DOE awards $5.4M AWS contract to V3GATE, LLC for cybersecurity services
Contract Overview
Contract Amount: $5,418,939 ($5.4M)
Contractor: V3gate, LLC
Awarding Agency: Department of Energy
Start Date: 2025-01-10
End Date: 2026-10-31
Contract Duration: 659 days
Daily Burn Rate: $8.2K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DEPARTMENT OF ENERGY (DOE) AMAZON WEB SERVICES (AWS) AGENCY CATALOG (AC) DELIVERY ORDER FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) OFFICE OF CYBERSECURITY (IM-30) AWS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $5.4 million to V3GATE, LLC for work described as: DEPARTMENT OF ENERGY (DOE) AMAZON WEB SERVICES (AWS) AGENCY CATALOG (AC) DELIVERY ORDER FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) OFFICE OF CYBERSECURITY (IM-30) AWS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm-fixed-price contract type suggests defined scope and cost certainty. 3. Performance period extends over two fiscal years, indicating ongoing need. 4. Focus on cybersecurity within the Office of the Chief Information Officer. 5. Small business participation is not explicitly mandated for this award. 6. Contract is a BPA Call, suggesting it leverages an existing agreement.
Value Assessment
Rating: fair
The contract value of $5.4 million for AWS services appears reasonable given the scope and duration. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The firm-fixed-price structure provides cost certainty for the government, but the absence of competition may have led to a higher price than could have been achieved through an open solicitation. Further analysis would require access to the underlying BPA and pricing details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This means that only one vendor, V3GATE, LLC, was solicited for this specific delivery order. The lack of competition limits the government's ability to explore alternative solutions or secure the most favorable pricing through a bidding process. While sole-source awards can be justified under certain circumstances, they generally result in less price discovery.
Taxpayer Impact: Taxpayers may not be receiving the best possible value due to the absence of a competitive bidding process, potentially leading to higher costs than if multiple vendors had vied for the contract.
Public Impact
The Office of the Chief Information Officer (OCIO) within the Department of Energy will benefit from enhanced cybersecurity capabilities. Services delivered will support the operational security of DOE's IT infrastructure. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. The contract supports IT professionals and cybersecurity specialists, potentially impacting the federal workforce in these roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially value for money.
- Lack of explicit small business set-aside may reduce opportunities for smaller firms.
- Reliance on a single vendor for critical cybersecurity services could pose a risk if performance issues arise.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Award leverages an existing BPA Call, indicating a streamlined procurement process.
- Focus on cybersecurity aligns with critical government IT security needs.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on cloud computing (AWS) and cybersecurity. The market for cloud services and cybersecurity solutions is highly dynamic and competitive, with numerous vendors offering a wide range of capabilities. The Department of Energy, like many federal agencies, is increasingly relying on cloud infrastructure to modernize its IT systems and enhance operational efficiency. This contract represents a specific instance of cloud service procurement within the broader federal IT spending landscape.
Small Business Impact
This contract does not appear to have a specific small business set-aside. The award to V3GATE, LLC, without explicit set-aside provisions, means that opportunities for subcontracting to small businesses were not mandated by the contract terms. The impact on the small business ecosystem is neutral to potentially negative if V3GATE does not proactively engage small businesses as subcontractors. Further review of V3GATE's subcontracting plans would be necessary to fully assess this impact.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers within the OCIO. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specific services. Transparency is limited due to the sole-source nature of the award, with details of the justification for sole-sourcing not publicly available in this summary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Energy IT Modernization Programs
- Federal Cybersecurity Initiatives
- Agency Catalog (AC) Agreements
- AWS Cloud Services Contracts
- Office of the Chief Information Officer Spending
Risk Flags
- Sole-source award may limit value for money.
- Lack of competition reduces price discovery.
- Cybersecurity contracts require robust performance monitoring.
Tags
it-services, cybersecurity, cloud-computing, amazon-web-services, department-of-energy, sole-source, firm-fixed-price, bpa-call, district-of-columbia, office-of-the-chief-information-officer
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $5.4 million to V3GATE, LLC. DEPARTMENT OF ENERGY (DOE) AMAZON WEB SERVICES (AWS) AGENCY CATALOG (AC) DELIVERY ORDER FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) OFFICE OF CYBERSECURITY (IM-30) AWS
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 $5.4 million.
What is the period of performance?
Start: 2025-01-10. End: 2026-10-31.
What is the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and is a 'BPA CALL'. While this suggests a streamlined process leveraging an existing Blanket Purchase Agreement (BPA), it does not explicitly state the sole-source justification. Typically, sole-source awards are made when only one responsible source can provide the required supply or service. This could be due to unique capabilities, urgent needs, or specific requirements tied to an existing contract vehicle. Without further details on the specific BPA and the circumstances of this delivery order, the precise justification remains unclear. A full analysis would require reviewing the agency's sole-source justification documentation.
How does the pricing of this AWS contract compare to similar government or commercial contracts?
Benchmarking the pricing for this $5.4 million AWS contract is challenging without access to detailed pricing information and a competitive bid analysis. As a sole-source award, there's no direct comparison from a competitive solicitation. However, AWS services are generally priced based on usage and service tiers. Government contracts often negotiate specific rates or discounts through master agreements like GWACs or BPAs. To assess value, one would need to compare the rates for specific AWS services (e.g., EC2 instances, S3 storage) against publicly available AWS pricing, negotiated government rates on similar BPAs, or rates from other cloud service providers. The firm-fixed-price nature suggests a pre-determined cost, but the underlying unit rates are key to value assessment.
What are the potential risks associated with awarding a sole-source cybersecurity contract?
Awarding a sole-source cybersecurity contract carries several potential risks. Firstly, the lack of competition can lead to suboptimal pricing, meaning the government might pay more than necessary. Secondly, it limits the agency's exposure to innovative solutions or alternative approaches that other vendors might offer. Thirdly, over-reliance on a single vendor for critical cybersecurity functions can create vendor lock-in and increase risk if that vendor experiences performance issues, security breaches, or financial instability. Finally, the absence of a competitive process can reduce transparency and make it harder to hold the contractor accountable for performance compared to a contract awarded through open competition.
What is the historical spending pattern for similar AWS services within the Department of Energy?
Analyzing historical spending patterns for similar AWS services within the Department of Energy (DOE) would provide valuable context for this $5.4 million award. Without specific historical data, it's difficult to determine if this amount represents an increase, decrease, or stable level of spending. Agencies often consolidate cloud services under larger agreements or BPAs to achieve economies of scale. Understanding the DOE's overall cloud strategy, previous investments in AWS, and spending trends across different offices (like OCIO) would help assess if this contract is part of a larger strategic shift or a routine operational expense. Examining prior years' IT budgets and contract awards related to cloud infrastructure would be necessary for a comprehensive historical analysis.
What is the track record of V3GATE, LLC in delivering federal IT and cybersecurity services?
The track record of V3GATE, LLC in delivering federal IT and cybersecurity services is a crucial factor in assessing the risk and potential success of this $5.4 million contract. Information regarding their past performance, client satisfaction, contract completion history, and any past performance issues or awards would be essential. As a sole-source award, the agency presumably has confidence in V3GATE's capabilities. However, an independent review of their federal contracting history, including awards, past performance evaluations (if available), and any debriefings from previous solicitations, would provide a more objective assessment of their reliability and expertise in cybersecurity and AWS-related services.
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: $8,183,939
Exercised Options: $5,418,939
Current Obligation: $5,418,939
Actual Outlays: $2,834,636
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303022AIM000014
IDV Type: BPA
Timeline
Start Date: 2025-01-10
Current End Date: 2026-10-31
Potential End Date: 2027-10-31 00:00:00
Last Modified: 2026-02-09
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