VA's $33.8M Talent Management System contract awarded to Thundercat Technology, LLC

Contract Overview

Contract Amount: $33,833,721 ($33.8M)

Contractor: Thundercat Technology, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-09-17

End Date: 2022-04-24

Contract Duration: 1,315 days

Daily Burn Rate: $25.7K/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: TALENT MANAGEMENT SYSTEM (TMS) 2.0 ACCESS FOR LICENSED USERS AND ADMINISTRATORS TECHNICAL AND SUPPORT SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33.8 million to THUNDERCAT TECHNOLOGY, LLC for work described as: TALENT MANAGEMENT SYSTEM (TMS) 2.0 ACCESS FOR LICENSED USERS AND ADMINISTRATORS TECHNICAL AND SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1315 days indicates a significant, long-term need for these services. 3. The firm-fixed-price structure aims to control costs and provide predictable spending. 4. Services include technical and support for a licensed user and administrator talent management system. 5. The contract value of $33.8M places it in the mid-tier spending range for IT services. 6. The North American Industry Classification System (NAICS) code 541519 suggests a broad scope of computer-related services.

Value Assessment

Rating: good

The contract's value of $33.8M for a talent management system over approximately 3.6 years appears reasonable given the scope of technical and support services. Benchmarking against similar government IT contracts for enterprise software and support suggests this pricing is within expected ranges. The firm-fixed-price contract type helps mitigate cost overruns, providing a degree of value certainty for the government.

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 the solicitation was broadly advertised and multiple vendors were allowed to bid. While the specific number of bidders is not provided, this procurement method generally fosters price discovery and allows the government to select the best value offer. The competitive nature is expected to drive more favorable pricing and service terms.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market competition to obtain the best possible price and quality for the talent management system services.

Public Impact

Federal employees across the Department of Veterans Affairs benefit from an improved talent management system. The contract delivers essential technical and support services for the Talent Management System (TMS) 2.0. The services provided are crucial for employee development, training, and career progression within the VA. This contract supports the VA's mission to provide healthcare and benefits to veterans by ensuring an effective workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly specialized and difficult to transition away from.
Reliance on a single vendor for critical IT infrastructure could pose risks if the vendor experiences financial or operational difficulties.

Positive Signals

The firm-fixed-price contract provides cost certainty and reduces the risk of budget overruns.
Full and open competition suggests a robust selection process, likely resulting in a capable vendor.
The long-term nature of the contract indicates a stable partnership for essential services.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under IT services, specifically focusing on software and support. The market for talent management systems is robust, with numerous commercial off-the-shelf (COTS) solutions and custom development options available. Government spending in this area is significant, driven by the need for efficient human capital management and compliance.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Thundercat Technology, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this data. The absence of a small business set-aside means that opportunities for small business participation may be limited unless Thundercat Technology voluntarily engages them.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for its contracts. This includes contract performance monitoring, financial audits, and adherence to federal acquisition regulations. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to this contract. Transparency is generally maintained through contract databases and reporting requirements.

Related Government Programs

Human Capital Management Systems
Federal Workforce Development Programs
IT Support Services Contracts
Enterprise Resource Planning (ERP) Systems

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical IT system
Performance and support continuity risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33.8 million to THUNDERCAT TECHNOLOGY, LLC. TALENT MANAGEMENT SYSTEM (TMS) 2.0 ACCESS FOR LICENSED USERS AND ADMINISTRATORS TECHNICAL AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $33.8 million.

What is the period of performance?

Start: 2018-09-17. End: 2022-04-24.

What is the track record of Thundercat Technology, LLC with the Department of Veterans Affairs and other federal agencies?

Thundercat Technology, LLC has a history of receiving federal contracts, including with the Department of Veterans Affairs (VA). A review of federal procurement data indicates they have been awarded multiple contracts across various agencies, often in the IT and technology solutions space. Their performance history with the VA and other agencies would typically be assessed through past performance evaluations during the bidding process. Agencies evaluate contractors based on factors such as timeliness of delivery, quality of goods or services, and adherence to contract terms. While this specific contract is for the Talent Management System (TMS) 2.0, Thundercat's broader experience in providing IT services and support to the federal government suggests a foundational capability. Further detailed analysis would require examining specific performance reviews and award decisions for their prior contracts.

How does the $33.8M contract value compare to similar talent management system procurements by other federal agencies?

The $33.8M contract value for the VA's Talent Management System (TMS) 2.0, spanning approximately 3.6 years, positions it as a significant but not exceptionally large IT procurement. Comparing it to similar talent management or human capital management system contracts across federal agencies reveals a range. Smaller agencies or those with fewer employees might procure similar systems for less, perhaps in the single-digit millions. Larger agencies like the Department of Defense or Homeland Security could have contracts in the tens or even hundreds of millions for enterprise-wide solutions. Given the VA's size and scope, $33.8M for a comprehensive system including technical and support services appears to be within a reasonable and competitive range for a full and open competition. The firm-fixed-price nature also contributes to predictable spending, which is a positive value indicator.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks associated with this contract include potential vendor lock-in, where the VA becomes overly dependent on Thundercat Technology, LLC for the TMS 2.0 system, making future transitions costly and complex. Another risk is the potential for performance issues or service disruptions if the vendor fails to provide adequate technical support. Furthermore, reliance on a single vendor for a critical system like talent management could pose operational continuity risks. Mitigation strategies are embedded within the contract structure and oversight. The firm-fixed-price (FFP) nature helps control costs and incentivizes the vendor to perform efficiently. The contract's duration (1315 days) allows for a stable service period, but also necessitates clear performance standards and deliverables. The VA's standard contract management processes, including performance monitoring, regular reviews, and potential penalties for non-performance, serve as key mitigation tools. A well-defined exit strategy and data portability clauses in the contract would further reduce transition risks.

How effective is the Talent Management System (TMS) 2.0 in supporting the VA's workforce goals?

The effectiveness of the Talent Management System (TMS) 2.0 in supporting the VA's workforce goals is primarily measured by its ability to facilitate employee development, training, recruitment, and retention. As a system designed for licensed users and administrators, it likely provides functionalities for performance management, learning management, succession planning, and career pathing. Its effectiveness hinges on user adoption, the quality of data it manages, and its integration with other HR systems. While the contract data confirms the procurement and support of the system, a direct assessment of its operational effectiveness would require analyzing VA HR metrics, employee feedback, and system utilization reports. The contract's duration and value suggest a sustained commitment, implying the VA views the system as crucial for its human capital strategy, aiming to enhance workforce capabilities to better serve veterans.

What are the historical spending patterns for talent management systems at the Department of Veterans Affairs?

Analyzing historical spending patterns for talent management systems at the Department of Veterans Affairs (VA) provides context for the $33.8M awarded to Thundercat Technology, LLC. Prior to TMS 2.0, the VA likely utilized earlier versions or different systems for managing its workforce. Spending in this area can fluctuate based on system upgrades, new technology adoption, and changes in HR strategy. If the VA previously had a similar system under a different contract, comparing the value, duration, and scope would be insightful. For instance, if previous contracts were significantly smaller or shorter, it might indicate an expansion of services or an increase in IT costs. Conversely, if spending has been consistently high, it suggests a long-term strategic investment in human capital management. Without specific historical contract data for the VA's talent management solutions, it's difficult to provide precise figures, but the current award reflects a substantial, multi-year investment.

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 › ADP AND TELECOMMUNICATIONS

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

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: $33,891,373

Exercised Options: $33,833,721

Current Obligation: $33,833,721

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SD26B

IDV Type: GWAC

Timeline