The Department of Justice announced that LOGZONE Inc. agreed to pay $507,144 to resolve False Claims Act liability related to alleged cybersecurity noncompliance on Department of the Navy contracts.
LOGZONE, a Huntsville, Alabama defense contractor, provided logistical, inventory, and facilities support services for the Naval Oceanographic Command Property Management Program at Stennis Space Center in Mississippi.
According to DOJ, the Navy contracts required LOGZONE to comply with cybersecurity obligations under DFARS contract clauses, including requirements tied to NIST SP 800-171, which governs protection of controlled unclassified information in nonfederal systems.
The government alleged that LOGZONE submitted claims for payment while failing to fully implement required cybersecurity controls.
The DOJ also alleged that LOGZONE submitted a perfect cybersecurity self-assessment score of 110 in October 2021, but a later government assessment in February 2024 produced a score of -170.
The settlement agreement states that the covered conduct occurred from May 5, 2021, through March 8, 2025. The $507,144 settlement includes $253,572 in restitution.
This case reflects DOJ’s continued use of the False Claims Act to pursue government contractors that allegedly seek federal payment while failing to meet material contract requirements.
