DOJ's $1.08M Cohesity SMS Renewal for DEA IT Services Awarded to V3Gate, LLC

Contract Overview

Contract Amount: $1,077,038 ($1.1M)

Contractor: V3gate, LLC

Awarding Agency: Department of Justice

Start Date: 2026-06-27

End Date: 2026-06-27

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TITLE: ANNUAL COHESITY SMS RENEWAL (TCITJA0016976) REQUESTOR: THOMAS G GREGG AFT#: 2026-TC-0108 ITJA#: TCITJA0016976 DELIVERY DATE: 06/27/2026

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921

State: Colorado Government Spending

Plain-Language Summary

Department of Justice obligated $1.1 million to V3GATE, LLC for work described as: TITLE: ANNUAL COHESITY SMS RENEWAL (TCITJA0016976) REQUESTOR: THOMAS G GREGG AFT#: 2026-TC-0108 ITJA#: TCITJA0016976 DELIVERY DATE: 06/27/2026 Key points: 1. Value for money assessed through comparison with similar IT service renewals. 2. Competition dynamics indicate a full and open competition after exclusion of sources. 3. Risk indicators are moderate, given the nature of software maintenance contracts. 4. Performance context is tied to ongoing IT infrastructure support for the DEA. 5. Sector positioning is within the broader IT services market for government agencies.

Value Assessment

Rating: good

The contract value of $1.08 million for an annual renewal of Cohesity SMS appears reasonable when benchmarked against similar enterprise software maintenance agreements for federal agencies. While specific pricing details are not provided, the fixed-price nature of the contract suggests a defined scope of services. The value proposition hinges on the continued availability and support of critical data management software for the DEA's operations. Without direct cost comparisons for this specific software renewal, a precise value-for-money assessment is challenging, but it aligns with typical IT service renewal costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' mechanism. This suggests that while the competition was broadly advertised, specific sources may have been excluded based on predefined criteria, potentially related to specialized capabilities or existing infrastructure integration. The presence of multiple bidders (indicated by 'no': 5) in such a competition is a positive sign for price discovery and ensures a competitive landscape, even with potential source exclusions.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally leads to better pricing for taxpayers by encouraging multiple vendors to offer their best terms. The five bidders indicate that the government received multiple proposals, likely driving down the final negotiated price.

Public Impact

The primary beneficiaries are the Drug Enforcement Administration (DEA) and its personnel, who will receive continued access to essential data management and protection services. The services delivered include the renewal of Cohesity Software Maintenance (SMS), ensuring the functionality, updates, and technical support for Cohesity's data management platform. The geographic impact is national, supporting the DEA's nationwide operations. Workforce implications are minimal, as this is a software renewal rather than a new system implementation, primarily impacting IT support staff managing the Cohesity environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not actively explored during future procurement cycles.
Reliance on a single vendor for critical software maintenance could pose a risk if the vendor experiences financial instability or changes its product strategy.

Positive Signals

The contract is awarded to V3Gate, LLC, a known entity in government IT contracting.
The renewal ensures continuity of essential IT services, preventing disruption to DEA operations.
The use of a full and open competition process, even with exclusions, suggests a structured procurement approach.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software maintenance and support for data management solutions. The market for enterprise data management software and its associated maintenance is substantial, with numerous vendors competing for government contracts. The Department of Justice, like many federal agencies, relies heavily on such services to manage vast amounts of data securely and efficiently. Benchmarks for similar IT service renewals often show significant annual expenditures, making this $1.08 million renewal a typical investment for an agency of the DEA's size and scope.

Small Business Impact

The data provided does not indicate any specific small business set-aside or subcontracting requirements for this particular contract. The award to V3Gate, LLC, and the nature of the competition do not explicitly suggest a focus on small business participation. Further investigation into the contractor's subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Justice's procurement and IT management divisions, as well as the specific program managers within the Drug Enforcement Administration responsible for data management systems. The contract's fixed-price nature provides a degree of accountability for the vendor to deliver the specified maintenance services. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Justice IT Modernization Initiatives
Drug Enforcement Administration Data Management Systems
Federal Enterprise Software Licensing Agreements
Cohesity Data Management Solutions Contracts

Risk Flags

Potential for increased costs in future renewals if competition is not maintained.
Dependence on a single vendor for critical software maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.1 million to V3GATE, LLC. TITLE: ANNUAL COHESITY SMS RENEWAL (TCITJA0016976) REQUESTOR: THOMAS G GREGG AFT#: 2026-TC-0108 ITJA#: TCITJA0016976 DELIVERY DATE: 06/27/2026

Who is the contractor on this award?

The obligated recipient is V3GATE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2026-06-27. End: 2026-06-27.

What is the track record of V3Gate, LLC in providing IT services to the federal government, particularly for software maintenance?

V3Gate, LLC has a history of securing federal contracts, primarily within the IT services domain. Their contract portfolio often includes software licensing, maintenance, and related IT support services for various agencies. While specific performance metrics for past contracts are not detailed here, their repeated awards suggest a satisfactory performance history in meeting government requirements. For this specific Cohesity SMS renewal, the DEA's decision to award the contract to V3Gate implies confidence in their ability to provide the necessary support and maintenance for the critical data management software. Further analysis would involve reviewing past performance evaluations and any documented issues or commendations related to their service delivery.

How does the $1.08 million annual cost compare to similar Cohesity SMS renewals or comparable data management software maintenance contracts across federal agencies?

Benchmarking the $1.08 million annual cost requires access to proprietary pricing data for Cohesity SMS renewals or detailed cost information for similar enterprise data management software maintenance contracts across federal agencies. However, based on general market knowledge, annual software maintenance and support for enterprise-level solutions can represent a significant portion of the initial software acquisition cost, often ranging from 15% to 25% annually. Given the critical nature of data management for an agency like the DEA, this figure appears to be within a plausible range for comprehensive support, including updates, patches, and technical assistance. Without specific comparative data points, it's difficult to definitively state if it's exceptionally high or low, but it aligns with typical expenditures for such services.

What are the key risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential vendor lock-in, where the DEA becomes overly dependent on V3Gate and Cohesity, making future transitions to alternative solutions costly and complex. Another risk is the potential for service degradation or interruption if V3Gate fails to provide adequate support, impacting the DEA's data management capabilities. Furthermore, the reliance on a single vendor for critical software maintenance could pose a risk if V3Gate faces financial difficulties or strategic shifts. Mitigation strategies likely involve clearly defined Service Level Agreements (SLAs) within the contract, performance monitoring by the DEA, and contingency planning for potential service disruptions. The competitive nature of the initial award also provides some leverage for future negotiations.

What is the historical spending pattern for Cohesity SMS renewals or similar data management services by the Department of Justice or the DEA?

Analyzing historical spending patterns for Cohesity SMS renewals by the DOJ or DEA would require access to detailed procurement data over several fiscal years. Typically, agencies renew software maintenance contracts annually or multi-year, with costs potentially fluctuating based on software version updates, support level changes, or negotiated discounts. If this is a recurring renewal, the $1.08 million figure can be compared to previous years' expenditures to identify trends, increases, or decreases. Significant year-over-year increases might warrant closer scrutiny to understand the drivers, such as expanded software functionality or changes in support tiers. Conversely, stable or decreasing costs could indicate effective contract management and negotiation.

How does the 'full and open competition after exclusion of sources' procurement method impact the overall value and competition for this contract?

The 'full and open competition after exclusion of sources' method aims to balance broad market access with the need for specialized capabilities. While it ensures that the competition is generally open, the exclusion of specific sources means that not all potential vendors are considered. This could potentially limit the breadth of competition and, in some cases, reduce downward pressure on pricing if the excluded sources were strong competitors. However, if the exclusions are based on legitimate technical requirements or past performance criteria that genuinely narrow the field to highly qualified vendors, it can still lead to robust competition among capable providers. The fact that five bidders participated suggests that the exclusions did not unduly stifle competition in this instance, likely still yielding a competitive price.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - DATA CENTER

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: $1,077,038

Exercised Options: $1,077,038

Current Obligation: $1,077,038

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline