DOJ awards $34.8M for Zscaler Software Solution to ThunderCat Technology, LLC
Contract Overview
Contract Amount: $34,834,037 ($34.8M)
Contractor: Thundercat Technology, LLC
Awarding Agency: Department of Justice
Start Date: 2023-09-15
End Date: 2026-09-14
Contract Duration: 1,095 days
Daily Burn Rate: $31.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PSS - ZSCALER SOFTWARE SOLUTION
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $34.8 million to THUNDERCAT TECHNOLOGY, LLC for work described as: PSS - ZSCALER SOFTWARE SOLUTION Key points: 1. Spending on cloud security software is a growing sector. 2. ThunderCat Technology, LLC is a large IT reseller. 3. The contract value is moderate for this type of solution. 4. Full and open competition after exclusion of sources was used.
Value Assessment
Rating: good
The contract value of $34.8M over three years appears reasonable for a comprehensive cloud security solution. Benchmarking against similar large-scale software deployments would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources. This method aims to ensure fair pricing and access for qualified vendors, though the exclusion of specific sources warrants review.
Taxpayer Impact: Taxpayer funds are being used for essential cybersecurity infrastructure, which is a necessary investment for government data protection.
Public Impact
Enhances cybersecurity posture for the Department of Justice. Supports secure remote access for government employees. Provides advanced threat protection for sensitive data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized software.
- Reliance on a single vendor for critical security functions.
Positive Signals
- Modernizes DOJ's IT security infrastructure.
- Leverages advanced cloud-based security technologies.
Sector Analysis
The IT sector, particularly cybersecurity, is experiencing significant growth and investment. Government spending in this area is crucial for protecting sensitive information and critical infrastructure from evolving threats.
Small Business Impact
The contract was awarded to ThunderCat Technology, LLC, a large business. There is no indication of specific set-asides for small businesses in this award, which could be an area for future consideration.
Oversight & Accountability
The Department of Justice is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure accountability and proper execution of the contract terms.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on a single vendor for critical security.
- Limited visibility into specific exclusion rationale.
Tags
other-computer-related-services, department-of-justice, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $34.8 million to THUNDERCAT TECHNOLOGY, LLC. PSS - ZSCALER SOFTWARE SOLUTION
Who is the contractor on this award?
The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $34.8 million.
What is the period of performance?
Start: 2023-09-15. End: 2026-09-14.
What is the specific value proposition of the Zscaler solution compared to other leading cloud security platforms?
The specific value proposition of the Zscaler solution likely centers on its integrated cloud-native architecture, offering unified security across web, mobile, and private applications. It aims to simplify security management, improve user experience through direct-to-internet access, and provide advanced threat intelligence. Benchmarking against competitors like Palo Alto Networks, CrowdStrike, or Cisco would reveal specific feature advantages and cost-effectiveness for the DOJ's unique requirements.
What were the primary reasons for excluding other sources during the procurement process?
The exclusion of other sources, even within a full and open competition framework, typically occurs when specific technical requirements, existing infrastructure integration needs, or unique capabilities are identified that only a limited number of vendors can meet. For Zscaler, this could be due to its specific architecture, existing DOJ deployments, or unique features essential for their operational security posture. A detailed justification should exist within the procurement documentation.
How does this contract contribute to the overall effectiveness of the Department of Justice's cybersecurity strategy?
This contract significantly contributes to the DOJ's cybersecurity effectiveness by modernizing its security infrastructure with a cloud-based platform. Zscaler's capabilities in threat prevention, secure access, and data protection are crucial for safeguarding sensitive information and maintaining operational continuity against sophisticated cyber threats. It enables a more agile and resilient security posture, essential for a large federal agency.
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: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Thundercat Technology LLC
Address: 1925 ISAAC NEWTON SQ STE 180, RESTON, VA, 20190
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: $67,829,617
Exercised Options: $34,834,037
Current Obligation: $34,834,037
Actual Outlays: $34,834,037
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SC92B
IDV Type: GWAC
Timeline
Start Date: 2023-09-15
Current End Date: 2026-09-14
Potential End Date: 2028-09-14 00:00:00
Last Modified: 2025-07-29
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