The competence of the firms intelligence gathering ability is unrelated to the security of their computer systems. Whether the intelligence gathering was any good is hard to say, unless you take the released documents at face value. Taking something released by Anonymous at face value does not seem like a good strategy.

It isn't about HBGary being competent or not, its about whether or not they were able to fulfill the letter of their contracted terms.

If the FBI believes that the company can still fulfill its contract terms, and in a lot of situations that comes down to providing the requisite documentation showing sufficient protocols in place, then the FBI will continue to work with HBGary.

Much greater incompetence has been rewarded by the government bureaucracy than poorly picked passwords.