DoD's $139M Internet Operations Management contract awarded to ThunderCat Technology, LLC

Contract Overview

Contract Amount: $139,202,660 ($139.2M)

Contractor: Thundercat Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $95.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTERNET OPERATIONS MANAGEMENT

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $139.2 million to THUNDERCAT TECHNOLOGY, LLC for work described as: INTERNET OPERATIONS MANAGEMENT Key points: 1. Value for money appears fair given the firm-fixed-price structure and 4-year duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a firm-fixed-price contract type generally mitigating cost overrun risks. 4. Performance context is within IT operations and management, a critical but common service area. 5. Sector positioning is within Defense IT, a significant area of federal spending.

Value Assessment

Rating: fair

The contract's value of approximately $139 million over four years for internet operations management is within a reasonable range for large-scale IT services. Benchmarking against similar contracts is challenging without more specific service details, but the firm-fixed-price (FFP) structure suggests a defined scope and cost control. The award to ThunderCat Technology, LLC, a known entity in the federal IT space, provides some assurance of capability, though direct value-for-money comparisons would require deeper analysis of the specific services rendered and their efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple vendors were likely considered and allowed to bid. The presence of 5 bids suggests a reasonably competitive environment, which typically drives better pricing and service offerings for the government. The exclusion of sources clause might imply specific requirements or pre-qualification steps, but the overall 'full and open' nature is a positive sign for price discovery.

Taxpayer Impact: A competitive bidding process generally leads to more favorable pricing for taxpayers by encouraging vendors to offer their best terms. This approach helps ensure that government funds are used efficiently by selecting the most cost-effective solution.

Public Impact

The Department of Defense benefits from enhanced internet operations management, crucial for its vast network infrastructure. Services delivered likely include network monitoring, maintenance, security, and optimization of internet connectivity. Geographic impact is nationwide, supporting DoD operations across various bases and installations. Workforce implications may involve specialized IT personnel employed by the contractor to fulfill the service requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly under the FFP structure.
Dependence on a single contractor for critical internet operations could pose a risk if performance falters.
Ensuring continuous innovation and adaptation to evolving internet technologies within the contract's framework.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to a known IT provider suggests established capabilities and experience.
Full and open competition indicates a robust selection process and potential for competitive pricing.

Sector Analysis

The federal IT services market is substantial, with significant spending allocated to maintaining and modernizing digital infrastructure. This contract falls within the broader category of IT operations and support services, which are essential for government agencies to function effectively. Comparable spending benchmarks for similar large-scale IT management contracts can vary widely based on scope, duration, and specific technologies involved, but this award represents a significant investment in maintaining critical network operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While ThunderCat Technology, LLC is a small business, the contract itself was competed broadly. There is no explicit information on subcontracting plans for small businesses within this award, which could represent missed opportunities for the small business ecosystem if not actively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) Contracting Officer's Representative (COR) and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though detailed performance metrics and internal oversight reports are often not publicly disclosed.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Network Operations
Federal IT Infrastructure Management
Cybersecurity and Network Security Contracts

Risk Flags

Potential for vendor lock-in if performance is consistently high.
Risk of service degradation if contractor faces financial or staffing issues.
Ensuring alignment with evolving cybersecurity threats and technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $139.2 million to THUNDERCAT TECHNOLOGY, LLC. INTERNET OPERATIONS MANAGEMENT

Who is the contractor on this award?

The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $139.2 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is ThunderCat Technology, LLC's track record with similar large-scale IT operations contracts within the federal government?

ThunderCat Technology, LLC has a documented history of securing and performing on federal IT contracts. While specific details on past internet operations management contracts of this exact scale are not immediately available in this data snippet, the company is recognized for its work in IT solutions, cybersecurity, and cloud services for various government agencies, including the Department of Defense. Their experience often involves complex IT infrastructure support. A deeper dive into their contract history, performance evaluations (like past performance questionnaires), and any reported issues would provide a more comprehensive understanding of their suitability for this specific $139 million award.

How does the $139 million value compare to industry benchmarks for similar internet operations management services?

Benchmarking the $139 million value requires a detailed understanding of the specific services included in this contract, such as network monitoring scope, security protocols, user support levels, and geographic coverage. However, for large-scale, multi-year IT operations and management contracts supporting a major entity like the Department of Defense, this figure is not unusual. Industry reports often show significant investments in maintaining robust and secure network infrastructures. Factors like the number of users supported, complexity of the network, and required service level agreements (SLAs) heavily influence pricing. Without these specifics, a precise comparison is difficult, but the value appears commensurate with the potential scale of DoD requirements.

What are the primary risks associated with this firm-fixed-price contract for internet operations management?

The primary risks with a firm-fixed-price (FFP) contract, even for IT services, often revolve around potential scope creep and the contractor's ability to deliver within the fixed price. If the government requires additional services beyond the initial scope, change orders will be necessary, potentially increasing costs. Conversely, if the contractor underestimates the effort or encounters unforeseen technical challenges, they may incur losses, potentially impacting service quality or leading to disputes. Another risk is ensuring the contractor maintains adequate staffing and expertise throughout the contract's four-year duration to meet evolving technological demands and security threats effectively.

How effective is the 'full and open competition after exclusion of sources' method in ensuring optimal value for taxpayers?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific requirements. By allowing all responsible sources to submit offers ('full and open') while potentially excluding certain types of vendors or solutions ('exclusion of sources'), the government can ensure a competitive landscape tailored to its needs. This approach can lead to optimal value by fostering price competition among qualified bidders while ensuring that only relevant and capable solutions are considered. The 'exclusion' aspect, if used judiciously, can prevent the evaluation of non-viable proposals, saving administrative costs and focusing resources on the most promising offers, thus benefiting taxpayers.

What are the historical spending patterns for internet operations management within the Department of Defense?

Historical spending patterns for internet operations management within the Department of Defense are substantial and generally increasing, reflecting the growing reliance on digital infrastructure and cybersecurity. DISA, as the primary IT service provider for the DoD, manages a significant portfolio of contracts for network operations, maintenance, and modernization. Annual spending in this category often runs into billions of dollars across various contracts, encompassing everything from basic connectivity to advanced network security and data management. This specific $139 million award represents one component of that larger, ongoing investment in maintaining a secure and functional global network for military operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $185,447,134

Exercised Options: $139,202,660

Current Obligation: $139,202,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC92B

IDV Type: GWAC

Timeline