Department of Labor awards $7.66M for ServiceNow licenses and support to 3CHIEF LLC

Contract Overview

Contract Amount: $7,657,218 ($7.7M)

Contractor: 3chief LLC

Awarding Agency: Department of Labor

Start Date: 2024-08-16

End Date: 2026-08-15

Contract Duration: 729 days

Daily Burn Rate: $10.5K/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: SERVICE NOW LICENSES. ORDER ISSUED TO OBTAIN SERVICENOW LICENSES AND MAINTENANCE SUPPORT SERVICES WITH A PERIOD OF PERFORMANCE OF AUGUST 16, 2024, THROUGH AUGUST 15, 2027.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $7.7 million to 3CHIEF LLC for work described as: SERVICE NOW LICENSES. ORDER ISSUED TO OBTAIN SERVICENOW LICENSES AND MAINTENANCE SUPPORT SERVICES WITH A PERIOD OF PERFORMANCE OF AUGUST 16, 2024, THROUGH AUGUST 15, 2027. Key points: 1. The contract is for ServiceNow licenses and maintenance support, crucial for IT operations. 2. Competition was full and open after exclusion of sources, indicating a competitive process. 3. The contract value of $7.66M over three years requires careful monitoring for value. 4. IT services, particularly software licensing, represent a significant and growing area of federal spending.

Value Assessment

Rating: fair

The contract value of $7.66M for three years of ServiceNow licenses and support appears reasonable given the critical nature of the software. Benchmarking against similar enterprise software agreements would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources. This method suggests that multiple vendors were considered, which generally leads to better price discovery and competitive pricing.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT services.

Public Impact

Ensures continued access to essential IT infrastructure for the Department of Labor. Supports ongoing operations and modernization efforts within the agency. Potential for cost savings through competitive bidding on enterprise software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with enterprise software.
Need to ensure maintenance support aligns with actual agency needs.
Reliance on a single vendor for critical IT services.

Positive Signals

Awarded through full and open competition.
Supports essential agency operations.
Long-term contract provides budget stability.

Sector Analysis

This contract falls within the IT services sector, specifically software licensing and support. Federal spending on IT, including enterprise software like ServiceNow, has been steadily increasing as agencies modernize their operations.

Small Business Impact

The contract was awarded to 3CHIEF LLC. Further analysis would be needed to determine the extent of small business participation or subcontracting within this award.

Oversight & Accountability

The award process, including the 'full and open competition after exclusion of sources' method, suggests a degree of oversight. Continued monitoring of performance and costs will be essential for accountability.

Related Government Programs

Other Computer Related Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns if maintenance needs escalate unexpectedly.
Risk of vendor lock-in limiting future flexibility.
Dependence on a single vendor for critical IT infrastructure.
Need for robust contract management to ensure service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $7.7 million to 3CHIEF LLC. SERVICE NOW LICENSES. ORDER ISSUED TO OBTAIN SERVICENOW LICENSES AND MAINTENANCE SUPPORT SERVICES WITH A PERIOD OF PERFORMANCE OF AUGUST 16, 2024, THROUGH AUGUST 15, 2027.

Who is the contractor on this award?

The obligated recipient is 3CHIEF LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $7.7 million.

What is the period of performance?

Start: 2024-08-16. End: 2026-08-15.

What is the specific breakdown of costs between licenses and maintenance support, and how does this compare to industry benchmarks?

The provided data does not detail the cost breakdown between ServiceNow licenses and maintenance support. A comprehensive analysis would require access to the contract's detailed pricing structure. Comparing these costs against industry benchmarks for similar enterprise software agreements is crucial for assessing value for money and ensuring taxpayer funds are utilized efficiently.

What are the key performance indicators (KPIs) for the maintenance support services, and how will performance be measured?

The data does not specify the Key Performance Indicators (KPIs) for the maintenance support services. Effective oversight requires clearly defined KPIs related to uptime, response times, issue resolution, and service level agreements. The agency should have a robust performance management plan in place to track these metrics and ensure the vendor meets contractual obligations.

What is the long-term strategy for ServiceNow utilization within the Department of Labor, and does this contract align with future IT modernization plans?

The contract duration of three years suggests a medium-term commitment to ServiceNow. Understanding the agency's broader IT modernization strategy is essential to determine if this investment aligns with future goals. Agencies should regularly assess their software portfolio to ensure it supports evolving mission needs and technological advancements, avoiding potential obsolescence or redundant spending.

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

Solicitation ID: 1605TB-24-Q-00110

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 215 DEPOT CT SE STE 247, LEESBURG, VA, 20175

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,056,379

Exercised Options: $7,657,218

Current Obligation: $7,657,218

Actual Outlays: $7,657,218

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD25B

IDV Type: GWAC

Timeline