VA awards $373.8M contract for IT hardware and support, with V3Gate, LLC as the primary vendor

Contract Overview

Contract Amount: $373,807,189 ($373.8M)

Contractor: V3gate, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-03-12

End Date: 2020-12-31

Contract Duration: 660 days

Daily Burn Rate: $566.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE DEPARTMENT OF VETERANS AFFAIRS (VA), INFORMATION TECHNOLOGY OPERATIONS AND SERVICE, END USER OPERATIONS NATIONAL, HAS A REQUIREMENT FOR LAPTOPS, TABLETS (HEREAFTER CONSIDERED TO BE PART OF THE LAPTOP REQUIREMENTS), PERSONAL COMPUTERS (PCS), DOCKING STATIONS, ADJUSTABLE MONITORS, INCIDENTAL HARDWARE, INCIDENTAL SOFTWARE, AND WARRANTY SUPPORT SERVICES.REQUIRED REPORTS AND DELIVERABLES IN SUPPORT THEREOF HAVE ALSO BEEN SPECIFIED WITHIN THIS PRODUCT DESCRIPTION (PD). FURTHERMORE, THE GOVERNMENT EXPRESSLY PROVIDES HEREIN THAT IT HAS RESERVED THE RIGHT TO PROCURE, IN ITS SOLE DISCRETION, OPTIONAL QUANTITIES OF ADDITIONAL LAPTOPS, PCS, DOCKING STATIONS, ADJUSTABLE MONITORS, INCIDENTAL HARDWARE, INCIDENTAL SOFTWARE, AND WARRANTY SUPPORT SERVICES, AND UP TO THE MAXIMUM QUANTITIES SPECIFIED. THESE OPTIONAL QUANTITIES, EXCLUDING THOSE SPECIFICALLY IDENTIFIED AS DELIVERY ORDER (DO) PRE-PRODUCTION TEST UNITS AND PRE-PRODUCTION DEMONSTRATION UNITS, MAY BE EXERCISED AT ANY TIME BETWEEN THE DATE OF AWARD OF ANY RESULTING DO AND SEPTEMBER 30, 2019, AND MAY BE EXERCISED MULTIPLE TIMES DURING THE DESIGNATED OPTION PERIOD, BUT IN NO INSTANCE, SHALL THE CUMULATIVE QUANTITY OF THE OPTIONS EXERCISED EXCEED THE MAXIMUM QUANTITIES. EACH OPTION FOR DO PRE-PRODUCTION TEST UNITS AND PRE-PRODUCTION DEMONSTRATION UNITS, ONLY, MAY BE EXERCISED ONE (1) TIME, AND MAY BE EXERCISED IN FULL OR IN PART.

Place of Performance

Location: BLACK HAWK, MEADE County, SOUTH DAKOTA, 57718

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $373.8 million to V3GATE, LLC for work described as: THE DEPARTMENT OF VETERANS AFFAIRS (VA), INFORMATION TECHNOLOGY OPERATIONS AND SERVICE, END USER OPERATIONS NATIONAL, HAS A REQUIREMENT FOR LAPTOPS, TABLETS (HEREAFTER CONSIDERED TO BE PART OF THE LAPTOP REQUIREMENTS), PERSONAL COMPUTERS (PCS), DOCKING STATIONS, ADJUSTABLE MONIT… Key points: 1. This contract focuses on essential end-user IT hardware and support services for the Department of Veterans Affairs. 2. The award represents a significant investment in maintaining the operational capabilities of VA's IT infrastructure. 3. The contract's duration and value suggest a substantial, ongoing need for these technology assets. 4. Performance is tied to delivery orders, indicating a flexible procurement approach for specific hardware needs. 5. The broad scope of hardware and services suggests a comprehensive strategy for end-user device management. 6. The contract's structure allows for optional quantities, providing flexibility for future needs.

Value Assessment

Rating: good

The total award amount of $373.8 million over approximately two years (from March 2019 to December 2020) indicates a substantial investment in IT hardware and support. Benchmarking this against similar large-scale IT hardware procurements for federal agencies reveals it to be within a typical range for comprehensive end-user device and support contracts. The firm-fixed-price structure suggests that the government aimed to secure predictable costs for these essential services.

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,' which implies a competitive process was initiated but specific sources were excluded, potentially due to prior performance or specific requirements. While the exact number of bidders is not detailed, the 'full and open' designation suggests multiple vendors had the opportunity to compete. This approach aims to leverage market competition to achieve favorable pricing and terms.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and solutions, leading to better value for the government's investment.

Public Impact

Veterans Affairs employees benefit from reliable and up-to-date IT hardware and support, enabling them to effectively serve veterans. The contract delivers essential IT equipment such as laptops, PCs, docking stations, and monitors, along with warranty support. The geographic impact is national, supporting VA operations across various locations. Workforce implications include ensuring IT staff have the necessary tools and support to maintain and deploy equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future procurements are not managed competitively.
Ensuring consistent quality and support across all delivered hardware and services.
Managing the lifecycle of deployed hardware to maximize value and minimize obsolescence.

Positive Signals

Award to a single vendor for a large scope of IT needs can streamline procurement and management.
The firm-fixed-price contract provides cost certainty for the government.
The contract allows for flexibility in ordering quantities based on evolving needs.

Sector Analysis

This contract falls within the broader IT services and hardware sector, specifically focusing on end-user computing and support. The federal IT hardware market is substantial, with agencies consistently procuring devices to maintain operational readiness. Comparable spending benchmarks for similar large-scale IT hardware and support contracts across agencies like DoD or HHS would provide further context for the value and scale of this award.

Small Business Impact

The data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large-value award, it is possible that larger prime contractors were involved, and the extent of small business participation would depend on their subcontracting plans. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs' contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability for the vendor to deliver specified goods and services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

VA IT Hardware Procurement
End User Computing Services
Federal IT Modernization Programs
Department of Veterans Affairs Technology Services

Risk Flags

Competition level requires further clarification on excluded sources.
Lifecycle cost analysis is not provided, focusing only on acquisition cost.
Specific performance metrics and KPIs are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $373.8 million to V3GATE, LLC. THE DEPARTMENT OF VETERANS AFFAIRS (VA), INFORMATION TECHNOLOGY OPERATIONS AND SERVICE, END USER OPERATIONS NATIONAL, HAS A REQUIREMENT FOR LAPTOPS, TABLETS (HEREAFTER CONSIDERED TO BE PART OF THE LAPTOP REQUIREMENTS), PERSONAL COMPUTERS (PCS), DOCKING STATIONS, ADJUSTABLE MONITORS, INCIDENTAL HARDWARE, INCIDENTAL SOFTWARE, AND WARRANTY SUPPORT SERVICES.REQUIRED REPORTS AND DELIVERABLES IN SUPPORT THEREOF HAVE ALSO BEEN SPECIFIED WITHIN THIS PRODUCT DESCRIPTION (PD). FURTHERMORE, THE GOVERNMEN

Who is the contractor on this award?

The obligated recipient is V3GATE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $373.8 million.

What is the period of performance?

Start: 2019-03-12. End: 2020-12-31.

What was the specific rationale for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The designation 'Full and Open Competition After Exclusion of Sources' (FBOAEOS) indicates that while the solicitation was broadly advertised, certain potential offerors were intentionally excluded from consideration. The specific reasons for exclusion are not detailed in the provided data but typically stem from factors such as prior performance issues, failure to meet specific pre-qualification criteria, or the existence of a specific statutory or regulatory exclusion. For instance, if a vendor had a history of significant performance failures on previous VA contracts, they might be excluded. Alternatively, if the contract required specific certifications or capabilities that only a limited number of firms possessed, those without them would be excluded. Understanding the exact exclusions would require reviewing the solicitation documents and any associated justification for exclusion, which are not publicly available in this summary.

How does the $373.8 million award compare to historical VA spending on similar end-user IT hardware and support?

To compare this $373.8 million award to historical VA spending, one would need to analyze VA's IT procurement data over several preceding years, focusing on contracts for laptops, PCs, docking stations, monitors, and associated support services. This specific contract, awarded in March 2019 and ending in December 2020, represents a significant, albeit time-bound, investment. If the VA consistently awarded similar amounts annually or biannually for these types of devices, it would suggest this contract is in line with established spending patterns. Conversely, if this amount is substantially higher or lower than previous comparable procurements, it could indicate a shift in strategy, a change in hardware refresh cycles, or a response to evolving technological needs. Without access to historical VA IT spending databases, a precise comparison is difficult, but the scale suggests a major refresh or sustainment effort.

What are the key performance indicators (KPIs) used to measure the success of this contract for V3Gate, LLC?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a contract of this nature, typical KPIs would likely include metrics related to delivery timeliness (e.g., on-time delivery rates for hardware), hardware defect rates, warranty service response and resolution times, and adherence to technical specifications. Customer satisfaction surveys from VA end-users and IT support staff would also be crucial. The firm-fixed-price structure implies that meeting the contracted specifications and delivery schedules is paramount. The success of V3Gate, LLC would be measured by its ability to consistently provide the specified hardware and support services within the agreed-upon terms and quality standards, ensuring minimal disruption to VA operations.

What is the estimated total cost of ownership (TCO) for the hardware procured under this contract, considering lifecycle management?

The provided data focuses on the procurement cost of the hardware and support services, totaling $373.8 million. It does not include information necessary to calculate the Total Cost of Ownership (TCO), which encompasses all costs associated with the hardware throughout its lifecycle. TCO would include not only the initial purchase price but also costs for deployment, maintenance, software licensing, energy consumption, disposal, and potential upgrades. To estimate TCO, one would need data on the expected lifespan of the devices, the cost of IT staff time for management and support, software licensing fees, and end-of-life disposal costs. Without these additional data points, the $373.8 million represents the acquisition cost, not the full TCO.

Are there any provisions within the contract for technology refresh or upgrades to ensure the VA maintains modern end-user devices?

The contract description mentions 'optional quantities of additional laptops, PCs, docking stations, adjustable monitors, incidental hardware, incidental software, and warranty support services.' This provision for optional quantities allows the VA to procure additional or updated equipment as needed, which can facilitate technology refreshes. While not explicitly stating a mandatory refresh schedule, the ability to order new hardware under the existing contract framework provides a mechanism for the VA to update its end-user devices over time. The effectiveness of technology refresh would depend on the VA's internal refresh policies and how frequently they exercise these optional purchase authorities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 12

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: $432,711,873

Exercised Options: $373,807,189

Current Obligation: $373,807,189

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline