LOGZONE, an Alabama-based logistics services provider, has agreed to pay more than $507,000 to resolve allegations that it misrepresented its compliance with Pentagon cybersecurity requirements while doing work with the Navy.
According to a settlement agreement published Thursday, the Justice Department alleged that LOGZONE failed to fully implement required security controls under NIST Special Publication 800-171 despite its contract mandating compliance. While not an explicit violation of the Cybersecurity Maturity Model Certification (CMMC) program, the suit highlights the Defense Department’s increasing scrutiny of the defense industry not implementing required cybersecurity measures for sensitive information.
The settlement stems from two contracts awarded by the Navy between 2021 and 2022 for logistics, inventory management and facility support services for the Naval Oceanographic Command located at Stennis Space Center in Mississippi. According to the settlement agreement, LOGZONE received more than $682,000 under the contracts through March 2025.
NIST SP 800-171 establishes cybersecurity requirements for defense contractors that handle controlled unclassified information (CUI) on non-federal systems. The framework includes 110 security controls covering areas such as access management, incident response, system monitoring, and risk management against which vendors must self-assess compliance.
The Navy’s contracts with LOGZONE incorporated clauses that required the...
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