Treasury's IRS awards $26M for ID.ME software and maintenance to V3GATE, LLC
Contract Overview
Contract Amount: $26,067,170 ($26.1M)
Contractor: V3gate, LLC
Awarding Agency: Department of the Treasury
Start Date: 2024-12-23
End Date: 2025-12-22
Contract Duration: 364 days
Daily Burn Rate: $71.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ID.ME SOFTWARE AND SOFTWARE MAINTENANCE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220
Plain-Language Summary
Department of the Treasury obligated $26.1 million to V3GATE, LLC for work described as: ID.ME SOFTWARE AND SOFTWARE MAINTENANCE Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 2. The contract is for software and software maintenance, a critical component for digital services. 3. V3GATE, LLC is the sole awardee under this specific BPA Call. 4. The contract duration is one year, with a firm fixed price structure. 5. The award falls under the Electronic Computer Manufacturing NAICS code. 6. No small business set-aside was utilized for this procurement.
Value Assessment
Rating: fair
The contract value of $26.1 million for one year of software and maintenance is substantial. Without specific details on the software's criticality or the scope of maintenance, a direct value-for-money assessment is challenging. Benchmarking against similar ID.ME software contracts or maintenance agreements would be necessary to determine if the pricing is competitive. The firm fixed-price nature provides cost certainty but could lead to overpayment if the scope is not fully utilized.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. However, the award was made via a BPA Call, which implies that the underlying BPA itself was competed. The specific number of bidders for this particular BPA Call is not provided, but the 'full and open' designation indicates a competitive process was initiated.
Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.
Public Impact
Taxpayers will benefit from continued access to secure digital identity verification services. The IRS will receive essential software and maintenance to support its digital infrastructure. The contract's impact is primarily national, supporting federal digital service delivery. Workforce implications are likely internal to the IRS, related to the use and management of the software.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess the quality of software maintenance.
- The reliance on a single vendor for this BPA Call could limit future flexibility.
- The broad NAICS code 'Electronic Computer Manufacturing' might not fully capture the specialized nature of identity verification software.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- Firm fixed-price contract provides cost predictability for the government.
- The contract supports critical digital identity services for taxpayers.
Sector Analysis
The market for identity verification software and related maintenance is a growing segment within the broader IT sector. This contract fits within the government's increasing reliance on digital platforms for citizen services. Comparable spending benchmarks would involve looking at other federal agencies' procurements for similar identity management solutions, which often involve significant investments due to security and scalability requirements.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The award to V3GATE, LLC, without explicit small business considerations, suggests that larger, established vendors were likely the primary focus of this particular BPA Call. Further analysis of the underlying BPA would be needed to understand any broader small business utilization goals.
Oversight & Accountability
The contract is a BPA Call, which operates under the terms of the parent BPA. Oversight would typically involve contract officers monitoring performance against the statement of work and ensuring adherence to the firm fixed-price terms. Transparency is facilitated by public contract databases, but detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Digital Identity Services
- Software Maintenance Services
- IT Services for Federal Agencies
- IRS Technology Modernization
Risk Flags
- Potential vendor lock-in due to single awardee on BPA Call.
- Lack of detailed performance metrics for maintenance services.
- Limited insight into V3GATE, LLC's specific experience with ID.ME software.
Tags
it, software-maintenance, identity-verification, department-of-the-treasury, internal-revenue-service, firm-fixed-price, full-and-open-competition, bpa-call, district-of-columbia, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $26.1 million to V3GATE, LLC. ID.ME SOFTWARE AND SOFTWARE MAINTENANCE
Who is the contractor on this award?
The obligated recipient is V3GATE, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $26.1 million.
What is the period of performance?
Start: 2024-12-23. End: 2025-12-22.
What is the specific nature of the ID.ME software being procured, and what are its key functionalities for the IRS?
The provided data does not specify the exact functionalities of the ID.ME software. However, ID.ME is a widely recognized digital identity verification platform used by various government agencies, including the IRS, to allow taxpayers to securely access online services. Its core functions typically involve verifying a user's identity through multi-factor authentication and credentialing, enabling secure logins for tax filing, account management, and other sensitive online interactions. The software maintenance component ensures the platform remains operational, secure, and up-to-date with the latest security patches and feature enhancements.
How does the $26.1 million contract value compare to previous spending on ID.ME software and maintenance by the IRS or other federal agencies?
Without historical spending data specific to this ID.ME software and maintenance contract for the IRS, a direct comparison is difficult. However, federal agencies increasingly rely on digital identity solutions, and contracts for such services, including software licensing and ongoing maintenance, can range from hundreds of thousands to tens of millions of dollars annually, depending on the scope, user base, and security requirements. The $26.1 million for a one-year period suggests a significant deployment or a comprehensive maintenance agreement. Benchmarking against similar procurements for identity verification platforms by agencies like the Social Security Administration or Department of Veterans Affairs would provide a more robust comparison.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure effective software maintenance?
The provided data does not detail the specific KPIs or SLAs for this contract. Typically, for software maintenance contracts, key performance indicators would include metrics such as system uptime percentage, response time for critical issues, resolution time for reported bugs, and the successful application of security patches. Service Level Agreements would define the expected standards for these metrics and potential remedies or penalties if they are not met. The absence of this information in the summary data makes it challenging to assess the expected quality and responsiveness of the maintenance services.
What is V3GATE, LLC's track record with providing ID.ME software or similar identity verification solutions to the federal government?
Information regarding V3GATE, LLC's specific track record with ID.ME software or similar identity verification solutions is not detailed in the provided data. A thorough assessment would require examining the company's contract history, past performance evaluations, and any relevant certifications or partnerships. Understanding their experience in delivering secure, scalable identity management systems is crucial for evaluating the risk associated with this award. Further research into federal procurement databases and contractor performance systems would be necessary to ascertain their relevant expertise.
What is the risk associated with relying on a single vendor (V3GATE, LLC) for this critical software and maintenance, especially given the 'full and open' competition designation?
While the contract was awarded under 'full and open' competition, the award of this specific BPA Call to a single vendor, V3GATE, LLC, introduces potential risks. These risks include vendor lock-in, reduced leverage in future negotiations, and a potential lack of competitive pressure on pricing and service quality over time. If V3GATE, LLC underperforms or faces business challenges, the IRS could experience disruptions to critical identity verification services. The 'full and open' designation for the underlying BPA suggests competition was available, but the specific award mechanism might have favored a single solution or vendor for this particular call.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 555 MIDDLE CREEK PKWY UNIT 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: $26,067,170
Exercised Options: $26,067,170
Current Obligation: $26,067,170
Actual Outlays: $26,067,170
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 2032H520A00009
IDV Type: BPA
Timeline
Start Date: 2024-12-23
Current End Date: 2025-12-22
Potential End Date: 2025-12-22 00:00:00
Last Modified: 2025-03-13
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