Agriculture Buys $38.6M in Magnet AXIOM Software Licenses for Cybersecurity Operations

Contract Overview

Contract Amount: $38,562 ($38.6K)

Contractor: Panamerica Computers, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-05-17

End Date: 2027-05-16

Contract Duration: 729 days

Daily Burn Rate: $53/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAGNET AXIOM SOFTWARE LICENSES IN SUPPORT OF THE CYBERSECURITY AND PRIVACY OPERATIONS CENTER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $38,562.32 to PANAMERICA COMPUTERS, INC. for work described as: MAGNET AXIOM SOFTWARE LICENSES IN SUPPORT OF THE CYBERSECURITY AND PRIVACY OPERATIONS CENTER Key points: 1. Software licensing for cybersecurity is a growing market, with significant demand from government agencies. 2. Panamerica Computers, Inc. is the awardee, indicating potential concentration or specialized expertise in this niche. 3. The contract's duration of 729 days suggests a need for ongoing support and updates for critical cybersecurity tools. 4. The 'Other Computer Related Services' NAICS code is broad, but the specific software points to a specialized IT procurement.

Value Assessment

Rating: good

The contract value of $38.6 million over two years appears reasonable for specialized cybersecurity software licenses, especially considering the critical nature of the services supported. Benchmarking against similar enterprise software licenses would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was sought, specific circumstances limited the pool of eligible bidders. This method can sometimes lead to less aggressive pricing than unrestricted full and open competition.

Taxpayer Impact: Taxpayers are funding essential cybersecurity infrastructure, which is a necessary investment. However, the limited competition aspect warrants scrutiny to ensure the best possible price was achieved.

Public Impact

Enhances national cybersecurity capabilities by providing advanced tools for digital forensics and incident response. Supports the Department of Agriculture's mission to protect sensitive data and critical infrastructure from cyber threats. Ensures the Cybersecurity and Privacy Operations Center has the necessary software to conduct investigations and maintain system integrity.

Waste & Efficiency Indicators

Waste Risk Score: 53 / 10

Warning Flags

Limited competition may impact price competitiveness.
Reliance on a single vendor for critical software.
Potential for vendor lock-in with specialized software.

Positive Signals

Procurement supports critical cybersecurity functions.
Clear contract duration and delivery dates.
Awarded to a known entity in the IT sector.

Sector Analysis

The IT sector, particularly cybersecurity software, is experiencing robust growth driven by increasing cyber threats. Government spending in this area is substantial, with agencies like the Department of Agriculture investing heavily in protective technologies and analytical tools.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is a delivery order under a larger vehicle, implying some level of pre-competition or established framework. Oversight should focus on ensuring the terms of the delivery order align with the parent contract and that the pricing remains competitive.

Related Government Programs

Other Computer Related Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Potential for price inflation due to limited competition.
Dependency on a single software provider.
Need for ongoing maintenance and upgrade costs.
Risk of obsolescence if technology evolves rapidly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $38,562.32 to PANAMERICA COMPUTERS, INC.. MAGNET AXIOM SOFTWARE LICENSES IN SUPPORT OF THE CYBERSECURITY AND PRIVACY OPERATIONS CENTER

Who is the contractor on this award?

The obligated recipient is PANAMERICA COMPUTERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $38,562.32.

What is the period of performance?

Start: 2025-05-17. End: 2027-05-16.

What specific capabilities does Magnet AXIOM software provide that justify its cost for the Cybersecurity and Privacy Operations Center?

Magnet AXIOM is a leading digital forensics and incident response platform. It enables investigators to collect, analyze, and report on data from computers, mobile devices, and cloud sources. Its value lies in its comprehensive analysis capabilities, speed, and ability to process diverse data types, which are crucial for identifying threats, understanding breaches, and supporting legal or administrative actions within the agency.

What are the risks associated with procuring specialized cybersecurity software like Magnet AXIOM under limited competition?

Limited competition can increase the risk of higher prices due to reduced market pressure. It may also lead to vendor lock-in, making future transitions to alternative solutions more difficult and costly. Furthermore, if the limited pool of bidders does not include the most innovative or cost-effective providers, the agency might not be securing the best available technology or value for taxpayer money.

How effectively does this software purchase contribute to the Department of Agriculture's overall cybersecurity posture and mission effectiveness?

This purchase directly enhances the agency's ability to defend against and respond to cyber threats by equipping its dedicated operations center with advanced analytical tools. By enabling thorough investigations and rapid incident response, the software contributes to protecting sensitive data, maintaining operational continuity, and upholding public trust, thereby significantly bolstering the agency's cybersecurity posture and overall mission effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1386 BIG OAK RD, LURAY, VA, 22835

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $84,378

Exercised Options: $38,562

Current Obligation: $38,562

Actual Outlays: $18,451

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD02B

IDV Type: GWAC

Timeline