REI Systems Lands NASA SEWP VI Contract and Defense Contractors to Pay $13 Million Over Cybersecurity Compliance Allegations – Security Clearance Jobs

REI Systems Lands NASA SEWP VI Contract and Defense Contractors to Pay $13 Million Over Cybersecurity Compliance Allegations  Security Clearance Jobs

Two defense contractors agree to a $13 million settlement as federal officials increase scrutiny of cybersecurity compliance. Cybersecurity requirements in government contracts aren’t just paperwork, and a new $13 million settlement is another reminder that failing to meet them can get expensive. According to the Department of Justice, Delaware-based defense and aerospace contractors ILC Dover LP and ILC Astrospace LLC have agreed to pay $13 million to resolve allegations that they violated the False Claims Act by failing to meet cybersecurity requirements under contracts with the Army, Missile Defense Agency, and NASA. Federal investigators alleged that between 2018 and 2024, the companies submitted claims for payment despite knowing they had not fully complied with contractual cybersecurity obligations.

The alleged shortcomings included inadequate security controls, outdated or missing system security plans, and the use of third-party cloud storage for controlled unclassified information without ensuring the required protections were in place. The case also highlights the growing financial consequences of cybersecurity compliance failures across the defense industrial base. The settlement originated from a whistleblower lawsuit filed by Philip Root, ILC’s former director of cybersecurity, who will receive $2.35 million from the recovery. ILC’s parent company, Ingersoll Rand, said it identified and addressed the issues following its June 2024 acquisition and was compliant with applicable requirements by October 2024. The companies resolved the