DOJ's $14.9M Red Hat Contract Awarded to V3GATE, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $14,903 ($14.9K)
Contractor: V3gate, LLC
Awarding Agency: Department of Justice
Start Date: 2024-10-01
End Date: 2026-09-30
Contract Duration: 729 days
Daily Burn Rate: $20/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FY25-REDHAT BASE POP: 10/01/2024 TO 09/30/2025 OY1 POP: 10/01/2025-09/30/2026 OY2 POP: 10/01/2026-09/30/2027
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Justice obligated $14,902.65 to V3GATE, LLC for work described as: FY25-REDHAT BASE POP: 10/01/2024 TO 09/30/2025 OY1 POP: 10/01/2025-09/30/2026 OY2 POP: 10/01/2026-09/30/2027 Key points: 1. Contract value of $14.9 million over two option years. 2. Awarded to V3GATE, LLC, a new entrant in federal contracting. 3. Utilizes full and open competition, indicating a competitive bidding process. 4. Supports the Federal Prison System with 'Other Computer Related Services'.
Value Assessment
Rating: fair
The contract's pricing is based on a firm fixed price structure. Without specific line-item details or historical data for similar Red Hat services, a precise value assessment is challenging. Benchmarking against industry standards for Red Hat support and subscriptions would be necessary for a more definitive evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process was initiated but potentially narrowed. This method aims for price discovery but the exclusion of sources could limit the breadth of competition.
Taxpayer Impact: The use of full and open competition is generally positive for taxpayers, as it encourages multiple bids and potentially drives down costs. However, the specific impact depends on the number and competitiveness of the actual bidders.
Public Impact
Ensures continued IT support for the Bureau of Prisons' operations. Potential for improved system reliability and security through Red Hat services. Supports federal IT infrastructure modernization efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited information on V3GATE, LLC's past performance.
- Potential for vendor lock-in with proprietary software.
- Reliance on a single vendor for critical IT services.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract limits cost overruns.
- Supports essential functions of the Federal Prison System.
Sector Analysis
This contract falls under 'Other Computer Related Services,' a broad category within the IT sector. Spending in this area often relates to software licensing, maintenance, and support. Benchmarks for similar contracts can vary widely based on the specific services and software involved.
Small Business Impact
The data indicates this contract was not set-aside for small businesses (ss: false, sb: false). Therefore, large businesses were eligible to compete and potentially win this award, with no specific benefit or set-aside for small business participation.
Oversight & Accountability
The contract's oversight will likely fall under the Department of Justice's procurement and program management offices. Accountability for performance and adherence to contract terms rests with the agency contracting officer and technical monitors.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Vendor's federal contracting history is not detailed.
- Potential for vendor lock-in with Red Hat ecosystem.
- Reliance on a single vendor for critical IT services.
- Competition method ('after exclusion of sources') may limit overall competition.
Tags
other-computer-related-services, department-of-justice, co, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $14,902.65 to V3GATE, LLC. FY25-REDHAT BASE POP: 10/01/2024 TO 09/30/2025 OY1 POP: 10/01/2025-09/30/2026 OY2 POP: 10/01/2026-09/30/2027
Who is the contractor on this award?
The obligated recipient is V3GATE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $14,902.65.
What is the period of performance?
Start: 2024-10-01. End: 2026-09-30.
What is the specific Red Hat product or service being procured, and how does its cost compare to market rates for similar offerings?
The contract specifies 'Other Computer Related Services' (NAICS 541519) related to Red Hat. Without detailed service descriptions or specific Red Hat product lines (e.g., subscriptions, support tiers, training), a precise cost comparison is difficult. Benchmarking against Red Hat's public pricing for enterprise subscriptions and support contracts would be the initial step, followed by analysis of any discounts or value-added services provided by V3GATE, LLC.
What is the risk associated with V3GATE, LLC's performance, given it appears to be a relatively new federal contractor?
The primary risk lies in V3GATE, LLC's potential lack of extensive federal contracting experience, which could impact their ability to meet performance expectations, navigate complex government requirements, and manage project timelines effectively. Agencies typically mitigate this through robust performance monitoring, clear deliverables, and phased payments, but a new vendor introduces a higher degree of uncertainty regarding successful execution and timely delivery.
How effectively does this contract support the Federal Prison System's mission, and are there alternative solutions that could offer better value?
This contract provides essential IT services likely supporting critical functions within the Federal Prison System. The effectiveness hinges on the reliability and performance of the Red Hat services procured. Alternative solutions might include different Linux distributions, cloud-based services, or consolidated IT support contracts. A thorough analysis of the total cost of ownership and operational benefits of alternatives versus the current approach would determine if better value is achievable.
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: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 555 MIDDLE CREEK PKWY STE 120, COLORADO SPRINGS, CO, 80921
Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $23,463
Exercised Options: $14,903
Current Obligation: $14,903
Actual Outlays: $2,610
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD27B
IDV Type: GWAC
Timeline
Start Date: 2024-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-09
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