DHS says it is canceling $2.4B Leidos contract

According to a court filing last week, the U.S. Department of Homeland Security has terminated a $2.4 billion IT and cybersecurity contract awarded last year to Reston-based federal contractor Leidos.

The Agile Cybersecurity Technical Security (ACTS) contract was under protest by Nightwing Intelligence Solutions, a Dulles-based cybersecurity and intelligence spinoff of RTX, the Arlington County-based Fortune Global 500 aerospace and defense contractor previously known as Raytheon Technologies.

In a federal court filing by the government on May 9, DHS says it had “undertaken a review” of ACTS and decided to terminate the indefinite delivery, indefinite quantity contract with Leidos that called for the company to support DHS’ Cybersecurity and Infrastructure Security Agency (CISA).

The contract was originally awarded to Leidos in February 2024. Nightwing then protested the award, and the General Accounting Office dismissed the protest in September 2024, leading to Nightwing’s appeal to the U.S. Court of Federal Claims.

In that case, filed in January, the court ordered the United States government to provide a status report by May 9. According to the report, DHS canceled the contract on May 8 and informed Leidos of the decision that day. Nightwing was informed the next day, the document says, adding, “The agency does not intend to make another contract award under the ACTS solicitation but is conducting acquisition planning to determine the best means of fulfilling its future requirements.”

In closing, the government letter says that the protest “is now moot, and we intend to file a motion to dismiss to that effect if the protest is not voluntarily dismissed.” Nightwing filed notice of voluntary dismissal without prejudice on May 12, and the complaint was dismissed the same day.

Leidos said Thursday it did not have a comment.

Leidos provides technology, engineering and science services to defense, intelligence, civil and health market customers. It has about 48,000 employees and reported approximately $15.4 billion in 2023 revenue. On Dec. 31, 2024, Leidos won a Transportation Security Administration contract worth up to $2.6 billion.