Huntsville firm accused of overstating compliance on Navy contracts tied to sensitive defense information
By SPEAKIN’ OUT NEWS
HUNTSVILLE — A Huntsville-based defense contractor has agreed to pay approximately $507,000 to settle allegations that it failed to meet federal cybersecurity requirements while performing work under U.S. Navy contracts, according to the U.S. Department of Justice.
Federal officials announced June 18 that LOGZONE Inc., a logistics and defense support company, resolved claims that it falsely certified compliance with cybersecurity standards designed to protect sensitive government and defense-related information.
According to the DOJ, the company was awarded contracts in 2021 and 2022 to provide logistical, inventory, and facilities support services for the Naval Oceanographic Command Property Management Program at Stennis Space Center in Mississippi. LOGZONE received roughly $682,000 under those agreements.
The government alleged that the company significantly overstated its cybersecurity readiness. While LOGZONE reported a cybersecurity compliance score of 110—the highest possible rating under the federal assessment system—a Defense Contract Management Agency (DCMA) review conducted in February 2024 assigned the company a score of negative 170. The lowest possible score is negative 203.
Federal officials said the deficiencies could have left the company’s systems vulnerable to cyberattacks and increased the risk that sensitive defense information could be exposed or stolen.
“The cybersecurity provisions of federal contracts are critical to protecting sensitive information,” said Navy Vice Adm. Stephen Tedford, director of the Defense Contract Management Agency.
U.S. Attorney Phillip W. Williams Jr. said the settlement serves as a reminder that contractors doing business with the federal government must fully comply with cybersecurity requirements designed to safeguard national security interests.
LOGZONE did not publicly comment on the settlement.