State Dept. Awards $53.3M for Salesforce Licenses and Support to V3Gate, LLC
Contract Overview
Contract Amount: $53,299,158 ($53.3M)
Contractor: V3gate, LLC
Awarding Agency: Department of State
Start Date: 2025-04-01
End Date: 2026-03-31
Contract Duration: 364 days
Daily Burn Rate: $146.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROVISIONING OF SALESFORCE PRODUCT LICENSES AND ASSOCIATED SUPPORT SERVICES SUBJECT TO ESTABLISHED NASA SEWP AGENCY CATALOGUE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006
Plain-Language Summary
Department of State obligated $53.3 million to V3GATE, LLC for work described as: PROVISIONING OF SALESFORCE PRODUCT LICENSES AND ASSOCIATED SUPPORT SERVICES SUBJECT TO ESTABLISHED NASA SEWP AGENCY CATALOGUE Key points: 1. Significant award for cloud-based CRM and support services. 2. Competition method indicates a deliberate choice for full and open competition. 3. Potential for cost savings through competitive bidding on software licenses. 4. IT services sector, specifically software licensing and support.
Value Assessment
Rating: good
The award amount of $53.3M over one year appears reasonable for enterprise-level Salesforce licenses and support. Benchmarking against similar large-scale government software procurements would provide a more definitive assessment.
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, suggesting a competitive process was used to solicit offers. This method generally promotes price discovery and potentially better pricing.
Taxpayer Impact: The competitive nature of the award is expected to yield fair market value, ensuring taxpayer funds are used efficiently for essential IT services.
Public Impact
Ensures continuity of critical Salesforce operations for the Department of State. Supports agency-wide data management and citizen engagement capabilities. Potential for enhanced productivity and streamlined workflows for State Department personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with long-term Salesforce reliance.
- Need for robust contract management to ensure service level adherence.
- Cybersecurity risks associated with sensitive government data on a third-party platform.
Positive Signals
- Leverages a widely adopted and feature-rich CRM platform.
- Competitive award process likely secured favorable pricing.
- Supports critical agency functions with essential software.
Sector Analysis
This award falls within the IT services sector, specifically focusing on software licensing and support. Government spending on enterprise software like Salesforce continues to grow as agencies modernize their operations and seek cloud-based solutions.
Small Business Impact
The data does not indicate if small businesses were involved in this specific award, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Robust oversight will be crucial to ensure V3Gate, LLC meets all performance requirements and service level agreements, safeguarding taxpayer investment.
Related Government Programs
- Other Computer Related Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Dependence on a single software vendor (Salesforce).
- Potential for scope creep in support services.
- Data security and privacy concerns inherent in cloud-based solutions.
- Ensuring adequate training for end-users to maximize software utility.
Tags
other-computer-related-services, department-of-state, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $53.3 million to V3GATE, LLC. PROVISIONING OF SALESFORCE PRODUCT LICENSES AND ASSOCIATED SUPPORT SERVICES SUBJECT TO ESTABLISHED NASA SEWP AGENCY CATALOGUE
Who is the contractor on this award?
The obligated recipient is V3GATE, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $53.3 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-03-31.
What is the projected return on investment for the Department of State in utilizing Salesforce for these services?
The ROI is likely tied to improved operational efficiency, enhanced data analytics for decision-making, and better citizen service delivery. Quantifying this requires specific agency metrics on process improvements, cost savings from legacy systems, and the value of improved information access.
What are the key performance indicators (KPIs) being used to measure the success of this contract?
Key performance indicators would likely include system uptime, response times for support requests, user satisfaction rates, and adherence to data security protocols. The contract's Service Level Agreements (SLAs) would detail these specific metrics and any associated penalties or incentives.
How does the cost of these Salesforce licenses and support compare to on-premise or alternative cloud solutions?
Comparing costs requires a total cost of ownership analysis, including licensing, implementation, customization, training, and ongoing support for Salesforce versus alternatives. Cloud solutions often offer scalability benefits, but upfront and long-term subscription costs need careful evaluation against perpetual licenses and internal infrastructure for on-premise options.
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: 1
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: $53,480,322
Exercised Options: $53,480,322
Current Obligation: $53,299,158
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD27B
IDV Type: GWAC
Timeline
Start Date: 2025-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-02-10
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