EIA awards $954K AWS cloud services contract to V3GATE, LLC under a non-competed BPA Call
Contract Overview
Contract Amount: $954,329 ($954.3K)
Contractor: V3gate, LLC
Awarding Agency: Department of Energy
Start Date: 2025-08-01
End Date: 2026-07-31
Contract Duration: 364 days
Daily Burn Rate: $2.6K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DELIVERY ORDER FOR AMAZON WEB SERVICES (AWS) CLOUD SERVICES FOR THE U.S. ENERGY INFORMATION ADMINISTRATION (EIA), OFFICE OF RESOURCES & TECHNOLOGY MANAGEMENT (ORTM), OFFICE OF ACQUISITION MANAGEMENT (OAM) ISSUED UNDER DEPARTMENT OF ENERGY'S
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $954,329.04 to V3GATE, LLC for work described as: DELIVERY ORDER FOR AMAZON WEB SERVICES (AWS) CLOUD SERVICES FOR THE U.S. ENERGY INFORMATION ADMINISTRATION (EIA), OFFICE OF RESOURCES & TECHNOLOGY MANAGEMENT (ORTM), OFFICE OF ACQUISITION MANAGEMENT (OAM) ISSUED UNDER DEPARTMENT OF ENERGY'S Key points: 1. Contract awarded for cloud services, indicating a reliance on external providers for IT infrastructure. 2. The award was not competed under Simplified Acquisition Procedures (SAP), raising questions about competition. 3. The contract duration is one year, suggesting a need for ongoing cloud service provision. 4. The fixed-price contract type aims to control costs, but the lack of competition may inflate the price. 5. The service falls under 'Other Computer Related Services,' a broad category. 6. Awarded to V3GATE, LLC, whose track record with this specific service needs further examination.
Value Assessment
Rating: questionable
The contract value of $954,329.04 for one year of AWS cloud services appears high, especially given the lack of competition. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The 'Other Computer Related Services' category is broad, and the specific services provided by V3GATE, LLC under this BPA Call are not detailed, making a precise value assessment challenging. Further analysis of the specific AWS services and their market pricing is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was issued as a BPA Call under a Department of Energy contract, and it was explicitly stated as 'NOT COMPETED UNDER SAP.' This suggests that the competition was limited, potentially to pre-qualified vendors on an existing contract vehicle. The specific details of the original BPA and the reasons for not further competing this call are not provided, but the lack of open competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The limited competition means taxpayers may not be receiving the best possible price for these cloud services, as V3GATE, LLC was not necessarily selected through a process that encouraged the lowest bid.
Public Impact
The U.S. Energy Information Administration (EIA) benefits from access to cloud services for its IT infrastructure. The Office of Resources & Technology Management (ORTM) and Office of Acquisition Management (OAM) will utilize these services. The services are delivered to the Department of Energy, supporting its operational needs. The geographic impact is primarily within the Department of Energy's operational footprint, likely nationwide. Workforce implications are minimal for direct hires, but reliance on cloud services impacts IT support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition for this BPA Call may result in suboptimal pricing.
- The broad 'Other Computer Related Services' category lacks specificity, making performance monitoring difficult.
- Reliance on a single vendor for critical cloud services can create vendor lock-in.
- The contract's value is substantial for a one-year term without demonstrated competitive justification.
Positive Signals
- The contract is Firm Fixed Price, which helps in budget predictability.
- The use of AWS cloud services aligns with modern IT infrastructure trends.
- The contract is issued under a Department of Energy BPA, suggesting some level of pre-qualification.
Sector Analysis
The Information Technology sector, specifically cloud computing services, is a rapidly growing area for government procurement. Agencies are increasingly migrating to cloud-based solutions for scalability, flexibility, and cost-efficiency. This contract for AWS cloud services fits within this broader trend. Comparable spending benchmarks for cloud services vary widely based on service type (IaaS, PaaS, SaaS), usage, and provider. However, the value of this single delivery order suggests a significant need for cloud resources within the EIA.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no information provided regarding small business subcontracting plans or set-asides for this specific delivery order. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless V3GATE, LLC engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would fall under the Department of Energy's Office of Acquisition Management and potentially the agency's Inspector General. The effectiveness of oversight depends on the clarity of the Statement of Work, performance metrics, and regular reviews. Transparency is limited due to the non-competed nature of the award and the lack of detailed public information regarding the BPA itself. Accountability rests with V3GATE, LLC to deliver services as per the contract terms and with the EIA to monitor performance.
Related Government Programs
- AWS Cloud Services
- Department of Energy IT Services
- Energy Information Administration (EIA) Contracts
- Other Computer Related Services
- BPA Calls
Risk Flags
- Lack of Competition
- Potential for Overpricing
- Limited Transparency
- Broad Service Category
Tags
it, cloud-computing, department-of-energy, eia, bpa-call, not-competed, firm-fixed-price, v3gate-llc, aws, computer-related-services, delivery-order, federal-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $954,329.04 to V3GATE, LLC. DELIVERY ORDER FOR AMAZON WEB SERVICES (AWS) CLOUD SERVICES FOR THE U.S. ENERGY INFORMATION ADMINISTRATION (EIA), OFFICE OF RESOURCES & TECHNOLOGY MANAGEMENT (ORTM), OFFICE OF ACQUISITION MANAGEMENT (OAM) ISSUED UNDER DEPARTMENT OF ENERGY'S
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 $954,329.04.
What is the period of performance?
Start: 2025-08-01. End: 2026-07-31.
What is the track record of V3GATE, LLC in providing AWS cloud services to federal agencies, particularly for similar scope and value?
Information regarding V3GATE, LLC's specific track record in providing AWS cloud services of this scope and value to federal agencies is not readily available in the provided data. A deeper dive into federal procurement databases like FPDS-NG or SAM.gov would be necessary to assess their past performance, contract history, and client satisfaction. Without this information, it is difficult to gauge their experience and reliability for this critical IT service. The fact that this is a BPA Call, and not competed, might suggest they are an incumbent or pre-qualified vendor, but the specifics of their performance under previous engagements remain unknown from this data alone.
How does the pricing of this AWS cloud services contract compare to similar government contracts or market rates for comparable services?
Directly comparing the pricing of this $954,329.04 contract for one year of AWS cloud services is challenging without knowing the specific AWS services (e.g., EC2 instances, S3 storage, RDS databases) and their configurations being procured. The 'Other Computer Related Services' category is too broad. To benchmark, one would need to identify comparable contracts awarded through full and open competition for similar AWS services, or analyze AWS's public pricing for the specific services and estimate usage. Given this contract was not competed under SAP, it is plausible that the pricing may not reflect the most competitive rates available in the market, potentially leading to a higher cost for taxpayers.
What are the specific risks associated with awarding a cloud services contract of this value without open competition?
The primary risk associated with awarding a cloud services contract of this value without open competition is the potential for inflated pricing. When a contract is not competed, the government loses the benefit of competitive pressure that typically drives down costs. This can lead to taxpayers paying more than necessary for the services. Another risk is reduced innovation, as vendors are not incentivized to offer novel or more cost-effective solutions. Furthermore, a lack of competition can limit the government's options if the incumbent vendor's performance declines or if market conditions change, potentially leading to vendor lock-in and difficulties in switching providers.
What is the historical spending pattern for cloud services by the EIA or the Department of Energy, and how does this award fit within that pattern?
The provided data does not include historical spending patterns for cloud services by the EIA or the Department of Energy. To assess this, one would need to analyze past contract awards for cloud computing, IT infrastructure, and related services over several fiscal years. Understanding this historical context would reveal whether this $954K award represents an increase, decrease, or steady level of investment in cloud services. It would also help determine if the EIA is progressively migrating more services to the cloud or if this is a standalone requirement. Without historical data, it's difficult to place this award in a broader strategic context.
What specific AWS services are included in this contract, and what is the justification for using a BPA Call instead of a new competitive solicitation?
The provided data does not specify the exact AWS services included in this contract, only that they fall under 'Other Computer Related Services.' The justification for using a BPA Call instead of a new competitive solicitation is also not detailed. Typically, BPA Calls are used for recurring needs or when specific vendors have already been vetted and qualified under a broader Basic Ordering Agreement (BOA) or Blanket Purchase Agreement (BPA). However, the 'NOT COMPETED UNDER SAP' notation suggests that even within the BPA framework, further competition was bypassed. A formal justification for this decision, such as urgency, unique capabilities, or specific pre-existing agreements, would be required to fully understand the rationale.
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: $954,329
Exercised Options: $954,329
Current Obligation: $954,329
Actual Outlays: $262,930
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303022AIM000014
IDV Type: BPA
Timeline
Start Date: 2025-08-01
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-04-10
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