DOE Awards $1.88M AWS Agency Catalog Order to V3GATE, LLC for Cloud Services
Contract Overview
Contract Amount: $1,882,001 ($1.9M)
Contractor: V3gate, LLC
Awarding Agency: Department of Energy
Start Date: 2022-11-18
End Date: 2026-03-30
Contract Duration: 1,228 days
Daily Burn Rate: $1.5K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS ACTION IS TO ESTABLISH AN ORDER UNDER DEPARTMENT OF ENERGY AMAZON WEB SERVICES AGENCY CATALOG.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20223
Plain-Language Summary
Department of Energy obligated $1.9 million to V3GATE, LLC for work described as: THE PURPOSE OF THIS ACTION IS TO ESTABLISH AN ORDER UNDER DEPARTMENT OF ENERGY AMAZON WEB SERVICES AGENCY CATALOG. Key points: 1. Spending on cloud services continues to grow across federal agencies. 2. V3GATE, LLC is a new entrant in federal contracting for this service. 3. The 'Other Computer Related Services' NAICS code is broad and may encompass various IT functions. 4. The contract is a firm-fixed-price order under an existing BPA call.
Value Assessment
Rating: questionable
The award amount of $1.88M over 3.5 years for cloud services needs comparison to similar AWS catalog orders. Without specific service details, it's difficult to assess if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This action was not competed under SAP and was placed as a BPA call. This limited competition may not have resulted in the best possible price discovery for the government.
Taxpayer Impact: Taxpayer funds are being used for cloud services. The lack of full and open competition raises concerns about potential overspending.
Public Impact
Federal agencies increasingly rely on cloud computing for operational efficiency. The use of agency-specific catalogs can streamline procurement but requires careful oversight. V3GATE, LLC's entry into this contract highlights the evolving landscape of federal IT service providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed service description
- New contractor for this specific service
Positive Signals
- Utilizes existing AWS Agency Catalog
- Firm-fixed-price contract type
Sector Analysis
The Department of Energy is leveraging cloud services, a common trend across government. Spending benchmarks for 'Other Computer Related Services' (NAICS 541519) vary widely, but cloud infrastructure and services are a significant and growing segment.
Small Business Impact
The data does not indicate if V3GATE, LLC is a small business. Further analysis would be needed to determine the impact on small business contracting goals.
Oversight & Accountability
The use of an agency catalog and BPA call suggests some level of pre-negotiation and oversight. However, the limited competition aspect warrants scrutiny to ensure fair pricing and value.
Related Government Programs
- Other Computer Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Limited competition
- Potential for overpricing due to lack of competition
- Lack of detailed service description
- New contractor for this service area
Tags
other-computer-related-services, department-of-energy, dc, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $1.9 million to V3GATE, LLC. THE PURPOSE OF THIS ACTION IS TO ESTABLISH AN ORDER UNDER DEPARTMENT OF ENERGY AMAZON WEB SERVICES AGENCY CATALOG.
Who is the contractor on this award?
The obligated recipient is V3GATE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $1.9 million.
What is the period of performance?
Start: 2022-11-18. End: 2026-03-30.
What specific AWS services are being procured under this order, and how do their costs compare to market rates for similar federal contracts?
The provided data lacks specificity regarding the exact AWS services procured. To assess value, a detailed breakdown of services (e.g., EC2 instances, S3 storage, specific managed services) and their associated costs is required. Benchmarking against other federal contracts for identical or comparable AWS services would reveal if the $1.88M is a competitive price point.
What is the justification for not competing this order under SAP, and what risks does this limited competition pose to the government's cost-effectiveness?
The justification for not competing under SAP is not provided, but it was placed as a BPA call. Limited competition, especially when not fully justified by urgency or unique capabilities, increases the risk of paying a premium. Without a competitive bidding process, the government may not achieve the best possible pricing or identify more innovative solutions from a wider pool of vendors.
How will the Department of Energy ensure effective utilization and performance monitoring of the AWS services provided by V3GATE, LLC to maximize taxpayer value?
Effective utilization and performance monitoring will depend on robust contract management by the Department of Energy. This includes establishing clear performance metrics, regular reporting requirements from V3GATE, LLC, and proactive oversight to ensure services align with agency needs and budget. Implementing cloud cost management tools and conducting periodic reviews will be crucial for maximizing value.
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: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
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: $1,892,495
Exercised Options: $1,892,495
Current Obligation: $1,882,001
Actual Outlays: $1,882,001
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303022AIM000014
IDV Type: BPA
Timeline
Start Date: 2022-11-18
Current End Date: 2026-03-30
Potential End Date: 2026-03-30 00:00:00
Last Modified: 2026-04-02
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