VA awards $222M for Intersystems Software Updates and Technical Assistance to Thundercat Technology
Contract Overview
Contract Amount: $221,952,278 ($222.0M)
Contractor: Thundercat Technology, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $609.8K/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: INTERSYSTEMS SOFTWARE UPDATES AND TECHNICAL ASSISTANCE.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $222.0 million to THUNDERCAT TECHNOLOGY, LLC for work described as: INTERSYSTEMS SOFTWARE UPDATES AND TECHNICAL ASSISTANCE. Key points: 1. Significant contract value for software and technical support services. 2. Competition method indicates potential for price discovery, but details are limited. 3. Risk associated with reliance on a single vendor for critical software. 4. IT services sector with a focus on government operations.
Value Assessment
Rating: fair
The contract value of $222M over two years for software updates and technical assistance appears substantial. Benchmarking against similar large-scale IT support contracts is necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition approach. This method may impact price discovery and potentially lead to higher costs compared to broader competition.
Taxpayer Impact: Taxpayer funds are being used for essential software maintenance and support, with the efficiency of the procurement method impacting the overall value for money.
Public Impact
Ensures continued operation of critical Intersystems software for the VA. Supports ongoing technical assistance for VA IT infrastructure. Potential impact on veteran healthcare services if software is not maintained.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Vendor lock-in risk for critical software.
- Dependence on a single provider for essential services.
Positive Signals
- Ensures continuity of essential IT services.
- Addresses specific technical needs for Intersystems software.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on software maintenance and technical support. Government spending on IT infrastructure and software is consistently high, with benchmarks varying widely based on the complexity and criticality of the systems supported.
Small Business Impact
The contract was awarded to Thundercat Technology, LLC. Analysis is needed to determine if small business subcontracting opportunities were included or pursued.
Oversight & Accountability
The Department of Veterans Affairs is the contracting agency. Oversight will be crucial to ensure the vendor meets performance requirements and that the pricing remains fair throughout the contract duration.
Related Government Programs
- Other Computer Related Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition.
- Potential for cost overruns.
- Vendor dependency.
- Lack of transparency in source exclusion.
Tags
other-computer-related-services, department-of-veterans-affairs, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $222.0 million to THUNDERCAT TECHNOLOGY, LLC. INTERSYSTEMS SOFTWARE UPDATES AND TECHNICAL ASSISTANCE.
Who is the contractor on this award?
The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $222.0 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the specific impact of 'exclusion of sources' on the final price and vendor performance?
Excluding sources in a full and open competition can limit the pool of potential bidders, potentially reducing competitive pressure and leading to a higher price than if all qualified vendors were allowed to compete. It may also impact the government's ability to secure the best possible performance if the chosen vendor is not the most capable or cost-effective option available in the broader market.
How does the $222M award compare to historical spending on Intersystems software support within the VA?
Comparing this $222M award to previous contracts for Intersystems software support within the VA is essential for assessing value. Significant deviations, either higher or lower, would warrant further investigation into the scope of work, market conditions, and the specific terms of the contract to understand the reasons behind the difference.
What are the key performance indicators (KPIs) for this contract, and how will they be monitored?
Key performance indicators for this contract would likely include software uptime, response times for technical assistance, successful implementation of updates, and overall user satisfaction. Robust monitoring mechanisms, including regular performance reviews and clear reporting requirements, will be vital to ensure the VA receives the expected value and that the vendor meets all contractual obligations effectively.
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 › IT AND TELECOM - APLLICATIONS
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: $1,562,962,167
Exercised Options: $332,928,418
Current Obligation: $221,952,278
Actual Outlays: $92,480,116
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD26B
IDV Type: GWAC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2030-09-30 00:00:00
Last Modified: 2026-03-25
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