NS&D Monitor was thankful to get a couple days off for the holiday during the week of Nov. 25, but nuclear news continued to pour in like gravy. Collected below are a few of the tastier leftovers from the short week.
Energy Dept. Still Struggling With Cybersecurity, IG Finds
The U.S. National Nuclear Security Administration (NNSA) and other branches of the Department of Energy continue to struggle to improve their defenses against cyberattacks, according to the DOE Inspector General’s Office.
The inspector general’s 2019 evaluation of the department’s unclassified cybersecurity program involved control testing and other evaluations of 28 DOE sites, largely overseen by the NNSA, undersecretary for science, undersecretary of energy, and select staff offices.
Auditors closed 21 of 25 cybersecurity recommendations from their 2018 report. “Although these actions were positive, our current evaluation identified weaknesses that were consistent with our prior reports related to vulnerability management, configuration management, system integrity of Web applications, access controls and segregation of duties, cybersecurity and privacy training, and security control testing and continuous monitoring,” according to the Nov. 19 report.
Among the findings:
- At 11 locations, testing of work stations and servers showed “critical and/or high-risk vulnerabilities.” Close to 11,000 such weaknesses were found at one site alone. Over 50% of 1,848 work stations evaluated throughout the complex had not applied security updates that were no less than 30 days old at the tine of testing.
- Four sites had vulnerabilities connected to “system integrity of Web applications,” such as “improper validation of input data and/or the protection of the confidentiality of user credentials,” the report says. That opened the door for a cyber attack to access applications, revise data, or disclose sensitive information.
- Two locations were not providing sufficient cybersecurity and privacy training. Notably, the locations had failed to prepare and enact “role-based training strategies/plans for all appropriate personnel.”
The inspector general during fiscal 2019 issued a total of 54 cybersecurity recommendations to DOE programs and facilities. The fiscal year ended on Sept. 30.
“Management concurred with recommendations made throughout the evaluation and indicated that corrective actions were taken or planned to address the issues identified in the report,” according to the inspector general.
Jacobs Increases Revenue to $3.4B in Fourth Quarter
Jacobs Engineering on Monday posted $3.4 billion in revenue for the quarter ended Sept. 27, a step up from $3 billion in the same period a year earlier.
The Dallas-based multinational reported earnings for the fourth quarter of fiscal 2019 before the market opened for the day. Its earnings per diluted share was $0.16, a $0.54 drop from $0.70 in the same quarter in fiscal 2018.
In addition to restructuring and tax-related charges, Jacobs also recorded costs during the quarter stemming from its $3.27 billion purchase of industry rival CH2M in December 2017. Also hitting its pocketbook was the pending acquisition of the Scotland-based energy services provider John Wood Group for the equivalent of $304.5 million The Wood deal is expected to close in the second quarter of fiscal 2020.
Jacobs is buying back $250 million of its stock, which should conclude in December, the company said in its earnings release. It is a move public companies often make when they believe their share price is undervalued.
During fiscal 2019 as a whole, Jacobs brought in $13 billion, or $2 billion more than in fiscal 2018. Its earnings per diluted share from continuing operations was $2.09, or $0.03 less than the $2.12 per share reported for fiscal 2018.
During the 2019 fiscal year, Jacobs also completed the $3.4 billion sale of its Energy, Chemicals and Resources (ECR) business to WorleyParsons. Jacobs said it is finishing its transition from an engineering and construction firm to a global technology-forward solutions company.
“Today we embrace a future of infinite possibilities with a new brand that reflects who we are and where we are going,” said Chair and CEO Steve Demetriou in the press release.
The company has changed the name of its Aerospace, Technology, and Nuclear business line – which includes U.S. Department of Energy contracts – to Critical Mission Solutions. That renamed branch brought in $1.3 billion for the quarter, compared to less than $1.1 billion in the fourth quarter of 2018. For the year its revenue was $4.55 billion, rising from $3.72 billion for fiscal 2018. Jacobs increasing business with NASA is one factor, executives said.
Jacobs is a partners in various DOE contracts, including Mission Support and Test Services, the Honeywell-led prime contractor for the Nevada National Security Site.
Additional B-21s Would Not Require Contract Renegotiation, Air Force Says
The U.S. Air Force is still sticking to its plan to build 100 B-21 Raider strategic bombers, but if it does need to procure more, it should be able to boost production without renegotiating the contract with Northrop Grumman, Air Force Materiel Command Chief Gen. Arnold Bunch told reporters recently.
“We’ve got the contract structured in a manner that we can go higher. … I’m not worried that we’ll have to go back and renegotiate that whole thing,” he said.
Bunch helped shape the B-21’s acquisition plan in his prior role as the service’s military deputy for acquisition, and confirmed that “right now, the program is staying on track.”
First flight is planned for 2021. The B-21 will carry the B61-12 nuclear gravity bomb and later the Long-Range Standoff Weapon cruise missile loaded with the W80-4 warhead from the Department of Energy’s semiautonomous National Nuclear Security Administration.
Separately, Air Force Gen. John Hyten was sworn in on Thursday as the 11th vice chairman of the Joint Chiefs of Staff during a ceremony at the Pentagon. He succeeds former Air Force Gen. Paul Selva, who retired over the summer.
Navy Adm. Charles Richard was sworn in as his successor as commander of U.S. Strategic Command commander Nov. 18 at Offutt Air Force Base, Neb.
