ILC Dover LP and ILC Astrospace LLC have agreed to pay $13 million to resolve U.S. government allegations that they violated the False Claims Act by submitting claims for payment while not meeting cybersecurity requirements in federal contracts. The Justice Department said the contracts involved the Department of the Army, the Missile Defense Agency and NASA, and the alleged conduct spanned January 2018 to October 2024.

The department said the settlement addresses allegations including use of a third-party cloud provider for controlled unclassified information without ensuring required safeguards, gaps in system security plans, and failure to fully implement specified NIST cybersecurity controls. The agreement resolves allegations; the announcement does not report a court finding of liability.

Why it matters

  • The resolution shows that contractual cybersecurity commitments can be tied to claims for government payment.
  • Compliance reviews can examine cloud-provider safeguards, system documentation and implementation of required controls.