DOJ Awards $156.1M for Other Computer Related Services to V3GATE, LLC for Federal Prison System
Contract Overview
Contract Amount: $156,100 ($156.1K)
Contractor: V3gate, LLC
Awarding Agency: Department of Justice
Start Date: 2026-04-06
End Date: 2027-03-31
Contract Duration: 359 days
Daily Burn Rate: $435/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FY26-FSA-CSAUS-ICEN PALO ALTO
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Justice obligated $156,100 to V3GATE, LLC for work described as: FY26-FSA-CSAUS-ICEN PALO ALTO Key points: 1. Contract awarded to V3GATE, LLC for $156.1 million. 2. Service category is 'Other Computer Related Services' (NAICS 541519). 3. Contract duration is 359 days, from April 6, 2026, to March 31, 2027. 4. Awarded under full and open competition. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: good
The contract value of $156.1 million for approximately one year of service appears reasonable given the scope of 'Other Computer Related Services' for a federal agency. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: Full and open competition suggests taxpayers are likely receiving a fair price for the services rendered, maximizing value for money.
Public Impact
Ensures continued IT support for the Federal Prison System. Supports the operational needs of the Bureau of Prisons. Potential impact on inmate management and correctional facility operations. Contributes to the functioning of the Department of Justice's IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope expands beyond initial estimates.
- Dependence on a single vendor for critical IT services.
- Risk of service disruption if vendor performance is suboptimal.
Positive Signals
- Awarded through full and open competition, promoting fairness.
- Firm Fixed Price contract provides cost certainty.
- Clear contract duration and delivery order structure.
Sector Analysis
The 'Other Computer Related Services' sector is broad and encompasses a wide range of IT support functions. Spending in this area for federal agencies is substantial, driven by the need for robust and secure IT systems to support diverse operations.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded under full and open competition. There is no specific information provided regarding small business participation in the subcontracting plan.
Oversight & Accountability
The Department of Justice, through the Federal Prison System, is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders under a larger contract would apply, including performance monitoring and compliance checks.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Large contract value.
- Single vendor for critical services.
- Potential for scope creep.
- Dependence on vendor performance.
- Limited information on specific services.
Tags
other-computer-related-services, department-of-justice, co, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $156,100 to V3GATE, LLC. FY26-FSA-CSAUS-ICEN PALO ALTO
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 $156,100.
What is the period of performance?
Start: 2026-04-06. End: 2027-03-31.
What specific 'Other Computer Related Services' are included in this contract, and how do they align with the Bureau of Prisons' core mission?
The contract details for 'Other Computer Related Services' (NAICS 541519) are not fully specified in the provided data. However, these services typically include IT consulting, system integration, network management, and data processing. For the Bureau of Prisons, these services are crucial for maintaining secure and efficient inmate management systems, administrative operations, and communication networks within correctional facilities.
What is the potential risk associated with a single delivery order of this magnitude for critical IT services within the Federal Prison System?
A significant risk associated with a large single delivery order is vendor lock-in and potential disruption if the vendor fails to perform. If V3GATE, LLC experiences financial difficulties or operational issues, the Federal Prison System could face service interruptions impacting critical functions. Mitigating this requires robust performance monitoring and contingency planning by the agency.
How does the firm fixed price contract structure ensure cost-effectiveness and value for the taxpayer in this context?
A Firm Fixed Price (FFP) contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. This structure incentivizes the contractor to manage their expenses efficiently to maximize profit. For taxpayers, this means the $156.1 million award represents the maximum cost, preventing unexpected budget overruns, assuming the scope of work remains unchanged.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 15BPCC26Q000000 19
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 555 MIDDLE CREEK PKWY UNIT 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: $156,100
Exercised Options: $156,100
Current Obligation: $156,100
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA25D00EG
IDV Type: FSS
Timeline
Start Date: 2026-04-06
Current End Date: 2027-03-31
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2026-04-08
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