Player Profile / Cyberlux Corporation

HII Mission Technologies Corp.

Prime Contractor · Interpleader Plaintiff · Advance Payment Issuer

HII Mission Technologies Corp. is a subsidiary of Huntington Ingalls Industries — a $10 billion-plus defense prime — and held the OASIS task-order channel through which the Cyberlux subcontract was awarded. HII appears across 212 documents in the record: the subcontract itself, the advance payment authorization, the Stop Work Order, Modification 4, and the interpleader proceeding in the Eastern District of Virginia.

Bottom Line

What this profile says up front

01
HII awarded a $78.857M firm fixed-price subcontract to a near-insolvent OTC company whose account balance was $2,297, then provided a $38.7M advance payment — the least preferred financing method under FAR 32.4 — before any delivery was made.
02
Modification 4, negotiated and drafted by HII, credited Cyberlux for 1,608 drones the government had not formally accepted under DD-250 records, increasing the settlement value from $14.95M to $25.7M without a public accounting of the factual basis.
03
Modification 4 contains a clause drafted by HII prohibiting Cyberlux from communicating with the government contracting officer about the performance or termination of the contract; the contracting officer read and approved that clause.
04
HII's interpleader filing seeks discharge from further liability while the questions of advance payment controls, delivery credit methodology, and the communication restriction remain unaddressed in any public proceeding.
Role in the Record

The prime that wrote the contract, issued the advance, and then sought exit

HII Mission Technologies Corp. is a subsidiary of Huntington Ingalls Industries — a $10 billion-plus defense prime — and held the OASIS task-order channel through which the Cyberlux subcontract was awarded. HII appears across 212 documents in the record: the subcontract itself, the advance payment authorization, the Stop Work Order, Modification 4, and the interpleader proceeding in the Eastern District of Virginia.

In June 2025, HII filed the interpleader action that placed $23,736,937.56 into the court's registry, positioning itself as a neutral stakeholder seeking discharge from further liability. That framing is procedurally legitimate. It does not resolve the questions the record raises about the decisions HII made before the interpleader was filed.

The findings below draw from the subcontract, Modification 4, the interpleader record, and publicly available regulatory and procurement materials. They are analytical observations, not findings of liability.

Key Numbers

The numbers that frame the profile

Subcontract value
$78.857M
FFP · Aug 29, 2023
Advance issued
$38.7M
Sept 8, 2023 · Day 0
DD-250 accepted
392
of 2,000 contracted units
Mod 4 settlement
$25.7M
vs. $14.95M DD-250 value
Interpleader corpus
$23.74M
Deposited E.D. Va.
Competing claims
$35.9M+
Against $23.74M corpus
Analytical Findings

What the record establishes

01 BEDROCK

The subcontract award and the contractor's financial condition

On August 29, 2023, HII awarded Cyberlux a firm fixed-price subcontract for $78,857,414 to deliver 2,000 K8 unmanned aircraft systems for Ukraine under Foreign Military Financing. The contractor's account balance at the time of the advance payment, eleven days later, was $2,297.01. The record does not contain a public accounting of what financial due diligence HII conducted on Cyberlux before making that award, or before authorizing the advance.

Source: HII subcontract (Aug 29, 2023) · Welter Declaration, AWH v. Cyberlux · Court filings, E.D. Va. 3:25-cv-00483Source:
02 BEDROCK

The advance payment and its required segregation

Advance payments are the least preferred form of contract financing under FAR 32.4 because the funds leave the government before any delivery is made. The regulations require advance funds to be held in a segregated account, in trust, disbursed only for contract purposes. HII's own draft Modification 4 language described the advance as 'Government property held in trust — not Cyberlux property.' That paragraph was struck before the final settlement was signed.

Source: FAR 32.402(b) · HII draft Mod 4 language · Final Modification 4Source:
03 BEDROCK

Modification 4: credit for 1,608 unaccepted drones

The Modification 4 settlement, executed nine months after the Stop Work Order, credited Cyberlux for 1,608 drones the government had not formally accepted under DD-250 records. Interpleader filings classify those units into four categories: 37 HII-accepted only (not government); 745 not factory-acceptance-tested; 526 incomplete or built after the Stop Work Order; and 300 for which assembly had not started. The factual basis HII accepted to justify $25.7M in settlement value — against a DD-250 record of $14.95M — does not appear in any public filing.

Source: HII Modification 4 · DD-250 acceptance records · Interpleader filings, Doc 0144Source:
04 BEDROCK

The Modification 4 communication restriction

Modification 4 contains a clause prohibiting Cyberlux from communicating with the government contracting officer about the performance or termination of the contract. The clause was drafted by HII. The contracting officer reviewed and approved the settlement containing that clause. A contractor gagged from speaking to its own government customer about its own contract performance is not a standard commercial term. The rationale for the clause's inclusion does not appear in any public filing.

Source: HII Modification 4 · Interpleader record, E.D. Va. 3:25-cv-00483Source:
05 ROCK

The OASIS channel and contracting officer approval

The HII subcontract was awarded through the GSA OASIS task-order vehicle. The contracting officer for the underlying programme approved both the advance payment structure and, subsequently, the Modification 4 settlement — including the communication restriction clause. The regulatory framework applicable to advance payments under FAR 32.4 includes specific oversight requirements. Whether those requirements were satisfied at the time of the advance authorization has not been addressed in any public proceeding.

Source: GSA OASIS prime contract · HII subcontract · FAR 32.402(b) · Regulatory Flowdown documentationSource:
Open Questions

What the record does not explain

Q01
What financial due diligence did HII conduct on Cyberlux's solvency and operational capacity before awarding a $78.857M firm fixed-price subcontract?
Q02
Who at HII authorized a $38.7M advance payment to a contractor whose account balance was $2,297, and what approval chain governed that decision?
Q03
What factual basis did HII accept from Cyberlux to justify settlement credit for 1,608 drones the government had not formally accepted — including 300 for which assembly had not started?
Q04
Who at HII drafted the Modification 4 communication restriction, and what was the legal and commercial rationale for prohibiting a contractor from speaking to its own contracting officer?
Q05
Why did the 'Government property held in trust' paragraph in HII's own draft not survive into the final Modification 4?
Q06
Did HII notify the government customer of the advance disbursement pattern before issuing the Stop Work Order?
Q07
What internal charges — including in-house counsel time — did HII incur in managing Cyberlux creditor issues, and how were they applied under Section 7 of Mod 4?