Department of Energy awards $427K for cybersecurity, with 2 bidders competing
Contract Overview
Contract Amount: $427,315 ($427.3K)
Contractor: Thundercat Technology, LLC
Awarding Agency: Department of Energy
Start Date: 2024-05-03
End Date: 2027-05-02
Contract Duration: 1,094 days
Daily Burn Rate: $391/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: PALO ALTO CORTEX XDR PROFESSIONAL
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $427,315 to THUNDERCAT TECHNOLOGY, LLC for work described as: PALO ALTO CORTEX XDR PROFESSIONAL Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Competition dynamics show a moderate level of engagement with two bidders. 3. Risk indicators are low due to a firm-fixed-price contract type. 4. Performance context is for cybersecurity services, a critical area for the DOE. 5. Sector positioning is within IT services, specifically cybersecurity solutions.
Value Assessment
Rating: good
The contract value of $427,315 for a 3-year period for cybersecurity services appears to be within a reasonable range. Benchmarking against similar cybersecurity contracts for federal agencies of this size and scope would provide a more precise assessment. The firm-fixed-price structure helps control costs and shifts risk to the contractor, which is generally favorable 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 multiple vendors were likely solicited. With two bidders participating, the competition level is moderate. While more bidders could potentially drive prices lower, two bidders suggest that the market has sufficient interest and capability to provide the required services, allowing for some price discovery.
Taxpayer Impact: The moderate competition suggests that taxpayers are likely receiving a fair price, avoiding the potential overpayment associated with sole-source or limited competition awards.
Public Impact
The Department of Energy benefits from enhanced cybersecurity capabilities. Services delivered include professional support for Palo Alto Cortex XDR. Geographic impact is primarily within Virginia, where the contractor is located. Workforce implications are minimal, as this is a service contract rather than a large-scale project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the specific technology (Cortex XDR) becomes deeply integrated.
- Reliance on a single vendor for critical cybersecurity infrastructure could pose a risk if that vendor experiences issues.
Positive Signals
- Firm-fixed-price contract limits cost overruns.
- Competition, even if moderate, provides a baseline for fair pricing.
- Awarding to a known entity (Thundercat Technology) may indicate a track record of performance.
Sector Analysis
The cybersecurity market is a rapidly growing sector within the broader IT industry, driven by increasing digital threats. Federal agencies are significant consumers of cybersecurity solutions, with spending often focused on network security, endpoint protection, and threat intelligence. This contract for Palo Alto Cortex XDR falls within the endpoint detection and response (EDR) segment, a crucial component of modern cybersecurity strategies. Comparable spending benchmarks for similar EDR solutions across federal agencies would typically range from tens of thousands to millions of dollars annually, depending on the scale of deployment and services required.
Small Business Impact
This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, Thundercat Technology, LLC, is a large business. The impact on the small business ecosystem is neutral, as this award does not specifically target or exclude small businesses.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Energy Cybersecurity Services
- Endpoint Detection and Response (EDR) Solutions
- IT Professional Services
- Cybersecurity Technology Procurement
Risk Flags
- Moderate competition may limit price optimization.
- Reliance on specific technology (Cortex XDR) could lead to vendor lock-in.
- Contract performance is dependent on the quality of professional services provided.
Tags
it-services, cybersecurity, endpoint-detection-and-response, department-of-energy, firm-fixed-price, full-and-open-competition, professional-services, palo-alto-networks, thundercat-technology, virginia, moderate-competition
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $427,315 to THUNDERCAT TECHNOLOGY, LLC. PALO ALTO CORTEX XDR PROFESSIONAL
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 $427,315.
What is the period of performance?
Start: 2024-05-03. End: 2027-05-02.
What is Thundercat Technology, LLC's track record with the Department of Energy and other federal agencies for similar cybersecurity services?
A review of federal procurement data indicates that Thundercat Technology, LLC has a history of receiving contracts from various federal agencies, including the Department of Defense and the Department of Homeland Security, for IT and cybersecurity-related services. Specific to the Department of Energy, while this is a new award for Cortex XDR, the agency has previously contracted with Thundercat for other IT solutions. Their performance history across multiple agencies suggests a capability to deliver on complex IT requirements. Further analysis would involve examining past performance evaluations and any reported issues or successes on prior contracts to fully assess their suitability for this specific cybersecurity role.
How does the $427,315 contract value compare to similar cybersecurity procurements for endpoint detection and response (EDR) solutions by federal agencies?
The contract value of $427,315 for a three-year period for Palo Alto Cortex XDR professional services represents an average annual cost of approximately $142,438. This figure is generally considered moderate for EDR solutions in the federal space. Larger agencies or those with extensive networks might procure similar services in the hundreds of thousands or even millions of dollars annually. Smaller agencies or those with more limited deployments might spend less. Given that this award is for professional services related to a specific EDR platform, the price appears competitive, especially considering the moderate competition observed. A more precise benchmark would require detailed comparison of scope, user count, and service levels.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks associated with this contract include potential vendor lock-in due to reliance on a specific EDR platform (Palo Alto Cortex XDR) and the possibility of performance issues if the contractor, Thundercat Technology, LLC, does not adequately deliver the professional services. Vendor lock-in is mitigated by the fact that the contract is for professional services and not the perpetual license of the software itself, allowing for potential future transitions. Performance risks are mitigated by the firm-fixed-price contract type, which incentivizes the contractor to meet requirements to receive full payment, and by the Department of Energy's oversight mechanisms. The moderate competition also suggests a baseline level of contractor capability.
What is the expected effectiveness of Palo Alto Cortex XDR professional services in enhancing the Department of Energy's cybersecurity posture?
Palo Alto Cortex XDR is a recognized platform for endpoint detection and response, designed to provide advanced threat prevention, detection, and automated response capabilities. The professional services awarded are expected to ensure the proper deployment, configuration, and optimization of this platform within the Department of Energy's environment. Effective implementation by Thundercat Technology, LLC should lead to improved visibility into endpoint activities, faster identification of potential threats, and more efficient incident response, thereby strengthening the DOE's overall cybersecurity posture against sophisticated attacks. The success hinges on the quality of the professional services and the integration with existing security infrastructure.
How has the Department of Energy's spending on cybersecurity services evolved over the past five years, and where does this contract fit in?
The Department of Energy's spending on cybersecurity services has generally trended upwards over the past five years, reflecting the increasing threat landscape and the critical nature of protecting national energy infrastructure. While specific figures for 'cybersecurity services' can vary based on categorization, overall IT and cybersecurity spending by the DOE has seen significant investment. This $427,315 contract represents a relatively small portion of the DOE's total cybersecurity budget, focusing on specialized professional services for a particular EDR solution. It fits within the broader strategy of acquiring and optimizing advanced security tools to defend against evolving cyber threats.
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: $427,315
Exercised Options: $427,315
Current Obligation: $427,315
Actual Outlays: $305,655
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD26B
IDV Type: GWAC
Timeline
Start Date: 2024-05-03
Current End Date: 2027-05-02
Potential End Date: 2027-05-02 00:00:00
Last Modified: 2026-04-02
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