VA awards $41.5M for Application Performance Monitoring, V3GATE, LLC secures contract

Contract Overview

Contract Amount: $41,448,095 ($41.4M)

Contractor: V3gate, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-30

End Date: 2026-09-28

Contract Duration: 1,459 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: APPLICATION PERFORMANCE MONITORING (APM) SOLUTION

Place of Performance

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

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $41.4 million to V3GATE, LLC for work described as: APPLICATION PERFORMANCE MONITORING (APM) SOLUTION Key points: 1. Contract value of $41.5M over 4 years. 2. V3GATE, LLC is the primary contractor. 3. Department of Veterans Affairs is the procuring agency. 4. The contract is for Application Performance Monitoring (APM) solutions.

Value Assessment

Rating: fair

The contract value of $41.5M for APM solutions appears within a reasonable range for a multi-year federal contract of this nature. Benchmarking against similar APM contracts would provide a clearer picture of value.

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, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair market value for the APM solution.

Public Impact

Ensures critical VA applications perform optimally, impacting healthcare delivery and veteran services. Supports the modernization of VA IT infrastructure. Provides essential tools for monitoring and troubleshooting application performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector, particularly for specialized solutions like APM, sees significant federal spending. Benchmarks for APM solutions vary widely based on scope and features, but this award is substantial.

Small Business Impact

The data does not indicate if small businesses were involved in the subcontracting or prime contracting opportunities for this award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure performance and value. Regular performance reviews and adherence to contract terms are key oversight mechanisms.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, department-of-veterans-affairs, co, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $41.4 million to V3GATE, LLC. APPLICATION PERFORMANCE MONITORING (APM) SOLUTION

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 $41.4 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-28.

What specific APM capabilities are included in this $41.5M contract, and how do they align with VA's current IT modernization goals?

The contract focuses on Application Performance Monitoring (APM) solutions, which are crucial for ensuring the reliability and efficiency of the VA's digital services. These capabilities likely include real-time performance tracking, issue detection, root cause analysis, and user experience monitoring. The alignment with IT modernization goals would depend on whether the chosen APM solution supports cloud migration, microservices architecture, or other strategic initiatives the VA is pursuing.

What are the key performance indicators (KPIs) for this APM contract, and how will V3GATE, LLC's performance against these KPIs be measured?

Key performance indicators for an APM contract typically include application uptime, response times, error rates, and user satisfaction metrics. The VA will likely measure V3GATE, LLC's performance against these KPIs through regular reporting, system-generated data from the APM tools, and potentially user feedback surveys. Contractual clauses would define acceptable performance thresholds and remedies for non-compliance.

Beyond the initial competitive award, are there mechanisms in place to ensure ongoing cost-effectiveness and prevent scope creep throughout the contract's duration?

Mechanisms to ensure ongoing cost-effectiveness and prevent scope creep include firm-fixed-price contract terms, which limit cost increases, and rigorous change control processes. The VA's contracting officers and technical representatives will monitor contract performance and expenditures closely. Periodic reviews of the APM solution's utilization and effectiveness can also identify opportunities for optimization or de-scoping unnecessary features.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT 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: 3

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: $62,013,078

Exercised Options: $41,448,095

Current Obligation: $41,448,095

Actual Outlays: $40,993,748

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline

Start Date: 2022-09-30

Current End Date: 2026-09-28

Potential End Date: 2027-09-28 00:00:00

Last Modified: 2025-08-27

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