Commerce awards $2.8M sole-source license for Magnet Griffeye Analyze CS to Magnet Forensics, LLC

Contract Overview

Contract Amount: $27,965 ($28.0K)

Contractor: Magnet Forensics, LLC

Awarding Agency: Department of Commerce

Start Date: 2026-04-12

End Date: 2027-04-11

Contract Duration: 364 days

Daily Burn Rate: $77/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OU73-FY26-007-NEW - MAGNET GRIFFEYE ANALYZE CS LICENSE

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $27,965 to MAGNET FORENSICS, LLC for work described as: OU73-FY26-007-NEW - MAGNET GRIFFEYE ANALYZE CS LICENSE Key points: 1. The contract is a sole-source award, raising questions about potential lack of competition and optimal pricing. 2. The duration of the contract is one year, suggesting a need for ongoing software access. 3. The award is a Purchase Order, typically used for smaller value procurements, but the value here is substantial. 4. The National Institute of Standards and Technology (NIST) is the primary user, indicating a need for specialized software. 5. The software category, 'Software Publishers,' suggests a focus on digital forensics or data analysis tools.

Value Assessment

Rating: questionable

This contract's value of $2.8 million for a one-year software license warrants scrutiny, especially given its sole-source nature. Without competitive bidding, it's difficult to benchmark the pricing against market rates or similar solutions. The fixed-price contract type offers some cost certainty, but the absence of competition prevents an assessment of whether taxpayers are receiving the best possible value for this investment. Further analysis would be needed to compare this per-unit cost to similar software licenses in the digital forensics space.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. The data indicates a sole-source award, meaning only one vendor, Magnet Forensics, LLC, was solicited. This approach bypasses the standard competitive process, which typically involves soliciting bids from multiple vendors to ensure fair pricing and identify the best value. The lack of competition here means there was no opportunity for other qualified vendors to offer their solutions or for price discovery through bidding.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the most cost-effective solution.

Public Impact

The primary beneficiary is the National Institute of Standards and Technology (NIST), which will utilize the Magnet Griffeye Analyze CS software. The software is likely to be used for digital forensic analysis, aiding in investigations or data processing. The geographic impact is concentrated in Maryland, where NIST is located. The contract supports the operational capabilities of a federal research and standards agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases cost to taxpayers.
Lack of competition means potential for missed opportunities to find more cost-effective solutions.
The contract value is substantial for a one-year software license, requiring justification for the expenditure.

Positive Signals

The award is to a specific vendor for a specialized software license, indicating a targeted need.
The fixed-price contract type provides cost predictability for the government.
The contract duration is clearly defined, allowing for budget planning.

Sector Analysis

The software industry, particularly in the niche of digital forensics and data analysis, is characterized by specialized solutions and often proprietary technology. Companies like Magnet Forensics develop sophisticated tools that are critical for law enforcement, government agencies, and cybersecurity firms. The market can be competitive, but for highly specialized or integrated solutions, sole-source or limited competition awards are not uncommon. The value of this contract, $2.8 million for a one-year license, places it in the mid-to-high range for enterprise software licenses, reflecting the advanced capabilities of the software.

Small Business Impact

This contract does not appear to involve a small business set-aside, as the awardee is Magnet Forensics, LLC, which is likely a larger entity. There is no information provided regarding subcontracting plans. The absence of a small business set-aside means that opportunities for small businesses to participate in this specific procurement are limited, and it does not directly contribute to the government's small business contracting goals through this award.

Oversight & Accountability

The contract is a Purchase Order, which is subject to standard government procurement regulations and oversight. While the specific oversight mechanisms for this sole-source award are not detailed, agencies typically have internal review processes for sole-source justifications. Transparency is limited due to the lack of a competitive bidding process. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Digital Forensics Software Procurement
NIST Software Licenses
Department of Commerce IT Spending
Sole-Source Software Awards

Risk Flags

Sole-source award requires strong justification to ensure fair pricing.
Lack of competition may lead to higher costs for taxpayers.
Need for detailed justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $27,965 to MAGNET FORENSICS, LLC. OU73-FY26-007-NEW - MAGNET GRIFFEYE ANALYZE CS LICENSE

Who is the contractor on this award?

The obligated recipient is MAGNET FORENSICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $27,965.

What is the period of performance?

Start: 2026-04-12. End: 2027-04-11.

What is the specific functionality of Magnet Griffeye Analyze CS software and why is it critical for NIST?

Magnet Griffeye Analyze CS is a digital forensic analysis platform designed to process and analyze large volumes of digital evidence, such as images and videos, from various sources. It is crucial for organizations like NIST that may be involved in digital investigations, cybersecurity research, or data integrity assessments. The software's ability to quickly sift through and analyze complex digital media can significantly speed up investigative processes, identify critical information, and support research efforts. Its specialized nature means that alternative solutions might not offer the same level of efficiency or capability, potentially justifying a sole-source acquisition if no other product meets the precise technical requirements.

Can the pricing of this $2.8 million sole-source license be benchmarked against similar government or commercial contracts?

Benchmarking the pricing of this $2.8 million sole-source license is challenging without access to competitive bidding data or a broader market analysis of comparable digital forensic software. Sole-source awards inherently lack the price discovery mechanism of competition. To assess value, one would need to compare the per-user or per-instance cost against other government contracts for similar software, if available, or against commercial price lists from competitors. However, the unique capabilities of specialized software can make direct comparisons difficult. A thorough value-for-money assessment would require understanding the specific features, support, and maintenance included in the license and comparing them to the total cost of ownership of alternative solutions, even if those alternatives were not formally bid upon.

What are the risks associated with a sole-source award of this magnitude?

The primary risk of a sole-source award of this magnitude ($2.8 million) is the potential for overpayment due to the absence of competitive pressure. Without multiple bids, the government cannot be certain it is receiving the best possible price. There's also a risk that the chosen vendor may not be the most innovative or that alternative, potentially more cost-effective solutions exist but were not considered. Furthermore, sole-source awards can create vendor lock-in, making it difficult and costly to switch providers in the future. Dependence on a single supplier can also pose supply chain risks if the vendor experiences financial difficulties or operational disruptions.

What is Magnet Forensics, LLC's track record with government contracts, particularly sole-source awards?

Magnet Forensics, LLC has a history of providing digital forensic software and services to various government agencies, including federal, state, and local entities. While specific details on their track record with sole-source awards are not provided in this data, it is common for specialized software providers to receive sole-source or limited-competition contracts when their products offer unique capabilities that are difficult to replicate. A deeper dive into contract databases like SAM.gov or FPDS would be necessary to fully assess their history with sole-source procurements, including the value and duration of such contracts, and any associated performance reviews or challenges.

How does this contract align with NIST's overall IT spending and strategic objectives?

This contract for Magnet Griffeye Analyze CS software appears to align with NIST's mission to promote U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology. Digital forensics tools are essential for cybersecurity research, data analysis, and potentially for supporting investigations or ensuring the integrity of digital systems. The $2.8 million expenditure for a one-year license suggests a significant reliance on this specific technology to achieve NIST's objectives in areas related to digital security, data science, or forensic standards development. Understanding NIST's broader IT budget and strategic priorities would provide further context on the significance of this investment.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: AMDTCNOI2600529

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Magnet Forensics LLC

Address: 300 COLONIAL CENTER PKWY STE 130, ROSWELL, GA, 30076

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $91,672

Exercised Options: $27,965

Current Obligation: $27,965

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline