NASA awards $15.8M for IT services, but limited competition raises value concerns
Contract Overview
Contract Amount: $15,839 ($15.8K)
Contractor: Thundercat Technology, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2026-02-15
End Date: 2026-08-31
Contract Duration: 197 days
Daily Burn Rate: $80/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CAESAR/PV ELITE 2
Place of Performance
Location: CLEVELAND, CUYAHOGA County, OHIO, 44135
State: Ohio Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $15,839.27 to THUNDERCAT TECHNOLOGY, LLC for work described as: CAESAR/PV ELITE 2 Key points: 1. The contract was awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The fixed-price contract type offers some cost certainty, but the lack of competition is a key risk indicator. 3. Performance is scheduled over approximately six months, suggesting a focused scope of work. 4. The IT services sector is highly competitive, making the sole-source award unusual and warranting further scrutiny. 5. The contractor, THUNDERCAT TECHNOLOGY, LLC, has a track record that needs to be assessed against the service value. 6. The geographic location in Ohio is noted, but its impact on service delivery or cost is not immediately clear.
Value Assessment
Rating: questionable
Benchmarking the value of this $15.8 million contract is challenging due to the sole-source award. Without competitive bids, it's difficult to ascertain if NASA secured the best possible price for the 'Other Computer Related Services'. While the firm fixed-price structure provides cost predictability, the absence of competition suggests a potential for overpayment compared to what might have been achieved in a more open market. Further analysis of the specific services rendered and their market rates is needed to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This means only one vendor, THUNDERCAT TECHNOLOGY, LLC, was solicited for this requirement. The lack of competition limits the government's ability to explore alternative solutions or negotiate pricing based on multiple offers, potentially leading to higher costs for taxpayers.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings typically achieved through competitive bidding processes. This can result in higher overall spending for government IT services.
Public Impact
The primary beneficiary is the National Aeronautics and Space Administration (NASA), which will receive IT services. The services delivered are categorized under 'Other Computer Related Services', indicating a broad range of IT support. The contract is geographically focused within Ohio (OH), suggesting local or regional IT support needs. The contract is unlikely to have significant direct workforce implications beyond the immediate IT support personnel required by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential cost savings.
- Lack of transparency in the procurement process due to sole-source nature.
- Potential for inflated pricing without competitive benchmarking.
- Short performance period may indicate a specific, potentially urgent, need that bypassed standard competition.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Contract awarded to a single entity suggests a potentially specialized capability or existing relationship.
- The contract duration is defined, allowing for clear performance management.
Sector Analysis
The IT services sector is vast and highly dynamic, encompassing a wide range of support, development, and maintenance activities. NASA, like many federal agencies, relies heavily on IT services to manage complex operations, research, and data. Spending in this sector is consistently high across government. Comparable spending benchmarks for 'Other Computer Related Services' vary widely based on scope, but a $15.8 million award for a six-month period suggests a significant or specialized IT requirement.
Small Business Impact
This contract does not appear to have a small business set-aside (ss=false) or be awarded to a small business (sb=false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a larger prime contractor, and the lack of competition further reduces opportunities for small businesses to participate as subcontractors on this particular contract.
Oversight & Accountability
Oversight for this contract will fall under NASA's internal procurement and program management offices. As a purchase order, it may be subject to standard agency financial controls and audits. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or execution.
Related Government Programs
- NASA IT Services Contracts
- Federal IT Procurement
- Other Computer Related Services
- Sole Source IT Acquisitions
- Purchase Orders
Risk Flags
- Sole Source Justification
- Limited Competition
- Value for Money Concerns
- Potential for Overpricing
Tags
nasa, it-services, other-computer-related-services, sole-source, purchase-order, firm-fixed-price, ohio, large-contract, information-technology, procurement-risk
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $15,839.27 to THUNDERCAT TECHNOLOGY, LLC. CAESAR/PV ELITE 2
Who is the contractor on this award?
The obligated recipient is THUNDERCAT TECHNOLOGY, LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $15,839.27.
What is the period of performance?
Start: 2026-02-15. End: 2026-08-31.
What is the specific nature of the 'Other Computer Related Services' being procured by NASA under this contract?
The provided data categorizes the service under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can include IT consulting, systems integration, disaster recovery services, and IT support not elsewhere classified. Without more detailed information on the Statement of Work (SOW), it is difficult to pinpoint the exact services. However, given the $15.8 million value and a performance period of approximately six months, it suggests a substantial project or ongoing critical support, potentially involving specialized expertise or significant infrastructure management.
Why was this contract awarded on a sole-source basis instead of being competed?
Sole-source awards are typically justified when only one responsible source can provide the required goods or services. Common justifications include unique capabilities, urgent and compelling needs where competition is not feasible, or when a specific technology or system is involved that only one vendor can support. For NASA, this could relate to proprietary software, specialized hardware maintenance, or a critical system integration task where THUNDERCAT TECHNOLOGY, LLC is the sole known provider. The justification for this sole-source award would be documented in the contract file and is crucial for understanding the rationale behind bypassing competition.
How does the $15.8 million value compare to similar IT service contracts awarded by NASA or other federal agencies?
Comparing the $15.8 million value requires understanding the scope and duration. For a six-month period, this represents a significant monthly expenditure of approximately $2.6 million. This figure is substantial for IT services and would typically be benchmarked against similar sole-source or competed contracts for comparable services (e.g., cloud management, cybersecurity, large-scale system support). Without specific details on the services, a direct comparison is difficult, but it suggests a high-value requirement. Agencies often have internal benchmarks for IT services based on historical data and market research.
What is THUNDERCAT TECHNOLOGY, LLC's track record with NASA and other federal agencies, particularly for services of this nature?
Assessing THUNDERCAT TECHNOLOGY, LLC's track record is essential for understanding the risk associated with this sole-source award. Information on their past performance, including contract history, past performance evaluations (if available), and any history of performance issues or successes with NASA and other federal agencies, would provide insight into their capability to deliver the required 'Other Computer Related Services.' A strong performance history would mitigate some of the risk associated with the lack of competition, while a weak one would amplify concerns about value and successful delivery.
What are the potential risks associated with a sole-source IT contract of this magnitude?
The primary risks associated with a sole-source IT contract of this magnitude include: 1) Higher Cost: Without competition, the contractor may not be incentivized to offer the lowest possible price. 2) Limited Innovation: The agency may miss out on innovative solutions or efficiencies offered by other potential vendors. 3) Vendor Lock-in: If the services are highly specialized, the agency might become dependent on the sole provider, making future transitions difficult and costly. 4) Performance Risk: While the contractor has a track record, the lack of competitive pressure might indirectly affect the focus on optimal performance. 5) Transparency Concerns: Sole-source awards can raise questions about the fairness and transparency of the procurement process.
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: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
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: $15,839
Exercised Options: $15,839
Current Obligation: $15,839
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-02-15
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2026-04-03
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