Government Role and Actions in Upgrading Homeland Security Presented by Ed Badolato, Executive VP, Homeland Securi

1. �Government Role and Actions in Upgrading Homeland Security�Presented byEd Badolato, Executive VP, Homeland Security The Shaw Group  2004 Tulane Engineering Forum Advanced Technologies for Homeland Security December 9, 2004 New Orleans Hilton

3. DHS Key Players Infrastructure Protection �Gen Frank Libutti Research & Technology �Charles McQueary Transportation Security, Border Control, Customs, Immigration �Asa Hutchinson Emergency Preparedness �Mike Brown Management �Janet Hale

4. Government-Industry Interface ISACs Homeland Security Advisory Groups

5. Information Sharing & Analysis Centers (ISACs) Created by Presidential Decision Directive 63--called for the creation of private sector ISACs to protect the infrastructure from attack. The services provided by the ISACS Cyber and physical security capability for owners, operators, and users of critical infrastructure. Collects, analyzes and distributes critical security and threat information from worldwide resources Provide a secure reporting and analytical capability that, in addition to transmitting critical alerts, advisories and solutions, also provides a vehicle for the anonymous or attributable sharing of incident, threat, and vulnerability data among members. Provides access to information and analytical reporting other sources, such as U.S. and foreign governments; law enforcement agencies, technology providers and international computer emergency response teams (CERTs).

6. Homeland Security Advisory Groups The Homeland Security Advisory Council (HSAC ) Four senior subcommittees report to HSAC covering issues related to emergency response, state and local government, the private sector, and academic and policy research State and Local Officials Senior Advisory Committee (SLSAC )

7. DHS� Internal Organization for Business Security Mission of DHS� Private Sector Office DHS Policy for Working with Industry Contacting the Private Sector Office

8. 10 Industry Questions on Homeland Security What is my responsibility in homeland security? What does my community expect from me should an event occur? What can I offer to help with my �homeland�s� security (local, regional, national)? What is �my plan� in the event of an emergency (natural or terrorism)? How can my enterprise help with prevention and/or response efforts? Who are my partners in �homeland� security? Are my employees, colleagues and customers prepared for an �event�? What makes me a target or vulnerable to harm? What can I do to secure my company�s interests and operations? Am I ready?

9. DHS Policy for Working with Industry �Homeland Security is not a federal activity. It is a national effort that requires every sector to work together with respect, cooperation, and open communications�

10. Mission of DHS� Private Sector Office Works directly with individual businesses, trade associations, and other professional and non-governmental organizations to share DHS information, programs, and partnership opportunities. Provides the business community a direct line of communication to DHS Organized into five components: � Border and Transportation Security; Emergency Preparedness and Response; Science & Technology; Information Analysis & Infrastructure Protection Regulation Review and Analysis. � Each component works to: foster communications between the DHS and private sector provide guidance to the Secretary on prospective policies and regulations and their impact upon this community work with federal labs, research and development centers and academia to develop innovative approaches and technologies promote public-private partnerships and best practices

11. Public-Private Cooperation The challenge is enhancing security while enabling business and commerce to proceed efficiently Both the public and private sectors need to work together: Assessment: DHS must form a comprehensive national threat and vulnerability assessment of our nation�s critical infrastructure. This depends upon cooperation from the private sector, as businesses must provide frank assessments of their own vulnerabilities Information-Sharing: Information must be shared on threats and risk assessments. More efficient systems of disseminating intelligence to the private sector should be developed, including the sharing of classified information; Incentives: Targeted incentives and assistance should be provided to owners and operators that undertake security upgrades. It is in the interests of businesses that they do more to protect themselves, and it is in the interest of the government to help the private sector succeed. Interaction is the key � sharing information, setting standards, and coordinating plans. Government must respect the limitations of what businesses can do--in terms of resources and security measures. But if we prioritize based upon the greatest risks and most vulnerable areas, we can enhance security in a cost-effective manner.

12. Private sector�s business model for working with DHS Use current technology instead of developing new technology. There is a growing gap between over-committed intelligence authorities and underpowered civilian agencies. Prime contractors are now trying to fill the gap between intelligence, law enforcement and civilian authorities, and adapt to a new DHS market, focusing on a few key markets: weapons of mass destruction, critical infrastructure protection, border security, and commercial aircraft protection. Currently, DHS is looking for mature solutions in bio-terror detection, intelligence gathering and analysis, border security, first-responder help, IT networking, and rapid information sharing. A major challenge for DHS and industry users is the lack of national standards. Private sector�s business model for working with with DHS The key to doing business with the Department of Homeland Security (DHS) is to use current technology instead of developing new technology. Planners at DHS are trying to prevent future terrorist attacks on US soil. Their challenge is a growing gap between over-committed intelligence authorities and underpowered civilian Agencies. Prime contractors are now trying to fill the gap between intelligence, law enforcment and civilian authorities, and adapt to a new DHS market, focusing on a few key markets: weapons of mass destruction, critical infrastructure protection, border security, and commercial aircraft protection. They are trying to transfer existing technology as opposed to developing new technology. This will change as HSARPA [Homeland Security Advanced Research Projects Agency] matures. But currently, DHS is looking for mature solutions in bio-terror detection, intelligence gathering and analysis, border security, first-responder help, IT networking, and rapid information sharing. There is a continuing need for systems integrators to build those finished platforms. In a few market sectors, engineers are acting as vertical integrators, assembling products for electro-optics, sonar, radar, or electronic warfare. In homeland security, the cost for us to develop chemical and biological agent sensors is prohibitive for the private sector, given the market size. So they go out and buy at the black box or subsystem level and form long-term partnerships with small companies or universities who have these new technologies. Then they bring the skills to ruggedize the design and do business the business development with the government." A major challenge for DHS and industry users is the lack of national standards. Private sector�s business model for working with with DHS The key to doing business with the Department of Homeland Security (DHS) is to use current technology instead of developing new technology. Planners at DHS are trying to prevent future terrorist attacks on US soil. Their challenge is a growing gap between over-committed intelligence authorities and underpowered civilian Agencies. Prime contractors are now trying to fill the gap between intelligence, law enforcment and civilian authorities, and adapt to a new DHS market, focusing on a few key markets: weapons of mass destruction, critical infrastructure protection, border security, and commercial aircraft protection. They are trying to transfer existing technology as opposed to developing new technology. This will change as HSARPA [Homeland Security Advanced Research Projects Agency] matures. But currently, DHS is looking for mature solutions in bio-terror detection, intelligence gathering and analysis, border security, first-responder help, IT networking, and rapid information sharing. There is a continuing need for systems integrators to build those finished platforms. In a few market sectors, engineers are acting as vertical integrators, assembling products for electro-optics, sonar, radar, or electronic warfare. In homeland security, the cost for us to develop chemical and biological agent sensors is prohibitive for the private sector, given the market size. So they go out and buy at the black box or subsystem level and form long-term partnerships with small companies or universities who have these new technologies. Then they bring the skills to ruggedize the design and do business the business development with the government." A major challenge for DHS and industry users is the lack of national standards.

13. DHS� Private Sector Office Al Martinez-Fonts, Special Assistant to the Secretary (Private Sector), US Department of Homeland Security Washington, DC 20528 (202) 282-8484 Private.Sector@dhs.gov

14. Critical Infrastructures & Key Assets

15.  DHS Definition of Critical Infrastructure  � a highly complex, heterogeneous, and interdependent mix of facilities, systems, and functions that are vulnerable to a wide variety of threats.�

16. CRITICAL INFRASTRUCTURES Energy Transportation Water Telecommunications Agriculture & Food Banking and Finance Public Health Emergency Services Defense Industrial Base Chemicals and Hazardous Materials Postal and Express Shipping

17. Definition of Key Assets: �a broad array of unique facilities, sites, and structures whose disruptions or destruction could have serious consequences across multiple dimensions.� National Monuments and Icons Nuclear Power Plants Dams Government Facilities Commercial Key Assets

18. Industry�s Homeland Security Challenges DHS does not have a good public/private collaborative process. Huge numbers of vendors are attempting to give PowerPoint presentations to an overworked DHS staff, but what DHS really needs are experienced people from industry providing solutions. It is difficult for industry to find out what DHS considers it�s main problems and requirements DHS has failed to energize the private side of the Homeland Security industry�much of its recent purchases are of COTS equipment from defense industry contractors Too much money is provided to state and local organizations to purchase equipment and services that are not based on risk assessments or NITSA performance based standards There is a need for government & industry to regularly come together to exchange ideas�especially for the next generation of technical solutions DHS should develop a model for its government/industry business relationship that is closer to DOD�s The goals of the ISACs are admirable, but they are inconsistent in their gov�t-industry application and some industries and infrastructure don�t have an ISAC�such as entertainment and special events.

19. Ed BadolatoExecutive VP of Homeland SecurityThe Shaw Group www.shawgrp.com1717 Pennsylvania Ave., 9th Fl.Washington DC 20006edward.badolato@shawgrp.comPhone 202.261.1910Fax 202.261.1949Cell 703.927.3965