Commerce Department's $3.9M software contract awarded to Thundercat Technology for NOAA

Contract Overview

Contract Amount: $3,898,883 ($3.9M)

Contractor: Thundercat Technology, LLC

Awarding Agency: Department of Commerce

Start Date: 2024-04-30

End Date: 2027-04-14

Contract Duration: 1,079 days

Daily Burn Rate: $3.6K/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: PALO ALTO SOFTWARE AND SUPPORT

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $3.9 million to THUNDERCAT TECHNOLOGY, LLC for work described as: PALO ALTO SOFTWARE AND SUPPORT Key points: 1. Value for money appears reasonable given the duration and scope of software support. 2. Competition was full and open, suggesting a competitive pricing environment. 3. Risk indicators are low, with a firm fixed-price contract and clear delivery dates. 4. Performance context is standard for IT software and support services. 5. Sector positioning is within IT services, a common area for federal procurement. 6. The contract's value is modest within the broader federal IT spending landscape.

Value Assessment

Rating: good

The contract value of approximately $3.9 million over three years for software and support is within a reasonable range for federal IT procurements of this nature. Benchmarking against similar contracts for enterprise software licenses and maintenance suggests that the pricing is competitive, especially considering the full and open competition. The firm fixed-price structure further supports value by capping the government's financial exposure.

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 multiple vendors had the opportunity to bid. The presence of three bidders suggests a healthy level of competition, which typically drives down prices and encourages innovation. This approach ensures the government receives the best possible value by considering a wide range of qualified offerors.

Taxpayer Impact: The robust competition in this procurement process is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award would have. This competitive environment helps ensure that federal funds are used efficiently.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) benefits from this contract through continued access to essential software and support. This contract ensures the operational continuity of critical IT systems supporting NOAA's scientific and environmental missions. The primary geographic impact is within the United States, supporting NOAA's nationwide operations. The contract supports the IT workforce involved in managing and utilizing the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software becomes deeply integrated into NOAA's systems.
Reliance on a single software product could pose risks if the vendor discontinues support or significantly raises prices in the future.

Positive Signals

Firm fixed-price contract limits cost overruns.
Full and open competition ensures market-driven pricing.
Clear delivery and performance periods reduce execution risk.
Award to an established IT solutions provider like Thundercat Technology.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing and support. The federal IT market is substantial, with significant spending allocated to software acquisition and maintenance across various agencies. This contract represents a small but important component of NOAA's overall IT infrastructure investment, supporting its mission-critical functions.

Small Business Impact

While this specific contract was not set aside for small businesses and was awarded to Thundercat Technology, a large business, the implications for the small business ecosystem depend on Thundercat's subcontracting plans. Large prime contractors are often required to meet small business subcontracting goals, which can create opportunities for small businesses to participate in larger federal contracts. Further analysis of subcontracting reports would be needed to assess the direct impact.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Commerce's contracting officers and program managers within NOAA. Accountability is ensured through the firm fixed-price contract terms, requiring delivery of specified software and support. Transparency is facilitated by public contract databases where award details are available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NOAA IT Modernization Projects
Federal Civilian Agency Software Procurement
IT Services and Support Contracts
Cloud Computing Services

Risk Flags

Potential for vendor lock-in
Long-term software viability concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $3.9 million to THUNDERCAT TECHNOLOGY, LLC. PALO ALTO SOFTWARE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2024-04-30. End: 2027-04-14.

What is Thundercat Technology's track record with federal contracts, particularly within the Department of Commerce or NOAA?

Thundercat Technology, LLC has a significant history of receiving federal contracts across various agencies, including the Department of Commerce. Their contract portfolio often includes IT hardware, software, and related services. While specific performance metrics for individual contracts are not always publicly detailed, their consistent awards suggest a satisfactory performance record and ability to meet federal procurement requirements. A deeper dive into past performance evaluations and any reported issues would provide a more comprehensive understanding of their track record with NOAA and similar entities.

How does the $3.9 million contract value compare to similar NOAA software procurements?

Comparing the $3.9 million contract value requires looking at the scope, duration, and specific software involved. NOAA procures a wide range of software, from enterprise resource planning systems to specialized scientific applications. For a three-year period covering software licenses and support, this value appears moderate. Larger, more complex system procurements or those involving extensive customization would naturally command higher values. Without knowing the exact software and its criticality, a precise comparison is difficult, but it does not appear to be an outlier for substantial IT support within a federal agency.

What are the primary risks associated with this specific software and its support contract?

The primary risks associated with this contract revolve around potential vendor lock-in and the long-term viability of the software. If the software becomes deeply integrated into NOAA's operations, switching to an alternative solution in the future could be costly and disruptive. Additionally, there's a risk that the vendor might discontinue support for the product, increase maintenance fees substantially, or be acquired by another company, potentially altering service levels. The firm fixed-price nature mitigates financial risk for overruns, but operational and strategic risks remain.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for this type of IT service?

The 'full and open competition after exclusion of sources' method is generally effective in ensuring value for IT services like this. It allows the government to solicit bids from all responsible sources but provides a mechanism to exclude specific sources if necessary (though the data doesn't indicate why sources were excluded here). This broad competition typically drives down prices and encourages offerors to provide their best technical solutions and pricing. The fact that three bids were received suggests sufficient market interest and a competitive environment conducive to achieving good value for the government and taxpayers.

What is the historical spending trend for similar software and support services at NOAA or the Department of Commerce?

Historical spending trends for similar software and support services at NOAA and the Department of Commerce are generally characterized by consistent, albeit fluctuating, investments in IT infrastructure. Agencies like NOAA require ongoing software licenses and maintenance to support their complex scientific, data collection, and analytical missions. Spending can increase due to modernization efforts, new system implementations, or evolving technological requirements. Conversely, spending might decrease with the adoption of more cost-effective solutions or consolidation of software licenses. This $3.9 million award fits within the typical annual IT budget allocations for such agencies.

Are there any specific performance metrics or KPIs tied to this contract that indicate its success?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) tied to this contract. Typically, such metrics would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These might include uptime guarantees for the software, response times for technical support, successful delivery of software updates, or adherence to security protocols. Without access to the full contract documentation, assessing the specific measures of success and the contractor's performance against them is not possible.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1332KP24Q0027

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Thundercat Technology LLC

Address: 11190 SUNRISE VALLEY DR STE 200, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,898,883

Exercised Options: $3,898,883

Current Obligation: $3,898,883

Actual Outlays: $2,490,468

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD26B

IDV Type: GWAC

Timeline