VA awards $19.8M Enterprise Print Management Solution to V3GATE, LLC under full and open competition

Contract Overview

Contract Amount: $19,845,918 ($19.8M)

Contractor: V3gate, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-18

End Date: 2026-09-17

Contract Duration: 1,095 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENTERPRISE PRINT MANAGEMENT SOLUTION

Place of Performance

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

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.8 million to V3GATE, LLC for work described as: ENTERPRISE PRINT MANAGEMENT SOLUTION Key points: 1. Contract awarded for enterprise print management solutions, indicating a need for centralized document output control. 2. The contract duration of 1095 days suggests a long-term strategy for managing printing services. 3. Awarded by the Department of Veterans Affairs, highlighting the agency's focus on modernizing its IT infrastructure. 4. The contract type is a Firm Fixed Price Delivery Order, providing cost certainty for the government. 5. The presence of 6 bidders suggests a reasonably competitive market for these types of services. 6. The NAICS code 541519 points to a broad category of computer-related services, requiring specific expertise in print management.

Value Assessment

Rating: good

The total award amount of $19.8 million over three years for an Enterprise Print Management Solution appears within a reasonable range for a federal contract of this scope. Benchmarking against similar large-scale IT service contracts suggests that the pricing is competitive, especially considering the complexity of managing print infrastructure across a large agency like the VA. The firm fixed-price structure further enhances value by capping the government's financial exposure.

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 allowed to bid. The fact that there were 6 bidders suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensures that the government receives proposals from a range of qualified providers, potentially leading to better terms and innovation.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged V3GATE, LLC to offer competitive terms. It also signals that the government is not overly reliant on a single provider, reducing the risk of price gouging or service disruptions.

Public Impact

Veterans Affairs facilities nationwide will benefit from improved and potentially more cost-effective printing services. The contract will deliver an enterprise print management solution, likely encompassing hardware, software, and support services. Geographic impact is nationwide, supporting VA operations across all its locations. Workforce implications may include the need for IT support staff to manage the new system, potentially retraining existing personnel or hiring new specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the solution is highly proprietary and difficult to transition away from.
Dependence on V3GATE, LLC for critical printing infrastructure could pose a risk if the company experiences financial instability or service delivery issues.
Ensuring seamless integration with existing VA IT systems will be crucial to avoid operational disruptions.

Positive Signals

The award to V3GATE, LLC, a known entity in government contracting, suggests a level of established capability.
The firm fixed-price contract structure provides cost predictability and limits financial risk for the VA.
The competitive bidding process indicates that multiple vendors were vetted, increasing the likelihood of selecting a capable provider.

Sector Analysis

The Enterprise Print Management Solutions market within the federal sector is a significant segment of IT services, focusing on optimizing document output, reducing costs, and enhancing security. This contract fits within the broader trend of agencies seeking to consolidate and modernize their IT infrastructure. Comparable spending benchmarks for similar large-scale print management contracts often range from several million to tens of millions of dollars annually, depending on the agency's size and scope of services required.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, it's important to assess subcontracting opportunities. Large prime contractors like V3GATE, LLC are often required to meet small business subcontracting goals. The success of small businesses in securing subcontracts on this award will be a key indicator of its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the firm fixed-price delivery order structure, which requires V3GATE, LLC to meet defined performance standards. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and audit details may not always be publicly disclosed.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Department of Defense Enterprise Software Agreements
Agency-specific IT modernization initiatives

Risk Flags

Potential for vendor lock-in
Integration complexity with existing systems
Data security and privacy concerns
Dependence on single vendor for critical service

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.8 million to V3GATE, LLC. ENTERPRISE PRINT MANAGEMENT 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 $19.8 million.

What is the period of performance?

Start: 2023-09-18. End: 2026-09-17.

What is V3GATE, LLC's track record with the Department of Veterans Affairs and other federal agencies?

V3GATE, LLC has a history of performing contracts with federal agencies, including the Department of Veterans Affairs. Analyzing their past performance on similar IT service contracts, particularly those involving large-scale deployments or managed services, would provide insight into their capabilities and reliability. Specific details on past performance ratings, any contract disputes, or successful project completions would be crucial for a comprehensive assessment. Their experience with enterprise-level solutions and adherence to federal procurement regulations are key indicators of their suitability for this significant award.

How does the $19.8 million award compare to other enterprise print management solutions procured by federal agencies?

The $19.8 million award for an Enterprise Print Management Solution over three years is a substantial but not unprecedented figure for a federal agency of the VA's size. Comparable contracts for similar services across agencies like the Department of Defense or Health and Human Services can range from $5 million to over $50 million annually, depending on the scope, number of users, and specific technologies deployed. Factors such as the inclusion of hardware, software licensing, managed services, and nationwide support significantly influence the total cost. The VA's award appears to be in the mid-to-high range, suggesting a comprehensive service offering or a large user base.

What are the primary risks associated with implementing an enterprise print management solution of this scale?

Key risks associated with implementing an enterprise print management solution of this scale include potential integration challenges with existing IT infrastructure, user adoption hurdles, and the security of sensitive documents. There's also a risk of cost overruns if the scope is not clearly defined or if unforeseen technical issues arise, despite the firm fixed-price nature. Vendor performance and reliability are critical; a failure in print services can disrupt agency operations. Furthermore, ensuring data privacy and compliance with federal regulations throughout the printing lifecycle is paramount. Proactive risk mitigation strategies, including thorough planning, phased rollouts, and robust vendor management, are essential.

How effective is the current print management strategy at the VA, and what improvements does this contract aim to achieve?

The effectiveness of the VA's previous print management strategies is not detailed in the provided data. However, the procurement of a new Enterprise Print Management Solution suggests a desire for modernization, cost savings, enhanced security, and improved efficiency. This contract likely aims to consolidate disparate printing systems, reduce overall print volume, implement secure print release mechanisms, and potentially leverage cloud-based solutions. The goal is typically to move away from decentralized, inefficient printing environments towards a more controlled, cost-effective, and user-friendly system that supports the VA's mission.

What are the historical spending patterns for print management solutions within the Department of Veterans Affairs?

Historical spending patterns for print management solutions within the Department of Veterans Affairs would typically show a trend towards increasing reliance on managed print services as agencies seek to control costs and improve efficiency. Prior to this award, the VA may have had a mix of in-house managed printing, leased equipment, and various vendor contracts. Analyzing past expenditures would reveal the evolution of their approach, potentially indicating a shift from decentralized purchasing to a more centralized, strategic procurement like this enterprise-wide solution. Understanding these patterns helps contextualize the current $19.8 million investment.

What is the expected impact of this contract on the VA's IT budget and operational efficiency?

This contract is expected to have a significant impact on the VA's IT budget by consolidating spending on print services and potentially achieving economies of scale. While the upfront or ongoing costs are substantial, the objective of enterprise print management is to reduce total cost of ownership through optimized device utilization, reduced consumables, and streamlined support. Operationally, the VA anticipates improvements in efficiency through standardized printing processes, enhanced document security, and potentially reduced downtime. The success of these improvements will depend on effective implementation and user adoption across the agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

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: $35,525,095

Exercised Options: $19,845,918

Current Obligation: $19,845,918

Actual Outlays: $19,747,164

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline