Treasury's $8.8M AWS Recompete contract awarded to Thundercat Technology, LLC

Contract Overview

Contract Amount: $8,827,555 ($8.8M)

Contractor: Thundercat Technology, LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-09-17

End Date: 2026-09-14

Contract Duration: 1,823 days

Daily Burn Rate: $4.8K/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: AWS RECOMPETE

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $8.8 million to THUNDERCAT TECHNOLOGY, LLC for work described as: AWS RECOMPETE Key points: 1. Value for money assessed through competitive bidding. 2. Competition dynamics indicate a robust market for cloud services. 3. Risk indicators are moderate, given the established nature of cloud services. 4. Performance context is a recompete, suggesting continuity and prior experience. 5. Sector positioning within IT services, specifically cloud computing. 6. Contract type is firm fixed price, offering cost certainty.

Value Assessment

Rating: good

The contract value of $8.8M over approximately 5 years appears reasonable for AWS services, especially considering it was awarded under full and open competition. Benchmarking against similar cloud service contracts is challenging without specific service details, but the competitive nature suggests pricing was vetted against market rates. The firm fixed price structure provides cost predictability for the Bureau of the Fiscal Service.

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 bidders were allowed to compete. The presence of two bidders (no) suggests a moderate level of competition for this specific recompete. While not a large number, competition in this scenario likely drove pricing towards market levels and ensured a selection based on best value.

Taxpayer Impact: The competitive award process helps ensure taxpayer dollars are used efficiently by preventing inflated prices and encouraging providers to offer competitive terms.

Public Impact

Benefits the Department of the Treasury, specifically the Bureau of the Fiscal Service, by providing essential cloud infrastructure. Delivers critical IT services supporting financial management and government operations. Geographic impact is national, supporting federal agency operations. Workforce implications include reliance on IT professionals for cloud management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specific cloud providers, though recompetes can mitigate this.
Reliance on a single awardee for critical infrastructure necessitates strong performance monitoring.

Positive Signals

Awarded through full and open competition, indicating a vetted selection process.
Firm fixed price contract provides budget certainty.
Recompete nature suggests the contractor has prior experience and understanding of agency needs.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cloud computing services. The market for cloud services is highly competitive and rapidly evolving, with major players like AWS, Azure, and Google Cloud dominating. Federal spending on cloud services has been steadily increasing as agencies migrate from on-premise data centers to more flexible and scalable cloud solutions. This contract represents a portion of that broader trend.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a recompete of a significant IT service, it is likely that larger, established IT service providers or resellers with strong partnerships are best positioned to compete. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight is likely managed by the Bureau of the Fiscal Service's contracting officers and program managers. Transparency is facilitated by the contract award being publicly available. Accountability measures are inherent in the firm fixed price contract terms and performance expectations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Cloud Computing Services
AWS Enterprise Agreements
Department of the Treasury IT Modernization Initiatives

Risk Flags

Potential for vendor lock-in
Cybersecurity risks inherent in cloud environments
Performance risk if SLAs are not met

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $8.8 million to THUNDERCAT TECHNOLOGY, LLC. AWS RECOMPETE

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 (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $8.8 million.

What is the period of performance?

Start: 2021-09-17. End: 2026-09-14.

What is the specific nature of the AWS services being procured under this contract?

The contract data indicates the North American Industry Classification System (NAICS) code is 541519, 'Other Computer Related Services,' and the Product Service Code (PSC) is not specified but likely relates to IT services. While the contract is for 'AWS RECOMPETE,' the precise services are not detailed. This could range from basic cloud infrastructure (IaaS), platform services (PaaS), or even software as a service (SaaS) hosted on AWS. Understanding the specific services is crucial for a comprehensive value assessment, as different service types have varying cost structures and market benchmarks. Further details would likely be found in the contract's statement of work.

How does the awarded price compare to previous contract periods or similar federal AWS deployments?

As a recompete, direct price comparison to a previous contract period would be the most relevant benchmark. However, that data is not provided here. Generally, AWS pricing can vary significantly based on volume discounts, reserved instances, and specific service usage. The fact that this was awarded under full and open competition suggests the price was competitive at the time of award. To assess value, one would ideally compare the per-unit costs (e.g., per compute hour, per gigabyte of storage) against GSA schedules or other competitively awarded federal AWS contracts. Without that granular data, the $8.8M over ~5 years ($1.76M/year) is a broad figure that needs detailed service breakdown for true benchmarking.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a critical IT service like cloud infrastructure supporting the Bureau of the Fiscal Service, robust KPIs and SLAs are essential. These would typically cover aspects such as uptime/availability (e.g., 99.99%), response times for support, data security compliance, and performance metrics for compute and storage. The contract type (Firm Fixed Price) implies that meeting these defined performance standards is a requirement for full payment, and deviations could lead to penalties or corrective actions.

What is Thundercat Technology, LLC's track record with AWS and federal contracts of this size?

Thundercat Technology, LLC is listed as the awardee. A review of federal procurement data would be necessary to fully assess their track record. As a reseller and IT solutions provider, they likely have experience with various cloud platforms, including AWS. The award of an $8.8M contract, even as a delivery order under a larger vehicle or as a recompete, suggests they have demonstrated capability and capacity to manage such engagements. Further investigation into their past performance ratings on similar contracts, their specific AWS certifications, and their financial stability would provide a more complete picture of their suitability.

Are there any identified risks associated with this specific AWS recompete contract?

Potential risks include vendor lock-in if the agency becomes overly reliant on specific AWS services without a clear exit strategy, although recompetes can mitigate this by allowing for market re-evaluation. Performance risks exist if the contractor fails to meet SLAs, impacting critical fiscal operations. Cybersecurity risks are inherent in cloud environments, requiring continuous monitoring and adherence to federal security standards (e.g., FedRAMP). Finally, cost escalation risk, while somewhat managed by the FFP structure, could still occur if usage patterns significantly exceed projections or if underlying AWS service costs change unexpectedly.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 207797

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: $9,958,311

Exercised Options: $9,958,311

Current Obligation: $8,827,555

Actual Outlays: $8,596,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD26B

IDV Type: GWAC

Timeline