DOE Awards $8.1M for AWS Cloud Services to V3GATE, LLC via BPA Call
Contract Overview
Contract Amount: $8,115,995 ($8.1M)
Contractor: V3gate, LLC
Awarding Agency: Department of Energy
Start Date: 2024-05-01
End Date: 2026-04-30
Contract Duration: 729 days
Daily Burn Rate: $11.1K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ESTABLISH DELIVERY ORDER # 89303024FIM000148 FOR IM-60 AWS CLOUD SERVICES.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $8.1 million to V3GATE, LLC for work described as: ESTABLISH DELIVERY ORDER # 89303024FIM000148 FOR IM-60 AWS CLOUD SERVICES. Key points: 1. The contract is for AWS cloud services, a critical area for government IT infrastructure. 2. V3GATE, LLC is the sole awardee, raising questions about competition. 3. The contract value is significant at over $8 million. 4. The 'Other Computer Related Services' NAICS code suggests a broad scope of services.
Value Assessment
Rating: questionable
The contract value of $8.1M for cloud services is substantial. Without a competitive benchmark or further details on the specific services, it's difficult to definitively assess pricing. However, the lack of competition suggests potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed under SAP and was awarded via a BPA Call. While BPA calls can be efficient, the 'NOT COMPETED UNDER SAP' designation and the limited competition method suggest a lack of robust price discovery.
Taxpayer Impact: The lack of full and open competition may result in taxpayers paying more than necessary for these cloud services.
Public Impact
Citizens rely on government IT infrastructure for essential services, making cloud service reliability crucial. The use of cloud services by the Department of Energy impacts national energy data management and security. Transparency in government IT spending is vital for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to limited competition
- Limited transparency on specific services provided
Positive Signals
- Awarded via an existing BPA Call, potentially streamlining delivery
- Firm Fixed Price contract type provides cost certainty
Sector Analysis
The IT sector, particularly cloud services, is a rapidly evolving area with significant government spending. Benchmarks for cloud services vary widely based on usage, support levels, and specific providers. This award falls within the typical range for substantial cloud service contracts.
Small Business Impact
The awardee, V3GATE, LLC, is not indicated as a small business. The contract was not competed under SAP, which often includes provisions for small business set-asides, suggesting limited direct opportunity for small businesses in this specific award.
Oversight & Accountability
The award was made via a BPA Call, which should have established oversight mechanisms. However, the lack of competition warrants closer scrutiny to ensure the services are necessary and priced appropriately.
Related Government Programs
- Other Computer Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency on service details
- No clear justification for limited competition
- Awardee is not a small business
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 $8.1 million to V3GATE, LLC. ESTABLISH DELIVERY ORDER # 89303024FIM000148 FOR IM-60 AWS CLOUD SERVICES.
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 $8.1 million.
What is the period of performance?
Start: 2024-05-01. End: 2026-04-30.
What specific AWS cloud services are being procured, and how do their costs compare to market rates for similar service bundles?
The data provided does not specify the exact AWS services procured under this BPA Call. To assess value, a detailed breakdown of services (e.g., EC2 instances, S3 storage, RDS databases, specific support tiers) is needed. Comparing these to publicly available AWS pricing or similar government contracts for comparable service packages would reveal if the $8.1M is a fair market price.
What is the justification for not competing this award under SAP, and what risks does this pose to cost-effectiveness?
The justification for not competing under SAP is not provided. This lack of competition, especially for a contract exceeding $8 million, significantly increases the risk of the government paying above fair market value. Without competitive bids, V3GATE, LLC had less incentive to offer the most competitive pricing, potentially leading to taxpayer overspending.
How will the Department of Energy ensure the effectiveness and necessity of these AWS cloud services throughout the contract period?
Effectiveness and necessity will be ensured through diligent contract management by the Department of Energy. This includes regular performance reviews, monitoring service utilization, validating that the services align with stated mission requirements, and ensuring adherence to the firm fixed price terms. Proactive oversight is key to preventing scope creep or unnecessary service consumption.
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: $11,733,909
Exercised Options: $8,408,833
Current Obligation: $8,115,995
Actual Outlays: $6,615,442
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303022AIM000014
IDV Type: BPA
Timeline
Start Date: 2024-05-01
Current End Date: 2026-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2026-03-13
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