Editor
Michael Hammond
Category
CMMC
Date
April 26, 2025

Well, it finally happened.

A Department of Defense contractor is being prosecutedunder the False Claims Act for non-compliance with DFARS 252.204-7012. AerojetRocketdyne Inc. is currently facing legal action in the US District CourtEastern District of California under allegations that it knowinglymisrepresented the extent to which it was compliant with DFARS andcorresponding required protection on Controlled Unclassified Information (CUI).

For some time now OCD Tech has been cautioningorganizations subject to DFARS 7012 to take the clause seriously, takeimmediate action, and be transparent with the DoD on areas of noncompliance.DFARS compliance, until recently, has been a self-assessment exercise where theDoD contractor is responsible for implementing the appropriate securitycontrols, System Security Plans, and Plans of Action and Milestones, andreporting such information back to DoD where required. Invoicing on a contractsubject to DFARS carries with it the representation that the contractor is fullycompliant. We have publishedguidance on possible prosecution under the False Claims Act. It iswell known that the court system moves slowly and that is also true here. Theallegations in question concern activities taking place in 2014 and 2015. Nowwe are starting to see the enforcement activities catch up.

Don't assume all is well with your DoD contracts. The time has come to be proactive with your DFARS compliance efforts, rather than reactive. If you are subject to DFARS 7012 and are not fully compliant with the 110 security requirements in NIST Special Publication 800-171, contact the experts at OCD Tech today to review your options. With both audits and prosecutions underway, stay out of the government's crosshairs. OCD Tech will assess where you stand today, build a roadmap to compliance for you, and guide you along the way.

Contact us today or for more information including the top 5 things you can do within your organization to achieve DFARS compliance, Click Here!

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IT Audit | Cybersecurity | IT Assurance | IT Security Consultants – OCD Tech is a technology consulting firm serving the IT security and consulting needs of businesses in Boston (MA), Braintree (MA) and across New England. We primarily serve Fortune 500 companies including auto dealers, financial institutions, higher education, government contractors, and not-for-profit organizations with SOC 2 reporting, CMMC readiness, IT Security Audits, Penetration Testing and Vulnerability Assessments. We also provide dark web monitoring, DFARS compliance, and IT general controls review.

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Nation's First Case of DFARS Non-Compliance Against DoD Contractor Underway

By  
Michael Hammond
May 13, 2019
7
min read
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Well, it finally happened.

A Department of Defense contractor is being prosecutedunder the False Claims Act for non-compliance with DFARS 252.204-7012. AerojetRocketdyne Inc. is currently facing legal action in the US District CourtEastern District of California under allegations that it knowinglymisrepresented the extent to which it was compliant with DFARS andcorresponding required protection on Controlled Unclassified Information (CUI).

For some time now OCD Tech has been cautioningorganizations subject to DFARS 7012 to take the clause seriously, takeimmediate action, and be transparent with the DoD on areas of noncompliance.DFARS compliance, until recently, has been a self-assessment exercise where theDoD contractor is responsible for implementing the appropriate securitycontrols, System Security Plans, and Plans of Action and Milestones, andreporting such information back to DoD where required. Invoicing on a contractsubject to DFARS carries with it the representation that the contractor is fullycompliant. We have publishedguidance on possible prosecution under the False Claims Act. It iswell known that the court system moves slowly and that is also true here. Theallegations in question concern activities taking place in 2014 and 2015. Nowwe are starting to see the enforcement activities catch up.

Don't assume all is well with your DoD contracts. The time has come to be proactive with your DFARS compliance efforts, rather than reactive. If you are subject to DFARS 7012 and are not fully compliant with the 110 security requirements in NIST Special Publication 800-171, contact the experts at OCD Tech today to review your options. With both audits and prosecutions underway, stay out of the government's crosshairs. OCD Tech will assess where you stand today, build a roadmap to compliance for you, and guide you along the way.

Contact us today or for more information including the top 5 things you can do within your organization to achieve DFARS compliance, Click Here!

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Michael Hammond