State Department awards $4.8M for AWS hosting, with Thundercat Technology securing the deal

Contract Overview

Contract Amount: $4,831,752 ($4.8M)

Contractor: Thundercat Technology, LLC

Awarding Agency: Department of State

Start Date: 2020-12-01

End Date: 2025-09-29

Contract Duration: 1,763 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWS HOSTING SERVICES-MED

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $4.8 million to THUNDERCAT TECHNOLOGY, LLC for work described as: AWS HOSTING SERVICES-MED Key points: 1. Value for money appears fair given the duration and scope of cloud hosting services. 2. Competition was conducted under a full and open process, suggesting a competitive bidding environment. 3. Risk indicators are moderate, with a long performance period potentially introducing scope creep. 4. Performance context is tied to essential cloud infrastructure for government operations. 5. Sector positioning is within IT services, specifically cloud computing and data hosting.

Value Assessment

Rating: fair

The contract's total value of $4.8 million over nearly four years for AWS hosting services suggests a moderate per-year cost. Benchmarking against similar cloud hosting contracts is challenging without specific service level agreements and usage metrics. However, the firm-fixed-price structure provides cost certainty for the government. The duration of the contract implies a need for sustained cloud infrastructure, and the price appears reasonable for this type of long-term commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The specific details of the exclusion of sources are not provided, but the 'full and open' designation suggests a broad solicitation. The presence of competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of State benefits from reliable and scalable AWS cloud hosting services. Essential government IT operations and data management are supported by this contract. The geographic impact is primarily national, supporting federal agency operations. Workforce implications are minimal, as this contract supports existing IT infrastructure rather than direct personnel augmentation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 3 years) could lead to potential cost increases if market rates for AWS services change significantly.
Lack of specific performance metrics makes it difficult to fully assess value for money.
The 'exclusion of sources' clause, while part of a full and open competition, warrants further investigation into its specific application.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides budget certainty.
Supports critical cloud infrastructure for a major federal agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cloud computing services. The market for cloud hosting, particularly with major providers like AWS, is highly competitive and dynamic. Federal agencies increasingly rely on cloud solutions for scalability, cost-efficiency, and security. Comparable spending benchmarks for cloud hosting vary widely based on service level agreements, data volume, and required uptime.

Small Business Impact

There is no indication that this contract included a small business set-aside. The prime contractor, Thundercat Technology, LLC, is a small business. However, the contract itself was competed full and open. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data but are a common practice in larger IT contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms and performance expectations. Transparency is facilitated through federal procurement databases, though detailed performance reports are often internal.

Related Government Programs

Cloud Computing Services
IT Infrastructure Support
AWS Services
Department of State IT Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or obsolescence.
Potential for vendor lock-in with a specific cloud provider.
Security risks inherent in cloud hosting require continuous vigilance.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.8 million to THUNDERCAT TECHNOLOGY, LLC. AWS HOSTING SERVICES-MED

Who is the contractor on this award?

The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2020-12-01. End: 2025-09-29.

What is the track record of Thundercat Technology, LLC with federal contracts, particularly for cloud hosting services?

Thundercat Technology, LLC has a history of securing federal contracts, primarily within the IT services domain. While specific details on their AWS hosting performance for the Department of State under this particular contract are not publicly detailed, their ability to win this 'full and open' competition suggests they met the technical and financial qualifications set by the agency. Reviewing their past performance on similar contracts, including any past performance evaluations or awards, would provide a more comprehensive understanding of their reliability and expertise in delivering cloud solutions. Their status as a small business prime contractor is also a notable aspect of their federal contracting profile.

How does the $4.8 million cost compare to similar AWS hosting contracts awarded by other federal agencies?

Directly comparing the $4.8 million cost to similar AWS hosting contracts is complex without detailed service level agreements (SLAs), data storage volumes, compute usage, and specific AWS service components (e.g., EC2, S3, RDS). Federal agencies often negotiate different pricing tiers and receive varying discounts based on volume and commitment. However, for a contract spanning nearly four years (1763 days) and supporting a major agency like the Department of State, this figure suggests a moderate annual expenditure. Benchmarking would ideally involve comparing the per-gigabyte storage, per-CPU hour, or per-user costs against other agency contracts with comparable usage patterns and negotiated AWS Enterprise Discount Program (EDP) rates.

What are the primary risks associated with this AWS hosting contract for the Department of State?

The primary risks associated with this AWS hosting contract include vendor lock-in, potential cost overruns if usage scales unexpectedly, and security vulnerabilities if not managed properly. Vendor lock-in can occur if the agency becomes heavily reliant on proprietary AWS services, making future migration to other cloud providers or on-premises solutions difficult and costly. Unexpected scaling of data or compute needs could lead to budget overruns, even with a fixed-price contract, if not carefully monitored and managed through contract modifications or separate task orders. Security risks are inherent in cloud environments; a breach could compromise sensitive government data, necessitating robust security protocols, continuous monitoring, and adherence to federal compliance standards like FedRAMP.

How effective is the firm-fixed-price contract type in managing costs for cloud services like AWS?

The firm-fixed-price (FFP) contract type provides significant cost certainty for the government, as the price is set and generally not subject to adjustment unless the scope of work changes. For cloud services, FFP can be effective if the anticipated usage and service requirements are well-defined and stable over the contract period. However, cloud environments are inherently dynamic; usage can fluctuate, and new services may become available. If the FFP contract does not adequately account for potential variations in demand or includes provisions for adjusting prices based on market shifts or increased usage, it could lead to either the government overpaying for unused capacity or the contractor absorbing unexpected cost increases, potentially impacting service quality. Careful scope definition and monitoring are crucial for FFP cloud contracts.

What is the historical spending pattern for AWS hosting services by the Department of State?

Analyzing the historical spending pattern for AWS hosting services by the Department of State would require access to detailed procurement data over multiple fiscal years. This specific contract, valued at $4.8 million over approximately 3.6 years, represents a portion of their overall IT infrastructure budget. Federal agencies have increasingly shifted towards cloud services, suggesting a potential trend of growing expenditure in this area. Understanding the historical context would involve examining whether this is a new initiative, an expansion of existing cloud usage, or a consolidation of previous hosting arrangements. Trends in cloud adoption across government agencies indicate a general increase in spending on services like AWS, Azure, and Google Cloud.

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 - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $4,831,752

Exercised Options: $4,831,752

Current Obligation: $4,831,752

Actual Outlays: $3,920,711

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD26B

IDV Type: GWAC

Timeline