Treasury's IRS awards $2.85M for AvePoint software licenses, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $2,850,000 ($2.9M)

Contractor: Thundercat Technology, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-01-19

End Date: 2026-01-18

Contract Duration: 1,095 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AVEPOINT AMP LICENSES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.9 million to THUNDERCAT TECHNOLOGY, LLC for work described as: AVEPOINT AMP LICENSES Key points: 1. Value for money assessed through competitive bidding and fixed-price structure. 2. Competition dynamics indicate a robust market for IT software solutions. 3. Risk indicators include contract duration and reliance on a single vendor for licenses. 4. Performance context is tied to the IRS's ongoing IT modernization efforts. 5. Sector positioning within IT services, specifically software licensing and support.

Value Assessment

Rating: good

The contract value of $2.85 million for AvePoint licenses appears reasonable given the 3-year duration and the nature of enterprise software. Benchmarking against similar large-scale software procurements suggests that pricing is competitive, especially considering it was awarded under full and open competition. The firm fixed-price contract type further supports value by locking in costs.

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 were likely considered and allowed to bid. The presence of 10 bidders suggests a healthy level of competition for this type of IT service. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The extensive competition for these AvePoint licenses suggests taxpayers benefit from potentially lower prices and a wider array of service options than might be available through a less competitive process.

Public Impact

Federal employees within the IRS will benefit from access to AvePoint software for data management and compliance. Services delivered include licensing and potentially support for critical IT infrastructure. Geographic impact is primarily within the IRS's operational footprint, likely nationwide. Workforce implications involve enabling IRS IT staff to perform their duties more effectively with updated software tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if AvePoint is deeply integrated into IRS workflows.
Reliance on a single software vendor could pose risks if the vendor experiences financial instability or product issues.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract provides cost certainty for the government.
Multiple bidders (10) suggest a healthy vendor landscape.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing and management tools. The market for enterprise content management and data governance software is significant, with major players like AvePoint providing solutions critical for large organizations. Comparable spending benchmarks for enterprise software licenses can range from hundreds of thousands to millions of dollars annually, depending on the scope and user base.

Small Business Impact

The contract details do not indicate a specific small business set-aside. However, the full and open competition nature allows for small businesses to participate if they are capable of meeting the requirements. The prime contractor, Thundercat Technology, LLC, may have subcontracting opportunities for small businesses, depending on their own business strategy and the specific needs of the contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's Inspector General, with specific program management and accountability residing within the IRS IT division. Transparency is facilitated by the contract award being publicly available, and performance monitoring would be conducted by the contracting officer's representative (COR) to ensure compliance with terms and conditions.

Related Government Programs

IRS IT Modernization Programs
Federal Software Licensing Agreements
Enterprise Content Management Systems
Data Governance Solutions

Risk Flags

Potential for vendor lock-in
Reliance on a single software provider
Risk of technology obsolescence over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.9 million to THUNDERCAT TECHNOLOGY, LLC. AVEPOINT AMP LICENSES

Who is the contractor on this award?

The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2023-01-19. End: 2026-01-18.

What is the track record of Thundercat Technology, LLC in delivering similar IT software solutions to federal agencies?

Thundercat Technology, LLC has a history of providing IT solutions and services to various federal agencies. Their contract portfolio often includes hardware, software, and related services. For IT software solutions specifically, their performance would need to be evaluated based on past contract delivery, customer satisfaction feedback, and adherence to schedules and budgets. A review of their past performance on similar contracts, particularly those involving enterprise software licensing and support, would provide insight into their capability to fulfill the IRS's requirements effectively. Agencies often use past performance information as a key factor in source selection.

How does the $2.85 million cost compare to similar AvePoint license procurements by other federal agencies?

Benchmarking the $2.85 million cost for AvePoint licenses requires comparing it against similar procurements by other federal agencies, considering factors like the number of users, specific modules licensed, contract duration, and any included support or maintenance services. Without access to a comprehensive database of all federal software procurements, a precise comparison is challenging. However, given that this was awarded under full and open competition with 10 bidders, it suggests the pricing is likely competitive within the market. Agencies often leverage GSA Schedules or other government-wide contract vehicles to achieve better pricing through aggregated purchasing power, which could be a point of comparison.

What are the primary risks associated with a 3-year contract for enterprise software licenses?

The primary risks associated with a 3-year contract for enterprise software licenses include vendor lock-in, potential for price increases upon renewal, and the risk of technology obsolescence or the emergence of superior alternative solutions. Vendor lock-in occurs when the software becomes deeply integrated into agency workflows, making it difficult and costly to switch providers. Price increases upon renewal are a common concern, especially if the initial contract included significant discounts. Furthermore, technology evolves rapidly; a 3-year commitment might mean the agency is using software that is no longer cutting-edge by the end of the term, potentially impacting efficiency or security.

How does this contract contribute to the IRS's overall IT modernization goals?

This contract for AvePoint software licenses likely contributes to the IRS's IT modernization goals by providing essential tools for data management, compliance, and potentially workflow automation. Modernizing IT infrastructure is crucial for agencies like the IRS to improve efficiency, enhance cybersecurity, and better serve taxpayers. AvePoint's solutions often focus on areas like governance, risk, and compliance (GRC), and data protection, which are critical for a large organization handling sensitive financial information. By ensuring access to up-to-date software in these areas, the IRS can better manage its data assets, meet regulatory requirements, and streamline internal processes, thereby supporting broader modernization objectives.

What is the historical spending pattern for AvePoint software or similar solutions at the IRS or Treasury?

Analyzing historical spending patterns for AvePoint software or similar solutions at the IRS or Treasury would involve reviewing past contract awards and obligations. This data can reveal trends in IT investment, the evolution of software needs, and the agency's reliance on specific vendors or types of solutions. For instance, a history of significant spending on data management or compliance software might indicate a long-standing focus on these areas. Conversely, a sudden increase in spending could signal a new initiative or a shift in IT strategy. Understanding these patterns helps in assessing the current contract's significance and potential future investments in related technologies.

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 - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

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: $2,850,000

Exercised Options: $2,850,000

Current Obligation: $2,850,000

Actual Outlays: $2,850,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC92B

IDV Type: GWAC

Timeline