VA awards $26.4M for Oracle Java licenses and support to V3GATE, LLC
Contract Overview
Contract Amount: $26,408,014 ($26.4M)
Contractor: V3gate, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-05-15
End Date: 2026-05-14
Contract Duration: 1,095 days
Daily Burn Rate: $24.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ORACLE JAVA LICENSES, MAINTENANCE AND SUPPORT
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80918
State: Colorado Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $26.4 million to V3GATE, LLC for work described as: ORACLE JAVA LICENSES, MAINTENANCE AND SUPPORT Key points: 1. Contract awarded to V3GATE, LLC for Oracle Java licenses, maintenance, and support. 2. Total contract value is $26,408,014.23 over 1095 days. 3. The contract falls under 'Other Computer Related Services' (NAICS 541519). 4. Awarded by the Department of Veterans Affairs (VA) in Colorado. 5. Contract type is Firm Fixed Price.
Value Assessment
Rating: fair
The contract value of $26.4M for Oracle Java licenses and support appears high given the nature of the services. Benchmarking against similar enterprise software licensing and support contracts is necessary to determine fair pricing.
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 resulted in the most competitive pricing, as potential bidders were excluded.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these essential software licenses and support services.
Public Impact
Veterans Affairs relies on Oracle Java for critical IT systems, impacting service delivery. The significant expenditure on software licenses and support could divert funds from other veteran programs. Lack of robust competition may lead to inflated costs for essential technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises price concerns.
- High contract value for software licensing and support.
- Potential for vendor lock-in with Oracle products.
Positive Signals
- Contract supports essential IT infrastructure for VA.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on software licensing and support. Spending benchmarks for enterprise software agreements vary widely, but significant multi-year contracts like this warrant scrutiny for value and competitive sourcing.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. The nature of enterprise software licensing and support often favors larger, established vendors, potentially limiting small business participation.
Oversight & Accountability
The VA's procurement process, including the justification for excluding sources and the subsequent award, should be subject to review to ensure compliance and maximize taxpayer value. Oversight is needed to confirm the necessity and cost-effectiveness of this sole-source-like award.
Related Government Programs
- Other Computer Related Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition may result in higher costs.
- Lack of transparency in source exclusion.
- Potential for vendor lock-in with Oracle.
- High contract value requires thorough justification.
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 $26.4 million to V3GATE, LLC. ORACLE JAVA LICENSES, MAINTENANCE AND SUPPORT
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 $26.4 million.
What is the period of performance?
Start: 2023-05-15. End: 2026-05-14.
What was the justification for excluding other sources in the competition for these Oracle Java licenses and support?
The justification for excluding other sources is critical to understanding the procurement's integrity. Typically, such exclusions are based on specific technical requirements, existing infrastructure compatibility, or unique vendor capabilities. Without this justification, it's difficult to assess if the limited competition was warranted or if it simply led to a higher price for the government.
How does the per-unit cost of these Oracle Java licenses compare to industry benchmarks for similar government or commercial contracts?
A detailed comparison of the per-unit cost against industry benchmarks is essential for evaluating value. Oracle licensing can be complex and vary significantly based on user types, processors, and support levels. Without this benchmark data, it's challenging to determine if the VA is paying a fair market price or if the limited competition has resulted in inflated costs.
What is the long-term strategy for managing Oracle software costs and support within the VA, especially given the potential for vendor lock-in?
The VA's long-term strategy for managing Oracle software costs is crucial. Given the significant investment, the agency should explore options like license optimization, alternative software solutions, or renegotiating support agreements to mitigate potential vendor lock-in and control future expenditures. Proactive cost management is key to ensuring sustained value.
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 › 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: 1
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: $26,408,014
Exercised Options: $26,408,014
Current Obligation: $26,408,014
Actual Outlays: $26,408,014
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD27B
IDV Type: GWAC
Timeline
Start Date: 2023-05-15
Current End Date: 2026-05-14
Potential End Date: 2026-05-14 00:00:00
Last Modified: 2025-06-24
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