FEMA awards $4.8M for ServiceNow SaaS, a key IT service for disaster management

Contract Overview

Contract Amount: $484,337 ($484.3K)

Contractor: Thundercat Technology, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-13

End Date: 2022-11-15

Contract Duration: 459 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICE NOW, SOFTWARE AS A SERVICE (SAAS)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $484,337.35 to THUNDERCAT TECHNOLOGY, LLC for work described as: SERVICE NOW, SOFTWARE AS A SERVICE (SAAS) Key points: 1. The contract leverages a Software as a Service (SaaS) model for IT support. 2. Competition was open, suggesting a competitive pricing environment. 3. The contract duration of 459 days provides a stable operational period. 4. This IT service is crucial for managing federal emergency response. 5. The award falls within the 'Other Computer Related Services' NAICS code. 6. The fixed-price contract type helps manage cost certainty.

Value Assessment

Rating: good

The total award of $4.84 million for ServiceNow SaaS appears reasonable given the nature of enterprise software solutions. Benchmarking against similar SaaS contracts for IT service management platforms would provide a more precise value assessment. The fixed-price nature of the contract offers cost predictability for the agency. Without specific per-user or module costs, a detailed unit price comparison is difficult, but the overall value seems aligned with the essential IT infrastructure required for disaster response.

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 a robust competitive process. While the exact number of bidders is not specified, this procurement method generally attracts multiple interested parties, fostering price discovery and potentially leading to more favorable terms for the government. The exclusion of sources clause suggests a specific reason for limiting initial outreach but ultimately opened the competition.

Taxpayer Impact: A full and open competition ensures that taxpayers benefit from the most competitive pricing available in the market, as multiple vendors are encouraged to bid.

Public Impact

Federal Emergency Management Agency (FEMA) personnel benefit from enhanced IT capabilities. The contract supports critical IT services essential for disaster response and management. The geographic impact is national, supporting FEMA's nationwide operations. Workforce implications include the need for trained personnel to utilize and manage the ServiceNow platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with SaaS solutions if not managed carefully.
Reliance on a single SaaS provider for critical IT infrastructure carries inherent risks.
Ensuring data security and privacy within the SaaS environment is paramount.

Positive Signals

Leveraging a widely adopted SaaS platform like ServiceNow can improve efficiency and integration.
The fixed-price contract provides budget certainty for the agency.
Open competition suggests a healthy market and potential for good value.

Sector Analysis

The IT services sector, particularly Software as a Service (SaaS), is a rapidly growing segment of federal spending. This contract for ServiceNow falls under enterprise IT management and workflow automation, a critical area for agencies like FEMA. Comparable spending benchmarks for similar IT service management platforms can vary widely based on scope and user base, but federal IT spending overall is in the hundreds of billions annually.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The primary contractor, Thundercat Technology, LLC, is a large business. Analysis of their subcontracting plan, if applicable, would be necessary to determine any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Homeland Security's internal oversight mechanisms and potentially the FEMA IT program management office. The contract's fixed-price nature simplifies some aspects of financial oversight. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FEMA IT Modernization Efforts
Disaster Response Technology Procurement
Federal Civilian IT Services
Software as a Service (SaaS) Contracts

Risk Flags

Potential for vendor lock-in
Data security and privacy concerns
Reliance on third-party SaaS provider
Ensuring adequate user adoption and training

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $484,337.35 to THUNDERCAT TECHNOLOGY, LLC. SERVICE NOW, SOFTWARE AS A SERVICE (SAAS)

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 (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $484,337.35.

What is the period of performance?

Start: 2021-08-13. End: 2022-11-15.

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

Thundercat Technology, LLC has a history of securing federal contracts, including those related to IT services and software. Their experience with SaaS solutions would be detailed in their contract performance history. A review of their past performance on similar contracts, especially those involving enterprise platforms like ServiceNow, would indicate their capability to deliver. Analyzing past awards and performance evaluations would reveal their reliability and expertise in managing complex IT deployments for government agencies. Their success in winning this FEMA contract suggests they met the agency's requirements and demonstrated relevant experience.

How does the $4.84 million award compare to other federal procurements for ServiceNow or similar IT service management platforms?

The $4.84 million award for ServiceNow SaaS over approximately 15 months (August 2021 - November 2022) provides a benchmark for this specific scope. Federal spending on IT service management platforms can range significantly based on the agency's size, the modules licensed, the number of users, and the duration of the contract. Larger agencies might spend tens or even hundreds of millions on enterprise-wide implementations. FEMA's award appears to be for a specific set of services or a particular operational need within the agency. A direct comparison would require analyzing contracts with similar user counts, feature sets, and contract lengths to determine if the pricing is competitive within the federal market.

What are the primary risks associated with this ServiceNow SaaS contract for FEMA?

Key risks include potential vendor lock-in, where FEMA becomes heavily reliant on ServiceNow, making future transitions costly and complex. Data security and privacy are critical concerns, as sensitive disaster-related information will be managed on the platform; any breach could have severe consequences. Performance issues or service disruptions from the vendor could impact FEMA's ability to respond effectively during emergencies. Furthermore, the long-term cost of SaaS subscriptions needs careful management to ensure continued value for money. Ensuring adequate training and adoption by FEMA staff is also crucial for realizing the full benefits of the platform.

How effective is ServiceNow in supporting federal disaster response operations, and what is FEMA's historical spending on such platforms?

ServiceNow is widely adopted across the federal government for IT service management, workflow automation, and operational resilience, making it a suitable platform for disaster response support. Its capabilities in incident management, resource allocation, and communication can significantly enhance FEMA's operational efficiency during crises. FEMA's historical spending on IT platforms, including ServiceNow, would likely show a trend towards modernizing its technological infrastructure to better manage complex, large-scale emergencies. Analyzing past budgets and contract awards would reveal the extent of their investment in such critical systems over time.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method imply for cost savings and vendor innovation?

This procurement method, while starting with an exclusion of sources, ultimately opened the competition. This suggests that while there might have been an initial specific requirement or reason to exclude certain vendors initially, the agency ensured broader market participation before award. This approach aims to balance specific needs with achieving competitive pricing and fostering innovation by allowing multiple qualified vendors to propose solutions. The 'after exclusion' part might relate to specific technical requirements or prior relationships, but the subsequent open competition is designed to ensure taxpayers receive the best value by leveraging market forces.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $484,337

Exercised Options: $484,337

Current Obligation: $484,337

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC13D00026

IDV Type: IDC

Timeline