McLean-based Exelis has settled with Hanover-based KEYW over a lawsuit in which it alleged that KEYW and six of its employees, all of whom previously worked for Exelis, took proprietary information and conspired to move work from Exelis to KEYW.

KEYW said in a Securities and Exchange Commission filing that on Oct. 17, the company and the individual defendants reached a confidential settlement totaling $4.8 million after taxes, including legal fees.

The amount is to be paid in installments, with the first installment expected in November and the remainder in May.

KEYW noted that the settlement did not include an admission of liability by any party.

CSC acquires ServiceMesh

Falls Church-based Computer Sciences Corp. said last week it has agreed to buy ServiceMesh, a Santa Monica, Calif.-based company that helps large organizations manage cloud computing. Terms were not disclosed.

CSC said the buy would advance its efforts to move into high-growth technology areas, including cloud computing, big data and cybersecurity. CSC has already acquired two big data firms: Austin-based Infochimps earlier this year and Columbia-based 42Six Solutions in 2012.

GAO backs Sayres & Associates

The Government Accountability Office has upheld a protest filed by District-based Sayres & Associates against a Navy contract awarded to Mechanicsburg, Pa.-based Client Solution Architects for program management, business management and executive level support services.

Though Sayres offered a lower price, the Navy’s Space and Naval Warfare Systems Command had decided the “overall technical merits of the CSA proposal” warranted paying a premium, according to the GAO.

The GAO said it agreed with Sayres that the Navy erred in evaluating the company’s management approach and its best-value tradeoff decision “was flawed.” The GAO recommended the Navy reevaluate and that Sayres be reimbursed the cost of protesting.

Silverback7 loses protest

The GAO also rejected a protest filed by Woodbridge-based Silverback7 of an Army Intelligence and Security Command contract awarded to Alexandria-based Pluribus International for program and resource management support services.

Pluribus received slightly better ratings than Silverback7 and proposed a lower price — $19.4 million to Silverback7’s $24 million.

Though Silverback7 contended that the Army’s evaluation was “unreasonable” and challenged every factor, the GAO concluded that the assessment “was reasonable and consistent with the solicitation.”

GAO denies Metro Offices

The GAO denied a protest filed by Reston-based Metro Offices against a Department of Veterans Affairs contract awarded to Frederick-based Cross Acquisitions for office hoteling services in Frederick.

Though Metro received better ratings, it also proposed a higher price — $9.5 million to Cross Acquisitions’s nearly $8 million.

Though Metro argued that the VA did not follow the terms of the solicitation and awarded the contract to a company owned by a government employee, the GAO upheld the agency’s decision and argued that the VA did not know the owner was employed by the government.