The Division of Homeland Safety (DHS) scrapped a extremely profitable cybersecurity contract initially awarded to Leidos following a authorized problem from rival bidder Nightwing, but insists the pushback had nothing to do with it.

In February, the DHS awarded Leidos the seven-year Agile Cybersecurity Technical Options (ACTS) Indefinite Supply Indefinite Amount contract with a ceiling worth of $2.4 billion. Initially marketed in December 2022, the work on provide was to assist the Cybersecurity and Infrastructure Safety Company (CISA), an operational element of the DHS. The contract would have seen the awardee present IT companies and cyber capabilities for the now-beleaguered US cyber agency.

Nonetheless, court documents [PDF] present that after a authorized problem from Nightwing, the DHS canceled the association totally on Could 8.

The DHS mentioned the rationale was that “its IT and cybersecurity service wants have considerably modified in gentle of organizational modifications and modifications in priorities, unrelated to the protest, which have occurred for the reason that ACTS solicitation was issued.”

Within the DHS’s view, Nightwing’s protest is now moot. And whereas the federal government division confirmed there have been no plans to supply the contract once more at a later date, it’s “conducting acquisition planning to find out one of the best technique of fulfilling its future necessities.”

In response to Nightwing’s complaint [PDF], the companies equipped by the awardee would “be used to arrange the evaluation, design, integration, improvement, check, implementation, deployment, and sustainment of cybersecurity options.”

That criticism listed the quite a few the explanation why Nightwing, an intelligence options firm that spun out of protection contractor Raytheon (aka RTX) final 12 months, objected to the contract being awarded to Leidos.

Amongst different arguments, Nightwing alleged the DHS immediately harmed it by appearing unreasonably all through the award course of, and had the DHS adhered to the related regulation and necessities set out by the contract’s Request for Proposals (RFP), Nightwing’s bid would have come out on high.

Nightwing’s different causes for protesting the award included the next allegations:

  • The DHS evaluations of every bidder’s technical strategy, previous efficiency, and price have been “critically flawed,” and did not comply with the standards set out by the RFP
  • The DHS’s greatest worth choice was based mostly on illusions
  • Leidos’s proposed value was unrealistic
  • DHS failed to stick to important necessities of equity
  • Leidos held an unfair aggressive benefit over different bidders

Insider information alleged

That unfair benefit refers to Nightwing’s allegation that Leidos had entry to nonpublic data through a former DHS IT specialist, who labored within the authorities between 2018 and 2022. Importantly, this man, whose identification is redacted in courtroom paperwork, is claimed to have had entry to knowledge associated to the Domino contract, which this ACTS contract successfully aimed to exchange.

DHS beforehand awarded the Domino contract to Raytheon Applied sciences in 2017, earlier than it offered off its cybersecurity operations to the corporate that grew to become Nightwing.

Nightwing made a bunch of allegations concerning the unnamed particular person in its authorized criticism in opposition to the DHS. 

Amongst different issues, Nightwing mentioned the person had particular data about Raytheon’s strategy to staffing below the Domino contract, technical efficiency data, architectural roadmaps, and price burn fee knowledge.

The corporate alleged that the latter particularly may very well be used to govern the anticipated value of companies supplied below the contract, and the data may very well be used to misrepresent the worth of Leidos’s bid for the contract.

The criticism went on to allege that the person left the DHS and joined Leidos days later to work on its ACTS contract bid. Nightwing reported all of those allegations to the DHS in February 2024. In January 2025, the DHS denied elements of the corporate’s problem and dismissed others.

The Register contacted the DHS, Nightwing, and Leidos for remark.

8.4 million the explanation why Nightwing might need been ignored

The legalities of the case will not ever be heard in courtroom. Following the cancellation of the contract, the case was dismissed [PDF] with out prejudice.

Whether or not Nightwing’s case in opposition to Leidos had advantage will probably by no means be decided.

Nonetheless, the US authorities actually had cause to suspect Nightwing may not have been one of the best recipient of the contract both.

Raytheon was embroiled in a lawsuit in opposition to the US authorities over alleged cybersecurity failings whereas engaged on 19 authorities contracts between 2015 and 2021. Raytheon was accused of failing to satisfy all of the cybersecurity necessities of assorted rules relevant to federal contracts.

On Could 1, the Division of Justice introduced an $8.4 million settlement within the case. The settlement order acknowledged that the group previously often known as Raytheon Cyber Options, now below management of Nightwing, failed to satisfy the necessities of federal acquisition regulation 52.204-21 and NIST particular publication 800-171 [PDF]. These each cowl the safety of unclassified knowledge in contractors’ IT methods.

By allegedly failing in these two respects, the corporate would even have violated protection federal acquisition regulation 252.204-7012, which covers the safety of DoD data and cyber incident reporting.

“Cyber threats have grown in dimension and attain lately, leaving no room for complacency amongst these within the public sector, non-public sector, and even amongst non-public residents,” mentioned Edward R. Martin Jr., US lawyer for the District of Columbia, on the settlement announcement. 

“Authorities contractors should adjust to the cybersecurity guidelines that govern their efficiency and be candid about their compliance. This settlement displays the federal government’s dedication to pursue contractors that fail to reside as much as these expectations.”

Agreeing to settle authorized instances shouldn’t be misinterpreted as a willpower of legal responsibility. So Raytheon might or might not have failed to satisfy the contract necessities.

Regardless of the case, merely being in that place in all probability did not depend in its favor when it got here to bidding for the ACTS work.

Since taking up Raytheon’s cyber division, per public records, Nightwing has not gained any US authorities contracts. Raytheon, in the meantime, has been awarded lots, however for the work of its different divisions, particularly within the aerospace area. ®


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