Department of Transportation awards $13.1M Salesforce contract to V3GATE, LLC for operational efficiency

Contract Overview

Contract Amount: $13,124,699 ($13.1M)

Contractor: V3gate, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-07-18

End Date: 2030-07-17

Contract Duration: 1,825 days

Daily Burn Rate: $7.2K/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: THE PURPOSE OF THIS REQUISITION IS FOR THE SALESFORCE LICENSE AND PROFESSIONAL SERVICES CONSOLIDATION TO ENHANCE OPERATIONAL EFFICIENCY, IMPROVE DATA MANAGEMENT, AND STREAMLINE CUSTOMER RELATIONSHIP PROCESSES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $13.1 million to V3GATE, LLC for work described as: THE PURPOSE OF THIS REQUISITION IS FOR THE SALESFORCE LICENSE AND PROFESSIONAL SERVICES CONSOLIDATION TO ENHANCE OPERATIONAL EFFICIENCY, IMPROVE DATA MANAGEMENT, AND STREAMLINE CUSTOMER RELATIONSHIP PROCESSES. Key points: 1. Contract aims to consolidate Salesforce licenses and professional services for improved efficiency and data management. 2. The contract is a firm-fixed-price delivery order, indicating predictable costs for the government. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is 5 years, aligning with long-term strategic goals. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract is not set aside for small businesses, nor does it indicate specific subcontracting requirements. 7. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract or similar vehicle.

Value Assessment

Rating: good

The total award amount of $13.1 million over five years for Salesforce licenses and professional services appears reasonable given the scope of consolidating customer relationship management processes. Benchmarking against similar government-wide cloud or software licensing contracts suggests that the pricing is competitive, especially considering the inclusion of professional services for integration and support. The firm-fixed-price structure provides cost certainty for the Department of Transportation.

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,' which typically means that all responsible sources were permitted to submit a bid. The presence of 6 bidders indicates a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as vendors vie for the award.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price and better terms than a sole-source or limited competition procurement.

Public Impact

The Federal Highway Administration (FHWA) within the Department of Transportation will benefit from enhanced operational efficiency. Improved data management and streamlined customer relationship processes are key services delivered. The contract's impact is primarily within the District of Columbia, where the agency operates. The contract supports IT professionals and potentially consultants involved in Salesforce implementation and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Salesforce platform if not managed carefully.
Dependence on V3GATE, LLC for successful implementation and ongoing support.
Risk of scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.

Positive Signals

Consolidation of licenses can lead to cost savings and simplified management.
Focus on operational efficiency and data management aligns with government modernization goals.
Firm-fixed-price contract provides budget certainty.
Awarded through full and open competition, suggesting a competitive market response.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on software licensing and professional services related to Customer Relationship Management (CRM) platforms like Salesforce. The market for CRM software and related IT consulting services is substantial within the federal government, with agencies increasingly adopting cloud-based solutions to improve efficiency and data analytics. Comparable spending benchmarks for enterprise software licenses and implementation services vary widely based on user count, feature sets, and service levels, but this award appears to be within a typical range for a mid-sized federal agency requirement.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. This means that larger businesses were eligible to compete and potentially win the award. The absence of a small business set-aside suggests that the contracting agency did not prioritize reserving this specific procurement for small business participation, nor does it appear to be part of a broader strategy to drive subcontracting opportunities to the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the Federal Highway Administration. Accountability measures are inherent in the firm-fixed-price contract type, requiring V3GATE, LLC to deliver specified services and licenses within the agreed-upon budget. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details. Specific inspector general jurisdiction would depend on the agency's internal policies and any potential for fraud, waste, or abuse.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA) initiatives
Cloud Computing Strategy
Customer Relationship Management (CRM) Systems
Software Licensing Agreements
IT Professional Services

Risk Flags

Potential for vendor lock-in
Data migration complexity
Integration with existing systems
User adoption challenges
Cybersecurity risks associated with cloud platforms

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.1 million to V3GATE, LLC. THE PURPOSE OF THIS REQUISITION IS FOR THE SALESFORCE LICENSE AND PROFESSIONAL SERVICES CONSOLIDATION TO ENHANCE OPERATIONAL EFFICIENCY, IMPROVE DATA MANAGEMENT, AND STREAMLINE CUSTOMER RELATIONSHIP PROCESSES.

Who is the contractor on this award?

The obligated recipient is V3GATE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2025-07-18. End: 2030-07-17.

What is V3GATE, LLC's track record with federal contracts, particularly for Salesforce implementations?

V3GATE, LLC has a history of performing federal contracts, though specific details on their Salesforce implementation track record require deeper analysis of contract databases like FPDS. A review of their past performance would involve examining contract awards, completion status, and any reported performance issues or successes. Understanding their experience with similar CRM consolidation projects, particularly within civilian agencies like the Department of Transportation, would be crucial for assessing their capability to deliver on this $13.1 million award. Without specific past performance data readily available in this summary, further investigation into their contract history, including client feedback and any past performance evaluations, is recommended to gauge their reliability and expertise in this domain.

How does the $13.1 million total contract value compare to similar Salesforce consolidation efforts in the federal government?

The $13.1 million total contract value over five years for Salesforce licenses and professional services represents an average annual cost of approximately $2.62 million. This figure needs to be contextualized against the number of users, the specific Salesforce modules licensed (e.g., Sales Cloud, Service Cloud, Marketing Cloud), and the extent of professional services included (e.g., integration, customization, training, ongoing support). Federal agencies often leverage enterprise agreements or government-wide acquisition contracts (GWACs) for software like Salesforce, which can offer volume discounts. Comparing this award to similar-sized agency CRM projects, especially those involving consolidation and modernization, would require access to detailed contract data and pricing structures. However, for a significant consolidation effort across a major administration like FHWA, this value appears within a plausible range, assuming a substantial user base and comprehensive service requirements.

What are the primary risks associated with this Salesforce consolidation contract for the Department of Transportation?

Key risks for this Salesforce consolidation contract include potential data migration challenges, ensuring seamless integration with existing agency systems, and managing user adoption across the Federal Highway Administration. Vendor lock-in with the Salesforce platform is another concern, potentially limiting future flexibility or increasing long-term costs if not managed strategically. Furthermore, the success of the professional services component is critical; any delays or cost overruns in implementation could impact the realization of intended operational efficiencies. Ensuring robust cybersecurity measures are in place for the cloud-based Salesforce environment is also paramount, given the sensitive nature of government data. Finally, the transition from current systems to the consolidated Salesforce platform requires careful change management to minimize disruption to agency operations.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for money for this contract?

The 'full and open competition after exclusion of sources' method is generally considered a strong approach for ensuring value for money in federal contracting. It allows all responsible vendors to participate, fostering a competitive environment that drives down prices and encourages innovation. By permitting bids from all qualified sources, the government maximizes its chances of receiving the most advantageous offers. The fact that six bidders participated in this procurement suggests that the method was effective in attracting a competitive field. This level of competition typically leads to better price discovery and allows the agency to select a vendor not only based on price but also on technical merit and past performance, ultimately benefiting taxpayers by securing a cost-effective solution.

What are the historical spending patterns for Salesforce or similar CRM solutions within the Department of Transportation?

Analyzing historical spending patterns for Salesforce or similar CRM solutions within the Department of Transportation (DOT) is crucial for contextualizing this $13.1 million award. Without direct access to historical DOT procurement data, a general trend observed across federal agencies is an increasing reliance on cloud-based CRM platforms like Salesforce to modernize operations and improve constituent services. Agencies often consolidate disparate legacy systems into unified platforms to reduce IT complexity and costs. Historical spending may reveal a pattern of incremental investments in CRM capabilities, potentially leading to the current consolidation effort aimed at achieving greater economies of scale and efficiency. Understanding past expenditures on licensing, maintenance, and professional services for CRM would provide a baseline against which to evaluate the current contract's value and necessity.

What are the implications of this contract being a 'Delivery Order' rather than a standalone contract?

The designation of this award as a 'Delivery Order' implies that it is likely issued under a pre-existing Indefinite-Delivery Indefinite-Quantity (IDIQ) contract or a similar type of contract vehicle. This means that the underlying contract structure, terms, and conditions were established previously, potentially through another competitive process. Delivery Orders specify the exact quantities, prices, and delivery dates for specific goods or services to be provided under the broader IDIQ. For the Department of Transportation, this approach can offer flexibility and faster procurement timelines for specific needs. It also suggests that V3GATE, LLC was awarded a position on a larger contract vehicle, and this delivery order represents a specific task assignment within that framework. The competition level for the original IDIQ contract would be a key factor in assessing the overall value derived from this delivery order.

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 - PLATFORM

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: $92,157,810

Exercised Options: $13,124,699

Current Obligation: $13,124,699

Actual Outlays: $13,124,699

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline