseki said to the teams was, is there a more economical way to still deliver an innovative electronic health record to our military members and veterans, but it is done in a less risky way. So you reduce the risk, decrease the cost and maintain the schedule that we are on. And that is when the Departments decided to instead of build, if you will, the system piece by piece, to start from a core set of capabilities and build out from a core. So the VA decided to go back to their legacy system, again, VistA. The DOD does not have, right now anyway, a desire to use its legacy system and want to ensure that we have explored all opportunities. So when we are looking at what would our core capability-- would it be the VA's VistA core, VistA as our core? Would we look at--would we have something commercial? The health space has gone, has made tremendous leaps in terms of modernization over years. We want to ensure that we are assessing the capabilities that commercial market brings. And we are right now--we issued a request for information in February. We got all the answer, all the responses in. We are evaluating them through our Cost Assessment and Program Evaluation team has the lead for that and they will make a determination whether or not we will go with a COTS [commercial-off-the-shelf]-based solution or a government-based solution by the end of March. Mrs. Davis. Is it fair to say that we have kind of abandoned, though, the joint strategy? Ms. McGrath. I think the joint strategy still exists from a data interoperability and integration. If I talk about a military member's health record, I am populating that record from data from different sources. The change in the strategy is really the underlying IT system. We still want to do as much joint as we can from the various applications like immunization, lab, and all the other health-related stuff. And I think that the architecture, again all the handshakes that we made in the beginning in terms of architecture data, those are all still absolutely at the forefront. So there has been certainly a change with the approach to the underlying IT. But there has been no change to our---- Mrs. Davis. I guess what would be helpful to know about that is how is that going to affect the service member. And if they are--it sounds like you are looking at a new acquisition strategy perhaps. And I think we would certainly be concerned about costs involved and kind of, what have we lost I guess, in that time that we were working on all that. So I just wonder maybe we can follow up with those discussions. But I appreciate it because I wanted to just take this opportunity to try and understand better what has happened and how we can move forward. Ms. McGrath. Yes, ma'am, I would be happy to---- Mrs. Davis. We have spent a lot of time on that. Ms. McGrath. We have and I would just say that all the infrastructure, the very foundational things that we have been working on since the agreement in 2011, all will be carried forward. And so, we are not, I will just say, scrapping anything from that perspective; we continue to use those foundational pieces because they are key irrespective of the applications that will ride on top of that infrastructure. But I would be happy to give you more detail. Mrs. Davis. Thank you. Thank you, Mr. Chairman. Mr. Thornberry. I appreciate the gentlelady asking about that because I remember very well the hearing we had in the full committee with Secretary Panetta and Secretary Shinseki. And this was the key thing they trumpeted. Never before would we have this kind of cooperation between the VA and the Pentagon with one health record that would follow a service member from the day he enlisted all the way through. And it is discouraging that under the best case scenario it is going to be significantly delayed to have that available as you all work through these various options. I don't understand or underestimate the technical difficulty in doing so. I don't know. It is just frustrating I guess when this was trumpeted as such an achievement; that at least, there is a change in strategy. Ms. McGrath, I am really not trying to pick on you but let me ask you about one other situation that maybe hadn't turned out so well. The Air Force's Expeditionary Combat Support System [ECSS], what happened with that? And what have we learned from it? Ms. McGrath. I would like to say--and I will very quickly move to the ECSS question. But the two things on the electronic health record. One is the underlying system piece, and sort of the modernization. What we are also focused on is accelerating data interoperability. We have standard data in the Defense Department across the entire organization. Because of the mobility of our military members, the information must be wherever the military member is--that is theater, East Coast, West Coast, does not matter. The VA--we are mapping the DOD health data dictionary to the VA data so that by the end of this year we will be using standard data between the two organizations and we will be able to populate a military record, an integrated electronic health record, with DOD and VA information. And so I don't want to--I understand the concerns. I have been---- Mr. Thornberry. That is helpful, I appreciate you clarifying that. Ms. McGrath. And so, we do. We are moving very smartly forward. With regard to the Air Force logistics transformation program, true, not as positive a story. It was a story that began in the 2005 timeframe, and it was laden with I will just call them issues. We had a couple of protests along the way I think that added at least a year-plus to the program. We restructured it in 2009. They didn't meet a 5-year initial operational capability in the 2010 timeframe. So then we put I will just say stronger fiscal controls on the program to make sure that we identified success criteria both from a government perspective and a vendor performance perspective. We also restructured the contract to be more outcome- oriented. And frankly, the program overall was not delivering. And, therefore, we cancelled it in the December timeframe of last year. We have this in terms of this program that has provided many lessons learned as well as some of the other programs, both--some successful--we still learn from these programs and some not, in the area of size and scale this clearly was one of those programs that was way too big. We need to chunk these IT systems, if you will, into smaller capability sets. And so, we are delivering and then adding as opposed to trying to deliver the whole thing at once. Buy in leadership skill sets. And we talked a little bit about cyber skills and I mentioned the skill sets. Data, data quality is huge. For any of these IT programs, you are really trying to take really old data from old legacy systems, bring them into the new modern, much more tightly controlled environment. We have learned a ton with regard to data. The infrastructure also can't be understated. The work that Ms. Takai is doing with the Joint Information Environment so that we have a much more holistic perspective on the network. How it runs, it is optimized. We find in every program I will just call it too much infrastructure, so it adds to latency and all of these kinds of issues. We have captured all of these, if you will, lessons learned along with some standardization of leading indicators across programs; we weren't managing and monitoring them in a similar way. And we have made those changes so that the program office, us, and us together, can look at really the health of each one of these programs as they move throughout the life cycle. Mr. Thornberry. Well, to state the obvious I realize, but under the best case scenario we are going to have tight defense budgets as far as the eye can see. And a large amount of money goes to these various IT programs. And obviously we have the same interest that you do, I know, into making sure that the money we spend is spent well and you get something for it. It is particularly--I mean I appreciate the lessons learned, which are important absolutely. But it is frustrating also to spend money and then not have a system that works at the end of the day. Hopefully, the lessons will improve others but it is something we are going to have to continue to get better about, no doubt. Ms. McGrath. Excuse me, sir, may I add just very quickly? Mr. Thornberry. Of course. Ms. McGrath. Because I mean we do share both the desire to get it better and the frustration when it doesn't. And I am constantly looking for ways in how you apply the lessons learned from program A to program B or whatever the next one is. But I would also say that I don't want to lose sight of some of the capability that has been delivered. And the only data point that I will give you is that in 2009--and when we looked at the amount of money being spent on really we have about 14 of these major business programs. We were highly in a developmental stage. The number of users in these main ERP [Enterprise Resource Planning] programs was about 27,000. Today, those same programs, we have 195,000 users. So we have delivered capability without going through the--I will just say the [word unclear] we tend to talk about, those that are sort of really big, expensive and not go so well. But there has been progress made in terms of delivering supply chain capability, financial capability, and also contracting. And I just don't want to lose that--and I appreciate you allowing me to share that. Mr. Thornberry. Yes, ma'am. I appreciate it. Kind of continuing on a theme of trying to spend smarter or at least exploring ways, Ms. Takai, the Defense Business Board made recommendations about satellite communications [SATCOM] and recommended that we could make some capital leases in multiple increments of up to 10 years. It has also been suggested that we could lease these satellite services for more than 1 year at a time which is what we have been doing and probably the most expensive way to do it. Can you comment on that suggestion? And is that not something the Department should look at as a way of saving money for the commercial satellite services that we, that the Department depends so much on? Ms. Takai. Yes, sir. We have seen the Defense Business Board recommendations and we do believe that there is benefit in looking at the cost recovery model that we are using for commercial SATCOM. And it is a requirement that we actually look at that over a multi-year period because of the nature of the industry. So one of the things that we are doing is to actually put together a cost recovery model that takes into account a multi- year acquisition, to look at what is the best approach so that we can guide programs going forward. We are implementing a converged SATCOM gateway architecture that will help to standardize more on the way that we are buying commercial SATCOM and actually our own SATCOM. We are looking at a plan of action for our own nuclear voice conferencing integration and then looking at--we are actually conducting an analysis of alternative study as it relates to that. One of the challenges for us is that when we look at commercial SATCOM, it is also important for us to look at the security of that commercial SATCOM. And in many cases, we are asking those commercial SATCOM providers to actually provide us capabilities that aren't necessarily the demand from the rest of their customers to the extent that we are looking at it. So that requires some upfront investment for them, and if we are not able to actually commit to a multi-year capability, then we get into a couple of situations, neither of which is good. One of which is we would ask them to take that on and yet at the point in time we want to use it, we no longer have the funding in order to be able to do it. On the other side, we fund it upfront and we aren't necessarily using the capability. That is why we need to look at a different way of the cost recovery model from a multi-year perspective in order to be able to manage the issue that was raised by the Defense Business Bureau. Mr. Thornberry. Well, if there are additional authorities that you need to look at multi-year procurement of these services, please come and talk to us because I don't see if you are a satellite company how you can meet the Defense Department needs a year at a time particularly given what you just said about enhanced security requirements as part of that. I don't see how that can ever be done cost-efficiently without looking ahead several years. General Alexander, I am going to take the other side of the argument now. This is a brochure from one of your two hats about commercial solutions for classified. And I guess it is inviting commercial companies to submit their products to see whether it could be used in a classified environment. I mean--and I guess in a general way, is this a new emphasis on making more use of commercial hardware and software in a classified environment? And can we do that in a secure way? Again, thinking back to the Defense Science Board saying we got problems here. General Alexander. Chairman, I think we can. A couple of areas. If you think about encryption capabilities, going out and getting commercial encryption and making sure that it meets the standards, and we can set the standards based on different encryption levels. We can if we know the company and the way they actually create the capabilities, the tokens. And you can look at some of the DOD cards and stuff that we actually use. We can ensure that it is done right, then there is a great opportunity for us to work with industry. I think this is going to become hugely important as we grow mobile devices that, you know, our spouses will use for banking, need to be secured at a comparable level to the way that we would need to do classified and sensitive operations. So ensuring that the devices have that capability not only helps industry, it helps the government, and I think there are great ways to do it. We look at that in some of the encryption stuff we work with NATO [North Atlantic Treaty Organization] and elsewhere, so I do think it is a great step forward, and industry does provide us some great capabilities. Mr. Thornberry. Mr. Langevin. Mr. Langevin. So maybe on that line of commercial, let's talk a little bit about the cloud as where--we seem to be moving more and more toward the cloud. You know, articles that I have been reading recently have diminished my confidence in the security of the cloud, at least it has called it into question anyway. There have been some high-profile thefts of information from that, in that realm. And yet I know that certainly is something that your operation, General, are looking at moving more into, more in that direction. Let's talk about the security of the cloud. And if we do make a robust change in that direction, you know, what are we doing about guaranteeing security? What is your level of confidence in securing the cloud? General Alexander. So this has several dimensions to answer that question. I am going to try to hit each of those, and then if you want more information, we can come back. First, when we talk about cloud security versus what we call legacy architectures, the problem that we have with legacy architectures is if you look at the Defense Department's 15,000 enclaves with administrators for each of those enclaves, the ability to patch those networks and set vulnerabilities is at the manual speed. And the problem that that creates if you say that the time a vulnerability is publicly identified until it is done in the Department, it takes way too long because it is done to those 15,000 network parts. We are using the host-based sensor systems to help speed that up but it is not where it needs to be. And your ability to actually see into those enclaves is very difficult. So the first thing that a cloud can give you is the ability to patch those systems almost in real time. You can reach out and patch that network there. Now there are some issues that we have had with the cloud. One of the things that we saw is the cloud systems as we saw them did not have data element-level security tagging capabilities. So in the one that we created, Accumulo, we allowed it to have each element of data tagged and secured at that level, and only accessible at that level. And there are some exceptional things that we can do in this area that I can go into more detail in another setting that gives you how I think this is more securable than legacy architectures. From our perspective, from our technical perspective, it is much better. It is not perfect. The issue is somebody who hacks into your networks over here, you don't know where they are but they have free--they are free to roam around once they are inside. You just don't know they are there. As you may know, most companies that get hacked in the legacy system don't know about it for 6 to 9 months. I think we can go much further in the cloud and I think you will see that that will far outstrip legacy architectures in security. Unless you come up with an architecture that is completely independent, nobody else can get into. But for what we need it for the Defense Department, we need mobile secure comms [communications]. And when you think about it, think about our ships, our aircraft and our mobile teams out there, they have to talk to something in the mobile environment. They are going to end up talking to the cloud. So we have to fix that cloud environment. I will tell you that what Ms. Takai and her folks are doing with the Joint Staff J6 and our folks on the JIE is a huge step in that direction. It will address all of those types of issues and there is more. You know, I feel like the Ginsu knife guy-- ``wait, wait, wait, there is more''--because, you know, think about what you can do in a cloud that you can't do in a normal system, just to give you a couple of ideas. You can jump your networks, you can jump your databases, like frequency-hopping, that makes your ability to hack into them very, very difficult; and each day down that can be encrypted with a different algorithm depending on the security levels of the people who need access to that data. That is a huge step forward. We are having tremendous success in that area. And I think you have seen some of the folks who are working on that. I think you may talked to some of them, Dave Hurry and some of the others that are really good at that. Mr. Langevin. Well, thank you for the answer. That helps quite a bit. If I could, let me turn now to Ms. Takai. So obviously this is, you know, all of these great technologies that we have ultimately come down to the people. How well they are trained, do they know the capabilities of the systems and so--I know you touched on this a little bit but can you speak further to us about how you are developing the pipeline of cyber and IT professionals in the Department and are there things that we can do better to support you? And I know you have talked on this a little bit, I would like to give you an opportunity to expand on this even further if you would. Ms. Takai. Thank you very much. Well, first of all, let me just give you a synopsis of the actions that we are taking around growing the cyber workforce. The first steps are really around being able to support General Alexander and making sure that as we are growing the cyber capabilities, we are doing it to the requirements of what he feels he needs from the cyber workforce perspective. So it is important that we recognize that the capabilities that we are growing are going to be operational capabilities and we are really focused on that partnership and making it happen. We are putting together that strategy today. The first grouping will be individuals that we have inside DOD and we will need to update our certifications, we are going to need to upgrade our capabilities. And the other thing I think and General Alexander can speak to this even more. It isn't just necessarily technical people that are going to be on these teams. It is going to be a breadth of experience and it is going to really need several capabilities. Now, just to speak to the technical side of it, we are going to be bringing in and growing the resources from some of the technical people that we have today. The plan is through the Joint Information Environment really as we begin to implement it, we will be able to free up individuals who can then be trained with some of the technical background to be able to move into the cyber defense area much more heavily than they are today. So that is one--number one. And then secondly is we are going to step up our recruiting and with that we are going to have to be more definitive around the career path for the civilians that we hire. Clearly, the military and General Alexander is addressing how the military will be moving folks through. But one of our challenges is we aren't going to be able to rotate people in and out of jobs in the same way, because the skill sets that are required here means we need to have a single career path for these individuals to continue to grow. And that will be an area that we will want to come back and talk with you about because today the way that we do that career development doesn't necessarily allow us to keep people in a single path and move them up progressively, it tends to move them around from position to position. So, that is an area that we will be back to you. The third area is that we are going to have to find a way to be able to recruit individuals at the more senior levels to be able to supplement. We are not going to be able to grow everybody from within. And that is an area where we are going to have to look at our existing programs to see what we can do from a competitive salary perspective. We can get a lot of good people because the national mission is important, but at the same time we are going to have to look at what those sources of individuals would be and that would be as I say not only looking at our university systems and being able to grow them, but also what will it take to recruit some of them from the outside. Mr. Langevin. Thank you. Further, you know, to talk about this issue of integration, how are you planning to integrate our total force capability such as those resident in the National Guard cyber units into a comprehensive CYBERCOM approach, particularly with regard to command and control and authorities? Ms. Takai. Let me start and then ask General Alexander to comment on this as well. We believe that the National Guard does provide a great opportunity to actually look at being able to look at other forces. So for instance, particularly in areas like Washington, particularly around Redmond, and in the areas of Silicon Valley, we know already that we have individuals that are in the National Guard that are highly capable. The key thing I think is to make sure that as we utilize the National Guard, we are doing it in not only a uniform way but we are doing it in a way so that we have the advantage in two senses. One is that it is integrated with the entire cyber approach that General Alexander is going to speak to. But second of all, that as we are moving people through there and as we are actually utilizing them in different settings, that again they are going to be operating in the same way, they are going to be able to be integrated rather than them having sort of a separate approach to the way they are doing the training and not be able to call them in when they are needed. But General Alexander, let me have you also talk to how they are going to fit within your teams. General Alexander. Congressman, I would add also the great teams in Rhode Island, Texas and Nevada, just to get all three of them out. Mr. Langevin. The 102nd in Rhode Island. General Alexander. And of course, I know Ms. Takai wanted me to mention those. We sat down with the National Guard a couple weeks ago. We have had our first Guard exercise last summer. We will have another one this summer. As Ms. Takai said, we are training everybody to the same standard. My comments to them is, look, your folks have to be trained and certified to the same standards as the Active Force. Our focus would initially be on the cyber protection teams that they would create. And I think they will focus on regional teams. The 10 regions of the Guard, create those teams first, train them and operate them. See what their role and relationship would be working with us, DHS, FBI and NORTHCOM [Northern Command] defense support to civil authorities. There are some great things that we can do. We will also create some offensive teams and some of the Guard units are already doing that. I talked to General Grass today on this topic. He, General Jacobi and I will meet next Tuesday and perhaps we are going to meet right now. That must be him calling in. We will meet next Tuesday to actually lay out a transparent program so the service chiefs see what we are buying. We want to make sure that this is a program the service chiefs sign up to because parts of this are going to be in their budget and we want to make sure that everybody is transparent in what we are getting here. So that is the process. There is a Cyber Guard exercise coming up. I think those are some of the things that you and some of the other members may be very interested in; you are welcome to attend parts of that. Mr. Langevin. Thank you. I am very impressed with the work of the National Guard and as you have mentioned we have the 102nd in Rhode Island that is actively working with various aspects of cyber, particularly with the 24th Air Force. I have had the ability to get down to the 24th Air Force in Texas and visit with General Vautrinot there. And I know that they are working very closely with our Rhode Island National Guard in that respect. General, as always, we thank you for--and your team. Please pass on our appreciation to the extraordinary men and women under your command and also, Ms. Takai, at the Pentagon, for the work that they are doing, how dedicated they are, it is obviously very important. We want to do everything we can to support you and before I yield back I just want to thank the chairman for his partnership in this effort as well. There are very few people in the Congress--not enough--that focus on this issue of cybersecurity and I know, Chairman Thornberry, how much you put a lot of time and effort into this issue and there is not another Member of the Congress that has worked as hard on this issue as you have, so thank you. Mr. Thornberry. I appreciate it, Jim--obviously, the gentleman has been a leader in this for some time. Dr. Heck, do you have other questions? I just had two more things I wanted to ask about. General Alexander, to the extent you can talk about it in open session, this subcommittee has been interested before on tactical use of cyber in military operations. And I noted that part of your teams, the teams you are creating in Cyber Command, are those teams--some teams to support combatant commanders. And can you in this forum describe how that will work, to whom they will answer, how it will be decided what operations to carry out and whatnot, that sort of thing? General Alexander. Chairman, broadly speaking they are going to work at the strategic level, those combatant command [COCOM] mission teams will be directly focused on the COCOM requirements and answer to those requirements. We will have a deconfliction process that that combatant commander and myself will work together to make sure that if somebody else is working in that space we deconflict it, and that is logical so that you don't have two people working in the same space. That is different than the tactical service teams that we would create. So if you go into Iraq like in the past 10 years and look at what we did for our intelligence teams that support brigade combat teams, that was a huge success. In the future, you can imagine that we will eventually grow, at the tactical level, cyber teams that are part of those intelligence teams or working together with them to provide local cyber effects. They would have to be trained to the same standard, deconflict through a theater and others, just as we do other areas. But I think it would provide that. And then you can see that the Air Force and Navy would have tactical and operational level that would nest into what we are building at the combatant command level. So I think they will work as a team, think of that as a cryptologic architecture now for cyber going all the way down. And I think this provides us tremendous capability at the tactical edge. Mr. Thornberry. I fully agree, it does. I guess, what I haven't quite got my mind around is how you deconflict what you think is a tactical operation when there really is not geography in cyberspace. And so the equities that--part of our--my concern has been that if you want to have a tactical cyber operation, you basically have to have a full complement of all the agencies in Washington to hash it all out. And that is not very time efficient for cyberspace and just how that would work on a practical basis. I think we got to work our way through it. It is just something that I have been interested in and we have worked on from time to time. Do you have one---- Ms. Takai, we could not have a hearing without me asking a question about spectrum, because it is such an important part of what goes on. I know there was a recommendation for sharing spectrum as a possible, I don't know solution, but as a possible step that could increase spectrum for anybody. Do you have any comments on that recommendation? Ms. Takai. Yes, sir, and I was wondering whether we would get to the spectrum question or not, so here we are. We actually feel very strongly that it is important that we look at spectrum-sharing as a possibility. I think the report that you are referring to is probably the President's PCAST [President's Council of Advisers on Science and Technology] report that suggested that we have to look at spectrum-sharing going forward. We are participating now in five different working groups that are being led by the NTIA [National Telecommunications and Information Administration] to look at different areas of spectrum-sharing. And we actually have had success in spectrum-sharing. We have had an instance where we have been able to actually use and be able to share with a medical device, a medical alert device for some of the areas. So we do believe that there are opportunities. But with that, spectrum-sharing has its challenges. It isn't a new concept; it is certainly just coming to light now because of the severe pressure on spectrum. There are several different ways to do it. One of them is geographic, where you look at exclusion zones. The difficulty for us in certain bands, like the 1755 to 1850 band, is that the exclusion zones would actually be in the same areas that the commercial providers are interested in. So we have to look at that. The second thing is whether we could do it from a time standpoint. But again in 1755 to 1850 which we use very heavily for training in CONUS, that becomes difficult because we can't predict where in fact we are going to be in the timeframe we are going to be using it. So I think it is--there are great opportunities. I think we do need to explore and we are working and have signed some of the first ever MOUs [memorandums of understanding] with the some of the commercial companies to actually do some experimentation in certain geographic locations. But I think it is a step beyond where we can, you know, necessarily say we can go to say that spectrum-sharing is going to solve the problem. It is really a combination of where do we have to vacate, where will we need comparable spectrum, and then where are the areas that we can share now and then going into the future. Mr. Thornberry. Thank you. And thank you all again for your patience and for your brevity. We hit on a wide variety of topics today and that was very helpful. And as the gentleman from Rhode Island said, we appreciate each of you and the folks who work with you and what they do for the country. With that the hearing stands adjourned. [Whereupon, at 5:05 p.m., the subcommittee was adjourned.] ======================================================================= A P P E N D I X March 13, 2013 ======================================================================= PREPARED STATEMENTS SUBMITTED FOR THE RECORD March 13, 2013 ======================================================================= [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ======================================================================= WITNESS RESPONSES TO QUESTIONS ASKED DURING THE HEARING March 13, 2013 ======================================================================= RESPONSE TO QUESTION SUBMITTED BY MR. THORNBERRY Ms. Takai. Response to DSB Report on Resiliency: The Defense Science Board (DSB) report entitled, ``Resilient Military Systems and the Advanced Cyber Threat'' makes a series of recommendations. There is significant effort in the CIO, USCYBERCOM, and NSA mission spaces already happening or planned in each recommendation area. Below are short summaries of the major DSB recommendations, and examples of ongoing and planned work to meet them. This list does not include efforts outside of the CIO/USCYBERCOM/NSA area of responsibility. DSB Recommendation #1: Determine the Mix of Cyber, Protected- Conventional, and Nuclear Capabilities Necessary for Assured Operation in the Face of a Full-Spectrum Adversary (DSB report page 7). Secretary of Defense assign United States Strategic Command the task to ensure the availability of Nuclear Command, Control and Communications ([N]C3) and the Triad delivery platforms in the face of a full-spectrum Tier V-VI attack--including cyber (supply chain, insiders, communications, etc.) Examples of ongoing effortsMulti-level human intervention and off-line launch code authentications NSA-produced NC3 Information Assurance (IA) materials Stood up the Strategic and National C3 and Intelligence (SNC3I) Joint Systems Engineering & Integration Office (JSEIO) to do end-to-end engineering of NC3 CIO & USD(AT&L) signed DODI 5200.44 which institutionalizes supply chain risk management in acquisition and sustainment CIO & USD(AT&L) assisting STRATCOM in application of supply chain risk management (SCRM) to its key programs DSB Recommendation #2: Determine the Mix of Cyber, Protected- Conventional, and Nuclear Capabilities Necessary for Assured Operation in the Face of a Full-Spectrum Adversary (DSB report page 7). SECDEF and Chairman, Joint Chiefs of Staff (CJCS) designate a mix of forces necessary for assured operation . . . . Segment Sufficient Forces to Assure Mission Execution in a Cyber Environment Examples of ongoing efforts Established Cyber National Mission Force-trained and certified teams Implementing the Joint Information Environment (JIE) to improve cyber defense and resilience of unclassified and secret networks for better protected conventional capabilities Increased funding for cyber capability development (on- hold for sequestration and Continuing Resolution) NSA collection and analysis critical to understanding adversary DSB Recommendation #3: Refocus Intelligence Collection and Analysis to Understand Adversarial Cyber Capabilities, Plans and Intentions, and to Enable Counterstrategies (DSB report page 8). SECDEF in coordination with the Directors of CIA, FBI, and DHS, should require the Director of National Intelligence (DNI) to support enhanced intelligence collection and analysis on high-end cyber threats Examples of ongoing efforts Improving threat information sharing in real-time across USG Increased Intelligence Community (IC)/NSA focus on cyberspace operations support Increased ``hunting'' on blue networks Cyber integrees from NSA/USCYBERCOM at FBI, CIA, and DHS; and vice versa DSB Recommendation #4: Build and Maintain World-Class Cyber Offensive Capabilities (with appropriate authorities) (DSB report page 9). United States Cyber Command (USCYBERCOM) develop capability to model, game and train for full-scale cyber warfare. Under Secretary of Defense for Personnel and Readiness (USD(P&R)) establish a formal career path for civilian and military personnel engaged in offensive cyber actions. Examples of ongoing efforts Established Cyber National Mission Force (Cyber National Mission Teams and Combatant Command Mission Teams) Cyberspace operations-focused training exercises (Cyber Flag, Cyber Guard, and Cyber Knight) CJCS cyber emergency action conferences DSB Recommendation #5: Enhance Defenses to Protect Against Low and Mid-Tier Threats (DSB report page 9). The DOD should establish an enterprise security architecture, including appropriate ``Building Codes and Standards'', that ensure the availability of enabling enterprise missions . . . . The DOD should leverage commercial technologies to automate portions of network maintenance and ``real-time'' mitigation of detected malware . . . . USD(P&R), in Collaboration with the DOD CIO and the Service Chiefs Establish a Formal Career Path for DOD Civilian and Military Personnel Engaged in Cyber Defense Examples of ongoing efforts Developed JIE enterprise security architecture for unclassified, secret, and coalition networks Migrating all internet-facing servers into a separate zone to isolate and contain attacks Improving SIPRNET/Coalition/Federal gateways and NIPRNET/ Internet boundary defenses Developing a Department-wide Cyber Workforce Strategy that includes military and civilian qualifications and career paths Automating continuous monitoring of cyber vulnerability via use of the already deployed Host-Based Security System (HBSS) DSB Recommendation #6: Change DOD's Culture Regarding Cyber and Cyber Security (DSB report page 10). Commander, USCYBERCOM and the DOD CIO establish a plan with measurable milestones and flow down to all organization elements. Examples of ongoing efforts Creating a capstone Cyber Defense strategy document, describing strategic imperatives that will change behavior, culture, operations, and intelligence support (e.g., Defending DOD Networks, Systems, and Data: Strategic Choices for 2020) Conducting annual IA training across the DOD Simulating ``Phish-me'' exercises and other real life exercises Providing each organization and its chain of command an automated cyber risk score via continuous monitoring DSB Recommendation #7: Build a Cyber Resilient Force (DSB report page 11). DEPSECDEF should direct specific actions to introduce cyber resiliency requirements throughout DOD force structure. For programs not part of the segmented force, provide a cyber standard set of requirements (expected to be a subset of the critical program requirements list) to be applied to all DOD programs (USD(AT&L), DOD CIO, SAEs)) Develop DOD-wide cyber technical workforce to support the build out of the cyber critical survivable mission capability and rolled out to DOD force structure (USD(AT&L), CIO, SAEs, DOT&E, USD(I), USD(P&R)). Examples of ongoing efforts DOD CIO and USCYBERCOM identifying key cyber terrain and infrastructure that supports critical C4 systems and assets in order to assure mission execution while under degraded cyber conditions Developing Resiliency Framework criteria that helps delineate requirements for contracts and that can be used in the acquisition process Creating Cyber security Implementation Guidebook to assist acquisition program managers in successfully implementing cyber security requirements (with AT&L) Use of Cyber Ranges for simulated live fire cyber security exercises with active Red Team participation [See page 9.] ? ======================================================================= QUESTIONS SUBMITTED BY MEMBERS POST HEARING March 13, 2013 ======================================================================= QUESTIONS SUBMITTED BY MR. THORNBERRY Mr. Thornberry. Will you comment on requirements and guidelines being generated by CYBERCOM with respect to an insider threat program? How do you prevent implementation of this policy devolving into a mere ``check the box'' requirement that does little to enhance our security? The FY13 NDAA included language on next generation host-based security solutions and mentioned insider threat mitigation as one of those capabilities that needed to be addressed in this context. Are CYBERCOM's guidelines going to specify that established host-based solutions are required to satisfy the enterprise monitoring and audit requirements? As a part of your overall risk mitigation strategy, which networks will your requirements cover in terms of Insider Threat Monitoring? General Alexander. USCYBERCOM has developed requirements for implementation of insider threat capabilities on DOD networks in coordination with the National Insider Threat Task Force (NITTF) and the Comprehensive National Cybersecurity Initiative to develop and implement a government-wide Cyber Counterintelligence Plan (CNCI 6) to achieve the objectives described in the FY13 NDAA. These insider threat requirements include auditing and monitoring, insider threat awareness and training, foreign travel and contact reporting, polygraphs, personnel security, evaluation, analysis, and reporting and security incident reporting and evaluation. This provides a comprehensive defense-in-depth strategy for the detection of and protection from the insider threat. In addition, these capabilities will deter malicious insider activity. The comprehensiveness of this approach prevents the policy from becoming a ``check the box'' requirement. USCYBERCOM directives as spelled out in OPORD 12-106 specify that host-based solutions are required to satisfy the enterprise monitoring and audit requirements. All U.S. owned and operated DOD Non-secure Internet Protocol Router Network (NIPRNET) and Secret Internet Protocol Router Network (SIPRNET) networks are covered by these requirements for host- based security and insider threat monitoring. Mr. Thornberry. What progress has DOD made in improving the agility and flexibility of the IT acquisition process? Ms. McGrath. DOD has taken a number of important steps to improve the agility and flexibility of our IT acquisition processes both through policy and through proactive involvement with active IT acquisition programs. A common theme of these efforts has been to tailor the processes to the unique attributes of IT in a way that speeds delivery of capability into the hands of our users. One important development has been the adoption of an acquisition model tailored for defense business systems. This alternative acquisition model provides a comprehensive process that aligns requirements, investment, and acquisition processes for defense business systems under an integrated governance framework and focuses on incremental delivery of capability, within eighteen months of program initiation. This incremental approach improves control over cost, schedule and performance requirements. The Under Secretary of Defense (Acquisition, Technology & Logistics) issued implementing policy for this model in the summer of 2011 and the guidance was incorporated into the Defense Acquisition Guidebook in the fall of 2012. This policy is being incorporated into the next update of the DOD 5000.02 acquisition instruction. The Defense Enterprise Accounting and Management System (DEAMS), an Air Force financial management program, was the first program to achieve an acquisition decision under this new policy and we are in the process of transitioning several other major IT programs to this new approach as well. Through the use of this approach, DEAMS has integrated traditionally stove-piped processes and enabled tight integration between the functional sponsor and the program office. We continue to conduct targeted outreach with Program Managers, Functional Sponsors, and Program Executive Officers on this new policy, and are working with the Defense Acquisition University to embed the new process into appropriate curriculum. Mr. Thornberry. In the FY12 NDAA, this committee directed the establishment of an insider threat detection program. Can you please describe the current status of this effort, which is supposed to achieve full operational capability later this year? Ms. Takai. DOD has been actively participating in National Insider Threat Task Force (NITTF) addressing government-wide insider threat issue--consistent with EO 13587, ``Structural Reforms to Improve the Security of Classified Networks and the Responsible Sharing and Safeguarding of Classified Information.'' The NITTF issued implementation guidance of EO 13587 via Presidential memo on Nov 21, 2012. Internally, DOD has: instituted read/write controls for external secret computer access ports and restrictions and audits of removable media (USBs, etc.,); driven out anonymity and instituted access control through public key infrastructure (PKI) implementation; and improved our ability to detect anomalous or malicious behavior on the DOD's secret network. o Provides limited ability to discern data access that signal exceptions to normal data access. o Provides full packet capture in order to discern patterns of malicious activity and allow for the investigation of incidents. Mr. Thornberry. How will the Joint Information Enterprise (JIE) interact with other major IT related initiatives, like the Defense Intelligence Information Enterprise or electronic health records interoperability? Will it be interoperable with the networks of the Intelligence Community? Ms. Takai. The DOD CIO is leading the DOD's IT effectiveness effort to achieve the Joint Information Environment (JIE) and the Director of National Intelligence CIO is leading a similar effort of the Intelligence Community Information Technology Enterprise. Both CIO's share common objectives and end-states, and actively participate on each other's governance boards, standards and architect forums, and Identity Management and data framework forums. Both CIO's recently established a Joint Information Standards Committee (JESC), and a directed policy governing the reuse of standards and specifications between the two communities to ensure interoperability and information sharing. The Defense Intelligence Information Enterprise (DI2E) is a unifying construct between the Department of Defense, the Intelligence Community (IC), and coalition Intelligence Information Enterprises, and aligns with the Intelligence Community IT Enterprise (ICITE) and DOD Joint Information Enterprise (JIE) policy and strategy. The DI2E Governance Council oversees development and implementation of a DI2E that is standardized, secure, optimized and interoperable, that aligns with DOD, IC and Coalition IT Enterprises. The Council coordinates on similar efforts by the IC Chief Information Officer (CIO), the DOD CIO, and the Defense Information Systems Agency (DISA) to ensure intelligence information integration across all security domains, including top secret, secret, unclassified, and various coalition fabrics. It enables seamless theater intelligence architectures and achieves efficiencies across the Defense Intelligence enterprise by recommending cost saving measures. With respect to electronic health records interoperability, DOD is establishing a Medical Community of Interest (Med-COI) virtual network, under the auspices of JIE and its single security architecture. The Med-COI, using the JIE architectural construct, will provide enterprise services and operate within the secure and protected DOD Global Information Grid (GIG). This capability will support unhindered and timely data access of patient records for DOD and VA clinicians and adjudication of VA Benefit claims. Mr. Thornberry. What role does the Cyber Investment Management Board (CIMB) play in decisions related to the JIE, especially with decisions related to service-specific system and network acquisitions? Ms. Takai. The CIMB is an advisory and management body, established to facilitate cohesion across S&T, requirements, acquisition, R&D, T&E, and sustainment efforts to ensure that cyber warfare investments are effectively coordinated across the Department. In this capacity, the CIMB is intended to provide a framework to make resourcing prioritization recommendations consistent with established JIE milestones. Mr. Thornberry. In discussing the Joint Information Environment (JIE), there seems to be a lot that is aspirational with this construct, but you will be limited by the current network environment that you have. How does DOD plan to get from the current ``as-is'' state to the ideal ``to-be'' state? Ms. Takai. DOD is continually modernizing its IT infrastructure and systems, and has several ``network'' initiatives on-going (i.e., LANDWARNET, AFNET, NGEN, etc.) that are focused on achieving the same objectives as JIE for the individual Military Services. JIE effort will leverage their already planned activities and technology refresh cycles to optimize the current network environment to our desired ``to-be'' state from an enterprise perspective. At the enterprise level, DISA has planned upgrades of the Defense Information Systems Network (DISN) consistent with the target architecture for the JIE, to include the replacement of circuit-based switches with IP-enabled technologies, and replacement of legacy transport routing to Multiprotocol Label Switching (MPLS). The detailed solution architectures for the JIE are scheduled for completion in June 2013, and are being incorporated into Component programming activities for FY15 and beyond. The Department's JIE Technical Synchronization Office (JTSO) is developing a consolidated synchronization plan in conjunction with other DOD Components. Mr. Thornberry. Last year, the House Oversight and Government Reform committee introduced the Federal Information Technology Acquisition Reform Act (FITARA). Are you familiar with this proposed legislation? If so, what thoughts do you have on how this might affect DOD equities? Ms. Takai. I am aware of the some of the provisions of last year's draft bill, as well as the current version that was introduced earlier this year. I believe because of the complexity of the Department's missions, we will need to examine the legislation carefully to ensure that it does not undo important relationships we have developed between the Office of the Secretary of Defense and the Services and Agencies as well as introduce new or overlapping requirements for the Department for its IT investments. Mr. Thornberry. Following the termination of the Net-Enabled Command Capability (NECC), what is the Department doing to modernize its command and control capabilities? Ms. Takai. The Department is executing a sustainment and modernization plan to evolve the current Global Command and Control System (GCCS) family of systems and related command and control programs to improve mission effectiveness, achieve efficiencies, and provide required command and control capabilities to the joint warfighter. Our sustainment and modernization efforts will ensure support to current operational priorities while migrating to objective capabilities described in the recently updated Joint C2 Capability Development Document (CDD). Mr. Thornberry. How do you plan to address ``Bring-Your-Own- Device'' (BYOD) policy and the use of cloud technologies? Also, how can DOD keep up with the rate of technological change while using the DFAR? Are current acquisition reform efforts sufficient? Ms. Takai. Bring Your Own Device (BYOD) and portable cloud services are emerging trends in commercial industry. Many issues must be addressed before the DOD can embrace these technologies, such as overcoming existing DOD policy constraints, understanding the various operational use scenarios, examining potential security vulnerabilities, and avoiding potential legal issues that surround BYOD solutions. My office published the DOD Mobile Device Strategy on June 8, 2012, and the DOD Commercial Mobile Device Implementation Plan on February 15, 2013, with the focus on improving three areas that are critical to mobility: 1) the networking infrastructure to support wireless mobile devices, 2) mobile applications, and 3) a framework that will allow the Department to sustain a commercial mobile solution that is reliable, secure, and flexible enough to keep pace with fast- changing technology. The DOD CIO will continue to monitor BYOD efforts across our Federal Government and, in conjunction with the Digital Government Strategy, will continue to evaluate BYOD options. Cloud Computing is becoming a critical component of the Joint Information Environment (JIE) and the Department's Information Technology (IT) modernization efforts and will enable users the access to data anywhere, anytime on any approved device. One key objective is to drive the delivery and adoption of a secure, dependable, resilient multi-provider enterprise cloud computing environment that will enhance mission effectiveness and improve IT efficiencies. Cloud services will enhance warfighter mobility by providing secure access to mission data and enterprise services regardless of where the user is located and what device he or she uses. My office recently issued the DOD Cloud Computing Strategy to provide an approach to move the Department to an end state that is an agile, secure, and cost effective service environment that can rapidly respond to changing mission needs. There are two key components of the Department's cloud strategy. The first component is the establishment of a private enterprise cloud infrastructure that supports the full range of DOD activities in unclassified and classified environments and optimizes data center consolidation efforts. The second is the Department's adoption of commercial cloud services that can meet the Department's cybersecurity and other IT needs while providing capabilities that are at least as effective and efficient as those provided internally. The Defense Information Systems Agency (DISA) is designated the DOD Enterprise Cloud Service Broker to facilitate and optimize access and use of commercial cloud services that can meet DOD's security and interoperability requirements, and ensure that new services are not duplicative of others within the Department while consolidating cloud service demand at an enterprise level. In addition, DISA, as the DOD broker, will leverage the Federal Risk Authorization and Management Program (FedRAMP) standardized security authorization process, including the accepted minimum security baseline for low and moderate information security categorizations, and ongoing continuous monitoring to ensure that appropriate security controls remain in place and are functioning properly. Current acquisition reform efforts offer opportunities to accelerate the adoption of commercial technologies. In many respects, despite their rapid evolution, mobility solutions are much like other traditional IT systems that empower users and managers with the tools and information they need to execute their missions. Our strategy of integrating well-orchestrated limited deployment pilot implementations allows users and managers to rapidly innovate, mature critical technologies, and resolve integration challenges to swiftly address mission challenges. The Implementation Plan incorporates many of the Services technology development efforts in a spiral approach with an 18-month acquisition cycle. The Implementation Plan streamlines the certification and accreditation (C&A) process for mobile devices, operating systems, and applications. Sharing the workload with industry will bring the timeline for C&A down from over 18 months to about 30 days with no reduction in security posture. Though the platforms will continue to evolve, we have the same commitment to systematic acquisition practices that serve the defense community most effectively. We continue to review the mobility acquisition lifecycle for efficiency opportunities. Mr. Thornberry. Would you tell us how much funding has been set aside to assist DOD organizations in establishing Insider Threat Programs in accordance with the recent Presidential Mandate, Memo, and National Insider Threat Standards? Further, who will be the organization responsible for identifying and distributing the necessary funding to each DOD entity? Who will be on point from your office to ensure the funding is being appropriately spent on the Insider Threat Mission within each DOD entity? Are there additional monies coming from the ODNI or the Office of the National Counterintelligence Executive (NCIX) for Enterprise Audit and Insider Threat missions? Ms. Takai. The Department initially programmed $162M, FY12-16, in order to satisfy the Executive Order 13587 requirements. The Department is assessing the need for additional resources to address the insider threat as part of our FY 15 budget deliberations. The Defense Information Systems Agency (DISA) and the Defense Manpower Data Center (DMDC) are the responsible implementing agencies for the initial $162M. My office is overseeing implementation of the budgeted and programmed funds provided to date. The Department is developing the necessary policy and responsibilities required under the Presidential mandate issued November 21, 2012. Regarding additional monies, there has been limited funding provided to a number of our Title 50 elements by ODNI and NCIX in FY 11 and 12. We don't anticipate any additional funding from ODNI or NCIX. Mr. Thornberry. Does the Department have a strategy to leverage commercial cyber security solutions to enable it to benefit from such capabilities as real time, global threat intelligence that has been optimized to work in highly sensitive environments? Who in the Department is responsible for the operational requirements, technical requirements, funding and acquisition? When does the Department plan to start executing against each of these requirements? Ms. Takai. Yes, for instance, initial funding was secured beginning in FY 14, under the program name ``Zero day Network Defense'' (ZND) which consists of commercial tools to be acquired and deployed in partnership between the Defense Information Systems Agency (DISA) and NSA to provide this defensive capability at the DOD perimeter, and on classified end point systems. While unclassified systems are just beginning to use this technology from commercial vendors, we are currently seeking funding to expand the ZND capability to unclassified networks and develop a Global Reputation Service that will be capable of ingesting information from commercial vendors, as well as government sources. The requirements for this capability were derived from multiple sources, including the Cyber Situational Awareness Initial Capabilities Document with input from all DOD components and agencies. ______ QUESTIONS SUBMITTED BY MR. LANGEVIN Mr. Langevin. General Alexander, in testimony before the Senate Armed Services Committee on Tuesday, you noted the creation of 13 teams with an offensive focus. Given that cyber in many cases requires preparatory work in order to access the full range of capabilities, how forward-leaning will these teams be? What training will you be providing to the identified mission teams and to other personnel who are being assigned to cyber work? Do you require additional authorities or resources in order to fully train the men and women under your command, particularly with regard to language skills, emulation and red-teaming? General Alexander. USCYBERCOM identified 42 specific work roles and the standards and skills required for planning and executing cyberspace operations. We worked with the National Security Agency, Service Departments, academia, and the private sector to leverage existing training solutions and created new ones, as appropriate, to train the personnel assigned to those work roles (see Exhibit A for additional detail.) Over the next three years we will train the Cyber Mission Forces that will perform world-class offensive and defensive cyber operations as part of our Cyber National Mission Teams, Cyber Combat Mission Teams and Cyber Protection Forces. We do not require additional authorities or resources to train the currently identified cyber professionals. [Exhibit A is For Official Use Only and is retained in the committee files.] Mr. Langevin. Ms. Takai, what progress has DOD made in improving the agility and flexibility of the IT acquisition process, and is there additional Congressional action needed? Ms. Takai. There are unique characteristics associated with the acquisition of information systems that require the use of acquisition approaches different from those normally used by the Department for acquiring weapons systems. All acquisition approaches should be tailored to the nature of the product being acquired. For example, information systems (e.g. business systems) do not require significant technology development like many weapons systems and they do not have the long term operations and support challenges facing most weapons systems. The Department has made steady progress in implementing several of the key approaches for improving the agility and flexibility of the IT acquisition process in the areas of requirements, acquisition, testing and certification and human capital. Many of these efforts will be captured in the next release of DODI 5000.02, ``Operation of the Defense Acquisition System'' including: Requirements: The Joint Staff has updated the requirements management process (Joint Capability Integration and Development System (JCIDS) to include a more streamlined requirements management and approval process for acquisition of information systems. Acquisition: On June 23, 2011, a Directive-Type Memorandum (DTM) on Business Capability Lifecycle (BCL) was signed and issued by USD (AT&L). The BCL provides a framework for implementing more flexible and streamlined processes for the acquisition of these business information systems and has been incorporated into the next release of DOD 5000.2. Test and Certification: The Department's testing community has been working in collaboration with USD (AT&L) to incorporate an integrated testing, evaluation, and certification approach into the DODI 5000.02, to reduce redundancies in system testing activities and improve the efficiency and effectiveness of testing the Department's information systems. Human Capital: A comprehensive review of IT acquisition competencies is also currently being conducted by the Department's Chief Information Officer. This review will update the IT acquisition competencies to better define DOD critical skill sets and assist in the update of curricula at the Defense Acquisition University and the Information Resources Management College. ______ QUESTIONS SUBMITTED BY MR. ROGERS Mr. Rogers. Ms. Takai, could you please explain the Department's decisionmaking process for when to use ``sole source'' and ``brand name only'' solicitations, such as those run under the Air Force's NETCENTS- 1 and NETCENTS-2 contracts? Ms. Takai. The vast majority of procurements through the NETCENTS vehicles are accomplished via a competitive process. In the rare event that a sole source or specific brand name is required, appropriate Justification and Approval documentation is prepared and approved at a level commensurate with the dollar value of the proposed procurement. Mr. Rogers. What steps does DOD take to meet the statutory requirements of FAR sec. 6.303 and/or FAR sec. 16.505, as applicable, that are the prerequisites for a sole source and/or brand name product procurement, single name product procurement, including the necessity to conduct open procurements, determine minimum needs, and solicit the interest of manufacturers or prospective offerors? Ms. Takai. All DOD requiring officials must follow and adhere to applicable procurement policies in accordance with the Defense Federal Acquisition Regulation Supplement (DFARS), which is regularly revised to ensure alignment with the Federal Acquisition Regulations (FAR) as well as other regulations and statutes. DFARS subpart 216.5 requires that all orders for supplies or services exceeding $150,000 that are placed under multiple award contracts be awarded on a competitive basis with fair notice given to vendors of the intent to purchase, and an opportunity for all vendors to submit offers and receive fair consideration. There are allowable exceptions that must be based on justifications and/or determinations written and approved in accordance with FAR 8.405-6; if a statute requires the purchase be made from a particular source, or if one of the circumstances described in FAR 16.505 (b) (2) (i) through (iv) applies. DOD contracting officers must always consider price or cost as factors when selecting a vendor for award, and should also consider past performance of potential vendors. As an overview, the steps followed to award in DOD include: 1) system engineering analysis to determine requirements, 2) market research to determine what products are available to satisfy those requirements, and 3) written documentation via a determination or Justification and Approval of anything less than full and open competition (including specification of a particular brand name product). Even when a particular brand name product is required and justified, there is an expectation of competition if there are multiple competing resellers of that same brand name product. Mr. Rogers. When the requirements of FAR sec. 6.303 and/or FAR sec. 16.505, as applicable, are determined not to have been met, what remedial steps are in place to make sure these requirements are considered? Ms. Takai. There are many stages at which such a determination might be made, such as: by the program manager after market research activities, by the contracting officer or the contracting activity's Competition Advocate prior to solicitation and/or award or by the Government Accountability Office after an unsuccessful vendor files an appeal. There are different remedial steps for each scenario. Standard DOD acquisition and procurement procedures contain safeguards and checkpoints at multiple levels to ensure that any proposed exceptions to the competition rules are fully vetted and adequately justified. DOD contracting officers must make public the justification(s) required by FAR 6.303-1 in accordance with FAR 5.3 and as required by law. If a prospective (or unsuccessful) offeror believes that the procedures described in the FAR and/or DFARS have not been followed, they will generally contact the contracting officer who has responsibility for the acquisition, or the contracting activity's parent organization. If warranted, the contracting officer can then cancel the procurement activity--or issue a ``stop work'' order to study the situation (if the contract has already been awarded). In order to meet the requirements of the requesting office, the contracting officer may reshape the procurement into a competition among multiple vendors under a pre- existing contract vehicle, or pursue full and open competition among all vendors of a particular type/class of capability. Mr. Rogers. What process does DOD use in deciding to standardize on particular technology, and how does such standardization further the goal of maintaining a competitive procurement process which is essential to reducing costs in government procurements? Does that process flow down to how the Services make similar decisions? Ms. Takai. When there are clearly definable minimum functional/ technical standards that are available and necessary to attain a required capability, the DOD CIO will assemble a cross-Component ``tiger team'' (including Acquisition personnel) to translate those standards into requirements suitable for release of an Request for Quotes (RFQ) or a Request for Proposals (RFP) to industry. For example, when data-at-rest (DAR) software was initially identified as an urgent requirement for all DOD laptops and portable computers, the Defense- Wide Information Assurance Program (DIAP) assembled such a tiger team to flesh out the applicable required specifications. Then they partnered with the DOD ESI Software Product Manager team from USAF to translate these specifications into an industry solicitation that resulted in the creation of DOD ESI Blanket Purchase Agreements from 10 different publishers of DAR software. By DOD CIO policy, all DOD buyers of DAR software were required to buy DAR software only through one of these agreements. Competition among the resellers generally resulted in lower prices, and the DIAP certified that all purchased products met both the functional & technical standards. ______ QUESTIONS SUBMITTED BY MR. FRANKS Mr. Franks. General Alexander, I want to thank you for your service and leading such important missions with USCYBERCOM and the NSA. I am a strong believer that our military is, and should always be, better than the rest of the world's armed forces, and that we should never be entering fair fights. With that in mind, and the introduction of these new offensive cyber teams, and the fact that cyber threats are a relatively new phenomenon, how much better are we on offense, and defense in the cyber realm as compared to our enemies. General Alexander. We believe our offense is the best in the world. Cyber offense requires a deep, persistent and pervasive presence on adversary networks in order to precisely deliver effects. We maintain that access, gain deep understanding of the adversary, and develop offensive capabilities through the advanced skills and tradecraft of our analysts, operators and developers. When authorized to deliver offensive cyber effects, our technological and operational superiority delivers unparalleled effects against our adversaries systems. Team Cyber is constantly increasing its operational and analytic defensive capabilities through the adoption and use of standards to facilitate domain knowledge representation and information sharing across the community. In addition, the use of standards ensures compatibility with technologies commonly available in the public domain and allows for the rapid integration of new functional capabilities to avoid long-term engineering and development cycles. Potential adversaries are demonstrating a rapidly increasing level of sophistication in their offensive cyber capabilities and tactics. In order for the Department of Defense to deny these adversaries an asymmetric advantage, it is essential that we continue the rapid development and resourcing of our Cyber Mission Forces. Mr. Franks. General Alexander, last year I asked you a question: How prepared are we to carry out your mission if the power grid or substantial part of it were to go down for an extended period of time? For example, two weeks or longer due to severe space weather or a manmade electromagnetic pulse. Your answer included that fact that much of DOD's cyberspace is served through commercial providers. Do you feel that the power and electricity needed to carry out your mission is important enough to require those commercial providers of the power grid to successfully harden their grid from severe space weather or manmade electromagnetic pulse? Can the DOD require that of commercial providers of the grid? Do you feel that this issue is important enough that legislation is needed to force the hand of industry to act? General Alexander. While I absolutely agree with the criticality of cyber hardening the power grid, I also believe any legislative solution has to take into account the prohibitive costs associated with doing so given its antiquated state. I believe the activities underway through the President's EO 13636 ``Improving Critical Infrastructure Cybersecurity'' and PPD-21 ``Critical Infrastructure Security and Resilience'' are a good first step. Legislation which builds upon these activities by providing the right set of incentives would be invaluable. From an NSA and CYBERCOM perspective, it is also critical that Congress pass information sharing legislation that enables effective two-way sharing of cyber threat information and countermeasures between the private sector and the USG. By effective two-way sharing, I mean that the government needs to know, in real time, when there are indications of cyber intrusions or attacks against the nation's critical infrastructure, and the government needs to be able to share in real time, indications and warnings of attacks and associated countermeasures that the private sector needs to protect their networks. Given the authority to share information, the ISPs could act as a domestic radar that can see cyber threats and tip and queue the government to respond in real time.