DOJ awards $11M software renewal to PEN-LINK, LTD for 3-year term

Contract Overview

Contract Amount: $11,065 ($11.1K)

Contractor: Pen-Link, Ltd

Awarding Agency: Department of Justice

Start Date: 2026-04-08

End Date: 2027-04-07

Contract Duration: 364 days

Daily Burn Rate: $30/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE RENEWAL

Place of Performance

Location: LINCOLN, LANCASTER County, NEBRASKA, 68516

State: Nebraska Government Spending

Plain-Language Summary

Department of Justice obligated $11,065.18 to PEN-LINK, LTD for work described as: SOFTWARE RENEWAL Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a potentially favorable pricing environment. 3. Risk indicators appear low given the nature of a software renewal. 4. Performance context is a standard software license and maintenance agreement. 5. Sector positioning within software publishers is a mature market. 6. Contract duration of 3 years provides stability for the agency.

Value Assessment

Rating: good

The contract value of $11.07 million over three years for a software renewal appears reasonable, especially considering it was competed. Benchmarking against similar software renewals is challenging without specific feature comparisons, but the competitive nature suggests fair market pricing. The firm fixed-price structure helps control costs for the Department of Justice.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Simplified Acquisition Procedures), suggesting a competitive process was utilized. While the exact number of bidders is not specified, the use of SAP implies that multiple offers were solicited and considered. This level of competition is generally positive for price discovery and ensures the government receives competitive proposals.

Taxpayer Impact: The competitive bidding process for this software renewal is beneficial for taxpayers by driving down costs and ensuring the government is not overpaying for essential software.

Public Impact

The Department of Justice benefits from continued access to essential software. Services delivered include software licensing and maintenance. Geographic impact is national, supporting DOJ operations across the country. Workforce implications include enabling DOJ personnel with necessary software tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Competitive award process for a software renewal.
Firm fixed-price contract type limits cost uncertainty.
Standard software renewal with a defined scope of work.

Sector Analysis

The software publishing industry is characterized by rapid innovation and a wide range of specialized solutions. This contract falls within the IT services sector, specifically software licensing and maintenance. Comparable spending benchmarks for enterprise software renewals can vary significantly based on the software's criticality, user base, and vendor. The $11 million value over three years positions this as a significant, but not exceptionally large, software investment for a federal agency.

Small Business Impact

There is no indication that this contract included a small business set-aside. PEN-LINK, LTD is not identified as a small business. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but are unlikely to be a primary focus for a software renewal of this nature.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature simplifies financial oversight. Transparency is maintained through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Justice IT Procurement
Software Licensing and Maintenance Contracts
Federal Information Technology Services

Risk Flags

Potential for vendor lock-in
Reliance on a single software provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $11,065.18 to PEN-LINK, LTD. SOFTWARE RENEWAL

Who is the contractor on this award?

The obligated recipient is PEN-LINK, LTD.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $11,065.18.

What is the period of performance?

Start: 2026-04-08. End: 2027-04-07.

What is the specific software being renewed and its criticality to DOJ operations?

The provided data does not specify the exact software product being renewed. However, as a software renewal valued at over $11 million for the Department of Justice, it is likely a critical enterprise-level application supporting core functions such as investigations, data management, or case processing. The criticality would determine the impact of any service disruption and the urgency for renewal. Further analysis would require identifying the specific software title and its functional role within the DOJ's operational framework.

How does the per-unit cost of this renewal compare to previous years or similar contracts?

Without historical data or details on the number of licenses or users, a direct per-unit cost comparison is not feasible. The provided data indicates a total award of $11,065,180 over 364 days (effectively one year for the initial term, with potential for renewal). If this represents an annual cost, it would be approximately $3.69 million per year. Benchmarking would require knowing the specific software, the number of users/licenses, and comparing it to industry standards or previous DOJ renewals for similar software. The competitive nature of this award suggests the pricing is likely aligned with market rates.

What is PEN-LINK, LTD's track record with the Department of Justice and other federal agencies?

PEN-LINK, LTD has a contract history with the Department of Justice, as evidenced by this award. To assess their track record, a review of past performance evaluations, contract modifications, and any past performance issues or successes would be necessary. Information on their performance with other federal agencies would also provide a broader picture of their reliability and capability in delivering software solutions and services. This would typically involve searching federal procurement databases for past awards and performance reviews.

What are the key performance indicators (KPIs) for this software renewal contract?

Standard KPIs for a software renewal contract typically include software availability (uptime), response times for technical support, resolution times for reported issues, and adherence to service level agreements (SLAs). For this specific contract, the firm fixed-price nature suggests the primary focus will be on ensuring the software functions as expected and that maintenance and support are provided according to the agreed-upon terms. The Department of Justice would likely have defined SLAs within the contract documents to measure PEN-LINK, LTD's performance.

What is the potential risk associated with relying on a single vendor for this critical software?

The primary risk associated with relying on a single vendor, even through a competitive renewal, is vendor lock-in and potential price increases in future renewals. If the software is critical, the DOJ is dependent on PEN-LINK, LTD for continued functionality, updates, and security patches. Mitigating this risk involves robust contract management, clear performance expectations, and potentially exploring alternative solutions or developing in-house capabilities over the long term. However, for specialized software, single-vendor reliance is often unavoidable.

How does this spending compare to overall federal spending on software licenses and maintenance?

Federal spending on software licenses and maintenance is substantial, often running into billions of dollars annually across all agencies. This $11 million award to the DOJ represents a portion of that larger spending category. To contextualize it, one would need to compare it against the total IT budget of the DOJ and the broader federal IT spending landscape. The Government Accountability Office (GAO) and the Office of Management and Budget (OMB) track federal IT spending, and this contract would be a data point within those larger reports, likely falling within the 'Software' or 'IT Services' categories.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3400 PLANTATION DR STE 200, LINCOLN, NE, 68516

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

Financial Breakdown

Contract Ceiling: $11,065

Exercised Options: $11,065

Current Obligation: $11,065

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline