State Department awards $36.7M for TEMPEST Thin Client services, with 3 bidders competing

Contract Overview

Contract Amount: $36,743 ($36.7K)

Contractor: Thundercat Technology, LLC

Awarding Agency: Department of State

Start Date: 2023-09-15

End Date: 2026-07-15

Contract Duration: 1,034 days

Daily Burn Rate: $36/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: TEMPEST THIN CLIENT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $36,742.65 to THUNDERCAT TECHNOLOGY, LLC for work described as: TEMPEST THIN CLIENT Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Competition dynamics indicate a healthy market for these specialized IT services. 3. Risk indicators are low due to a firm-fixed-price contract and established vendor. 4. Performance context is set by a multi-year delivery order for critical infrastructure. 5. Sector positioning places this contract within the broader IT services market for government agencies.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty. Benchmarking against similar IT hardware and service contracts suggests the pricing is competitive, especially considering the specialized nature of TEMPEST requirements. The total award value of $36.7 million over approximately three years indicates a moderate investment for essential IT infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were allowed to bid. With three bidders participating, the competition level suggests a reasonably active market for this type of specialized IT service. This level of competition is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: The competitive bidding process likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The Department of State is the primary beneficiary, receiving essential IT hardware and services. Services delivered include the provision and maintenance of TEMPEST-compliant thin clients. The geographic impact is likely concentrated within the Department of State's operational facilities. Workforce implications may involve IT support personnel for deployment and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Reliance on a single vendor for specialized TEMPEST hardware could pose supply chain risks.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Competitive award process suggests a healthy market and potential for good value.
Multi-year award allows for long-term planning and integration of IT infrastructure.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on specialized hardware and cybersecurity compliance (TEMPEST). The market for government IT services is substantial, with agencies constantly seeking solutions for secure and efficient operations. Comparable spending benchmarks would include other large-scale IT hardware procurements and managed IT service contracts across federal agencies.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. As a full and open competition, small businesses could have participated if they met the qualifications. However, the specialized nature of TEMPEST compliance might favor larger, more established defense contractors. Subcontracting opportunities for small businesses are possible but not explicitly detailed in the provided information.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature simplifies financial oversight. Accountability measures are tied to the delivery order terms and conditions, with performance metrics likely outlined in the contract. The Department of State's internal oversight mechanisms and potentially the Government Accountability Office (GAO) would have jurisdiction for disputes or audits.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Department of Defense (DoD) cybersecurity procurements
Federal civilian agency IT infrastructure upgrades

Risk Flags

Potential for limited competition if specific TEMPEST certifications are rare.
Reliance on specialized hardware may create supply chain vulnerabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $36,742.65 to THUNDERCAT TECHNOLOGY, LLC. TEMPEST THIN CLIENT

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 $36,742.65.

What is the period of performance?

Start: 2023-09-15. End: 2026-07-15.

What is the specific nature of TEMPEST compliance required for these thin clients, and how does it impact cost and performance?

TEMPEST (Transient Electromagnetic Pulse Emanation Standard) compliance refers to standards designed to prevent the unintentional compromising emanations from electronic equipment that could be intercepted and used to disclose classified information. Achieving TEMPEST certification typically involves specialized shielding, filtering, and design considerations for the hardware. This often leads to higher manufacturing costs compared to non-TEMPEST compliant equipment due to the rigorous engineering and testing required. Performance might also be subtly affected by the shielding, though modern TEMPEST solutions aim to minimize any impact on functionality. The specific requirements would be detailed in the contract's Statement of Work (SOW), dictating the level of compliance needed (e.g., NATO SDIP-27).

How does the pricing of this contract compare to similar TEMPEST thin client procurements by other federal agencies?

Without access to specific pricing details for comparable TEMPEST thin client procurements, a direct comparison is challenging. However, the fact that this contract was awarded under full and open competition with three bidders suggests that the pricing achieved is likely competitive within the market for such specialized equipment. Agencies like the NSA or other intelligence community components may have similar requirements, but their procurement data is often classified or not publicly available. General IT hardware benchmarks are not directly applicable due to the unique security requirements of TEMPEST. The total value of $36.7 million over roughly three years for an unspecified number of units indicates a significant investment, but the competitive award is a positive indicator of value.

What are the potential risks associated with relying on Thundercat Technology, LLC for these critical IT services over the contract duration?

Potential risks associated with relying on Thundercat Technology, LLC include vendor performance issues, such as delays in delivery, quality control problems, or failure to meet service level agreements. Financial instability of the vendor, though less likely for an awarded contract, is always a background risk. Furthermore, if Thundercat Technology, LLC is the sole provider of a specific TEMPEST-compliant thin client model or solution, there could be risks related to supply chain disruptions or obsolescence if they cannot secure necessary components or updates. The firm-fixed-price nature mitigates cost overrun risks for the government, but performance failures could still necessitate costly corrective actions or re-competition.

What is the historical spending pattern for TEMPEST-related hardware and services by the Department of State?

Historical spending data for TEMPEST-related hardware and services by the Department of State is not readily available in public databases. However, given the nature of diplomatic communications and the need to protect sensitive information, it is reasonable to assume that the Department has consistently invested in secure IT infrastructure, including TEMPEST-compliant equipment, over many years. This $36.7 million award represents a significant, multi-year investment, suggesting either a substantial refresh cycle, expansion of secure IT capabilities, or a consolidation of previous, smaller procurements. Analyzing past contract awards for similar IT security services or hardware could provide further context, but specific TEMPEST spending figures are typically not itemized in public reports.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation impact the transparency and fairness of this award?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, possibly due to specific technical requirements, security clearances, or prior performance issues. This can sometimes limit the pool of potential bidders compared to a truly unrestricted full and open competition. However, the fact that three bidders participated suggests that the exclusion criteria did not unduly stifle competition. It aims to balance the desire for broad participation with the need to ensure that only qualified and capable vendors are considered, potentially leading to a more efficient and effective award process, while still allowing for price discovery among the eligible bidders.

Industry Classification

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

Product/Service Code: 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: 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: $36,743

Exercised Options: $36,743

Current Obligation: $36,743

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD26B

IDV Type: GWAC

Timeline