DHS scraps $2.4B cyber contract amid reorganization

A $2.4 billion cybersecurity contract that went to Leidos has ended abruptly after the Homeland Security Department terminated the acquisition in its entirety.

DHS originally made the award in February 2024 and the losing bidder Nightwing protested that decision, first at DHS and then it went directly to the U.S. Court of Federal Claims.

But in a Friday filing to the court, DHS said the requirements of the contract no longer meet the needs of its Cybersecurity and Infrastructure Security Agency “in light of organizational changes and changes in priorities, unrelated to the protest.”

DHS told the court it terminated the Agile Cybersecurity Technical Solutions contract and the first task order for transition planning.

The ACTS contract was to support CISA with analysis, integration, testing, deployment and sustainment of cybersecurity solutions.

ACTS was to be the successor to the Domino contract, which DHS awarded to Raytheon in 2017 at a $1.15 billion ceiling. Nightwing is the former cyber business of Raytheon/RTX and took Domino with it after becoming a standalone company in April 2024,

DHS developed the ACTS contract during the Biden administration and awarded it to Leidos in February 2024. Nightwing filed an agency-level protest before going to the court on Jan. 21.

Nightwing argued the source selection decision for ACTS was flawed and “riddled with fatal errors,” according to its complaint with the court.

The Trump administration has initiated significant changes at CISA since the inauguration, including a scaling back of efforts to address misinformation and election interference.

DHS is also reorganizing CISA, which faces a potential $500 million cut to its $3 billion annual budget.

In its court filing, DHS said it is "conducting acquisition planning to determine the best means for fulfilling its future requirements."