DOJ's FBI awards $71.6M for Broadcom software maintenance, raising concerns over limited competition
Contract Overview
Contract Amount: $71,630,058 ($71.6M)
Contractor: Thundercat Technology, LLC
Awarding Agency: Department of Justice
Start Date: 2022-04-25
End Date: 2027-03-31
Contract Duration: 1,801 days
Daily Burn Rate: $39.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ITAU/SWM/RENEW SOFTWARE MAINTENANCE FOR CA/BROADCOM SOFTWARE
Place of Performance
Location: CLARKSBURG, HARRISON County, WEST VIRGINIA, 26306
Plain-Language Summary
Department of Justice obligated $71.6 million to THUNDERCAT TECHNOLOGY, LLC for work described as: ITAU/SWM/RENEW SOFTWARE MAINTENANCE FOR CA/BROADCOM SOFTWARE Key points: 1. Significant contract value for software maintenance. 2. Competition method raises questions about price discovery. 3. Potential risk associated with vendor lock-in for critical software. 4. IT sector spending on software maintenance is substantial.
Value Assessment
Rating: questionable
The contract value of $71.6M for software maintenance appears high, especially given the limited competition. Benchmarking against similar Broadcom software maintenance contracts is difficult without more specific details on the software modules covered and support levels.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the number of potential bidders and could have led to a higher price than under full and open competition.
Taxpayer Impact: Taxpayer funds are being spent on software maintenance. The limited competition raises concerns about whether the government received the best possible price.
Public Impact
FBI relies on Broadcom software for critical functions. Taxpayers may be overpaying due to limited competition. Potential for future sole-source renewals if not managed carefully.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for essential software maintenance.
- High contract value without clear justification.
- Potential for vendor lock-in with Broadcom software.
Positive Signals
- Contract supports critical FBI operations.
- Fixed-price contract provides some cost certainty.
Sector Analysis
This contract falls within the Information Technology sector, specifically software maintenance. Government spending on IT maintenance is a significant portion of overall IT budgets, often driven by the need to support legacy systems and complex software environments.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The contract was awarded by the Department of Justice to the Federal Bureau of Investigation. Oversight is crucial to ensure the necessity and cost-effectiveness of this software maintenance agreement.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Limited competition may result in inflated costs.
- Lack of transparency regarding source exclusion.
- Potential for vendor lock-in and future sole-source renewals.
- High contract value requires strong justification and oversight.
Tags
other-computer-related-services, department-of-justice, wv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $71.6 million to THUNDERCAT TECHNOLOGY, LLC. ITAU/SWM/RENEW SOFTWARE MAINTENANCE FOR CA/BROADCOM SOFTWARE
Who is the contractor on this award?
The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $71.6 million.
What is the period of performance?
Start: 2022-04-25. End: 2027-03-31.
What specific Broadcom software modules are covered under this maintenance contract, and what is the criticality of these modules to FBI operations?
The provided data does not specify the exact Broadcom software modules included in the maintenance agreement. Understanding the specific software and its role in FBI operations is crucial for assessing the contract's necessity and value. Without this detail, it's difficult to determine if the $71.6 million expenditure is justified or if alternative solutions could be considered.
What factors led to the exclusion of sources, and how did this impact the final price compared to a full and open competition?
The data states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' but does not detail the reasons for excluding other potential sources. This exclusion likely limited the competitive landscape, potentially leading to a higher price than if all qualified vendors had been allowed to bid. A thorough justification for source exclusion is needed to ensure fair pricing.
Are there plans to transition away from Broadcom software or consolidate maintenance contracts to achieve better long-term value and reduce costs?
The provided data does not offer insight into future transition plans or consolidation strategies for Broadcom software maintenance. Given the significant expenditure and limited competition, proactive planning for potential software rationalization or renegotiation of maintenance terms could yield substantial long-term cost savings and reduce reliance on a single vendor.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - SECURITY AND COMPLIANCE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $71,630,758
Exercised Options: $71,630,758
Current Obligation: $71,630,058
Actual Outlays: $55,950,810
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD26B
IDV Type: GWAC
Timeline
Start Date: 2022-04-25
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-02-25
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