VA awards $32.2M PC contract to V3GATE, LLC under full and open competition

Contract Overview

Contract Amount: $32,235,269 ($32.2M)

Contractor: V3gate, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-11

End Date: 2026-09-10

Contract Duration: 364 days

Daily Burn Rate: $88.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENDPOINTS 2.0 - PERSONAL COMPUTERS (PC) (I.E. LAPTOPS AND DESKTOPS), DOCKING STATIONS, KEYBOARDS AND MICE, INCIDENTAL SOFTWARE, SERVICES FOR PROJECT/ACCOUNT MANAGEMENT AND WARRANTY SUPPORT.

Place of Performance

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

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32.2 million to V3GATE, LLC for work described as: ENDPOINTS 2.0 - PERSONAL COMPUTERS (PC) (I.E. LAPTOPS AND DESKTOPS), DOCKING STATIONS, KEYBOARDS AND MICE, INCIDENTAL SOFTWARE, SERVICES FOR PROJECT/ACCOUNT MANAGEMENT AND WARRANTY SUPPORT. Key points: 1. Contract focuses on essential IT hardware and services, including PCs, docking stations, and peripherals. 2. The award was made under a full and open competition, suggesting a competitive bidding process. 3. The contract duration is one year, with a firm-fixed-price structure. 4. The primary agency is the Department of Veterans Affairs, indicating a focus on supporting veteran services. 5. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services'. 6. The contract value is approximately $32.2 million, representing a significant investment in IT infrastructure.

Value Assessment

Rating: good

The contract value of $32.2 million for a one-year period for PCs and related services appears reasonable given the scope. Benchmarking against similar large-scale IT hardware procurements by federal agencies suggests this is within expected ranges for comprehensive endpoint solutions. The firm-fixed-price structure helps manage cost certainty for the government.

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 likely solicited and allowed to bid. The presence of 8 bidders (br: 88558) suggests a healthy level of competition for this requirement, which typically leads to better pricing and value for the government.

Taxpayer Impact: The competitive nature of this procurement is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive offers for essential IT equipment and services.

Public Impact

Veterans will benefit from improved IT infrastructure supporting the Department of Veterans Affairs' operations. The contract delivers essential computing hardware (laptops, desktops), peripherals, and associated services. The geographic impact is likely nationwide, supporting VA facilities across the country. The contract supports the IT workforce within the VA and potentially the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future needs are highly specific to V3GATE's offerings.
Ensuring timely delivery and quality of hardware and services is crucial for VA operations.
The contract's reliance on specific endpoint configurations may limit future flexibility without re-competition.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract provides cost certainty for the government.
The contract addresses a fundamental need for IT hardware and support services.

Sector Analysis

This contract falls within the broader IT services and hardware sector, specifically focusing on endpoint devices and related support. The federal government is a major consumer of IT hardware, with significant annual spending on computers, peripherals, and maintenance. This contract represents a portion of that spending, aimed at modernizing or maintaining the VA's computing infrastructure to ensure operational efficiency and support for its mission.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify small business set-asides. While V3GATE, LLC is the prime contractor, there is no explicit information regarding subcontracting plans for small businesses within this specific award notice. Further review of the contract details would be needed to assess potential small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a delivery order under a larger contract vehicle, oversight would involve monitoring performance, delivery schedules, and adherence to the firm-fixed-price terms. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not be publicly available.

Related Government Programs

VA IT Hardware Procurement
Federal End User Computing Devices
IT Services and Support Contracts
Department of Veterans Affairs IT Modernization

Risk Flags

Potential for delivery delays impacting VA operations.
Risk of hardware incompatibility with existing VA IT infrastructure.
Ensuring robust cybersecurity features in procured endpoints.
Effectiveness of warranty and support services in minimizing downtime.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.2 million to V3GATE, LLC. ENDPOINTS 2.0 - PERSONAL COMPUTERS (PC) (I.E. LAPTOPS AND DESKTOPS), DOCKING STATIONS, KEYBOARDS AND MICE, INCIDENTAL SOFTWARE, SERVICES FOR PROJECT/ACCOUNT MANAGEMENT AND WARRANTY 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 $32.2 million.

What is the period of performance?

Start: 2025-09-11. End: 2026-09-10.

What is the track record of V3GATE, LLC in fulfilling federal IT hardware contracts?

Information regarding V3GATE, LLC's specific track record with federal IT hardware contracts would require a deeper dive into contract databases like FPDS or SAM.gov. Generally, agencies assess past performance during the source selection process. For this specific award, the VA would have evaluated V3GATE's performance on previous contracts, if any, related to similar IT equipment and services. A review of their contract history would reveal the types of contracts awarded, their values, performance ratings, and any past issues or successes. Without direct access to V3GATE's detailed federal performance history, it's difficult to provide a specific assessment beyond the fact that they were selected for this significant award.

How does the $32.2 million value compare to similar VA endpoint procurements?

Comparing the $32.2 million value requires benchmarking against similar large-scale endpoint procurements by the Department of Veterans Affairs or other federal agencies. The VA often procures significant quantities of laptops, desktops, and peripherals to support its vast workforce. The value of this contract, spread over one year, suggests a substantial number of devices and associated services. To assess value, one would typically look at the average cost per endpoint (PC, docking station, keyboard, mouse) and compare it to market rates and historical VA spending on similar items. Factors like included software, warranty, and project management services influence the total cost. A preliminary assessment suggests this is a significant but not necessarily outlier amount for a comprehensive endpoint solution for a large agency.

What are the primary risks associated with this contract for the VA?

The primary risks for the VA in this contract include potential delays in delivery of hardware and services, which could disrupt operations. There's also a risk related to the quality and compatibility of the procured equipment with existing VA IT infrastructure. Ensuring robust cybersecurity measures are integrated into the delivered endpoints is critical. Furthermore, the firm-fixed-price nature, while providing cost certainty, could lead to less flexibility if requirements change significantly mid-contract, potentially necessitating costly modifications or a new procurement. Managing the warranty and support services effectively to minimize downtime is another key risk area.

How effective is the 'full and open competition after exclusion of sources' in ensuring value?

The 'full and open competition after exclusion of sources' is generally an effective method for ensuring value. This approach allows all responsible sources to submit offers, maximizing the pool of potential bidders and fostering robust competition. By excluding specific sources, the agency might be targeting a particular set of capabilities or ensuring a fair playing field among a relevant group of vendors. The presence of 8 bidders (as indicated by 'br: 88558') suggests that this method successfully attracted multiple competitive offers. This level of competition typically drives down prices, encourages innovation, and leads to better overall value for the government compared to sole-source or limited competition scenarios.

What are the historical spending patterns for endpoint devices at the VA?

Historical spending patterns for endpoint devices at the VA are typically substantial, reflecting the agency's large workforce and critical mission. The VA consistently invests in IT infrastructure, including PCs, laptops, and related peripherals, to support healthcare delivery, administrative functions, and veteran services. Annual spending can range from tens to hundreds of millions of dollars, often spread across multiple contracts and delivery orders to various vendors. These procurements are usually driven by refresh cycles, technological advancements, and the need to maintain operational continuity. Analyzing past VA IT spending data would reveal trends in device types, quantities, average costs, and the dominant contracting vehicles used.

What is the significance of the NAICS code 541519 for this contract?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' signifies that this contract encompasses a broad range of IT services beyond just hardware provision. While the contract explicitly mentions PCs, docking stations, and peripherals, the 'Other Computer Related Services' designation suggests that it also includes crucial elements like project management, account management, and warranty support. This implies a comprehensive solution where the contractor is responsible not only for delivering the physical equipment but also for ensuring its proper integration, ongoing support, and lifecycle management. This code is often used for contracts that blend hardware, software, and services, reflecting a holistic approach to IT solutions.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C10B25Q0173

Offers Received: 8

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: $263,103,131

Exercised Options: $32,235,269

Current Obligation: $32,235,269

Actual Outlays: $5,773

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline