DHS awards $47.5M for Salesforce licenses to Thundercat Technology, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $47,460,079 ($47.5M)

Contractor: Thundercat Technology, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-06-30

End Date: 2026-06-29

Contract Duration: 1,460 days

Daily Burn Rate: $32.5K/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: THIS IS FOR THE PURCHASE OF SALESFORCE SOFTWARE LICENSES.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $47.5 million to THUNDERCAT TECHNOLOGY, LLC for work described as: THIS IS FOR THE PURCHASE OF SALESFORCE SOFTWARE LICENSES. Key points: 1. Contract value represents a significant investment in essential IT infrastructure for border security operations. 2. The award was made under full and open competition, suggesting a competitive market for these services. 3. A fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract extends over several years, indicating a long-term need for the software. 5. The specific NAICS code suggests a broad range of potential IT service providers could have bid. 6. The awardee, Thundercat Technology, LLC, is a key player in the federal IT contracting space.

Value Assessment

Rating: good

The contract value of $47.5 million for Salesforce licenses over approximately four years appears reasonable given the scale of operations for U.S. Customs and Border Protection. Benchmarking against similar large-scale federal IT procurements for enterprise software licenses suggests this price point is within expected ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator of value for money, assuming the scope of services is well-defined and managed.

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 allowed to bid after an initial exclusion period. While the exact number of bidders is not specified, the 'full and open' nature suggests a robust competitive process. This level of competition is generally expected to drive more favorable pricing and ensure the government receives the best value.

Taxpayer Impact: A competitive bidding process for essential software licenses helps ensure taxpayer dollars are used efficiently by preventing inflated prices and encouraging cost-effective solutions.

Public Impact

U.S. Customs and Border Protection (CBP) personnel will benefit from enhanced capabilities through updated Salesforce software. The software supports critical functions related to border security, trade facilitation, and law enforcement. The contract's impact is primarily national, supporting federal agency operations across the United States. This IT procurement supports jobs within the technology sector, both at the prime contractor and potentially at subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Salesforce is the sole platform used without adequate consideration for alternatives.
Reliance on a single software vendor could pose risks if the vendor experiences financial instability or significant product changes.
Ensuring adequate training and adoption across CBP personnel is crucial for realizing the full value of the investment.

Positive Signals

The use of a widely adopted and robust platform like Salesforce suggests a strategic choice for operational efficiency.
The firm fixed-price contract type provides budget predictability and limits the government's exposure to cost increases.
Awarding to a known entity like Thundercat Technology, LLC, may indicate a track record of successful past performance.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to software licenses and related support. Salesforce is a dominant player in the Customer Relationship Management (CRM) and enterprise software space, serving numerous commercial and government clients. This contract fits within the broader category of IT professional services, specifically software acquisition and maintenance, which represents a substantial portion of federal IT budgets. Comparable spending benchmarks for enterprise software licenses can vary widely based on user count, modules, and support levels, but multi-million dollar awards are common for large agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. While Thundercat Technology, LLC may have its own small business subcontracting goals, the prime contract itself was not designated as a small business set-aside. This means the competition was open to all eligible sources, and the primary focus was likely on technical capability and price rather than small business utilization at the prime level.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Homeland Security's contracting officers and program managers. The contract's performance will be monitored against the terms and conditions of the delivery order, including delivery schedules and software functionality. Transparency is facilitated through contract databases like FPDS. Inspector General oversight may be triggered by specific allegations of fraud, waste, or abuse related to the contract's execution or performance.

Related Government Programs

Federal Cloud Computing Strategy
IT Modernization Fund
Department of Homeland Security Enterprise Architecture

Risk Flags

Potential for scope creep
User adoption challenges
Integration complexity with legacy systems
Cybersecurity vulnerabilities in cloud software

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $47.5 million to THUNDERCAT TECHNOLOGY, LLC. THIS IS FOR THE PURCHASE OF SALESFORCE SOFTWARE LICENSES.

Who is the contractor on this award?

The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $47.5 million.

What is the period of performance?

Start: 2022-06-30. End: 2026-06-29.

What is Thundercat Technology, LLC's track record with federal IT contracts, particularly with DHS?

Thundercat Technology, LLC has a significant history of federal contracting, including numerous awards with the Department of Homeland Security (DHS) and its various components like U.S. Customs and Border Protection (CBP). Their portfolio often includes IT hardware, software, and related services. Analyzing their past performance on similar large-scale software license procurements would provide insight into their ability to manage such contracts effectively. A review of their contract history, including any past performance evaluations or disputes, is essential to fully assess their reliability for this $47.5 million award.

How does the $47.5 million cost compare to similar Salesforce license procurements by other federal agencies?

Benchmarking this $47.5 million award requires comparing it against similar Salesforce license procurements by federal agencies of comparable size and mission scope. Factors such as the number of users, specific Salesforce modules licensed (e.g., Sales Cloud, Service Cloud, Marketing Cloud), duration of the contract, and included support services are critical for a fair comparison. Without access to detailed comparative data, it's challenging to definitively state if this represents a premium or a discount. However, given the scale of CBP's operations, a multi-year, multi-million dollar award for enterprise-level CRM software is not unusual. Further analysis would involve examining contract vehicles and pricing agreements used by agencies like the General Services Administration (GSA) or other large cabinet-level departments.

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

Primary risks include potential cost overruns if the scope is not tightly managed (though mitigated by the firm fixed-price structure), vendor lock-in with Salesforce, and challenges in user adoption and integration with existing systems. Mitigation strategies likely involve robust contract management by CBP, clear performance metrics, and potentially phased rollouts to ensure successful integration and training. The 'full and open competition' aspect also mitigates risk by ensuring a competitive market was explored, potentially leading to better pricing and service. Cybersecurity risks associated with cloud-based software are also a concern, requiring adherence to federal security standards.

How effective is Salesforce software in supporting the specific mission requirements of U.S. Customs and Border Protection?

Salesforce is a widely adopted platform for customer relationship management and workflow automation, utilized across various industries, including government. For CBP, its effectiveness likely lies in streamlining case management, improving communication across different operational units, managing intelligence data, and enhancing inter-agency collaboration. The success of the software is contingent on its proper configuration, integration with other CBP systems (like law enforcement databases or trade processing systems), and comprehensive user training. While the platform itself is robust, its mission effectiveness is ultimately determined by how well it is implemented and utilized to meet CBP's unique and demanding operational needs.

What has been the historical spending trend for Salesforce or similar CRM software by DHS over the past five years?

Analyzing historical spending trends for DHS on Salesforce or comparable CRM solutions over the past five years would reveal patterns in IT investment and potential growth in reliance on such platforms. This data could indicate whether this $47.5 million award represents a significant increase, a continuation of existing spending, or a shift in technology strategy. Without specific historical data, it's presumed that DHS, like many large federal agencies, has been progressively adopting cloud-based solutions and enterprise software to modernize operations. Understanding this trend provides context for the current award and its place within the agency's broader IT modernization efforts.

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

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: $58,708,319

Exercised Options: $47,460,079

Current Obligation: $47,460,079

Actual Outlays: $34,391,626

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD26B

IDV Type: GWAC

Timeline