VA awards $40.5M for ID.ME licenses and maintenance to V3GATE, LLC
Contract Overview
Contract Amount: $40,556,174 ($40.6M)
Contractor: V3gate, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2019-05-01
End Date: 2023-04-30
Contract Duration: 1,460 days
Daily Burn Rate: $27.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF ID.ME ANNUAL LICENSES AND MAINTENANCE
Place of Performance
Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724
Plain-Language Summary
Department of Veterans Affairs obligated $40.6 million to V3GATE, LLC for work described as: IGF::OT::IGF ID.ME ANNUAL LICENSES AND MAINTENANCE Key points: 1. Significant contract value for IT services. 2. Competition method suggests potential for better pricing. 3. Long contract duration (4 years) warrants close monitoring. 4. IT services sector is prone to rapid technological change.
Value Assessment
Rating: fair
The contract value of $40.5M over four years averages to approximately $10.1M annually. Benchmarking against similar IT license and maintenance contracts is difficult without specific service details, but the annual spend appears substantial.
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 possible.
Taxpayer Impact: The pricing outcome is uncertain due to limited competition, potentially impacting taxpayer value.
Public Impact
Veterans may experience continuity in accessing digital services. The contract supports IT infrastructure for a major federal agency. Potential for cost savings if competition was truly maximized.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Long-term contract duration increases risk of vendor lock-in.
- Reliance on a single vendor for critical IT services.
Positive Signals
- Contract supports essential services for veterans.
- Clear contract end date allows for future re-competition.
Sector Analysis
This contract falls within the Other Computer Related Services sector (NAICS 541519). Spending in this sector is high, driven by the government's increasing reliance on IT solutions. Benchmarks vary widely based on service scope.
Small Business Impact
The contract was awarded to V3GATE, LLC. Information on whether V3GATE, LLC is a small business is not provided in the data. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract's duration and limited competition suggest a need for robust oversight to ensure continued value and adherence to terms. Regular performance reviews and market research are crucial.
Related Government Programs
- Other Computer Related Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for overpayment due to limited competition.
- Risk of vendor lock-in over the four-year period.
- Lack of transparency regarding specific services and justifications.
- Dependency on a single vendor for critical IT functions.
Tags
other-computer-related-services, department-of-veterans-affairs, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $40.6 million to V3GATE, LLC. IGF::OT::IGF ID.ME ANNUAL LICENSES AND MAINTENANCE
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 $40.6 million.
What is the period of performance?
Start: 2019-05-01. End: 2023-04-30.
What specific IT services are included in the 'licenses and maintenance' to justify the $40.5M cost?
The provided data lacks specifics on the exact IT services covered. Understanding the scope, including software licenses, support levels, and maintenance agreements, is critical for a thorough value assessment. Without this detail, it's difficult to determine if the cost is justified compared to market rates for similar comprehensive IT support packages.
How was the 'exclusion of sources' justified, and what was the impact on price discovery?
The justification for excluding other sources is not detailed. This process typically requires a strong rationale, such as unique capabilities or prior performance. If the exclusion was not well-founded, it could have limited competitive pressure, potentially leading to higher prices than if a broader competition had been pursued.
What mechanisms are in place to ensure the VA receives effective and up-to-date IT services over the four-year contract term?
The contract data does not specify oversight mechanisms. Effective service delivery relies on clear performance metrics, regular vendor reviews, and contingency plans. The VA should have processes to monitor service quality, ensure vendor responsiveness, and adapt to evolving technological needs throughout the contract's lifespan.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $58,253,737
Exercised Options: $40,556,174
Current Obligation: $40,556,174
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: NNG15SD27B
IDV Type: GWAC
Timeline
Start Date: 2019-05-01
Current End Date: 2023-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2022-04-29
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