Leidos’ $2.4 Billion Cybersecurity Award Canceled, US Says (2)

The US Department of Homeland Security terminated for convenience Leidos Inc.'s $2.4 billion cybersecurity services contract issued under the Agile Cybersecurity Technical Security solicitation, a government status report says.

The termination follows Nightwing Intelligence Solutions LLC’s protest of the seven-year contract award, alleging Leidos won the contract with “insider information” provided by a former DHS employee. The department determined that its IT and cybersecurity needs “significantly changed in light of organizational changes and changes in priorities, unrelated to the protest, that have occurred since the ACTS solicitation was issued,” the US Department of Justice told the US Court of Federal Claims. Nightwing’s protest is therefore moot, the government told Judge Zachary N. Somers in a May 9 status report.

• DHS doesn’t intend to make another award, “but is conducting acquisition planning to determine the best means of fulfilling its future requirements,” the government said
• Neither counsel for Nightwing nor the DOJ immediately responded to a request for comment; a Leidos spokesperson declined to comment
• Nightwing asserted that DHS failed to properly consider a competitive advantage conflict from Leidos’ hiring of a former DHS IT specialist and that Leidos benefitted from the specialist’s inside information, among other claims

Crowell & Moring LLP represents Nightwing. Wiley Rein LLP represents Leidos.

The case is Nightwing Intel. Sols. LLC v. United States, Fed. Cl., No. 1:25-cv-00112, status report 5/9/25.