Texas DIR Cooperative Contract Partnership

RFO COOP2025SOL-00003 - End-User IT Outsourcing Services

VeAssis LLC (Prime) + Drupal Connect LLC Partnership Overview

🎯 Drupal Connect's Role in the Partnership
                Your Allocation: 15-20% of total contract value
            
                Service Category Coverage: Category 2.1.6 (Miscellaneous Services)
            
                Primary Work Types:
                Web Development & CMS Platforms (Subcategory A & J)
IT Staff Augmentation - Providing Drupal developers, web specialists
Application Management - Web-based applications and portals
Software Services - Drupal implementations, WordPress development

                Revenue Model: 80% of billable work goes to Drupal Connect, 20% to VeAssis for prime contractor administration

Contract Overview

Contract Detail	Information
Contract Type	Texas DIR Cooperative Contract (5-year statewide master agreement)
Contract Value	$3.2M - $5.6M estimated over 5 years across all partners
Eligible Customers	6,200+ Texas state agencies, universities, school districts, local governments
Proposal Due Date	February 18, 2026 (2:00 PM CT)
Estimated Award	March/April 2026
Contract Duration	5 years (2026-2031) with potential extensions

Complete Team Structure & Work Allocation

Partner	Role	Allocation	Service Categories
VeAssis LLC	Prime Contractor	35-40%	2.1.2, 2.1.6 - Program management, help desk, custom AI development, customer support
Drupal Connect LLC	Web Development Subcontractor	15-20%	2.1.6 - Web development, CMS platforms, Drupal implementations, IT staff augmentation
Mavros LLC	Cloud Infrastructure Subcontractor	20-25%	2.1.2, 2.1.5, 2.1.6 - Cloud infrastructure (AWS/Azure/GCP), DevOps, network management
Tekgration LLC	ITAM & Desktop Support Subcontractor	15-20%	2.1.2, 2.1.3, 2.1.4, 2.1.6 - ITAM, desktop support, hardware procurement, cybersecurity

DBE/HUB Participation: VeAssis + Mavros = 100% DBE participation (far exceeding 26% goal)
VetHUB Participation: Tekgration = 27% VetHUB participation (exceeding 26% goal)

Detailed Work Breakdown - Category 2.1.6 (Miscellaneous Services)

Drupal Connect's primary service category. This category has 11 subcategories (A-K).

Subcategories Where Drupal Connect Is Primary Provider:

Subcategory	Work Description	Drupal Connect's Role	Allocation
A. Application Management	Web-based applications, content management systems, portal management	Primary - Web applications	60%
A. Application Management	Custom AI applications, machine learning platforms	VeAssis - AI apps	40%
J. Software Services	CMS platforms (Drupal, WordPress), web frameworks	Primary - CMS/Web	70%
J. Software Services	Custom software development, non-web applications	VeAssis - Custom dev	30%

Other Category 2.1.6 Subcategories (For Reference):

Subcategory	Primary Partner
B. Training Services	VeAssis
C. Technical Engineering Services	VeAssis (architecture), Mavros (cloud engineering)
D. Professional Services (Project Management)	VeAssis
E. Help Desk Support	VeAssis
F. Cloud Services	Mavros (80%), VeAssis (20% oversight)
G. Procurement Services	Tekgration (hardware), VeAssis (software)
H. User Training & Education	VeAssis
I. Network Management Services	Mavros
K. Security Services	Tekgration (endpoint), Mavros (cloud)

IT Staff Augmentation Opportunity (High Revenue Stream)

This is expected to be 60-70% of Drupal Connect's revenue under the contract.

How It Works:

Texas agencies need Drupal developers, web specialists, CMS experts
They order through VeAssis's DIR contract (no RFP required)
Drupal Connect provides personnel (Pip, Charles, Ed, Jose, etc.)
Typical rates: $130-175/hour charged to agency
Drupal Connect receives 80% of hourly rate ($104-140/hour)
Placements often start as 3-6 months but extend to 12+ months

Example Staff Aug Project:

Scenario: University of Texas needs senior Drupal developer for 6 months
Rate to Agency: $150/hour × 40 hours/week × 24 weeks = $144,000
Agency pays VeAssis: $144,000
VeAssis pays Drupal Connect (80%): $115,200
Drupal Connect's cost: ~$90/hour × 960 hours = $86,400
Drupal Connect's gross margin: $28,800 (25%)

Revenue Projections for Drupal Connect

Year	Conservative Estimate	Moderate Estimate	Primary Revenue Source
Year 1 (2026)	$400,000 - $500,000	$500,000 - $700,000	Staff augmentation ramp-up
Year 2 (2027)	$640,000 - $800,000	$800,000 - $1,000,000	Staff aug + web development projects
Year 3-5 (2028-2031)	$640,000 - $900,000/year	$800,000 - $1,120,000/year	Steady state with recurring clients
5-Year Total	$3.2M - $4.0M	$4.0M - $5.6M	Total to Drupal Connect

Note: These are Drupal Connect's revenue numbers (after 80/20 split). Actual billing to agencies will be 25% higher (the 20% VeAssis keeps for prime contractor duties).

How the Partnership Works

Workflow for a Typical Project:

Agency Contacts VeAssis: Texas agency needs web development or Drupal expertise
VeAssis Engages Drupal Connect: We bring you in to scope and price the work
Joint Proposal: VeAssis submits quote to agency (your pricing + 25% for prime costs)
Agency Awards: Agency issues task order/purchase order to VeAssis
Drupal Connect Performs Work: Your team delivers the technical work
Drupal Connect Invoices VeAssis: You bill VeAssis for work completed
VeAssis Pays Drupal Connect: Within 30 days of receiving your invoice
VeAssis Invoices Agency: We handle all government invoicing and compliance

What VeAssis Handles (The 20%):

All DIR contract compliance and monthly reporting
Customer relationship management and communications
Government invoicing and payment collection
Insurance and bonding requirements
HUB/DBE subcontracting reporting
Quality assurance oversight
Contract amendments and change orders

What Drupal Connect Handles (The 80%):

Technical scoping and pricing for web development projects
Providing qualified personnel for staff augmentation
All technical delivery and project execution
Direct communication with agency technical teams
Quality of work and technical deliverables
Invoicing VeAssis for work completed

Key Advantages for Drupal Connect

                No RFP Competition: Once contract is awarded, no competing on individual projects
5-Year Annuity Revenue: Recurring income stream vs one-off projects
6,200+ Potential Customers: Access to entire Texas government market
Higher Rates: Government pays $130-175/hour vs typical commercial rates
No Administrative Burden: VeAssis handles all government paperwork and compliance
Focus on Technical Work: Drupal Connect does what you do best - web development
Recurring Placements: 3-month staff aug assignments often extend to 12+ months
DBE Partnership: Being on team with 100% DBE participation is competitive advantage

            

What We Need from Drupal Connect (By Feb 18, 2026)

For Proposal Submission:

Letter of Intent (LOI): Signed commitment to partner (we'll send via DocuSign)
Company Information:
- Legal business name
- DUNS number
- Physical address and contact info
- Key personnel availability (Pip, Charles, Ed, Jose)
Rate Structure: Your hourly rates for key personnel roles
Reference Contacts: 1-2 government or education clients who can provide references
- H2tools/DOE (Angie Dalton)?
- AIChE (Amit Gupta)?

Timeline: We need the above by Tuesday, February 17 EOD to finalize our proposal for the February 18 deadline.

Common Questions

Q: What if both VeAssis and Drupal Connect win our own DIR contracts?

A: That's allowed! DIR permits companies to both bid as prime AND serve as subcontractors to other primes. If both companies win, we'd work together on VeAssis's contract and you'd also have your own direct contract with DIR.

Q: Are the revenue projections realistic?

A: The DIR End-User IT Outsourcing category did $27 million in FY2025 across all vendors. If VeAssis captures just 3-5% of that market ($810K-$1.35M), Drupal Connect's 15-20% share would be $121K-$270K annually. Our projections assume we capture 5-7% market share by year 2-5.

Q: What happens if we don't get enough work?

A: The LOI includes no minimum work guarantees - this is opportunity, not obligation. If agencies don't order services, there's no penalty to Drupal Connect. You only work (and get paid) when agencies order.

Q: How do rates work - are they fixed for 5 years?

A: DIR allows rate adjustments. Initial rates are set in the proposal, but they can be adjusted annually based on market conditions, typically tied to inflation or industry benchmarks.

Q: What about insurance and bonding requirements?

A: As prime contractor, VeAssis carries the required insurance and bonding. Drupal Connect should maintain standard business insurance (general liability, professional liability), but doesn't need to meet the higher government contract requirements.

Q: Can Drupal Connect work on other DIR contracts while being our subcontractor?

A: Yes, absolutely. You can win your own DIR contracts, work as a sub for multiple primes, and take on commercial work. No exclusivity required.

Next Steps

                Today's Meeting: Review partnership structure, answer questions, confirm interest
By Feb 13: Drupal Connect provides company info, rates, and reference contacts
By Feb 14: VeAssis sends LOI via DocuSign for signature
Feb 15-17: VeAssis completes proposal submission package
Feb 18, 2pm CT: VeAssis submits complete proposal to DIR
March/April 2026: DIR evaluates proposals and conducts negotiations
April/May 2026: Contract award and execution
May 2026 onward: Begin receiving task orders from Texas agencies

            