DOJ's FBI Awards $5.7M for Facial Recognition SaaS Licenses to V3GATE, LLC
Contract Overview
Contract Amount: $5,736,300 ($5.7M)
Contractor: V3gate, LLC
Awarding Agency: Department of Justice
Start Date: 2025-06-27
End Date: 2027-04-30
Contract Duration: 672 days
Daily Burn Rate: $8.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FACIAL RECOGNITION TECHNOLOGY SAAS LICENSES
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Justice obligated $5.7 million to V3GATE, LLC for work described as: FACIAL RECOGNITION TECHNOLOGY SAAS LICENSES Key points: 1. The FBI is procuring facial recognition technology licenses, a rapidly evolving sector with significant privacy implications. 2. V3GATE, LLC, a single vendor, is providing the service under a firm-fixed-price contract. 3. The contract duration is 672 days, ending April 30, 2027. 4. The award was made under full and open competition after exclusion of sources, suggesting a specific justification for vendor selection. 5. This technology raises concerns about potential misuse and bias, requiring robust oversight.
Value Assessment
Rating: fair
The contract value of $5.7 million for SaaS licenses over approximately two years appears moderate for specialized technology. Benchmarking against similar facial recognition SaaS contracts is difficult due to proprietary pricing and varying feature sets, but the price seems within a reasonable range for enterprise-level solutions.
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.' This specific procurement method implies that while competition was sought, certain sources were excluded, potentially limiting the breadth of competitive offers and impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for advanced surveillance technology. The effectiveness and necessity of this specific solution will determine the ultimate value for taxpayer investment.
Public Impact
Enhances investigative capabilities for the FBI, potentially aiding in identifying suspects and solving crimes. Raises significant privacy concerns for individuals whose biometric data may be processed. Potential for bias in algorithms could lead to disproportionate impacts on certain demographic groups. Requires clear policies and oversight to ensure ethical and lawful use of the technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Privacy implications of facial recognition technology.
- Potential for algorithmic bias.
- Limited transparency in 'exclusion of sources' competition.
Positive Signals
- Utilizes advanced technology to support law enforcement.
- Firm-fixed-price contract provides cost certainty.
Sector Analysis
The procurement falls under 'Other Computer Related Services' (NAICS 541519). Spending in this sector, particularly for advanced technologies like facial recognition, is growing. Benchmarks are difficult due to the niche nature and rapid evolution of facial recognition software.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific procurement. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight will be critical to ensure the FBI uses this facial recognition technology ethically and effectively, adhering to privacy regulations and mitigating potential biases. Accountability mechanisms should be in place to track usage and address any misuse.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Privacy concerns associated with facial recognition technology.
- Potential for algorithmic bias leading to discriminatory outcomes.
- Limited transparency regarding the 'exclusion of sources' in the procurement process.
- Dependence on a single vendor for critical technology.
- Need for robust oversight and accountability mechanisms.
Tags
other-computer-related-services, department-of-justice, co, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $5.7 million to V3GATE, LLC. FACIAL RECOGNITION TECHNOLOGY SAAS LICENSES
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 $5.7 million.
What is the period of performance?
Start: 2025-06-27. End: 2027-04-30.
What specific capabilities does V3GATE's facial recognition SaaS offer, and how do they align with the FBI's stated needs?
The specific capabilities of V3GATE's facial recognition SaaS are not detailed in the provided data. However, typical offerings include image matching, watchlist screening, and potentially real-time analysis. Alignment with FBI needs would depend on factors like accuracy rates, database integration, speed, and scalability, which require further investigation beyond this contract award notice.
How does the 'exclusion of sources' in the full and open competition process impact the potential for cost savings and innovation?
Excluding sources, even in a 'full and open' context, can limit the competitive landscape. This may reduce pressure on vendors to offer the lowest possible price or the most innovative solutions, as the pool of potential bidders is smaller. It suggests a specific need or prior relationship that led to the exclusion, potentially sacrificing broader market competition for perceived specialized suitability.
What measures are in place to audit the accuracy and mitigate bias in the facial recognition system used by the FBI?
The provided data does not specify audit measures or bias mitigation strategies. Effective oversight would require the FBI to implement rigorous testing protocols, regularly audit system performance across diverse demographics, establish clear guidelines for use, and have mechanisms for addressing and correcting any identified inaccuracies or biases to ensure fair and equitable application.
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: 2
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: $12,062,625
Exercised Options: $6,878,175
Current Obligation: $5,736,300
Actual Outlays: $2,858,100
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD27B
IDV Type: GWAC
Timeline
Start Date: 2025-06-27
Current End Date: 2027-04-30
Potential End Date: 2028-04-30 00:00:00
Last Modified: 2026-03-31
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