# Federal Authorities Secure $13 Million Cybersecurity Settlement

ILC Dover LP and ILC Astrospace LLC agreed to a **$13 million** settlement resolving False Claims Act allegations that they misrepresented cybersecurity compliance on federal contracts supporting the U.S. Army, Missile Defense Agency, and NASA. The settlement resolves allegations and is not a determination of liability; neither company admitted liability. The case highlights that contractors may face substantial financial exposure for inaccurate cybersecurity assessments or unmet contractual controls even when no successful cyberattack or data theft is established.

- The allegations concern cybersecurity obligations including DFARS and NIST controls, system security plans, plans of action and milestones, and oversight of third-party cloud providers; applicability depends on the specific contract requirements.
- Procurement teams and contractors should verify that cybersecurity representations, assessments, and supporting documentation accurately reflect implemented controls on covered contracts.
- Companies supporting defense and civilian agencies should review how subcontractors and cloud providers are assessed and overseen where those services handle government information.

**Jurisdictions:** federal
**Industries:** Defense & Military, Information Technology
**Topics:** Cybersecurity, Regulatory Compliance
**Published:** November 13, 2026

### Government Entities
- Air Force Office of Special Investigations (AFOSI)
- Department of the Army (Army)
- Missile Defense Agency (MDA)
- National Aeronautics and Space Administration (NASA)
- U.S. Department of Justice (DOJ)

### Vendors
- ILC Dover LP (Settlement party and federal contractor on contracts at issue; specific prime or subcontractor role not stated)
- ILC Astrospace LLC (Settlement party and federal contractor on contracts at issue; specific prime or subcontractor role not stated)

### Key Quotes
> What makes cybersecurity fraud cases particularly important is that the risk is not always visible. A contractor may keep working while the systems holding sensitive government information do not meet required security standards. Investigating those discrepancies reinforces the importance of accountability in federal contracting.
> — Sotiria Nezi, Special Agent in Charge, AFOSI Procurement Fraud Detachment 6

> The settlement reflects the financial consequences contractors face when they fail to meet cybersecurity obligations tied to government contracts, even when no successful cyberattack or theft of information happened.
> — Ryan Whipple, Interim Special Agent in Charge, AFOSI Procurement Fraud Detachment 6

### Sources
- [
	AFOSI aids $13 million defense contractor cybersecurity settlement > Office of Special Investigations > Article Display
](https://www.osi.af.mil/News/Article-Display/Article/4646801/afosi-aids-13-million-defense-contractor-cybersecurity-settlement) - Department of the Air Force (.mil)
- [
        DoD contractor to pay $13 million over alleged cyber compliance failures in Army, MDA, NASA contracts - Federal News Network](https://federalnewsnetwork.com/litigation/2026/11/dod-contractor-to-pay-13-million-over-alleged-cyber-compliance-failures-in-army-mda-nasa-contracts) - Federal News Network