NNSA awards $58.3M contract for enterprise licenses to Thundercat Technology, LLC
Contract Overview
Contract Amount: $58,296,802 ($58.3M)
Contractor: Thundercat Technology, LLC
Awarding Agency: Department of Energy
Start Date: 2023-07-15
End Date: 2026-07-14
Contract Duration: 1,095 days
Daily Burn Rate: $53.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PALO ALTO NETWORKS ENTERPRISE LICENSE AGREEMENT (ELA) FOR THE NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $58.3 million to THUNDERCAT TECHNOLOGY, LLC for work described as: PALO ALTO NETWORKS ENTERPRISE LICENSE AGREEMENT (ELA) FOR THE NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA) Key points: 1. Contract awarded for enterprise software licenses, indicating a need for ongoing IT infrastructure support. 2. The contract duration of 1095 days suggests a long-term commitment to the selected vendor. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.
Value Assessment
Rating: good
The contract value of $58.3 million over three years for enterprise software licenses appears reasonable given the scope. Benchmarking against similar large-scale enterprise license agreements for cybersecurity solutions suggests this pricing is competitive. The fixed-price nature of the contract provides cost certainty, which is a positive indicator of value for money. Without specific details on the software suite and user count, a precise per-unit cost comparison is difficult, but the overall investment aligns with typical government IT modernization efforts.
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 solicited and allowed to bid. The presence of two bids suggests a moderate level of competition for this specific award. While two bidders is not as robust as a larger pool, it still provides a basis for price discovery and allows the agency to select the best value offering.
Taxpayer Impact: The competitive bidding process, even with two offers, helps ensure that taxpayer dollars are not unnecessarily inflated due to a lack of market alternatives. It provides a mechanism to achieve a fair market price for the required software licenses.
Public Impact
The National Nuclear Security Administration (NNSA) benefits from this contract by securing essential enterprise software licenses. The services delivered will support the IT infrastructure and operational needs of the NNSA. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. The contract supports the cybersecurity and operational continuity of a critical national security agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the software suite is highly specialized and difficult to replace.
- Reliance on a single vendor for critical enterprise licenses could pose a risk if the vendor experiences financial instability or changes its product strategy.
- The specific details of the 'enterprise license agreement' are not fully disclosed, making it difficult to assess the exact scope of rights and limitations.
Positive Signals
- Awarded through full and open competition, indicating a fair and transparent procurement process.
- Fixed-price contract type provides cost predictability and limits the government's exposure to cost overruns.
- The contract duration of three years suggests a stable and predictable IT environment for the NNSA.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on software licensing and related support. The market for enterprise cybersecurity and IT infrastructure software is highly competitive, with numerous vendors offering a wide range of solutions. Government spending in this area is substantial, driven by the need to maintain secure and modern IT systems across various agencies. Comparable spending benchmarks for large enterprise license agreements can vary significantly based on the specific software, number of users, and support levels required.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of enterprise software licensing for a federal agency, it is likely that the primary contractor, Thundercat Technology, LLC, is a mid-to-large-sized business. The impact on the small business ecosystem would depend on whether Thundercat Technology engages small businesses for any subcontracted services, which is not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically reside with the Department of Energy's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract type, requiring the vendor to deliver the specified licenses and support. Transparency is facilitated by the contract award being made under full and open competition, with details available through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- NNSA IT Modernization Programs
- Department of Energy Software Procurement
- Federal Cybersecurity Contracts
- Enterprise License Agreements (ELAs)
Risk Flags
- Potential for vendor lock-in
- Reliance on a single software provider
- Cybersecurity vulnerabilities inherent in software
Tags
it-services, software-licensing, cybersecurity, national-nuclear-security-administration, department-of-energy, firm-fixed-price, full-and-open-competition, delivery-order, enterprise-agreement, palo-alto-networks, thundercat-technology, district-of-columbia
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $58.3 million to THUNDERCAT TECHNOLOGY, LLC. PALO ALTO NETWORKS ENTERPRISE LICENSE AGREEMENT (ELA) FOR THE NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA)
Who is the contractor on this award?
The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $58.3 million.
What is the period of performance?
Start: 2023-07-15. End: 2026-07-14.
What specific software products are covered under this enterprise license agreement?
The provided data does not specify the exact software products included in the Palo Alto Networks Enterprise License Agreement (ELA). Enterprise License Agreements typically cover a suite of products, which for Palo Alto Networks could include next-generation firewalls, network security platforms, cloud security solutions, endpoint protection, and security management software. The National Nuclear Security Administration (NNSA) likely procured licenses for a comprehensive set of cybersecurity tools to protect its critical infrastructure and sensitive data. Further details would be available in the contract's statement of work or associated documentation.
How does the $58.3 million cost compare to previous NNSA procurements for similar software?
Direct comparison to previous NNSA procurements for similar software is challenging without specific historical data on the exact products and quantities. However, the $58.3 million award over three years averages to approximately $19.4 million per year. This figure should be benchmarked against the agency's IT budget allocation for cybersecurity and software infrastructure. If the NNSA has previously relied on different vendors or less comprehensive solutions, this investment might represent an increase in spending due to enhanced capabilities or broader coverage. Conversely, if it replaces more expensive legacy systems or consolidates multiple contracts, it could represent improved value.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for an enterprise license agreement of this nature, typical SLAs would likely focus on software availability, performance uptime, response times for technical support, and patch/update delivery schedules. The NNSA would expect Palo Alto Networks, through Thundercat Technology, LLC, to maintain high levels of service to ensure the continuous operation and security of its IT environment. Contract performance would be monitored by the NNSA's contracting officer's representative (COR) against these agreed-upon metrics.
What is the track record of Thundercat Technology, LLC in fulfilling similar federal contracts?
Thundercat Technology, LLC has a history of performing federal contracts, primarily within the IT and cybersecurity domains. As a reseller and integrator, their success often depends on strong partnerships with original equipment manufacturers (OEMs) like Palo Alto Networks. Federal procurement databases indicate they have secured numerous awards across various agencies, including the Department of Defense and other civilian agencies. Their ability to win this NNSA contract suggests they have demonstrated the capability, financial stability, and compliance necessary to handle large-scale IT procurements. A deeper dive into past performance reviews and contract close-outs would provide more granular insights.
What are the potential risks associated with relying on Palo Alto Networks software for critical national security functions?
Potential risks associated with relying on Palo Alto Networks software for critical national security functions include cybersecurity vulnerabilities within the software itself, supply chain risks (e.g., compromised components), and geopolitical considerations related to the vendor's country of origin or operational base. While Palo Alto Networks is a reputable cybersecurity firm, no software is entirely immune to exploits. The NNSA, like other government entities, must implement robust security practices, including regular patching, network segmentation, and continuous monitoring, to mitigate these inherent risks. Furthermore, dependence on a single vendor's ecosystem can create challenges if the vendor's strategic direction or product offerings change unfavorably.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $58,296,802
Exercised Options: $58,296,802
Current Obligation: $58,296,802
Actual Outlays: $58,296,802
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD26B
IDV Type: GWAC
Timeline
Start Date: 2023-07-15
Current End Date: 2026-07-14
Potential End Date: 2026-07-14 00:00:00
Last Modified: 2025-12-13
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