DOJ's $101M RHEL Satellite & Ansible Tower Licenses Awarded to V3GATE, LLC

Contract Overview

Contract Amount: $101,220 ($101.2K)

Contractor: V3gate, LLC

Awarding Agency: Department of Justice

Start Date: 2020-09-01

End Date: 2021-08-31

Contract Duration: 364 days

Daily Burn Rate: $278/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RHEL SATELLITE SERVER LICENSES AND ANSIBLE TOWER PREMIUM

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80918

State: Colorado Government Spending

Plain-Language Summary

Department of Justice obligated $101,220.3 to V3GATE, LLC for work described as: RHEL SATELLITE SERVER LICENSES AND ANSIBLE TOWER PREMIUM Key points: 1. Spending focuses on IT infrastructure and automation software. 2. V3GATE, LLC is the sole awardee for this contract. 3. Potential risk exists due to single-vendor reliance. 4. IT services sector sees significant investment in automation tools.

Value Assessment

Rating: fair

The contract value of $101.2M for a 1-year period suggests a potentially high per-unit cost for RHEL Satellite Server licenses and Ansible Tower Premium. Benchmarking against similar enterprise software licensing agreements is crucial for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have yielded the most competitive pricing, as alternative vendors were excluded.

Taxpayer Impact: Taxpayer funds are utilized for IT infrastructure and software. The limited competition raises concerns about whether the best possible price was achieved, potentially impacting the overall value for taxpayers.

Public Impact

Ensures operational continuity for Department of Justice IT systems. Supports automation of IT tasks, potentially increasing efficiency. Reliance on a single vendor may limit future flexibility and cost savings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This spending falls within the IT services sector, specifically related to software licensing and support for enterprise IT management. Benchmarks for similar large-scale software license agreements vary widely based on vendor, features, and user count.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The award was a delivery order under a larger contract. Oversight would typically involve monitoring performance, adherence to terms, and ensuring fair pricing throughout the contract lifecycle.

Related Government Programs

Risk Flags

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 $101,220.3 to V3GATE, LLC. RHEL SATELLITE SERVER LICENSES AND ANSIBLE TOWER PREMIUM

Who is the contractor on this award?

The obligated recipient is V3GATE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $101,220.3.

What is the period of performance?

Start: 2020-09-01. End: 2021-08-31.

What is the specific justification for excluding other sources in this limited competition?

The justification for excluding other sources is not provided in the data. Typically, such exclusions are based on factors like existing infrastructure compatibility, specialized technical requirements, or unique service needs that only a specific vendor can meet. Without this information, it's difficult to assess if the exclusion was warranted or if it unnecessarily limited competition.

How does the per-unit cost of these licenses compare to industry benchmarks for similar software?

The provided data lacks the granular detail to perform a per-unit cost analysis. To benchmark effectively, we would need to know the exact number of licenses, the specific tiers or editions of RHEL Satellite Server and Ansible Tower Premium purchased, and the contract terms. Comparing this total award value to industry averages for similar enterprise software deployments is the best available proxy.

What is the long-term strategy for managing these software licenses and potential vendor lock-in?

The long-term strategy is unclear from this data. A potential risk of vendor lock-in exists with single-source awards for critical software. Agencies should have a plan for future contract renewals, potential transitions to alternative solutions, and ongoing cost negotiations to mitigate long-term financial and operational risks.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15PTDE20Q00000019

Offers Received: 13

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: $101,220

Exercised Options: $101,220

Current Obligation: $101,220

Actual Outlays: $101,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline

Start Date: 2020-09-01

Current End Date: 2021-08-31

Potential End Date: 2021-08-31 00:00:00

Last Modified: 2026-04-03

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