VA Awards $40.1M for ID.me Software Subscriptions and Support to V3Gate, LLC

Contract Overview

Contract Amount: $40,113,042 ($40.1M)

Contractor: V3gate, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-05-01

End Date: 2026-04-30

Contract Duration: 1,095 days

Daily Burn Rate: $36.6K/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: THE AWARD PROVIDES FOR BRAND NAME ID.ME SOFTWARE SUBSCRIPTIONS AND SUPPORT OF THE CURRENT ID.ME IDENTITY AND ACCESS MANAGEMENT CREDENTIAL SERVICE PROVIDER SOFTWARE-AS-A-SERVICE SOLUTION.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80918

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $40.1 million to V3GATE, LLC for work described as: THE AWARD PROVIDES FOR BRAND NAME ID.ME SOFTWARE SUBSCRIPTIONS AND SUPPORT OF THE CURRENT ID.ME IDENTITY AND ACCESS MANAGEMENT CREDENTIAL SERVICE PROVIDER SOFTWARE-AS-A-SERVICE SOLUTION. Key points: 1. The award focuses on identity and access management software-as-a-service. 2. Competition was full and open after exclusion of sources, suggesting a competitive process. 3. The contract is for a firm-fixed-price delivery order, indicating predictable costs. 4. The primary risk lies in the reliance on a single brand-name software solution.

Value Assessment

Rating: good

The $40.1M award for ID.me software subscriptions and support appears reasonable given the duration and nature of the service. Benchmarking against similar SaaS contracts for identity management would provide further clarity on 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.' This indicates that while multiple sources were considered, some were excluded, potentially impacting the breadth of price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential identity and access management services, which are critical for secure government operations.

Public Impact

Ensures secure digital identity verification for veterans and VA personnel. Supports the ongoing operation of the VA's credential service provider. Potential for improved user experience and streamlined access to VA services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Brand-name reliance
Potential vendor lock-in

Positive Signals

Firm-fixed-price contract
Competitive award process

Sector Analysis

This contract falls within the IT services sector, specifically focusing on identity and access management solutions. Spending in this area is crucial for government cybersecurity and digital service delivery.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Reliance on brand-name software may limit future flexibility and potentially increase costs.
Exclusion of sources could indicate a less competitive environment than initially suggested.
Long-term cost implications beyond the current award period are not detailed.
Potential for vendor lock-in with a proprietary software solution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $40.1 million to V3GATE, LLC. THE AWARD PROVIDES FOR BRAND NAME ID.ME SOFTWARE SUBSCRIPTIONS AND SUPPORT OF THE CURRENT ID.ME IDENTITY AND ACCESS MANAGEMENT CREDENTIAL SERVICE PROVIDER SOFTWARE-AS-A-SERVICE 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 $40.1 million.

What is the period of performance?

Start: 2023-05-01. End: 2026-04-30.

What is the total cost of ownership for the ID.me solution over its lifecycle, including potential future renewals and upgrades?

The current award covers a 3-year period with a total value of $40.1 million. To assess the total cost of ownership, one would need to project costs beyond this initial period, factoring in potential price increases for renewals, the cost of future software upgrades or migrations, and any associated implementation or training expenses. This forward-looking view is essential for long-term budget planning and value assessment.

What are the specific criteria used to exclude other sources during the 'full and open competition after exclusion of sources' process?

The exclusion of sources typically occurs when specific technical requirements, security certifications, or existing system integrations make only a limited number of vendors capable of meeting the need. For brand-name software like ID.me, exclusions might be based on proprietary technology, unique functionalities essential for the VA's operations, or prior successful integration and performance history. Understanding these criteria is key to evaluating if the competition was truly maximized.

How does the performance and reliability of the ID.me solution compare to alternative identity management platforms in terms of uptime, security incidents, and user satisfaction?

Assessing the performance and reliability requires analyzing key performance indicators (KPIs) such as system uptime, the number and severity of security incidents, and user feedback or satisfaction surveys. Comparing these metrics against industry benchmarks and potentially other government or commercial identity solutions would reveal the effectiveness of the ID.me platform. High uptime and a strong security record are critical for a service managing sensitive veteran data.

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: $67,546,263

Exercised Options: $40,113,042

Current Obligation: $40,113,042

Actual Outlays: $25,368,090

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline