DHS awards IBM hardware/software support contract valued at $45.4M over two years
Contract Overview
Contract Amount: $45,454,160 ($45.5M)
Contractor: V3gate, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2025-03-31
End Date: 2027-03-30
Contract Duration: 729 days
Daily Burn Rate: $62.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BRAND NAME IBM ELA FOR HARDWARE AND SOFTWARE MAINTENANCE AND SUPPORT
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $45.5 million to V3GATE, LLC for work described as: BRAND NAME IBM ELA FOR HARDWARE AND SOFTWARE MAINTENANCE AND SUPPORT Key points: 1. Contract provides essential maintenance and support for critical IBM hardware and software. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration of 729 days (2 years) indicates a medium-term need. 4. Fixed-price contract type helps manage cost certainty for the agency. 5. The NAICS code 541519 suggests a broad range of computer-related services. 6. The awardee, V3GATE, LLC, is a key provider in this service category.
Value Assessment
Rating: good
The contract value of $45.4 million over two years for IBM hardware and software maintenance and support appears reasonable given the scope. Benchmarking against similar enterprise-level support contracts for major technology vendors often falls within this range. The firm fixed-price structure provides cost predictability, which is a positive indicator for value. Without specific details on the exact IBM products and services covered, a precise per-unit cost comparison is difficult, but the overall value seems aligned with market expectations for such services.
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 two bids suggests a moderate level of competition. While more bidders could potentially drive prices lower, a competitive process was still employed, which is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: The use of full and open competition, even with two bidders, suggests that taxpayer funds are being used efficiently by allowing market forces to influence pricing.
Public Impact
This contract directly benefits the Department of Homeland Security by ensuring the continued operation and support of essential IBM hardware and software. Services delivered include maintenance, support, and potentially updates for critical IT infrastructure. The geographic impact is primarily within the operational areas of U.S. Customs and Border Protection, supporting their national mission. Workforce implications include ensuring IT support staff have the necessary resources and vendor support to maintain system uptime and functionality.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specific IBM expertise is not widely available.
- Reliance on a single vendor for critical hardware and software support could pose risks if the vendor faces operational challenges.
Positive Signals
- Firm fixed-price contract provides budget certainty.
- Full and open competition, even with limited bidders, indicates a structured procurement process.
- Contract duration allows for sustained support of critical systems.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on IT services and support for enterprise hardware and software. The market for IT maintenance and support services is substantial, with significant spending by federal agencies on maintaining complex systems. This contract represents a portion of the broader federal spending on IT infrastructure, ensuring the operational readiness of a key component of DHS's technological capabilities.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary awardee, V3GATE, LLC, is listed as a small business (st: VA, sn: VIRGINIA), which is a positive signal for the small business ecosystem, as they are receiving a significant prime contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting officers and program managers. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm fixed-price contract type, requiring the vendor to deliver services as specified. The Inspector General for the Department of Homeland Security may conduct audits or investigations related to contract performance and spending.
Related Government Programs
- IT Hardware Maintenance
- Software Maintenance and Support
- Enterprise Resource Planning (ERP) Support
- Cloud Services Support
- Cybersecurity Support Services
Risk Flags
- Contract performance risk due to potential limitations of a small business prime.
- Potential for scope creep if contract requirements are not tightly defined.
- Dependency on vendor for critical IT infrastructure support.
Tags
it-services, hardware-maintenance, software-support, ibm, department-of-homeland-security, dhs, u-s-customs-and-border-protection, cbp, firm-fixed-price, full-and-open-competition, delivery-order, information-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $45.5 million to V3GATE, LLC. BRAND NAME IBM ELA FOR HARDWARE AND SOFTWARE 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 Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $45.5 million.
What is the period of performance?
Start: 2025-03-31. End: 2027-03-30.
What specific IBM hardware and software products are covered under this maintenance and support contract?
The provided data does not specify the exact IBM hardware and software products covered under this contract. The description 'BRAND NAME IBM ELA FOR HARDWARE AND SOFTWARE MAINTENANCE AND SUPPORT' is general. To understand the full scope, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS). This would detail the specific servers, storage, operating systems, databases, middleware, or other IBM software licenses and associated maintenance agreements included. Knowing the specific products is crucial for assessing the criticality of the support and comparing costs to similar support agreements for those particular IBM offerings.
How does the $45.4 million contract value compare to historical spending on similar IBM support by DHS or CBP?
The provided data does not include historical spending figures for similar IBM support contracts by DHS or CBP, making a direct comparison difficult. To assess this, one would need to analyze past contract awards for IBM maintenance and support within these agencies over previous years. Factors such as the number of systems supported, the level of support (e.g., 24/7 vs. business hours), and the specific IBM products covered would need to be consistent for a meaningful comparison. A trend analysis of historical spending could reveal if this $45.4 million award represents an increase, decrease, or stable level of investment in IBM support.
What is the assessed risk level associated with V3GATE, LLC as the contractor for this critical support role?
The provided data does not include a formal risk assessment score or detailed performance history for V3GATE, LLC. However, the contract type (Firm Fixed Price) and competition level (Full and Open) are generally positive indicators. To assess risk, one would typically look at past performance evaluations (e.g., CPARS reports), financial stability, and any history of contract disputes or failures. As V3GATE, LLC is a small business, their capacity to handle a contract of this size and criticality would be a key consideration. Further due diligence would involve reviewing their track record on similar government contracts.
What are the key performance indicators (KPIs) and service level agreements (SLAs) expected under this contract?
The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are typically outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Common SLAs for hardware and software maintenance contracts include response times for issue reporting, resolution times for different severity levels of incidents, system uptime guarantees, and availability of technical support personnel. Effective KPIs and SLAs are essential for measuring contractor performance and ensuring the agency receives the expected level of service.
How does the 'Other Computer Related Services' (NAICS 541519) classification impact the scope and potential flexibility of this contract?
The NAICS code 541519, 'Other Computer Related Services,' is a broad classification that encompasses a wide range of IT services not specified under other more defined categories. This classification suggests the contract could potentially cover services beyond basic hardware maintenance and software support, such as IT consulting, system integration, data processing, or IT disaster recovery services, provided they are detailed in the contract's SOW. While this offers flexibility, it also means the specific deliverables are heavily dependent on the detailed requirements outlined in the contract documentation. It implies the agency may require a diverse set of IT support functions from the contractor.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: 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: 2
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: $76,681,641
Exercised Options: $45,454,160
Current Obligation: $45,454,160
Actual Outlays: $40,821,099
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD27B
IDV Type: GWAC
Timeline
Start Date: 2025-03-31
Current End Date: 2027-03-30
Potential End Date: 2027-03-30 10:21:16
Last Modified: 2026-03-30
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