DOJ Renews VMware Subscription for $2M, Awarded to V3GATE, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $2,009,565 ($2.0M)
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: $2.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CIV VMWARE SUBSCRIPTION RENEWAL
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Justice obligated $2.0 million to V3GATE, LLC for work described as: CIV VMWARE SUBSCRIPTION RENEWAL Key points: 1. The Department of Justice is renewing a VMware subscription for $2,007,907.60. 2. V3GATE, LLC secured the contract through full and open competition. 3. The contract spans two years, from October 1, 2024, to September 30, 2026. 4. This renewal falls under the 'Other Computer Related Services' NAICS code. 5. The contract type is Firm Fixed Price, indicating predictable costs.
Value Assessment
Rating: good
The renewal price of $2,007,907.60 for a two-year VMware subscription appears reasonable given the software's critical role in IT infrastructure. Benchmarking against similar enterprise software renewals would provide a more precise assessment, but the competitive award suggests a fair market price was achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that multiple vendors were considered. This competitive process is expected to drive price discovery and ensure the government receives competitive pricing for the VMware subscription.
Taxpayer Impact: The competitive award process for this $2M renewal suggests that taxpayers are likely benefiting from a fair market price, avoiding potential overpayment associated with non-competitive procurements.
Public Impact
Ensures continuity of essential IT services for the Department of Justice. Supports ongoing operations for various offices, boards, and divisions within DOJ. The competitive nature of the award provides assurance of value for taxpayer funds. The renewal locks in pricing for two years, offering budget stability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized software subscriptions.
- Reliance on a single vendor for critical IT infrastructure.
- Need to monitor future renewal costs for potential escalation.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Long-term contract duration offers stability.
Sector Analysis
This procurement falls within the IT services sector, specifically 'Other Computer Related Services.' Spending on software subscriptions and IT infrastructure is a significant component of federal IT budgets, with benchmarks varying widely based on the type of service and scale of deployment.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific procurement. Federal IT contracts, especially for enterprise software, often involve large vendors or their authorized resellers, and further analysis would be needed to determine small business participation.
Oversight & Accountability
The award was made under a Delivery Order, suggesting it is part of a larger contract vehicle. Oversight would involve ensuring compliance with the terms of the base contract and the delivery order, as well as monitoring performance and adherence to the firm fixed price.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on a single software provider.
- Need for ongoing cost monitoring.
- Subscription-based model requires continuous funding.
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 $2.0 million to V3GATE, LLC. CIV VMWARE SUBSCRIPTION RENEWAL
Who is the contractor on this award?
The obligated recipient is V3GATE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $2.0 million.
What is the period of performance?
Start: 2024-10-01. End: 2026-09-30.
What is the specific VMware product or suite being subscribed to, and does its functionality align with DOJ's current and future IT needs?
The provided data does not specify the exact VMware product suite. Understanding the specific software is crucial for assessing its value and ensuring it meets the Department of Justice's evolving IT requirements. Further details on the subscription's features and capabilities would allow for a more thorough evaluation of its alignment with operational needs and potential for future scalability.
How does the per-unit cost or total cost of this renewal compare to previous years or similar government-wide agreements for VMware subscriptions?
Without historical data or access to government-wide agreements for VMware, a direct per-unit cost comparison is not possible. However, the 'full and open competition' award suggests the pricing is competitive. Analyzing the contract award details against GSA schedules or other agency contracts for similar VMware products would provide a benchmark for value assessment.
What is the process for evaluating the effectiveness and necessity of this VMware subscription renewal beyond the initial two-year term?
The effectiveness and necessity of the VMware subscription should be continuously evaluated through performance metrics and IT asset management reviews. The Department of Justice likely has internal processes for assessing software utilization and ROI. Proactive planning for future renewals, including exploring alternative solutions or consolidation opportunities, is key to ensuring ongoing value and cost-efficiency.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 15JPSS24Q00000073
Offers Received: 7
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: $6,189,091
Exercised Options: $2,009,565
Current Obligation: $2,009,565
Actual Outlays: $931,535
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: 2029-09-30 00:00:00
Last Modified: 2026-01-08
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