Defense cos seek czar for cyber security overhaul

WASHINGTON, April 6 (Reuters) - General Dynamics (GD.N), Northrop Grumman (NOC.N) and other defense companies want the Obama Administration to name a czar to lead a cyber security overhaul, according to a report to be released on Tuesday.

The recommendations from the Intelligence and National Security Alliance (INSA) come as the administration conducts a 60-day review of all government cyber plans, due this month.

The group recommends creation of one leadership position at the White House to draw up a cyber security plan and align cyber security priorities across government agencies.

"By selecting the leader and his/her leadership team now, this administration will send the message that the U.S. government is serious in taking an active role in cyber security," the report said.

INSA calls itself a professional association. Contributors to the report include officers at General Dynamics and Northrop Grumman, among others.

The private sector owns about 85 percent of critical infrastructure in the United States, according to industry groups.

Concern about protecting computer data from attacks is fueling the cyber security business at a time when analysts expect overall U.S. defense spending to flatten or decline.

The report will go to to the Obama administration's point person on cyber security, Melissa Hathaway, a top adviser to the former director of national intelligence.

The report said the government should work with private sector groups to form a consensus on industry standards for cyber defense, addressing what level of security is necessary for different applications, such as electrical and financial.

A recent report by Bank of America/Merrill Lynch forecast that the cyber security market would total $14.6 billion in fiscal 2009, including classified and unclassified spending, and rise to $25.5 billion by fiscal 2013.

The U.S. software industry is also pushing for a greater role as government officials develop a policy to ward off attacks on the nation's communications infrastructure.

The Business Software Alliance, which represents companies including Microsoft Corp (MSFT.O) and Dell Inc. (DELL.O), told White House officials last month the government should share more threat and attack information with the industry.

(Reporting by Kim Dixon; Editing Bernard Orr)