VA Awards $2M Contract for Harness or Equivalent Module Licenses to V3gate, LLC

Contract Overview

Contract Amount: $2,017,664 ($2.0M)

Contractor: V3gate, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-01

End Date: 2027-01-14

Contract Duration: 865 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HARNESS OR EQUIVALENT MODULE LICENSES

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to V3GATE, LLC for work described as: HARNESS OR EQUIVALENT MODULE LICENSES Key points: 1. Contract awarded for IT services related to module licenses. 2. The contract duration is approximately 2.6 years. 3. The award was made under a full and open competition. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. The vendor, V3GATE, LLC, is the sole awardee. 6. The contract is for services to be performed in New Jersey.

Value Assessment

Rating: fair

The total award amount of $2,017,663.74 for HARNESS OR EQUIVALENT MODULE LICENSES appears to be within a reasonable range for IT module licensing and support over a 2.6-year period. Benchmarking against similar contracts for enterprise software licenses and support would provide a clearer picture of value for money. Without specific details on the modules and their criticality, a definitive value assessment is challenging. However, the firm-fixed-price nature suggests cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, specific sources may have been excluded prior to the solicitation. The number of bidders is not specified, but the fact that it was a full and open competition suggests an effort to maximize the pool of potential offerors. This approach generally promotes price discovery and encourages competitive pricing.

Taxpayer Impact: A full and open competition, even with prior exclusions, is generally favorable for taxpayers as it aims to secure the best possible pricing and terms by allowing a broad range of qualified vendors to participate.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving the licensed modules and associated services. The services delivered are related to IT module licenses, likely supporting VA's operational or administrative functions. The geographic impact is concentrated in New Jersey, where the services will be performed. The contract supports the IT sector workforce, potentially creating or sustaining jobs for V3GATE, LLC employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'HARNESS OR EQUIVALENT MODULE LICENSES' makes it difficult to assess the true necessity and potential for cost savings.
The exclusion of sources prior to full and open competition warrants further investigation to understand the rationale and potential impact on competition.
Without knowing the number of bidders, it's hard to gauge the intensity of the competition and its effect on the final price.

Positive Signals

The contract is awarded under a firm-fixed-price structure, providing cost predictability for the VA.
The use of full and open competition, even with prior exclusions, suggests an attempt to leverage market forces for better value.
The contract duration of over two years allows for stable provision of necessary IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software licensing and related services. The market for IT module licenses is vast and competitive, with numerous vendors offering specialized solutions. The VA's spending in this area is typical for large federal agencies requiring robust IT infrastructure to support their missions. Comparable spending benchmarks would involve analyzing other federal contracts for similar enterprise software licenses and support agreements, considering factors like user count, module complexity, and vendor support levels.

Small Business Impact

There is no indication that this contract includes a small business set-aside. The vendor, V3GATE, LLC, is not identified as a small business in the provided data. Therefore, the direct impact on small business set-asides is nil. Subcontracting opportunities for small businesses are not specified but could potentially arise if V3GATE, LLC chooses to engage them for specific tasks or support. The overall impact on the small business ecosystem is likely minimal unless V3GATE, LLC actively pursues small business partnerships.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which ties payment to deliverables. Transparency is facilitated by the public nature of federal contract awards, allowing for scrutiny. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were suspected.

Related Government Programs

Federal IT Procurement
Software Licensing and Maintenance
Department of Veterans Affairs IT Modernization

Risk Flags

Potential for vendor lock-in if modules are proprietary and critical.
Risk associated with 'exclusion of sources' in competition.
Lack of detailed performance metrics in provided data.
Uncertainty regarding module criticality and long-term relevance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to V3GATE, LLC. HARNESS OR EQUIVALENT MODULE LICENSES

Who is the contractor on this award?

The obligated recipient is V3GATE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2024-09-01. End: 2027-01-14.

What specific 'HARNESS OR EQUIVALENT MODULE LICENSES' are being procured, and what is their criticality to the VA's operations?

The provided data does not specify the exact nature of the 'HARNESS OR EQUIVALENT MODULE LICENSES.' These likely refer to software modules that form part of a larger system, potentially for data management, system integration, or operational support within the VA. The criticality cannot be determined without more information on the specific function these modules serve. If they are core to a mission-critical system, their importance is high, justifying the $2M expenditure. If they are for less essential functions, the value proposition might be weaker. Further analysis would require access to the contract's statement of work (SOW) or performance work statement (PWS) to understand the modules' role in supporting VA programs and services.

How does the awarded price of $2,017,663.74 compare to market rates for similar module licenses and support?

Benchmarking this contract's price against market rates requires detailed information about the specific software modules, the number of licenses, the level of support required, and the contract duration. Without these specifics, a precise comparison is difficult. However, for enterprise-level software licenses and multi-year support, a total cost of approximately $2 million over 2.6 years is not inherently excessive, especially for a large federal agency like the VA. To provide a robust comparison, one would need to identify comparable contracts for similar software (e.g., ERP modules, specialized IT management tools) awarded by other federal agencies or large commercial entities, considering factors like vendor, features, and service level agreements (SLAs).

What is the track record of V3GATE, LLC in delivering similar IT services and module licenses to the federal government?

The provided data identifies V3GATE, LLC as the contractor but does not offer details on their past performance or track record with the federal government. A comprehensive assessment would involve reviewing the Federal Procurement Data System (FPDS) or other contract databases for previous awards to V3GATE, LLC, examining contract values, agencies served, and performance evaluations (if publicly available). Understanding their history with similar IT services, particularly module licensing and support, would provide insight into their capability to successfully execute this contract and manage associated risks. A lack of extensive federal contracting history might indicate a higher risk, while a proven record would suggest greater reliability.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks include vendor performance issues (delays, quality of service), cost overruns if the firm-fixed-price model is not strictly adhered to or if scope creep occurs, and obsolescence of the licensed modules over time. Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type, there's also a potential risk related to the rationale behind the source exclusion, which might indicate limited market availability or specific vendor dependencies. Mitigation strategies typically involve robust contract management, clear performance metrics, regular progress reviews, and contingency planning. The VA's contracting officers and program managers are responsible for monitoring performance and addressing any deviations from the contract requirements.

How does this contract align with the VA's broader IT strategy and modernization efforts?

The alignment of this contract with the VA's broader IT strategy depends heavily on the specific function of the 'HARNESS OR EQUIVALENT MODULE LICENSES.' If these modules support critical infrastructure, data analytics, or patient care systems, they could be integral to modernization efforts. For instance, if they enhance system interoperability, improve data security, or enable new digital services, they would align well. Conversely, if they support legacy systems without a clear modernization path, their strategic value might be questionable. Understanding the VA's current IT roadmap, including investments in cloud migration, data modernization, and cybersecurity, would be necessary to fully assess this contract's strategic fit.

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

Solicitation ID: 36C10B24F02316

Offers Received: 3

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: $7,984,441

Exercised Options: $3,066,329

Current Obligation: $2,017,664

Actual Outlays: $2,017,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline