VA awards $1.36M for software licenses and support, with 3 offers received

Contract Overview

Contract Amount: $1,364,712 ($1.4M)

Contractor: V3gate, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-04

End Date: 2027-04-03

Contract Duration: 364 days

Daily Burn Rate: $3.7K/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: CONFLUENT SOFTWARE SUBSCRIPTION LICENSES AND ASSOCIATED MAINTENANCE SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.4 million to V3GATE, LLC for work described as: CONFLUENT SOFTWARE SUBSCRIPTION LICENSES AND ASSOCIATED MAINTENANCE SUPPORT Key points: 1. The contract value appears reasonable given the duration and scope of software licensing and maintenance. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger contract, indicating potential for follow-on work. 4. The vendor, V3GATE, LLC, is a new awardee for this specific type of service with the VA. 5. The contract duration is one year, allowing for regular performance reviews. 6. The pricing structure is firm fixed price, providing cost certainty.

Value Assessment

Rating: good

The contract value of $1.36 million for a one-year period for software licenses and maintenance appears to be within a reasonable range for enterprise-level software. Benchmarking against similar software subscription contracts is challenging without specific product details, but the price per day is approximately $3,749. This figure should be compared to the vendor's standard commercial pricing and any negotiated discounts. The firm fixed-price nature of the contract provides cost predictability for the Department of Veterans Affairs.

Cost Per Unit: Approximately $3,749 per day.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were solicited and allowed to bid. Three offers were received, which suggests a moderate level of competition for this specific requirement. While three bidders is not an exceptionally high number, it is sufficient to provide a basis for price comparison and ensure that the government receives a competitive offer. The exclusion of sources clause might indicate a specific reason for limiting the initial pool, but the subsequent full and open competition is a positive sign.

Taxpayer Impact: The use of full and open competition with three bidders helps ensure that taxpayer funds are used efficiently by driving down prices through a competitive bidding process.

Public Impact

The Department of Veterans Affairs (VA) will benefit from access to necessary software licenses and ongoing maintenance support. This contract ensures the continued operation and functionality of critical IT systems used by the VA. The services delivered will support the VA's mission to provide healthcare and benefits to veterans. The primary impact is on the internal operations and IT infrastructure of the VA, rather than direct veteran services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this software becomes deeply integrated into VA systems.
Reliance on a single vendor for both licenses and maintenance could create future pricing leverage.
The specific software product is not detailed, making it difficult to assess its criticality or availability from alternative sources.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm fixed-price contract provides budget certainty for the VA.
The contract duration of one year allows for periodic reassessment of needs and vendor performance.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing and maintenance. The market for enterprise software subscriptions and support is substantial, with numerous vendors offering a wide range of products. The VA, as a large federal agency, frequently procures such services to maintain its complex IT infrastructure. Comparable spending benchmarks would depend heavily on the specific software product being licensed, but agencies often spend millions annually on enterprise software licenses and support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The prime contractor, V3GATE, LLC, is not specified as a small business in the provided data, so its own size status would need further investigation. The absence of a small business set-aside means that larger businesses were eligible to compete and potentially win this award.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs' contracting officers and program managers. Performance will be monitored against the terms and conditions of the firm fixed-price delivery order, including the delivery of software licenses and maintenance support. Transparency is facilitated by the public availability of contract awards through federal procurement databases. While no specific Inspector General (IG) jurisdiction is mentioned, the VA Office of Inspector General typically oversees agency spending and program effectiveness.

Related Government Programs

Software and Application Development
IT Professional Services
Cloud Computing Services
IT Management Consulting Services

Risk Flags

Vendor Lock-in Potential
Software Specificity Unknown
Contractor Past Performance Unverified

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.4 million to V3GATE, LLC. CONFLUENT SOFTWARE SUBSCRIPTION LICENSES AND ASSOCIATED MAINTENANCE SUPPORT

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 $1.4 million.

What is the period of performance?

Start: 2026-04-04. End: 2027-04-03.

What is the specific software product being licensed, and what is its criticality to VA operations?

The provided data does not specify the exact software product being licensed. This information is crucial for a comprehensive analysis. If the software is a core component of the VA's electronic health record system, financial management, or veteran benefits processing, its criticality would be very high. Conversely, if it's a less essential utility or productivity tool, its criticality would be lower. Understanding the specific product would also allow for benchmarking against commercial off-the-shelf (COTS) pricing and identifying potential alternative solutions or vendors, which is essential for assessing value for money and mitigating vendor lock-in risks.

How does V3GATE, LLC's pricing compare to market rates for similar software licenses and maintenance?

To assess V3GATE, LLC's pricing, a comparison to market rates is necessary. This involves obtaining commercial price lists for the specific software product (if identifiable) or comparable enterprise software solutions. Factors such as the number of users or licenses, the level of maintenance and support included (e.g., 24/7 support, response times), and any volume discounts offered by competitors should be considered. The daily rate of approximately $3,749 suggests a potentially significant investment. Without knowing the software's nature and the support level, it's difficult to definitively state if this is competitive, but it warrants further investigation into the vendor's commercial pricing structure and any negotiated discounts.

What is the track record of V3GATE, LLC in providing similar IT services to the federal government?

The provided data indicates this is a delivery order awarded to V3GATE, LLC. Further research into the Federal Procurement Data System (FPDS) or other contract databases would be needed to ascertain V3GATE, LLC's broader track record. Specifically, one would look for previous awards for software licenses, maintenance, and related IT services, particularly to the Department of Veterans Affairs or other large federal agencies. A history of successful contract performance, timely delivery, and positive past performance reviews would indicate a lower performance risk. Conversely, a lack of relevant experience or a history of issues could raise concerns about the contractor's ability to meet the VA's requirements effectively.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks include vendor lock-in, where the VA becomes overly dependent on V3GATE, LLC and its specific software, potentially leading to higher costs in the future. Another risk is the possibility of inadequate support or maintenance if the vendor's service quality is poor. Mitigation strategies include the firm fixed-price structure, which caps the government's financial exposure, and the one-year contract duration, allowing for regular performance evaluations and the option not to renew if performance is unsatisfactory. The use of full and open competition also helps mitigate risks by ensuring a competitive environment that theoretically drives better value and service.

How does this contract's value and duration compare to historical VA spending on similar software and support?

Without knowing the specific software, a direct historical comparison is difficult. However, the VA is a large agency with substantial IT needs, and annual spending on enterprise software licenses and maintenance often runs into the millions of dollars. A $1.36 million contract for a one-year period is a moderate-sized award within the context of federal IT procurement. To provide a meaningful comparison, one would need to analyze historical VA contracts for the same or similar software products, looking at both the total value and the duration to identify trends in pricing and contract types.

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: 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: $6,145,952

Exercised Options: $1,364,712

Current Obligation: $1,364,712

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline