DHS awarded $26.7M for IT services to Thundercat Technology, LLC, with a 733-day duration

Contract Overview

Contract Amount: $26,745,900 ($26.7M)

Contractor: Thundercat Technology, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-27

End Date: 2019-09-30

Contract Duration: 733 days

Daily Burn Rate: $36.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF - OIT SOFTWARE AS A SERVICE

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.7 million to THUNDERCAT TECHNOLOGY, LLC for work described as: IGF::OT::IGF - OIT SOFTWARE AS A SERVICE Key points: 1. The contract represents a significant investment in IT services for U.S. Customs and Border Protection. 2. Competition was conducted under a 'full and open competition after exclusion of sources' model, suggesting a potentially limited but justified bidding process. 3. The firm fixed-price contract type indicates a clear understanding of scope and cost expectations. 4. The duration of 733 days suggests a medium-term need for these IT services. 5. Thundercat Technology, LLC, is the sole awardee, highlighting their specific capability or market position for this requirement. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services.

Value Assessment

Rating: fair

Benchmarking the value of this $26.7 million contract is challenging without more specific service details. However, the duration of 733 days (approximately two years) suggests a substantial, ongoing need. The firm fixed-price nature implies that the government has a clear understanding of the costs involved, which can be a positive indicator of value if the scope is well-defined. Without comparable contract data for similar IT services within DHS or CBP, it's difficult to definitively assess if the pricing is competitive or represents excellent value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or prior relationships. With only one awardee, Thundercat Technology, LLC, it suggests that either the pool of eligible bidders was small, or only one bidder met all the stringent criteria. This level of competition might limit price discovery compared to a broader, unrestricted competition.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price that could have been achieved through a wider bidding process. However, if the exclusion of sources was justified by specific technical needs, the price paid might reflect the specialized nature of the services required.

Public Impact

U.S. Customs and Border Protection (CBP) is the primary beneficiary, receiving essential IT services. The services delivered are categorized under 'Other Computer Related Services,' indicating a broad scope of IT support. The contract is managed by the Department of Homeland Security (DHS), indicating its alignment with national security and border management objectives. The contract is located in Virginia (ST: VA, SN: VIRGINIA), suggesting a concentration of IT support activities in that region. The workforce implications are likely related to IT professionals employed by Thundercat Technology, LLC, to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
Lack of detailed service description makes value assessment difficult.
Exclusion of sources raises questions about the breadth of the competitive process.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to a single vendor may indicate specialized expertise.
Longer contract duration suggests a stable, ongoing need for services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under IT services. The market for IT services is vast and highly competitive, encompassing everything from software development to cloud computing and cybersecurity. Contracts like this, awarded by large federal agencies such as DHS, are crucial for maintaining operational capabilities. Comparable spending benchmarks would typically involve analyzing other IT service contracts within DHS or similar large federal departments, looking at contract values, durations, and the specific types of IT services procured.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Thundercat Technology, LLC, is listed as the sole awardee. Without further information on subcontracting plans, it is difficult to assess the direct impact on the small business ecosystem. However, the absence of a small business set-aside suggests that the primary focus was on fulfilling the requirement with the most capable vendor, regardless of size, potentially limiting opportunities for small businesses to participate directly in this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal contracting and program management offices. The U.S. Customs and Border Protection agency, as the end-user, would also have oversight responsibilities. Transparency is facilitated by public contract databases, but detailed performance metrics and specific oversight mechanisms are not provided in this data. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

DHS IT Services Contracts
CBP Technology Modernization
Federal IT Services Procurement
Software as a Service (SaaS) Contracts
Information Technology Professional Services

Risk Flags

Limited competition
Potential for higher costs due to restricted bidding
Lack of detailed service scope for value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.7 million to THUNDERCAT TECHNOLOGY, LLC. IGF::OT::IGF - OIT SOFTWARE AS A SERVICE

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 (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2017-09-27. End: 2019-09-30.

What specific IT services were procured under this contract?

The contract is classified under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of IT support, including IT consulting, system integration, custom software development, IT project management, and potentially IT infrastructure management or support. Without a more detailed statement of work or contract line item details, the precise nature of the services remains general. However, given the awarding agency (CBP) and the Department of Homeland Security, these services likely support critical border security and customs operations, potentially involving data management, communication systems, or analytical tools.

How does the award amount of $26.7 million compare to similar IT service contracts within DHS?

Comparing the $26.7 million award requires context regarding the contract's duration and scope. This contract spans 733 days (approximately two years). To benchmark effectively, one would need to analyze other IT service contracts awarded by DHS or CBP with similar durations and service categories (NAICS 541519). For instance, if DHS frequently awards multi-year contracts for similar 'Other Computer Related Services' in the $10-15 million range annually, then $26.7 million over two years might be considered within a reasonable range. Conversely, if comparable two-year contracts are typically in the $5-10 million range, this award could appear higher, necessitating a closer look at the specific deliverables and complexity.

What are the potential risks associated with a 'full and open competition after exclusion of sources' procurement?

This procurement method, while aiming for openness, introduces specific risks. The 'exclusion of sources' implies that certain potential bidders were deliberately not considered, which could stem from specific technical requirements, security clearances, or geographic limitations. If these exclusions are not well-justified or documented, it could lead to protests or accusations of an improperly restricted competition. Furthermore, if only one vendor, Thundercat Technology, LLC, ultimately submitted a viable proposal, it suggests a limited vendor pool. This concentration of bidders increases the risk that the government may not have received the most competitive pricing or the widest range of innovative solutions available in the market.

What is the track record of Thundercat Technology, LLC, with federal contracts, particularly within DHS?

Thundercat Technology, LLC, has a history of receiving federal contracts. While this specific award is for $26.7 million with CBP, a comprehensive analysis of their track record would involve examining their past performance across various agencies, contract types, and dollar values. Key aspects to review include their on-time delivery rates, quality of work, adherence to budget, and any history of contract disputes or terminations. Understanding their experience with similar IT services, especially within the high-security environment of DHS, would provide further insight into their capability to successfully execute this current contract.

How does the firm fixed-price (FFP) contract type influence cost control and risk for this IT service contract?

A Firm Fixed-Price (FFP) contract type is generally favored by the government for IT services when the scope of work is well-defined and unlikely to change significantly. This structure places the risk of cost overruns on the contractor, Thundercat Technology, LLC. For the government, this offers significant cost certainty, as the total price is fixed regardless of the contractor's actual costs. This is beneficial for budget planning. However, if the scope is not perfectly defined, the contractor may build in a higher contingency into their price to cover unforeseen issues, potentially leading to a higher overall cost than a cost-reimbursable contract might have achieved if managed efficiently. The success of an FFP contract hinges on precise SOW and effective performance monitoring.

What are the implications of the 733-day contract duration for ongoing IT support needs?

A duration of 733 days, approximately two years, suggests that the IT services provided by Thundercat Technology, LLC, are intended for medium-term operational support rather than a short-term project. This implies a stable, ongoing requirement within U.S. Customs and Border Protection. For taxpayers, a longer duration can sometimes lead to better value through economies of scale and reduced administrative burden associated with frequent re-procurement. However, it also means that the government is committed to this specific vendor and service level for an extended period, potentially limiting flexibility if needs change or if a better technological solution emerges during the contract term.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $26,745,900

Exercised Options: $26,745,900

Current Obligation: $26,745,900

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC13D00002

IDV Type: IDC

Timeline