DHS Coast Guard Renews VMWare Software Maintenance for $6.27M with Flywheel Data LLC

Contract Overview

Contract Amount: $6,274,996 ($6.3M)

Contractor: Flywheel Data LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-08-25

End Date: 2026-08-24

Contract Duration: 364 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VMWARE ENTERPRISE SOFTWARE MAINTENANCE RENEWAL

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $6.3 million to FLYWHEEL DATA LLC for work described as: VMWARE ENTERPRISE SOFTWARE MAINTENANCE RENEWAL Key points: 1. Significant spending on enterprise software maintenance highlights reliance on VMWare. 2. Competition was full and open after exclusion of sources, suggesting a deliberate process. 3. The contract's value and duration warrant scrutiny for cost-effectiveness. 4. IT services sector spending is substantial, with software maintenance being a key component.

Value Assessment

Rating: fair

The $6.27M renewal for VMWare software maintenance appears to be a standard market price for enterprise-level support. Benchmarking against similar VMWare maintenance contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while competition was sought, specific circumstances led to excluding certain potential bidders, which could impact price discovery.

Taxpayer Impact: Taxpayers are funding a significant renewal for essential software maintenance, with the expectation that the chosen vendor provides reliable support and services.

Public Impact

Ensures continued operation of critical VMWare infrastructure for the U.S. Coast Guard. Supports the agency's IT backbone, enabling various operational functions. Potential for cost savings if competitive bidding effectively drove down prices. Highlights the ongoing need for software maintenance in government IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for vendor lock-in with VMWare products.
  • Reliance on a single vendor for critical software maintenance.
  • Need to ensure the 'exclusion of sources' process was justified and fair.

Positive Signals

  • Full and open competition was conducted.
  • Contract awarded to a specific vendor, Flywheel Data LLC.
  • Clear delivery and performance periods defined.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software maintenance for enterprise solutions. Government spending on IT, including software licenses and maintenance, is consistently high, reflecting the increasing digitization of operations.

Small Business Impact

The data does not indicate if Flywheel Data LLC is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

The contract specifies a firm fixed price, which provides cost certainty. Oversight will be crucial to ensure the vendor meets all performance requirements and that the renewal represents good value.

Related Government Programs

  • Other Computer Related Services
  • Department of Homeland Security Contracting
  • U.S. Coast Guard Programs

Risk Flags

  • High contract value.
  • Potential for limited competition due to source exclusion.
  • Reliance on a single software vendor.
  • Need for detailed cost-benefit analysis.
  • Lack of small business participation information.

Tags

other-computer-related-services, department-of-homeland-security, va, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $6.3 million to FLYWHEEL DATA LLC. VMWARE ENTERPRISE SOFTWARE MAINTENANCE RENEWAL

Who is the contractor on this award?

The obligated recipient is FLYWHEEL DATA LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2025-08-25. End: 2026-08-24.

What specific VMWare products and services are covered under this maintenance renewal, and how critical are they to the U.S. Coast Guard's mission?

The specific VMWare products and services are not detailed in the provided data. However, enterprise software maintenance renewals typically cover support, updates, and patches for virtualization platforms, operating systems, and related software. Given the agency is the Department of Homeland Security (U.S. Coast Guard), these systems are likely critical for operational command, control, and data management.

What was the rationale for excluding certain sources during the 'full and open competition after exclusion of sources' process, and did this exclusion impact the final price?

The rationale for excluding sources is not provided. This process suggests that while the competition was intended to be open, specific criteria or circumstances led to the disqualification or non-consideration of some potential bidders. The impact on price is uncertain; it could have limited competitive pressure, potentially leading to a higher price than if all sources had participated.

How does the $6.27M annual cost compare to industry benchmarks for similar VMWare enterprise software maintenance contracts, and what is the projected return on investment?

Without specific details on the VMWare products and the level of support, direct benchmarking is challenging. However, $6.27M for enterprise-level VMWare maintenance is substantial and aligns with costs for large organizations. A precise ROI calculation would require understanding the operational efficiencies and risk mitigation provided by the maintained software, which is not detailed in the data.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: 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: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1818 LIBRARY ST STE 500, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,419,574

Exercised Options: $6,274,996

Current Obligation: $6,274,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD90B

IDV Type: GWAC

Timeline

Start Date: 2025-08-25

Current End Date: 2026-08-24

Potential End Date: 2028-08-24 02:27:57

Last Modified: 2026-02-05

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