HHS awarded $21M for IT services to Thundercat Technology, LLC over 5 years

Contract Overview

Contract Amount: $20,952,613 ($21.0M)

Contractor: Thundercat Technology, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2012-06-29

End Date: 2017-08-15

Contract Duration: 1,873 days

Daily Burn Rate: $11.2K/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: IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.0 million to THUNDERCAT TECHNOLOGY, LLC for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Value for money appears fair given the duration and scope of services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period. 4. Performance context is within IT services for healthcare administration. 5. Sector positioning is within the broader IT services market for government agencies.

Value Assessment

Rating: fair

The contract's total value of $20.95 million over approximately five years averages to about $4.2 million annually. This figure needs to be benchmarked against similar IT service contracts for healthcare administration to fully assess value. Without specific details on the services rendered, a precise comparison is difficult, but the duration suggests a substantial, ongoing need for IT support.

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 degree of competition, which typically helps in achieving more favorable pricing for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages a wider range of vendors to participate, potentially leading to lower prices and better quality services through market forces.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially healthcare providers and beneficiaries who rely on the IT systems supported. Services delivered likely encompass a range of IT support, maintenance, and potentially development for CMS's critical infrastructure. Geographic impact is primarily focused on the operations of CMS, which has a national scope. Workforce implications may involve IT professionals employed by Thundercat Technology, LLC, supporting federal IT needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 5 years) could lead to potential cost overruns if not managed effectively.
Reliance on a single awardee for critical IT services over an extended period might limit flexibility.
The specific nature of 'Other Computer Related Services' is broad and could encompass a wide range of tasks, making oversight crucial.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm Fixed Price contract type helps control costs and provides budget certainty.
The contract has a defined period of performance, allowing for re-evaluation of needs.

Sector Analysis

The IT services sector for government agencies is highly competitive. Contracts like this, for 'Other Computer Related Services' (NAICS 541519), are common and support a wide array of federal functions. Spending in this category often reflects the government's ongoing need for digital infrastructure, cybersecurity, and data management solutions. Benchmarks for similar contracts would typically consider the specific IT functions performed, the level of expertise required, and the duration of the engagement.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Thundercat Technology, LLC chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' contracting officers and program managers. The Centers for Medicare and Medicaid Services (CMS) would be responsible for monitoring performance and ensuring adherence to contract terms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Services for Healthcare
CMS IT Modernization Efforts
Federal IT Support Contracts
Other Computer Related Services

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Broad service category ('Other Computer Related Services') requires diligent oversight.
Potential for vendor lock-in over the contract's extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.0 million to THUNDERCAT TECHNOLOGY, LLC. IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2012-06-29. End: 2017-08-15.

What specific IT services were provided under this contract?

The contract identifies the North American Industry Classification System (NAICS) code as 541519, which covers 'Other Computer Related Services.' This broad category can include a wide range of IT functions such as IT consulting, systems integration, IT support, and potentially custom software development or maintenance. Without further details from the contract award or associated documentation, the precise nature of the services rendered remains unspecified. However, given the awarding agency (CMS), it is likely these services supported the agency's critical IT infrastructure, data management, or operational systems essential for healthcare program administration.

How does the $20.95 million award compare to similar IT service contracts at CMS?

Benchmarking the $20.95 million award requires comparing it to similar IT service contracts awarded by CMS over comparable periods. Contracts for 'Other Computer Related Services' can vary significantly in scope and price. A five-year contract of this magnitude suggests a substantial and ongoing need for IT support. To provide a precise comparison, one would need to analyze the specific deliverables, service level agreements, and pricing structures of other CMS IT contracts within the same or adjacent NAICS codes. Factors such as the complexity of the systems supported, the required skill sets, and the urgency of the services would influence pricing.

What are the primary risks associated with a five-year IT services contract?

A primary risk with a five-year IT services contract is technological obsolescence; the technology landscape can change rapidly, potentially making the contracted services or solutions outdated before the contract ends. Another significant risk is vendor lock-in, where the government becomes heavily reliant on a single provider, making it difficult and costly to switch vendors. Cost overruns are also a risk, especially if the scope of work is not clearly defined or if unforeseen issues arise. Furthermore, performance degradation over time or a decline in the vendor's ability to meet evolving requirements can pose risks. Effective contract management, regular performance reviews, and clear scope definition are crucial to mitigate these risks.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The award type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the solicitation was initially intended for full and open competition, but certain sources were excluded before the final award. This could mean that a previous solicitation or contract modification led to the exclusion of some potential bidders based on specific criteria or circumstances. However, the 'full and open' aspect implies that the remaining competition was broad and competitive, allowing any responsible source to submit an offer. This contrasts with sole-source or limited competition scenarios, suggesting that the government sought to maximize the number of eligible bidders within the established parameters.

What is the historical spending pattern for 'Other Computer Related Services' at CMS?

Analyzing historical spending patterns for 'Other Computer Related Services' (NAICS 541519) at CMS would reveal trends in IT service procurement. This involves examining past contract awards, their values, durations, and the types of services procured under this code. Significant year-over-year increases or decreases in spending could indicate shifts in CMS's IT strategy, budget allocations, or the outsourcing of specific IT functions. Understanding these patterns helps contextualize the $20.95 million award, determining if it represents a typical investment or a notable deviation. It also informs future budget planning and procurement strategies for similar IT services.

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 › ADP AND TELECOMMUNICATIONS

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

Address: 1775 WIEHLE AVE STE 101, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,952,613

Exercised Options: $20,952,613

Current Obligation: $20,952,613

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG07DA45B

IDV Type: GWAC

Timeline