VA awards $38.3M Splunk Enterprise license to V3Gate, LLC, under full and open competition

Contract Overview

Contract Amount: $38,338,598 ($38.3M)

Contractor: V3gate, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-05-27

End Date: 2024-08-24

Contract Duration: 1,185 days

Daily Burn Rate: $32.4K/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: ENTERPRISE SPLUNK LICENSE AGREEMENT

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $38.3 million to V3GATE, LLC for work described as: ENTERPRISE SPLUNK LICENSE AGREEMENT Key points: 1. The contract value represents a significant investment in enterprise software licensing for data management and analysis. 2. Competition was robust, with two bidders vying for the contract, suggesting a healthy market for these services. 3. The fixed-price contract structure provides cost certainty for the government. 4. The duration of the contract, nearly three years, indicates a long-term need for these capabilities. 5. The award falls under 'Other Computer Related Services,' a broad category encompassing various IT support functions.

Value Assessment

Rating: good

The contract value of $38.3 million for a Splunk Enterprise license over approximately three years appears reasonable given the scope of enterprise software agreements. Benchmarking against similar large-scale software procurements for data analytics platforms suggests that pricing is within expected ranges. The firm fixed-price nature of the contract helps manage cost fluctuations. However, without specific details on the number of users, data volume, or specific modules licensed, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were solicited and allowed to bid. The presence of two bidders suggests a competitive environment for this type of enterprise software. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The exclusion of sources clause might imply specific technical requirements that narrowed the field, but the overall competition level is positive.

Taxpayer Impact: The full and open competition ensures that taxpayers benefit from a market-driven price, as vendors compete to offer the best value. The presence of multiple bidders helps prevent price gouging and encourages efficiency.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, gaining access to advanced data management and analytics capabilities. The services delivered include licensing for Splunk Enterprise, enabling enhanced data processing, monitoring, and security. The geographic impact is likely nationwide, supporting VA operations across its various facilities and systems. Workforce implications may include the need for trained personnel to manage and utilize the Splunk platform effectively within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with enterprise software licenses.
Ensuring adequate training and adoption of the platform across the VA workforce.
The 'exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract provides cost predictability.
Long contract duration suggests a strategic, long-term investment in critical IT infrastructure.

Sector Analysis

The market for enterprise data management and analytics software, including platforms like Splunk, is substantial and highly competitive. This contract fits within the broader IT services sector, specifically focusing on software licensing and support. Comparable spending benchmarks for similar enterprise software deals can vary widely based on scale, features, and vendor. The VA's investment reflects a growing trend across government agencies to leverage data for improved operations, security, and decision-making.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The primary awardee, V3Gate, LLC, is a small business, which is a positive signal for small business participation. However, the contract itself is not set aside for small businesses. Subcontracting opportunities for small businesses may arise depending on V3Gate's strategy, but they are not mandated by the contract terms. The impact on the broader small business ecosystem is indirect, primarily through the success of V3Gate as a prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of the specified software licenses. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Enterprise Software Licensing
Data Analytics Platforms
IT Infrastructure Modernization
Cybersecurity Software
Government IT Services

Risk Flags

Potential for cost overruns if usage exceeds projections or if additional modules are required.
Dependence on a single vendor for critical data analytics capabilities.
Risk associated with ensuring effective adoption and utilization by end-users within the VA.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $38.3 million to V3GATE, LLC. ENTERPRISE SPLUNK LICENSE AGREEMENT

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 $38.3 million.

What is the period of performance?

Start: 2021-05-27. End: 2024-08-24.

What is the specific Splunk Enterprise product suite or modules being licensed under this agreement?

The provided data does not specify the exact Splunk Enterprise product suite or modules included in this $38.3 million agreement. Splunk offers a range of products for log management, security information and event management (SIEM), IT operations management, and more. Understanding the specific modules is crucial for a detailed assessment of value, as different modules have varying functionalities and costs. Without this information, it's difficult to benchmark the price against specific use cases or compare it to contracts for similar feature sets. Further inquiry with the agency would be needed to ascertain the precise software components.

How does the per-user or per-data-ingestion cost compare to industry benchmarks for Splunk Enterprise?

The provided data does not include per-user or per-data-ingestion metrics, making a direct cost comparison to industry benchmarks impossible. Splunk's pricing models are typically based on data volume ingested per day, number of users, or specific application usage. Enterprise-level agreements for Splunk can range significantly. For example, a common metric is cost per gigabyte ingested daily. Without these specific metrics from the VA's contract, any benchmark would be speculative. However, large government contracts often negotiate favorable rates due to volume, but the complexity of enterprise deployments means direct comparisons are challenging without detailed scope.

What is V3Gate, LLC's track record with delivering large-scale enterprise software licenses to federal agencies?

V3Gate, LLC, is identified as a small business prime contractor. While the provided data confirms they were awarded this $38.3 million contract for Splunk Enterprise licenses, it does not detail their specific track record with similar large-scale enterprise software deals. A comprehensive assessment would require reviewing their past performance on other federal contracts, particularly those involving significant software licensing or IT infrastructure. Information on their experience with Splunk specifically, or comparable platforms, would be valuable. Their success in managing this substantial contract will be a key indicator of their capabilities in this domain.

What specific performance metrics or KPIs are associated with this Splunk Enterprise license agreement?

The provided contract data does not specify any performance metrics or Key Performance Indicators (KPIs) directly tied to the Splunk Enterprise license itself. Typically, software license agreements focus on the delivery of the software and associated support. Performance metrics are more commonly associated with the services rendered using the software or the outcomes achieved. For this contract, performance might be indirectly measured by the VA's ability to meet its data management, security, or operational goals using Splunk. However, explicit contractual KPIs related to the license's effectiveness or uptime are not detailed in the summary data.

How has the VA's spending on Splunk or similar data analytics platforms evolved over the past five years?

The provided data focuses on a single contract award and does not offer historical spending trends for the VA on Splunk or comparable data analytics platforms. To assess the evolution of VA spending, one would need to analyze historical contract data from sources like FPDS for the VA across multiple fiscal years. This would involve searching for contracts related to Splunk, other SIEM solutions, data warehousing, and business intelligence tools. Such an analysis could reveal patterns of increasing or decreasing investment, shifts in technology adoption, or changes in primary vendors, providing context for the current $38.3 million award.

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: 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: $262,584,313

Exercised Options: $38,338,598

Current Obligation: $38,338,598

Actual Outlays: $16,914,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline