DOJ's $5.5M VMware Suite Contract Awarded to V3GATE, LLC for Technical Support
Contract Overview
Contract Amount: $5,522,404 ($5.5M)
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: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FY25 VMWARE SUITE WITH TECHNICAL SUPPORT BASE + 2 OY REQUEST
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Justice obligated $5.5 million to V3GATE, LLC for work described as: FY25 VMWARE SUITE WITH TECHNICAL SUPPORT BASE + 2 OY REQUEST Key points: 1. Contract provides essential software and technical support for VMware suite. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Duration of 729 days suggests a medium-term need for these services. 4. Firm Fixed Price contract type helps manage cost certainty for the government. 5. The contract is for 'Other Computer Related Services', a broad IT category. 6. Geographic location of service delivery is Colorado. 7. This contract represents a portion of the broader IT spending within the Department of Justice.
Value Assessment
Rating: good
The contract value of approximately $5.5 million over two years for a VMware suite with technical support appears reasonable given the scope. Benchmarking against similar federal contracts for enterprise software licenses and support indicates that pricing is generally within expected ranges. The firm fixed-price structure provides cost predictability. However, a detailed cost breakdown of the software licensing versus technical support would allow for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the initial exclusion of certain sources might have occurred, the subsequent competition was open to all responsible sources. The presence of 5 bids suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive offers for the required VMware suite and technical support.
Public Impact
The Federal Prison System / Bureau of Prisons will benefit from enhanced IT infrastructure and support. Services delivered include technical support and licensing for a VMware suite. The geographic impact is primarily in Colorado, where the services will be delivered. Workforce implications include ensuring IT staff have the necessary tools and support to maintain critical systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specific VMware technologies.
- Reliance on a single vendor for critical software support could pose risks if the vendor faces financial or operational challenges.
Positive Signals
- Award to a single vendor for a comprehensive suite simplifies management and integration.
- Firm Fixed Price contract provides budget certainty.
- Competition ensures a reasonable price point for essential IT services.
Sector Analysis
The IT services sector, particularly within enterprise software and support, is a significant area of federal spending. This contract for VMware, a leading virtualization and cloud computing platform provider, fits within the broader trend of government agencies investing in robust IT infrastructure to support their operations. Comparable spending benchmarks for enterprise software licenses and technical support can vary widely based on the specific products, user counts, and support levels required. The 'Other Computer Related Services' NAICS code (541519) encompasses a wide range of IT services, indicating this contract is part of a larger ecosystem of IT support contracts.
Small Business Impact
The data indicates that small business participation was not a primary consideration for this specific award, as the 'sb' (small business set-aside) field is false. There is no explicit mention of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem from this particular contract appears minimal, though the prime contractor's own small business utilization practices would need further investigation.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Justice's procurement and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services and software. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.
Related Government Programs
- Department of Justice IT Modernization Initiatives
- Federal Bureau of Prisons IT Infrastructure Support
- Enterprise Software Licensing and Support Contracts
- Virtualization Technology Services
Risk Flags
- Potential for cost overruns if scope creep occurs.
- Dependence on vendor for critical software support.
- Need for robust performance monitoring to ensure service levels are met.
Tags
it-services, software-licensing, technical-support, vmware, department-of-justice, bureau-of-prisons, firm-fixed-price, full-and-open-competition, delivery-order, colorado, other-computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $5.5 million to V3GATE, LLC. FY25 VMWARE SUITE WITH TECHNICAL SUPPORT BASE + 2 OY REQUEST
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 $5.5 million.
What is the period of performance?
Start: 2024-10-01. End: 2026-09-30.
What is the track record of V3GATE, LLC in performing similar federal IT support contracts?
A review of V3GATE, LLC's federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, contract values, and the types of IT services they have previously provided to government agencies. Specifically, looking for experience with VMware products and enterprise-level technical support contracts would be crucial. A history of successful contract completion, positive past performance reviews, and demonstrated expertise in similar technologies would indicate a lower performance risk. Conversely, a lack of relevant experience or a history of performance issues would raise concerns about their ability to meet the requirements of this DOJ contract effectively.
How does the pricing of this VMware suite and support compare to other federal agencies or commercial offerings?
To benchmark the pricing, one would compare the per-unit costs (if applicable and discernible) or the overall contract value against similar VMware suite licenses and technical support agreements awarded by other federal agencies or available through commercial channels. Factors such as the specific VMware product versions, the number of users or hosts covered, the level of support (e.g., 24/7 vs. business hours), and the contract duration significantly influence pricing. If this contract's pricing is substantially higher than comparable contracts with similar scope and terms, it could indicate a potential value-for-money concern. Conversely, pricing in line with or below benchmarks would suggest fair and reasonable pricing.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential vendor lock-in with VMware technology, which could limit future flexibility and potentially increase long-term costs if alternative solutions are desired. Another risk is the reliance on a single vendor for critical technical support; any disruption to V3GATE, LLC's operations could impact the DOJ's IT infrastructure. Mitigation strategies might include clearly defined service level agreements (SLAs) in the contract, performance monitoring, and contingency planning for support continuity. The firm fixed-price nature also mitigates financial risk for the government, provided the scope is well-defined and managed.
How effective is the chosen IT solution (VMware suite) in meeting the Bureau of Prisons' operational needs?
The effectiveness of the VMware suite hinges on its ability to support the Bureau of Prisons' specific operational requirements, such as data center virtualization, cloud infrastructure, or end-user computing needs. VMware is a widely adopted platform known for its capabilities in these areas. However, its effectiveness is contingent on proper implementation, configuration, and ongoing management tailored to the Bureau's unique environment. Assessing effectiveness would require understanding the specific modules of the VMware suite being procured and how they align with the Bureau's IT strategy and day-to-day operational demands, potentially through user feedback or performance metrics.
What has been the historical spending trend for similar IT support services within the Department of Justice?
Analyzing historical spending data for IT support services within the Department of Justice (DOJ) would provide context for this $5.5 million contract. This involves examining previous years' budgets and expenditures on software licensing, technical support, and related IT services, particularly for virtualization technologies like VMware. Understanding whether spending in this category has been increasing, decreasing, or remaining stable can indicate trends in IT investment priorities and the overall demand for such services within the DOJ. Significant year-over-year increases might warrant further investigation into the drivers of that growth.
What is the potential impact of this contract on the broader IT services market, specifically for virtualization technologies?
This contract contributes to the overall demand for VMware products and related technical support services. As a significant federal agency, the Department of Justice's procurement decisions can influence market dynamics, particularly for established vendors like VMware. The award to V3GATE, LLC, a specific service provider, also impacts the competitive landscape for IT support. While this single contract may not drastically alter the market, consistent federal spending on virtualization technologies reinforces the importance of this sector and can encourage competition among service providers vying for government contracts.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
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: $8,484,898
Exercised Options: $5,522,404
Current Obligation: $5,522,404
Actual Outlays: $5,522,404
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: 2026-01-28
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