DOJ awards $5.6M for GrayKey unlock/extraction software to Panamerica Computers, Inc
Contract Overview
Contract Amount: $5,595,556 ($5.6M)
Contractor: Panamerica Computers, Inc.
Awarding Agency: Department of Justice
Start Date: 2025-09-26
End Date: 2027-03-26
Contract Duration: 546 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: UNLOCK AND EXTRACTION SOFTWARE GRAYKEY
Place of Performance
Location: LURAY, PAGE County, VIRGINIA, 22835
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $5.6 million to PANAMERICA COMPUTERS, INC. for work described as: UNLOCK AND EXTRACTION SOFTWARE GRAYKEY Key points: 1. Spending on specialized digital forensics tools is growing. 2. Panamerica Computers, Inc. is the sole awardee. 3. Potential for price escalation due to limited competition. 4. IT services sector sees continued demand for cybersecurity solutions.
Value Assessment
Rating: fair
The contract value of $5.6M over 546 days appears reasonable for specialized software. However, without more granular data on per-unit costs or comparable procurements, a definitive assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a full and open competition after exclusion of sources, suggesting other potential vendors were considered but not selected. This limited competition may impact price discovery and potentially lead to higher costs.
Taxpayer Impact: Taxpayer funds are used for critical law enforcement technology. The efficiency of this spending depends on the effectiveness of the procurement process in securing competitive pricing.
Public Impact
Enhances FBI's digital forensic capabilities for investigations. Supports national security and criminal justice efforts. Procurement of advanced technology for federal agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Reliance on a single vendor for critical software.
- Potential for vendor lock-in.
Positive Signals
- Supports critical law enforcement functions.
- Utilizes advanced technology for investigations.
Sector Analysis
Information Technology (IT) spending, particularly in cybersecurity and digital forensics, remains a high priority for federal agencies. Benchmarks for similar specialized software contracts are scarce, making direct comparison challenging.
Small Business Impact
The contract was not set aside for small businesses. The nature of this specialized software may favor larger, established vendors with specific technological expertise.
Oversight & Accountability
The contract was awarded under a full and open competition after exclusion of sources, indicating some level of market research was conducted. Ongoing oversight will be crucial to ensure performance and value.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Limited competition.
- Potential for price escalation.
- Vendor lock-in risk.
- Reliance on specialized, proprietary technology.
Tags
other-computer-related-services, department-of-justice, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $5.6 million to PANAMERICA COMPUTERS, INC.. UNLOCK AND EXTRACTION SOFTWARE GRAYKEY
Who is the contractor on this award?
The obligated recipient is PANAMERICA COMPUTERS, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $5.6 million.
What is the period of performance?
Start: 2025-09-26. End: 2027-03-26.
What is the specific functionality and unique value proposition of this GrayKey unlock and extraction software that justifies the limited competition?
GrayKey is known for its ability to bypass passcodes and extract data from locked Apple iOS devices, a capability critical for law enforcement investigations. Its unique value lies in accessing encrypted data that might otherwise be unobtainable, supporting criminal investigations and national security efforts.
What are the risks associated with relying on a single vendor for such a critical investigative tool, particularly concerning future updates and potential vulnerabilities?
Reliance on a single vendor creates significant risk. Future software updates may be delayed or costly, and the vendor could become a single point of failure. Vulnerabilities discovered in the software could impact ongoing investigations, and the lack of alternative solutions limits the government's leverage.
How will the effectiveness of this software be measured to ensure it meets the FBI's investigative needs and provides a return on investment?
Effectiveness will likely be measured by the success rate of data extraction from locked devices, the time saved in investigations due to the software's capabilities, and the number of cases positively impacted. Performance metrics should be tied to specific investigative outcomes and operational efficiency gains.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
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: $5,595,556
Exercised Options: $5,595,556
Current Obligation: $5,595,556
Actual Outlays: $5,362,851
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD02B
IDV Type: GWAC
Timeline
Start Date: 2025-09-26
Current End Date: 2027-03-26
Potential End Date: 2030-09-25 00:00:00
Last Modified: 2026-03-25
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