State Department awards $44.2M for ServiceNow platform, with 2 bids received

Contract Overview

Contract Amount: $44,191,478 ($44.2M)

Contractor: Incentive Technology Group LLC

Awarding Agency: Department of State

Start Date: 2018-09-30

End Date: 2025-03-31

Contract Duration: 2,374 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SERVICENOW PLATFORM DEVELOPMENT AND OPERATIONS AND SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $44.2 million to INCENTIVE TECHNOLOGY GROUP LLC for work described as: SERVICENOW PLATFORM DEVELOPMENT AND OPERATIONS AND SUPPORT Key points: 1. Value for money appears fair given the scope of platform development and ongoing support. 2. Competition dynamics suggest limited but present market interest for this specialized service. 3. Risk indicators are moderate, with performance dependent on contractor expertise and government oversight. 4. Performance context is a multi-year effort requiring sustained development and operational capabilities. 5. Sector positioning is within IT services, specifically custom software development and platform management.

Value Assessment

Rating: fair

The contract value of $44.2 million over approximately seven years suggests a moderate annual spend. Benchmarking against similar large-scale IT platform development and support contracts is challenging without more granular cost breakdowns. However, the pricing appears to be within a reasonable range for complex, long-term IT service agreements, assuming the delivered services meet the defined requirements and quality standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was intended to be broad, certain sources were excluded. Only two bids were received, which is on the lower end for a contract of this magnitude and suggests potential limitations in the market's responsiveness or the specific requirements of the solicitation. The limited number of bidders may have impacted price discovery, potentially leading to a less competitive outcome than a broader competition.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the most aggressive pricing that could have been achieved with a larger pool of interested and capable vendors. This could translate to a higher overall cost for the government.

Public Impact

The Department of State benefits from enhanced IT capabilities through the ServiceNow platform. Services delivered include platform development, operations, and ongoing support, improving internal processes. The geographic impact is primarily within the Department of State's operational footprint. Workforce implications include the need for skilled IT personnel to manage and utilize the platform effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
Contract duration and value may present challenges for effective oversight.
Dependence on a single contractor for critical platform support carries inherent risks.

Positive Signals

The contract is for a critical IT platform supporting government operations.
The chosen contractor has a track record in IT services.
The multi-year nature allows for sustained development and improvement.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom software development, platform management, and IT operations support. The market for enterprise IT platforms like ServiceNow is substantial, with numerous vendors offering development, integration, and support services. The Department of State's spending aligns with broader government trends towards modernizing IT infrastructure and leveraging cloud-based solutions to improve efficiency and service delivery. Comparable spending benchmarks would typically be found in large-scale IT modernization efforts across federal agencies.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'small business set-aside' field is false. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of State's contracting officers, program managers, and potentially an Inspector General's office. Accountability measures are established through the contract's performance work statement, delivery schedules, and payment terms. Transparency is facilitated through contract award databases and reporting requirements, though detailed operational oversight information is often internal.

Related Government Programs

ServiceNow Platform Modernization
Federal IT Infrastructure Modernization
Custom Software Development Services
IT Operations and Support Contracts

Risk Flags

Limited competition may impact cost-effectiveness.
Contract duration requires sustained oversight.
Dependence on specific platform technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $44.2 million to INCENTIVE TECHNOLOGY GROUP LLC. SERVICENOW PLATFORM DEVELOPMENT AND OPERATIONS AND SUPPORT

Who is the contractor on this award?

The obligated recipient is INCENTIVE TECHNOLOGY GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $44.2 million.

What is the period of performance?

Start: 2018-09-30. End: 2025-03-31.

What is the historical spending pattern for ServiceNow platform services at the Department of State?

Analyzing historical spending on ServiceNow at the Department of State requires access to detailed contract databases beyond this single award. However, the current award of $44.2 million over approximately seven years suggests a significant and sustained investment in the platform. Federal agencies increasingly rely on platforms like ServiceNow for IT service management, workflow automation, and citizen engagement. Trends indicate a growing expenditure across government for such enterprise solutions, driven by the need for digital transformation and operational efficiency. Without prior contract data, it's difficult to establish a precise historical trend, but this award signifies a substantial commitment to the platform's continued development and support.

How does the number of bidders compare to similar IT platform development contracts?

Receiving only two bids for a contract valued at $44.2 million for IT platform development and support is relatively low. For large-scale, complex IT services, federal agencies often aim for broader competition to ensure optimal pricing and vendor selection. Contracts of this nature, especially those requiring specialized expertise in platforms like ServiceNow, can sometimes attract fewer bidders if the market is concentrated or if the solicitation's requirements are highly specific. However, a more typical scenario for significant IT contracts might see anywhere from three to ten or more bids, depending on the agency's outreach and the market's competitiveness. The limited number here warrants attention regarding potential market barriers or solicitation design.

What are the key performance indicators (KPIs) for this contract, and how are they measured?

Specific Key Performance Indicators (KPIs) for this ServiceNow Platform Development and Operations contract are not detailed in the provided data. Typically, such contracts would include KPIs related to system uptime, response times for support requests, successful deployment of new features, adherence to security protocols, and user satisfaction. Performance measurement would likely involve regular reporting by the contractor, government acceptance testing, and potentially user feedback mechanisms. The contract's Performance Work Statement (PWS) would outline these KPIs, their targets, and the methods for tracking and evaluating performance, which are crucial for ensuring the government receives the expected value and service quality.

What is the contractor's track record with the Department of State and similar federal agencies?

The contractor, INCENTIVE TECHNOLOGY GROUP LLC, has been awarded this contract by the Department of State. To assess their track record, one would need to examine their past performance on previous contracts, particularly with the Department of State and other federal agencies. This includes reviewing past performance evaluations, any contract disputes or terminations, and the successful delivery of similar IT services. While the award itself indicates the Department of State found them capable, a deeper dive into their history would reveal their reliability, technical proficiency, and ability to manage complex IT projects within budget and schedule constraints.

Are there any identified risks associated with the ServiceNow platform itself or its implementation?

Risks associated with the ServiceNow platform and its implementation can be categorized into several areas. Technical risks include potential integration challenges with existing systems, scalability issues as user demands grow, and cybersecurity vulnerabilities if not properly managed. Operational risks involve reliance on the platform for critical business processes, potential disruptions due to outages or performance degradation, and the need for continuous training for users and administrators. Implementation risks often stem from scope creep, inadequate project management, and insufficient stakeholder engagement. The Department of State would need robust risk management strategies, including contingency planning and regular security assessments, to mitigate these potential issues throughout the contract lifecycle.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

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: LABOR HOURS (Z)

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: $44,191,478

Exercised Options: $44,191,478

Current Obligation: $44,191,478

Actual Outlays: $12,473,988

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $216,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200134W

IDV Type: GWAC

Timeline