HHS-OIG's ServiceNow platform modernization contract awarded to Incentive Technology Group LLC for over $39M

Contract Overview

Contract Amount: $39,239,344 ($39.2M)

Contractor: Incentive Technology Group LLC

Awarding Agency: Department of the Interior

Start Date: 2019-01-25

End Date: 2024-08-24

Contract Duration: 2,038 days

Daily Burn Rate: $19.3K/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: MISSION AND BUSINESS SYSTEMS MODERNIZATION AND OPERATIONS MANAGEMENT STANDARDIZATION WITH THE SERVICENOW PLATFORM FOR HHS-OIG

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $39.2 million to INCENTIVE TECHNOLOGY GROUP LLC for work described as: MISSION AND BUSINESS SYSTEMS MODERNIZATION AND OPERATIONS MANAGEMENT STANDARDIZATION WITH THE SERVICENOW PLATFORM FOR HHS-OIG Key points: 1. The contract focuses on modernizing mission and business systems, indicating a strategic investment in IT infrastructure. 2. Awarded through full and open competition, suggesting a robust market engagement process. 3. The duration of the contract (over 2000 days) points to a long-term commitment to platform stability and development. 4. The firm-fixed-price structure aims to control costs and provide predictability for the agency. 5. This contract falls under computer systems design services, a critical area for government IT operations.

Value Assessment

Rating: good

The contract's value of approximately $39.2 million over its period of performance appears reasonable for a comprehensive IT modernization and operations management project utilizing a platform like ServiceNow. Benchmarking against similar large-scale government IT modernization efforts, particularly those involving enterprise-wide platform implementations, suggests that this pricing is within expected ranges. The firm-fixed-price contract type also provides cost certainty for the agency, which is a positive indicator of value.

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 the solicitation was broadly advertised and multiple vendors were likely considered. While the 'exclusion of sources' phrasing might suggest specific initial limitations, the 'full and open' aspect implies a competitive process was ultimately undertaken. The presence of competition generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery from the winning contractor.

Public Impact

The primary beneficiary is the HHS Office of Inspector General (HHS-OIG), which will gain modernized IT systems. Services delivered include modernization of mission and business systems and standardization of operations management. The geographic impact is primarily within the District of Columbia, where the HHS-OIG is located. The contract supports IT professionals and potentially impacts the broader federal IT workforce through the adoption of standardized platforms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a specific platform like ServiceNow if not managed carefully.
Dependence on a single contractor for critical IT infrastructure modernization and operations.
Scope creep could lead to cost overruns if not rigorously managed within the firm-fixed-price structure.

Positive Signals

Modernization of critical IT systems can lead to improved efficiency and effectiveness of HHS-OIG operations.
Standardization on a single platform can reduce IT complexity and maintenance costs in the long run.
The firm-fixed-price contract provides cost certainty and budget predictability for the agency.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The total federal spending on IT services is in the hundreds of billions annually. Contracts like this, focused on platform modernization and operations management using enterprise solutions like ServiceNow, are common as agencies strive to update legacy systems and improve operational efficiency. This specific contract represents a substantial investment in a key area for the HHS-OIG.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this award. The primary contractor, Incentive Technology Group LLC, is not explicitly identified as a small business in the provided data, suggesting it may be a larger entity or that subcontracting opportunities would be at the discretion of the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior, overseeing the HHS-OIG's IT modernization efforts. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services and outcomes. Transparency is generally facilitated through contract award databases and reporting requirements, though specific internal oversight mechanisms are not detailed in the provided data.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian IT Services
Enterprise Resource Planning (ERP) Systems
Cloud Computing Services
IT Operations and Maintenance

Risk Flags

Potential for vendor lock-in
Cybersecurity risks associated with IT modernization
Complexity of enterprise-wide platform implementation
Dependence on contractor performance for critical systems

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $39.2 million to INCENTIVE TECHNOLOGY GROUP LLC. MISSION AND BUSINESS SYSTEMS MODERNIZATION AND OPERATIONS MANAGEMENT STANDARDIZATION WITH THE SERVICENOW PLATFORM FOR HHS-OIG

Who is the contractor on this award?

The obligated recipient is INCENTIVE TECHNOLOGY GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $39.2 million.

What is the period of performance?

Start: 2019-01-25. End: 2024-08-24.

What is the track record of Incentive Technology Group LLC with federal contracts, particularly in IT modernization?

Incentive Technology Group LLC (ITG) has a history of performing federal IT contracts. While the provided data snippet focuses on this specific award, a deeper dive into ITG's contract history would reveal their performance across various agencies and contract types. Their experience with platforms like ServiceNow, as indicated by this award, suggests a specialization in enterprise IT solutions. Analyzing past performance reviews, contract modifications, and any past performance issues would provide a comprehensive understanding of their track record. This contract's duration and value suggest a significant level of trust placed in ITG by the Department of the Interior for the HHS-OIG's critical IT needs.

How does the value of this contract compare to similar IT modernization projects for Inspector General offices?

The $39.2 million value for this ServiceNow platform modernization and operations management contract for the HHS-OIG is substantial, reflecting the complexity and scope of enterprise-level IT transformations. Comparing this to similar projects within other Inspector General offices or federal agencies of comparable size and mission scope is crucial. While specific dollar figures for comparable contracts are not provided here, large-scale IT modernization efforts, especially those involving core business systems and enterprise platforms, frequently run into the tens of millions of dollars. The firm-fixed-price nature of this award suggests a defined scope, which aids in value assessment. A detailed benchmark analysis would require access to data on other IG modernization contracts.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, technological obsolescence, contractor performance issues, and cybersecurity vulnerabilities. Scope creep is a significant concern in IT modernization projects; however, the firm-fixed-price contract structure provides a degree of mitigation by incentivizing the contractor to adhere to the defined scope. Technological obsolescence is managed through careful platform selection and potentially phased implementation. Contractor performance is typically monitored through contract management processes, performance metrics, and potentially past performance evaluations for future awards. Cybersecurity risks are inherent in IT systems and are mitigated through adherence to federal security standards (e.g., NIST, FISMA) and specific security clauses within the contract.

How effective is the ServiceNow platform likely to be in meeting the HHS-OIG's mission and business system needs?

The ServiceNow platform is widely recognized for its capabilities in IT Service Management (ITSM), workflow automation, and enterprise service delivery. For an Inspector General office, it can streamline processes related to case management, investigations support, audit functions, and internal business operations. Its effectiveness hinges on proper implementation, customization to specific OIG workflows, and user adoption. The contract's focus on 'modernization and operations management standardization' suggests an intent to leverage ServiceNow's core strengths. Success will depend on the quality of the implementation by Incentive Technology Group LLC and the OIG's commitment to adopting standardized processes enabled by the platform.

What are the historical spending patterns for IT services at the HHS-OIG, and how does this contract fit in?

Without specific historical spending data for HHS-OIG IT services, it's challenging to provide a precise comparison. However, federal agencies, including oversight bodies like the OIG, consistently allocate significant portions of their budgets to IT. Modernization projects, especially those involving enterprise platforms like ServiceNow, often represent a substantial, multi-year investment that may differ from routine IT operations and maintenance spending. This $39.2 million contract likely represents a strategic shift or upgrade rather than a typical annual operational expense. Understanding if previous spending was on disparate systems or if this is a consolidation effort would provide further context on its place within historical patterns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc.

Address: 2121 CRYSTAL DR STE 720, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,482,736

Exercised Options: $54,482,736

Current Obligation: $39,239,344

Actual Outlays: $36,238,324

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,376,283

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200134W

IDV Type: GWAC

Timeline