Cornelius leaves ADI to join staff of Sen. Gary Peters

Executive director at the Alliance for Digital Innovation, Matthew Cornelius, has left the trade body to take up an advisory role in congress.

He joins the majority staff for Homeland Security and Governmental Affairs Committee chairman Gary Peters, D-MI. Peters also serves on the Senate Commerce, Science, and Transportation Committee and the Senate Armed Services Committee.

Cornelius has led ADI since December 2019, and prior to this worked in several technology-focused roles in government before leading the trade group that focused on modernizing government IT.

His previous jobs included stints at GSA advising the administrator on cybersecurity, at the Office of Management and Budget and the Department of Treasury.

In his new job he will advise on the scrutiny of federal technology programs including the GSA’s Technology Transformation Services.

German government launches $12B fund to finance tech startups

The German government has launched a 10 billion euro ($12 billion) equity fund to support the launch of technology startups in the country.

The state-backed fund was first proposed in August 2020, and is intended to address concerns that entrepreneurs in the country have had to turn to foreign investors because of a lack of domestic venture capital.

In the U.S. government grants for startup businesses are available, yet a small percentage of entrepreneurs take advantage of the funding, which is in part due to the lack of knowledge of these government grants.

The two most prominent awards in the U.S. are The Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) Program. Both are designed to help startups engage in research and development, similar to the Future Fund.

Details of the scheme were revealed earlier this year in March. At the time, Germany’s Federal Minister of Finance, Olaf Scholz, said it was “critical” for the country to provide assistant to startups, and said the state had laid the foundation for boosting the VC market in in the country.

Federal Minister for Economic Affairs Peter Altmaier also said at the time that the government would work also with the private sector, and that in total it would raise at least EUR 30 billion ($35.7 billion) in VC support for startups.

“Combined with our existing financial instruments we will be able to provide over EUR 50 billion ($60 billion) in venture capital for startups in the next few years together with private investors.

“This is unique in Europe and is also a significant contribution by international comparison,” said the minister.

Bill to create federal rotational program for cyber experts passes to House floor

The Oversight Committee sent a bill that would create a federal rotational program for private-sector cybersecurity experts to the House floor Tuesday.

An identical version of the Federal Rotational Cyber Workforce Program Act is working its way through the Senate after being reintroduced there and in the House in April and May respectively.

If created, the rotational program would allow senior tech industry workers to ply their trade for the U.S. government for a set period before returning to their original or a similar role in the private sector.

Sens. Gary Peters, D-Mich., and John Hoeven, R-N.D., first proposed the legislation in 2019, but recent, high-profile cyberattacks like the SolarWinds hack have increased the urgency of lawmakers attempting to help agencies recruit and retain top cybersecurity talent.

“While we don’t agree on everything, the severity of the cyber threat has proven so immediate that both conservative Republicans and progressive Democrats came together to support our bill,” said Reps. Ro Khanna, D-Calif., and Nancy Mace, R-S.C., in a joint statement. “As we saw recently with the Colonial Pipeline attack, the cyber threat is real and ever present.”

Khanna and Mace reintroduced the bill in their chamber and thanked Rep. Carolyn Maloney, D-N.Y., who chairs the Oversight Committee, for moving the bill — which they expect House leadership to take up soon.

Agencies would be expected to select rotational positions with integrated cyber missions, with the Office of Personnel Management overseeing the program in coordination with the Chief Human Capital Officers Council, Chief Information Officers Council and Department of Homeland Security. The Government Accountability Office would study a pilot version of the program’s effectiveness, prior to it being scaled up.

Former DISA Director Norton joins professional services firm T-Rex

The former director of the Defense Information Systems Agency, Vice Adm. (Ret.) Nancy Norton, has joined professional services firm T-Rex Solutions.

She takes up a position on its national security board of advisors, which advises the company’s leadership on how to shape IT solutions to serve the Department of Defense and the Intelligence Community.

Norton previously served simultaneously as both the Director of DISA and a commander within the U.S. Cyber Command component responsible for securing and defending the DOD’s information network. Earlier in her career,  she was the U.S. Navy’s director of warfare integration of information warfare, where she oversaw all Navy systems.

Prior to this, Norton served as the Director of Command, Control, Communications and Cyber for the U.S. Pacific Command.

T-Rex is focused on helping federal government agencies to modernize, protect and scale their systems and data. The company designed and implemented the active cyber defense solution that was used to secure the 2020 Census, which was the first such census to be conducted online.

Commenting on the appointment, Norton said: “I am looking forward to working with T-Rex and my National Security Board of Advisors colleagues to provide insights from my experience within DISA and the U.S. Navy.”

“T-Rex’s ability to launch and secure the technical integration of the United States Census is a capability we have to replicate and mature throughout the defense and intelligence communities,” she added.

Katie Arrington placed on leave amid probe into suspected disclosure of classified information

Katie Arrington has been placed on leave in connection with a suspected unauthorized disclosure of classified information from a military intelligence agency.

According to a memo seen by Bloomberg News, she was informed on May 11 that her security clearance for access to classified information had been suspended. A legal representative for Arrington confirmed the contents of the memo in an email to FedScoop.

The document said that her clearance had been suspended as “a result of a reported Unauthorized Disclosure of Classified Information and subsequent removal of access by the National Security Agency.” The document did not provide details about the possible disclosure of information.

Arrington is CISO for Acquisition and Sustainment at the Department of Defense, a role in which she is responsible for the application of supply chain risk management principles within the DOD’s procurement strategy. She was brought to the Pentagon in 2019 under the category of “highly qualified expert,” a hiring classification that allows the Department of Defense to bring in civilian experts with state-of-the-art knowledge in fields of critical importance.

She is a former one-term Republican state representative from South Carolina who ran an unsuccessful campaign for Congress in 2018. According to her Pentagon biography, she has more than 15 years of cyber experience “ through positions at Booz Allen Hamilton, Centuria Corporation, and Dispersive Networks.”

Late last week, this publication reported that former U.S. Air Force officer and long-time cybersecurity specialist John Garstka had taken up the role of acting CISO for acquisition and sustainment at the Department of Defense. Sources at the time told this publication that he had taken on the role from Arrington on an interim basis.

Mark Zaid, an attorney representing Arrington, said: “The suspension of Ms. Arrington is nothing more than a routine administrative action but she is now being victimized by delays that are unfairly causing harm to national security and her reputation.

“We are ready now to address any DoD concerns and she deserves timely due process which is being denied.”

A Department of Defense spokesperson said the department does not comment on personnel matters.

Department of Defense AI ethics principles still lack implementation guidance

The Department of Defense will produce guidance for its artificial intelligence ethical principles by late August, six months after an initial self-directed deadline for the creation of the guidance.

Officials had said by February 2021 the DOD would detail how the bureaucracy should implement its five AI principles, which state that the technology should be responsible, equitable, traceable, reliable and governable. But that date has come and gone without any such document detailing how the bureaucracy should translate the principles into their daily work.

The principles were adopted by the department in February 2020 and were designed as a starting point for the DOD’s approach to building and using AI ethically. The new deadline for a draft of implementation guidance was mandated by a May memo from Deputy Secretary Kathleen Hicks which reiterated the department’s commitment to building “responsible AI.”

Alka Patel, head of responsible AI at the Joint AI Center, told FedScoop in September that the guidance was to give DOD offices working on AI a “shared vocabulary” on how to understand and work with the principles. She said the guidance would be a critical part of turning the conceptual framework into rules to live by.

“We recognizing the urgency around this work,” Alka Patel said during a press conference Thursday. “We are making progress,” she and other officials added.

When the principles were first adopted, Lt. Gen. Jack Shanahan, the then-director of the Joint AI Center, said implementing them would be the hard part.

“Implementing the AI ethics principles will be hard work. The Department’s efforts over the next year will shape the DOD’s future with AI,” Shanahan said when the principles were adopted in February 2020.

But implementation goes beyond any one document, said Paul Scharre, vice president and director of studies at the Center for New American Security who focuses on autonomy and AI in warfare.

“The DOD runs on process,” he said. For something as novel and diverse as AI, “it looks like a more diffuse set of policies, procedures, offices, organizational knowledge.”

Patel also mentioned that diffuse set of knowledge in previous interviews, saying that AI ethics “is all part of our jobs.” She had said that the guidance will help with that as it will help build a shared vocabulary for AI ethics.

The latest memo from Hicks reaffirms the DOD’s commitment to responsible AI, signed by the deputy secretary of defense in May. The memo tasks the JAIC with leading work on developing policy on responsible AI through working groups and adds more high-level tenets to how the department will approach the making AI.

The JAIC is not the only group working on ethics. There is a responsible AI subcommittee of the DOD’s AI steering group which meets monthly and an international program for military-to-military collaboration on AI among 16 partner nations. There also has been progress in developing test and evaluation programs to assess the reliability of AI systems the DOD is working on.

The principles also have been included in contracts, with requests from the department seeking industry’s input on how they would use the principles in their work.

Scharre said that the DOD is not the only institution that is struggling with how to implement AI ethics. With such a new set of technologies, it requires new procedures to implement ethical frameworks, he said.

“It’s not like the best AI researchers in the world don’t have this problem to solve,” he said.

Biden signs executive order to boost diversity in federal government

President Biden signed an executive order Friday that mandates the adoption of wide-ranging measures to increase diversity, equity and inclusion among the federal workforce.

Under the order, agencies will be required to collect enhanced demographic data about federal employees and work to advance pay equity among public servants. Following the EO, departments will no longer be able to ask for details of – and base future compensation – upon a candidate’s prior salary history.

The Office of Personnel Management and the Office of Management and Budget will be charged with overseeing the implementation of the new directive.

It focuses strongly on advancing opportunity for communities that have previously faced employment discrimination, including people of color, women, first-generation professionals and immigrants, individuals with disabilities, and LGBTQ+ individuals.

The White House said also the new order is intended to improve federal employment opportunities for Americans who live in rural areas, older Americans facing age discrimination, parents and caregivers, people of faith who require religious accommodations at work, individuals who were formerly incarcerated, and veterans and military spouses.

The legislation mandates that all agencies assess the current state of diversity, equity, inclusion and accessibility within their workforces and that they develop plans to eliminate any barriers to success faced by underserved employees. It directs agencies to seek opportunities to establish or elevate chief diversity officers within their organizations.

Agencies will be required to undertake an in-depth assessment of barriers to working for a federal government faced by individuals with disabilities and to work to build a more diverse talent pipeline into the federal government, including through partnerships with universities and other institutions that historically have served minority communities.

Department of Defense to address small business concerns as part of CMMC program review

The Department of Defense (DOD) has said it will address concerns that that the Cybersecurity Maturity Model Certification (CMMC) will impose additional costs on small businesses, as part of an ongoing internal review.

A spokesperson on Monday told FedScoop that the agency will “look for avenues” to reduce the cost of the accreditation scheme for small enterprises, while retaining the program’s focus on reducing supply chain risk.

“The CMMC Program Office greatly appreciates the perspectives presented at the hearing and has taken this information seriously.

“CMMC does recognize and understand the concerns of small businesses and fully anticipate the majority of these companies to only require CMMC Level 1 which are the requirements that have been laid out under FAR 52.204-21 released in 2016.”

“During our internal review the program will look for avenues in which to reduce the costs to small businesses while keeping the integrity of the cybersecurity requirements,” the DOD spokesperson said.

Critics of CMMC say it represents an unfair burden for smaller enterprises because they have less money available to spend on compliance costs than larger federal contractors.

The response comes after a House Committee on Small Business subcommittee last Thursday heard from companies that said they are struggling to understand the new compliance regime and worry the costs will run them out of the federal market.

CMMC requires third-party verification of contractor’s compliance to a set of cyber standards that has five tiers. Level one is the lowest level of controls, requiring basic cybersecurity, and level five mandates expensive systems to protect from nation state-backed attacks.

The Department of Defense is also working to provide more official information about its new contractor cybersecurity compliance program, in response to additional complaints from small business about a lack of information and clear communication about the scheme.

In comments to FedScoop, the DOD spokesperson said one component of the review would be to develop a public media campaign to disseminate information about the program.

An internal review of the CMMC accreditation program was ordered by the deputy secretary of defense in March. DOD previously said the review is a policy review typical after changes of administration, and that it will focus on finding ways to improve DOD policies for small business.

The Government Accountability Office is also reviewing the program with an eye toward DOD’s communication with industry and small business impact. That review is expected to last until the fall.

Army gets new head of Network Modernization Cross-Functional Team

The Army’s Network Modernization Cross-Functional Team got a new director this month, the service announced.

Brig. Gen. Jeth Rey will lead a team of engineers and network scientists from across the Army focused on improving the networks the Army uses in battle. The team is a part of Army Futures Command, the newest four-star led command the service stood up to focus on emerging tech and future battlefield weapons.

The team’s first leader Maj. Gen. Peter Gallagher retired from the Army at the end of May.

“All modernization capabilities touch the network,” Rey said in a release announcing his promotion. “The network is the center of gravity, so we need to support them as well.”

The network modernization team’s mission is to focus on modernizing “air-land ad-hoc, mobile tactical communications and data networks” and in support of the broader network modernization happening under the Army CIO’s office and deputy chief of staff to the G-6 — the service’s two lead IT roles.

Rey comes from Central Command, where he was the head of command and control and communications, overseeing the military’s networks throughout the Middle East. One of his most recent assignments was standing down the networks in Afghanistan as the U.S. military prepares to leave after 20 years of conflict in the country.

The cross-functional team has authorities to issue other transaction agreements and other rapid acquisition approaches to experiment with new tech to improve network communications, according to a document summarizing its work.

Cross-functional teams are designed to break down barriers between teams working in the technology modernization ecosystem, from contracting to research and engineering.

House lawmakers consider bipartisan bills to advance tech R&D

Lawmakers in Congress are considering two bills that advocates say would boost the technological dominance of the U.S. and support the semiconductor industry.

Members of the House of Representatives were on Monday set to scrutinize the National Science Foundation for the Future Act and the Department of Energy Science for the Future Act as part of the chamber’s suspension calendar.

The National Science Foundation for the Future Act would compel the NSF to work with the National Academies of Sciences, Engineering and Medicine to assess STEM education for Pre-K-12. Among measures included in the Department of Energy Science for the Future Act is the requirement that the agency coordinate with academia and public and private organizations to advance its scientific computing program.

According to the Semiconductor Industry Association (SIA), the bills, if passed, would strengthen America’s economy and national security.

Commenting on the bills, SIA CEO John Neuffer said: “The U.S. semiconductor industry relies on these advances as the foundation for creating the technologies of the future.”

“The research initiatives authorized by this legislation will generate advances in a range of scientific fields and build the pipeline of talent needed to enhance U.S. technology competitiveness,” he added.

The lobbying chief also advocated for the inclusion of $52 billion in public funding for semiconductor research, design and manufacturing in the new legislation.

Both bills are being considered after Senate lawmakers earlier this month introduced bipartisan legislation known as the Facilitating American-Built Semiconductors (FABS) Act, which would establish an investment tax credit for domestic semiconductor manufacturing.