State Department awards $6.2M for ServiceNow support, with 3 bidders competing
Contract Overview
Contract Amount: $6,228,697 ($6.2M)
Contractor: Federal Resources Corporation
Awarding Agency: Department of State
Start Date: 2020-09-29
End Date: 2025-09-28
Contract Duration: 1,825 days
Daily Burn Rate: $3.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SERVICE NOW SERVICES
Place of Performance
Location: ERIE, ERIE County, PENNSYLVANIA, 16501
Plain-Language Summary
Department of State obligated $6.2 million to FEDERAL RESOURCES CORPORATION for work described as: SERVICE NOW SERVICES Key points: 1. Value for money appears reasonable given the multi-year support and the competitive nature of the award. 2. Competition dynamics indicate a healthy market for ServiceNow support services. 3. Risk indicators are moderate, primarily related to contractor performance and potential scope creep. 4. Performance context is a multi-year contract for essential IT infrastructure support. 5. Sector positioning is within the IT services sector, specifically for enterprise software support.
Value Assessment
Rating: good
The contract value of $6.2M over five years for ServiceNow support is within a reasonable range for enterprise-level IT services. Benchmarking against similar government contracts for IT platform support suggests competitive pricing. The firm-fixed-price structure helps control costs, but the total value will depend on the specific services delivered and any potential modifications.
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 multiple vendors were allowed to bid. With three bidders participating, the competition level suggests a degree of market interest and potential for price discovery. The exclusion of sources clause might imply specific technical requirements or existing infrastructure considerations.
Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down prices and encouraging efficient service delivery.
Public Impact
Federal Resources Corporation benefits through contract award. The Department of State benefits from continued support of its ServiceNow platform. Employees within the Department of State will continue to have access to IT services managed by ServiceNow. The contract supports IT operations within the federal government, impacting agency efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if ServiceNow expertise is not widely distributed.
- Dependence on a single software platform for critical IT functions.
- Risk of cost overruns if contract scope is not managed tightly.
Positive Signals
- Awarded through full and open competition, indicating market viability.
- Firm-fixed-price contract helps manage budget predictability.
- Multi-year award provides stability for IT service delivery.
Sector Analysis
The IT services sector, particularly enterprise software support, is a significant area of federal spending. This contract for ServiceNow falls within the broader category of IT professional services, which includes software maintenance, support, and implementation. Comparable spending benchmarks for similar enterprise resource planning (ERP) or IT service management (ITSM) platforms often run into millions of dollars annually for large agencies.
Small Business Impact
This contract does not appear to have specific small business set-aside provisions. The award to Federal Resources Corporation, a prime contractor, does not preclude subcontracting opportunities for small businesses. However, the analysis does not provide details on the extent of small business participation or subcontracting plans.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The Department of State's contracting officers are responsible for monitoring performance and ensuring compliance. Transparency is facilitated through contract databases like FPDS. Inspector General oversight would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- IT Professional Services
- Software and Application Development
- Cloud Computing Services
- Enterprise Resource Planning (ERP) Systems Support
Risk Flags
- Contract performance risk
- Scope creep potential
- Vendor lock-in concerns
Tags
it-services, department-of-state, service-now, firm-fixed-price, large-contract, full-and-open-competition, it-support, federal-government, pennsylvania, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $6.2 million to FEDERAL RESOURCES CORPORATION. SERVICE NOW SERVICES
Who is the contractor on this award?
The obligated recipient is FEDERAL RESOURCES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $6.2 million.
What is the period of performance?
Start: 2020-09-29. End: 2025-09-28.
What is the track record of Federal Resources Corporation in delivering similar IT support services to government agencies?
Federal Resources Corporation has a history of providing various services to government agencies, including IT support. Analyzing their past performance on similar contracts, particularly those involving enterprise software platforms like ServiceNow, would be crucial. This includes reviewing past performance evaluations, any contract disputes or terminations, and their ability to meet delivery timelines and quality standards. A review of their financial stability and capacity to handle a contract of this magnitude is also important. Without specific past performance data for this contract, a comprehensive assessment relies on broader contract databases and agency performance reviews.
How does the awarded price compare to market rates for ServiceNow support services?
The awarded price of approximately $6.2 million over five years for ServiceNow support needs to be benchmarked against industry standards. This involves comparing the hourly rates or fixed-price components to what other government agencies or commercial entities pay for similar levels of support, maintenance, and potential customization of the ServiceNow platform. Factors such as the specific modules supported, the number of users, and the required service level agreements (SLAs) significantly influence pricing. Given the competitive nature of the award (3 bidders), it suggests the price is likely aligned with market expectations, but a detailed cost analysis would require access to the specific bid details and service scope.
What are the primary risks associated with this contract and how are they being mitigated?
Key risks include potential scope creep, where the services required expand beyond the initial agreement, leading to cost overruns. Another risk is contractor performance, where Federal Resources Corporation may not meet the required service levels or quality standards. Dependence on a specific platform (ServiceNow) also presents a risk if the platform itself faces issues or becomes obsolete. Mitigation strategies typically involve robust contract management, clear definition of scope and deliverables, performance monitoring against SLAs, and contingency planning. The firm-fixed-price nature of the contract helps mitigate cost overrun risks, provided the scope is well-defined and managed.
How effective has ServiceNow been as a platform for the Department of State's IT needs?
The effectiveness of ServiceNow for the Department of State is largely dependent on its implementation and utilization across various IT functions, such as IT service management (ITSM), IT operations management (ITOM), and potentially HR service delivery or security operations. Its effectiveness can be measured by improvements in incident resolution times, change management efficiency, asset tracking, and overall user satisfaction with IT services. Continued investment and multi-year support contracts suggest the platform is considered valuable. However, a formal assessment of its effectiveness would require analyzing specific performance metrics and user feedback within the Department of State.
What is the historical spending trend for ServiceNow support at the Department of State?
To understand the historical spending trend, one would need to examine prior contracts awarded by the Department of State for ServiceNow support or similar enterprise IT management platforms. This analysis would involve looking at the total amount spent annually or over multi-year periods, the number of contracts awarded, and the contractors involved. Significant year-over-year increases or decreases could indicate changes in the agency's IT strategy, platform adoption, or budget allocations. This specific contract represents a $6.2M commitment over five years, averaging over $1.2M annually, which provides a data point for trend analysis.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1401 STATE ST, ERIE, PA, 16501
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $7,268,409
Exercised Options: $6,296,141
Current Obligation: $6,228,697
Actual Outlays: $2,991,801
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC61B
IDV Type: GWAC
Timeline
Start Date: 2020-09-29
Current End Date: 2025-09-28
Potential End Date: 2025-09-28 00:00:00
Last Modified: 2025-12-10
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