DOE awards $242K Cisco Enterprise Licensing Agreement to V3GATE, LLC for VoIP services
Contract Overview
Contract Amount: $242,490 ($242.5K)
Contractor: V3gate, LLC
Awarding Agency: Department of Energy
Start Date: 2025-07-24
End Date: 2027-07-31
Contract Duration: 737 days
Daily Burn Rate: $329/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CISCO ENTERPRISE LICENSING AGREEMENT - VOIP
Place of Performance
Location: LAKEWOOD, JEFFERSON County, COLORADO, 80228
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $242,489.76 to V3GATE, LLC for work described as: CISCO ENTERPRISE LICENSING AGREEMENT - VOIP Key points: 1. The contract value represents a modest investment for enterprise-level VoIP solutions. 2. Competition was conducted with exclusion of sources, suggesting potential limitations in market reach. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is expected over two years, aligning with typical software licensing cycles. 5. This contract falls under IT services, specifically computer-related services. 6. The awardee, V3GATE, LLC, is a relatively new entity in federal contracting based on available data.
Value Assessment
Rating: fair
The contract value of $242,489.76 for a Cisco Enterprise Licensing Agreement for VoIP services appears reasonable for a two-year term. Benchmarking against similar enterprise software licensing agreements is challenging without more specific details on the scope of licenses and support included. However, the fixed-price nature of the contract provides cost certainty. The number of bids (7) suggests some level of interest, but the 'exclusion of sources' competition type warrants further scrutiny regarding potential price discovery limitations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, specific sources were excluded prior to the solicitation. The solicitation received 7 bids, suggesting a moderate level of interest. However, the exclusion of certain sources may have limited the overall competitive landscape, potentially impacting the government's ability to secure the most advantageous pricing.
Taxpayer Impact: The limited competition may have resulted in a higher price than if all potential vendors had been allowed to bid. Taxpayers may not have benefited from the full spectrum of market competition.
Public Impact
Federal employees within the Department of Energy will benefit from enhanced communication capabilities through the VoIP system. The contract delivers essential software licenses and potentially support services for the Cisco VoIP infrastructure. The geographic impact is primarily within the Department of Energy's operational locations. The contract supports the IT workforce responsible for managing and maintaining the communication systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'exclusion of sources' competition type raises concerns about whether the government explored all available market options.
- Limited information is available on V3GATE, LLC's track record with large-scale enterprise licensing agreements.
- The specific scope of 'enterprise licensing' and associated support services is not detailed, making a full value assessment difficult.
Positive Signals
- The contract is awarded as Firm Fixed Price, which provides cost certainty and limits the government's exposure to cost overruns.
- The award was made after a competitive process, even with exclusions, indicating some level of market vetting.
- The contract duration of over two years allows for stable service delivery and planning.
Sector Analysis
The IT services sector, particularly within enterprise software and communication solutions, is highly competitive. Cisco is a dominant player in the networking and collaboration space. This contract for VoIP licensing fits within the broader category of IT infrastructure and telecommunications services, a significant area of federal spending. Comparable spending benchmarks for enterprise VoIP solutions vary widely based on user count, features, and support levels, but this award appears to be for a specific set of licenses rather than a full system deployment.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting requirements. The awardee, V3GATE, LLC, is listed with a small business size standard code ('ST'), suggesting it may qualify as a small business. However, without further details on the contract's specific small business goals or subcontracting plans, its direct impact on the broader small business ecosystem remains unclear.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting officers and program managers. Transparency is facilitated by public contract databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- General Services Administration (GSA) IT Schedule Contracts
- Department of Defense Enterprise Software Agreements
- Other agency-specific IT procurement vehicles
Risk Flags
- Limited competition due to source exclusion
- Lack of detailed scope for licensing agreement
- Uncertainty regarding awardee's large-scale contract experience
Tags
it, department-of-energy, voip, cisco, enterprise-licensing, delivery-order, firm-fixed-price, limited-competition, computer-related-services, v3gate-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $242,489.76 to V3GATE, LLC. CISCO ENTERPRISE LICENSING AGREEMENT - VOIP
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 $242,489.76.
What is the period of performance?
Start: 2025-07-24. End: 2027-07-31.
What is the specific scope of the Cisco Enterprise Licensing Agreement and what features are included?
The provided data indicates the contract is for a 'CISCO ENTERPRISE LICENSING AGREEMENT - VOIP'. However, the specific details regarding the exact Cisco products, the number of user licenses, the duration of support, and any included features (e.g., collaboration tools, call management software) are not detailed in the summary data. This lack of specificity makes it difficult to fully assess the value proposition and compare it to market alternatives. Further review of the contract's statement of work would be necessary to understand the full scope of services and software being procured.
How does the pricing of this Cisco Enterprise Licensing Agreement compare to similar government or commercial contracts?
Benchmarking the pricing for this $242,489.76 Cisco Enterprise Licensing Agreement is challenging without knowing the precise quantity and type of licenses, as well as the level of support included. Cisco's enterprise agreements can vary significantly in cost based on these factors. The fact that 7 bids were received suggests some level of competitive interest, but the 'exclusion of sources' aspect means the government may not have received offers from all potentially capable vendors. A direct comparison would require access to detailed pricing information from comparable contracts, ideally with similar scope and user counts.
What is V3GATE, LLC's track record with large federal IT contracts, particularly Cisco solutions?
Based on the provided summary data, V3GATE, LLC is the awardee. Information regarding V3GATE, LLC's specific track record with large federal IT contracts, especially those involving Cisco enterprise licensing agreements, is not detailed. Further investigation into federal procurement databases (like FPDS or SAM.gov) would be needed to ascertain the company's past performance, contract values, and experience with similar technologies. The 'ST' code suggests they may be a small business, which could influence their capacity for very large contracts, though this is not definitive.
What are the potential risks associated with a 'full and open competition after exclusion of sources' award?
The primary risk associated with 'full and open competition after exclusion of sources' is that the government may not have received the best possible pricing or the most innovative solutions available in the market. By excluding certain sources, the competitive pool is narrowed, potentially reducing pressure on vendors to offer their most aggressive pricing. This approach is typically used when there's a specific justification, such as a need for compatibility with existing systems or a limited number of qualified vendors. However, it requires careful justification to ensure fair and open competition principles are upheld and that taxpayer funds are used efficiently.
How does this contract align with the Department of Energy's overall IT modernization or communication strategy?
This contract for a Cisco Enterprise Licensing Agreement for VoIP services likely supports the Department of Energy's (DOE) ongoing efforts to maintain and potentially upgrade its internal communication infrastructure. VoIP systems are a standard component of modern enterprise IT environments, offering cost savings and enhanced features compared to traditional phone systems. Without specific details on the DOE's IT strategy documents or modernization plans, it's difficult to definitively state how this contract aligns. However, it addresses a fundamental need for reliable and efficient communication services within the agency.
What is the expected performance period and are there options for extension?
The contract has a stated start date of July 24, 2025, and an end date of July 31, 2027. This provides a performance period of approximately two years and one week (737 days). The provided data does not explicitly mention any options for extension. Typically, federal contracts will specify any available option periods if they exist. The absence of this information suggests that this delivery order may represent the full extent of the contract, or that option details are not included in this summary.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › 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: 7
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: $606,224
Exercised Options: $242,490
Current Obligation: $242,490
Actual Outlays: $121,245
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD27B
IDV Type: GWAC
Timeline
Start Date: 2025-07-24
Current End Date: 2027-07-31
Potential End Date: 2030-07-31 00:00:00
Last Modified: 2026-04-08
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