DoD Awards $10M Contract for Commercial VRL Licenses and Support to Praxis Engineering Technologies LLC
Contract Overview
Contract Amount: $10,045,794 ($10.0M)
Contractor: Praxis Engineering Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2025-12-16
Contract Duration: 810 days
Daily Burn Rate: $12.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: COMMERCIAL VRL LICENSES AND SUPPORT
Place of Performance
Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $10.0 million to PRAXIS ENGINEERING TECHNOLOGIES LLC for work described as: COMMERCIAL VRL LICENSES AND SUPPORT Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. The $10M value for software licenses and support warrants scrutiny for cost-effectiveness. 3. Potential risk associated with a sole-source award for critical cyber command needs. 4. Spending falls under 'Other Computer Related Services', a broad category.
Value Assessment
Rating: questionable
The contract value of $10,045,794 for commercial VRL licenses and support is significant. Without comparable contract data for similar services, it is difficult to assess if this pricing is competitive or represents good value for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive bidding process. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these software licenses and support services.
Public Impact
Cyber Command relies on these licenses, impacting national security operations. The duration of the contract extends into late 2025, indicating ongoing reliance. Transparency in the sole-source justification is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Definitive contract awarded
- Firm fixed price contract type
Sector Analysis
This contract falls under 'Other Computer Related Services' (NAICS 541519). Spending in this sector can vary widely, but significant sole-source awards for specialized software and support warrant careful review to ensure fair pricing and necessity.
Small Business Impact
The contract was awarded to Praxis Engineering Technologies LLC, and there is no indication that small businesses were involved as subcontractors. Further analysis would be needed to determine if small business set-asides were considered.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the government is receiving fair value and that the services are essential. Accountability for the justification of non-competition is key.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- U.S. Cyber Command Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on justification
- Dependency on a single vendor
Tags
other-computer-related-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.0 million to PRAXIS ENGINEERING TECHNOLOGIES LLC. COMMERCIAL VRL LICENSES AND SUPPORT
Who is the contractor on this award?
The obligated recipient is PRAXIS ENGINEERING TECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Cyber Command).
What is the total obligated amount?
The obligated amount is $10.0 million.
What is the period of performance?
Start: 2023-09-28. End: 2025-12-16.
What is the specific functionality and criticality of the VRL licenses and support that necessitates a sole-source award?
The specific functionality of the VRL licenses and support is not detailed in the provided data. However, given the award to U.S. Cyber Command, it is likely related to critical cybersecurity operations, threat intelligence, or virtual environment management. The necessity for a sole-source award would typically stem from unique capabilities, proprietary technology, or essential integration with existing systems that only Praxis Engineering Technologies LLC can provide.
How does the $10M contract value compare to industry benchmarks for similar commercial VRL licenses and support, especially considering the sole-source nature?
Benchmarking this $10M contract is challenging without specific details on the VRL software and support scope. However, sole-source contracts often carry a price premium due to the lack of competitive pressure. A thorough review would involve comparing pricing models, license counts, support levels, and contract duration against publicly available data for similar enterprise software and support agreements, ideally from multiple vendors, to identify potential overpricing.
What measures are in place to ensure the effectiveness and value for money of this sole-source contract over its duration?
Effectiveness and value for money in sole-source contracts are typically ensured through stringent performance metrics, regular progress reviews, and clear deliverables outlined in the contract. The Department of Defense and U.S. Cyber Command should have established oversight mechanisms to monitor vendor performance against these metrics. Periodic re-evaluations of the necessity and cost-effectiveness of the services are also crucial to prevent long-term overspending.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 135 NATIONAL BUSINESS PKWY, ANNAPOLIS JUNCTION, MD, 20701
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: $19,355,094
Exercised Options: $11,836,044
Current Obligation: $10,045,794
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-28
Current End Date: 2025-12-16
Potential End Date: 2025-12-16 00:00:00
Last Modified: 2026-03-05
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