NDS Provides Smart Card-Based Intranet Security for U.S. Government E-Commerce Catalog Pilot Program; GSA, NASA, DISA and DLA Pave Way for Government Adoption of New Technology

Business Wire, July 28, 1998

WASHINGTON--(BUSINESS WIRE)--July 28, 1998--NDS Americas Inc., the growing division of NDS Limited and one of the world's most advanced data security providers, today announced that it is providing public-key smart card-based network security technology as part of an end-to-end Intranet electronic commerce catalog pilot program. The pilot, sponsored by CommerceNet and the U.S. Federal Government, intends to make government catalogs more cost-effective.

For the government catalog pilot, network security is critical because user access runs across multiple agencies and over public networks. NDS' smart card-based technologies use stored digital certificates in conjunction with private and public keys to perform RSA functions, such as authentication, digital signature and encryption/decryption, which are needed to protect e-commerce network resources and communications. For the first stage of the pilot, NDS will provide a smart card-based public key authentication that seamlessly integrates in the current agencies' Intranet.

"NDS' strength in developing end-to-end smart card-based data security systems uniquely positions us to provide real world security solutions," said Abe Peled, NDS CEO. "The pilot program is a great opportunity for us to explore security interoperability issues not being addressed by any other standards body or pilot project."

The catalog test program, based in Washington DC, is now in its pilot test phase after a comprehensive study revealed that the Federal Government could save in repetitive annual costs associated with the development and maintenance of multi inter-agency procurement catalogs. Electronic catalog XML-based interoperability tests have been designed to demonstrate the technical feasibility and the economic benefits that Federal agencies would reap upon mass adoption of the emerging technology. The results of the pilot test will be submitted to a special U.S. Congress subcommittee as the working model to be replicated for wide-scale government deployment.

This pilot, which includes the General Services Administration (GSA), National Aeronautics and Space Administration (NASA), Defense Information Services Agency (DISA), the Defense Logistics Agency (DLA), and the Department of the Navy, will demonstrate a uniform platform for allowing buyers to gain secure access to a full range of product offerings, stored in electronic catalogs at multiple agencies and vendor sites.

The catalog Interoperability Pilot implementation is being accomplished utilizing a framework that does not require vendors to write special software or present their products in a unique way for each agency. It also means that agencies are not required to generate specialized interfaces to each vendor. This creates a truly extensible model that will function in the highly distributed world of internet commerce.

"This pilot project will pave the way for government's entry into the digital economy," said Tony Trenkle, Co-chair of the Federal Electronic Commerce Program Office. "With broad, easy access to online purchasing catalogs, Federal buyers will find items from a variety of sources on the Internet at competitive prices. Interoperability has the potential to slash procurement cycles and costs."

"CommerceNet is very pleased to have NDS' vast experience and proven advanced technologies for use in this pilot," said Ron Parsons, Director, eCommerce Business Strategies and Eastern Region Operations, CommerceNet. "Working together with NDS and the other government and industry agencies, we look forward to developing a consistent growth plan that will provide the basis for secure electronic commerce environments and programs for the future."

Interoperable Catalog Pilot Background

The Interoperable Catalog Pilot was launched in June as a means to reduce the enormous cost and efficiency burden inherent in operating multiple stand-alone catalogs within the Federal Government. Not only is this process costly and time consuming, but it often eliminates participation by smaller vendors who do not have the necessary resources to deal with multiple vendors.

As a result, CommerceNet recommended to build an interoperable framework in which independent, proprietary catalogs can operate and communicate. This comprehensive solution aims to demonstrate: lower costs of processing high-volume, low-value transactions; reduce the incidence of "maverick buying"; reduce the time it takes catalog users to find and select products; shorten requisition/order cycle times; and improve the quality of information available to government purchasing organizations.

About CommerceNet

CommerceNet is a non-profit industry association for companies promoting and building electronic commerce solutions on the Internet. Members include more than 500 companies and organizations worldwide representing the leading banks, telecommunications companies, online services, software and service companies, as well as end users, who together are transforming the Internet into a global electronic marketplace. CommerceNet can be contacted at 650/858-1930, via Fax at 650/858-1936, or on the World Wide Web (http:www.commerce.net).