DOJ awards $3.48M for IT services to V3GATE, LLC, with 12 bids received

Contract Overview

Contract Amount: $34,850 ($34.9K)

Contractor: V3gate, LLC

Awarding Agency: Department of Justice

Start Date: 2025-04-11

End Date: 2027-04-10

Contract Duration: 729 days

Daily Burn Rate: $48/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TENABLE

Place of Performance

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

State: Colorado Government Spending

Plain-Language Summary

Department of Justice obligated $34,850 to V3GATE, LLC for work described as: TENABLE Key points: 1. Contract value appears reasonable given the duration and scope of IT services. 2. Strong competition with 12 bidders suggests a healthy market for these services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of approximately two years provides stability for service delivery. 5. This award falls within the 'Other Computer Related Services' NAICS code, indicating a specialized IT function. 6. The agency's use of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a deliberate but competitive procurement process.

Value Assessment

Rating: good

The contract's total value of $3.48 million over two years averages to approximately $1.74 million annually. Without specific benchmarks for 'Other Computer Related Services' for the FBI, this appears to be a moderate investment for IT support. The firm fixed-price structure is a positive indicator for value, as it caps the government's financial exposure. Further analysis would require comparison to similar contracts for comparable services within the federal government or private sector.

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', indicating that the solicitation was broadly advertised, but specific sources were excluded prior to the final competition. The receipt of 12 bids suggests robust interest and a competitive marketplace for these IT services. This level of competition is generally favorable for achieving competitive pricing and ensuring the government receives good value.

Taxpayer Impact: The high number of bidders indicates that taxpayers benefit from a competitive process that likely drove down prices and ensured a wide range of qualified vendors could compete for the contract.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving essential IT services. Services delivered likely include IT support, maintenance, or development critical to FBI operations. The contract's geographic impact is likely focused on FBI facilities, potentially nationwide. Workforce implications may include direct employment for V3GATE, LLC staff and indirect support for FBI personnel relying on these IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources prior to full and open competition warrants further understanding to ensure no qualified small businesses were unduly excluded.
Lack of specific details on the 'Other Computer Related Services' makes it difficult to fully assess the scope and potential risks.
The contract duration, while providing stability, could also represent a missed opportunity for re-competition if market conditions change significantly.

Positive Signals

The firm fixed-price contract type provides cost certainty and reduces the risk of budget overruns.
A high number of bidders (12) indicates a competitive environment, likely leading to better pricing and service.
The contract is awarded to a single vendor, V3GATE, LLC, suggesting a focused relationship for specific IT needs.
The contract is for IT services, a critical function for modern federal agencies like the FBI.

Sector Analysis

The IT services sector is a vast and dynamic market within federal procurement. This contract, falling under NAICS code 541519 (Other Computer Related Services), represents a segment focused on specialized IT support rather than broad system development or hardware. Federal spending in IT services is consistently high, driven by the need for agencies to maintain and modernize their technological infrastructure. Comparable spending benchmarks would typically involve analyzing contracts for similar IT support services awarded to other agencies or within the private sector, considering factors like service scope, duration, and vendor expertise.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause suggests that while the competition was broad, specific vendors might have been excluded before the final bidding stage. It is crucial to understand if this exclusion process inadvertently limited opportunities for small businesses. Without specific subcontracting plans detailed, the impact on the small business ecosystem is unclear, but the absence of a small business set-aside means prime opportunities were not reserved for them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal contracting and program management offices, with the Federal Bureau of Investigation (FBI) being the end-user agency. The firm fixed-price nature of the contract provides a degree of financial oversight by capping costs. Transparency would be enhanced through public contract databases like FPDS.gov. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Federal Bureau of Investigation IT Support Contracts
Department of Justice IT Services Procurement
Other Computer Related Services Contracts
IT Services for Law Enforcement Agencies
Firm Fixed Price IT Contracts

Risk Flags

Potential for limited competition due to source exclusion
Unclear scope of 'Other Computer Related Services'
Contractor performance risk if specific expertise is lacking

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $34,850 to V3GATE, LLC. TENABLE

Who is the contractor on this award?

The obligated recipient is V3GATE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $34,850.

What is the period of performance?

Start: 2025-04-11. End: 2027-04-10.

What is the track record of V3GATE, LLC in performing similar federal IT service contracts?

Assessing the track record of V3GATE, LLC requires a review of their past performance on federal contracts, particularly those involving 'Other Computer Related Services' or similar IT support functions. Information on past performance can often be found in federal procurement databases, which may include past performance evaluations or CPARS (Contractor Performance Assessment Reporting System) data. A review would look for consistent on-time delivery, adherence to budget (especially in fixed-price contracts), quality of service, and overall customer satisfaction reported by government agencies. A history of successful contract completions would indicate a lower risk for this current award, while a pattern of issues could raise concerns about V3GATE's capability to meet the FBI's needs effectively.

How does the awarded price compare to market rates for similar IT services?

Benchmarking the awarded price of $3.48 million over two years requires comparing it against market rates for comparable 'Other Computer Related Services'. This involves researching industry pricing for IT support, maintenance, or specialized services of similar scope and complexity. Factors such as the number of users supported, the criticality of the systems, and the required skill sets of the personnel are important. Without specific details on the services V3GATE will provide, a precise comparison is difficult. However, if the average annual cost ($1.74 million) is significantly higher or lower than industry averages for comparable federal or commercial contracts, it could indicate either an exceptional deal or potential underpricing/overpricing.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential performance issues if V3GATE, LLC lacks the specific expertise required for the FBI's unique IT environment, or if the scope of 'Other Computer Related Services' is not clearly defined, leading to scope creep. Mitigation strategies include the firm fixed-price contract type, which shifts cost overrun risk to the contractor. The FBI's oversight and the competitive nature of the award (12 bidders) also serve as risk mitigators, suggesting a capable vendor was selected. However, the 'exclusion of sources' aspect warrants scrutiny to ensure no critical risks were introduced by limiting the initial pool of potential contractors.

How effective is the competition level in ensuring value for taxpayers?

The competition level, indicated by 12 bids received, is generally very effective in ensuring value for taxpayers. A larger number of bidders typically leads to more competitive pricing as companies vie for the contract. It also increases the likelihood that the government will receive offers that meet or exceed its requirements in terms of quality and service. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, while allowing for some pre-selection, still resulted in substantial competition. This suggests that the FBI likely secured favorable pricing and service terms due to the robust bidding process.

What is the historical spending pattern for 'Other Computer Related Services' by the FBI or DOJ?

Analyzing historical spending patterns for 'Other Computer Related Services' by the FBI or the broader Department of Justice (DOJ) would provide context for the $3.48 million award. If historical spending on similar services has been significantly higher or lower, it could indicate a change in needs, market prices, or procurement strategies. For example, a consistent increase in spending might suggest growing IT demands or inflation, while a decrease could point to efficiency gains or shifts in service delivery models. Understanding these trends helps assess whether the current award is an anomaly or part of an evolving spending trajectory.

What are the implications of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies that the agency identified potential sources, possibly through market research or previous experience, and then excluded certain ones before opening the competition broadly. This can be used to ensure that only vendors with specific capabilities or clearances participate, or to streamline the process. However, it raises questions about the justification for excluding sources and whether this process could inadvertently limit competition or disadvantage certain types of businesses, such as small businesses. The key implication is that while the final stage was open, the initial filtering process warrants transparency and justification.

Industry Classification

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

Product/Service Code: IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 12

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: $34,850

Exercised Options: $34,850

Current Obligation: $34,850

Actual Outlays: $16,850

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline