As contractors cope with shrinking budgets, shipbuilder Huntington Ingalls is diversifying.

The contractor, which is based in Newport News but has an office at the Navy Yard, earlier this year acquired S.M. Stoller Corp., which provides environmental, nuclear and technical consulting and engineering services.

The deal will help Huntington Ingalls expand its work, said Mike Petters , Huntington Ingalls’s chief executive, in an interview earlier this month. But don’t expect that expansion to be overseas. Most countries want to build their own naval ships, he said.

“We haven’t seen the international arena as a place that makes good sense for us,” he said.

Engility unit settles with Justice Department

Contractor MPRI — which is now part of Chantilly-based Engility — has agreed to pay $3.2 million to resolve allegations that it submitted false labor charges on an Army contract, the Justice Department said last week.

The Justice Department alleged that MPRI falsely billed between March 2005 and October 2010 for employees who had not worked on its contract to help the Army improve Afghanistan’s national security sector.

Under the settlement, there was no determination of liability and the claims remain allegations, the Justice Department said.

Engility said in a statement that the contract actions related to the settlement “took place under previous management more than two years before Engility was created.”

“The decision to settle was a business decision based upon the company’s desire to resolve the matter and move forward,” the statement added, noting that the company does not admit any liability.

Lockheed Martin teams with AeroVironment

Bethesda-based contracting giant Lockheed Martin earlier this month said it will partner with California-based AeroVironment to pursue marketing an AeroVironment-built drone to a broader group of customers.

“It’s basically a joint marketing agreement,” said Paul Lemmo, Lockheed’s senior vice president for corporate strategy and business development. “We’ll work together to identify customers and hopefully convince them this is the right platform for their needs.”

The agreement centers around AeroVironment’s Global Observer drone, which can operate for about a week at an altitude of 55,000 feet to 65,000 feet, according to S teven Gitlin of AeroVironment.

Gitlin said the aircraft can be used to host equipment that enables, for instance, communication or surveillance.

Under the partnership, Lemmo said Lockheed will be able to help AeroVironment adapt the aircraft for a whole variety of potential customers, from international governments to the Department of Homeland Security.

Thycotic expands D.C. office

For large companies and government agencies, passwords can be a major pain point.

When an administrator who has access to passwords quits or employees constantly forget their passwords and call for assistance, the inefficiency can add up, said Jonathan Cogley, the chief executive of Thycotic.

Thycotic, based in the District, is trying to solve that problem. The company has three products: Secret Server, which manages an organization’s privileged passwords; Password Reset Server, which allows employees to reset their own passwords; and Group Management Server, meant to allow managers, not just IT administrators, to control access to key areas.

Cogley said the company has been able to attract a wide range of customers, from financial services companies to airlines to government agencies.

Thycotic is now up to about 40 people in its District office and plans to tear down a wall to expand into more office space this spring.