SSA Spends $20.7M on ServiceNow Subscriptions via Carahsoft, Awarded Under BPA Call

Contract Overview

Contract Amount: $20,665,339 ($20.7M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Social Security Administration

Start Date: 2025-03-30

End Date: 2026-03-29

Contract Duration: 364 days

Daily Burn Rate: $56.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CALL ORDER FOR 12-MONTH SUBSCRIPTIONS FOR SERVICENOW SOFTWARE.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $20.7 million to CARAHSOFT TECHNOLOGY CORP for work described as: CALL ORDER FOR 12-MONTH SUBSCRIPTIONS FOR SERVICENOW SOFTWARE. Key points: 1. Significant investment in essential IT infrastructure for the Social Security Administration. 2. Relies on a single vendor, Carahsoft Technology Corp, for ServiceNow software. 3. Potential for cost savings through competitive bidding and volume discounts. 4. IT sector spending benchmark for software subscriptions is a key consideration.

Value Assessment

Rating: good

The total award amount of $20.7M for a 12-month subscription appears reasonable given the nature of enterprise software. Benchmarking against similar large-scale software license agreements would provide a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. This method is expected to foster price discovery and potentially lead to more competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required software.

Public Impact

Ensures continued operation of critical IT systems for the Social Security Administration. Supports agency-wide access to ServiceNow for workflow automation and case management. Potential impact on user experience and productivity based on software performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This spending falls within the IT sector, specifically software publishers. Government spending on enterprise software like ServiceNow is common for agencies seeking to modernize operations and improve efficiency.

Small Business Impact

While the awardee is Carahsoft Technology Corp, which often partners with small businesses, this specific contract does not indicate direct small business participation in the prime award. Further analysis of subcontracting would be needed.

Oversight & Accountability

The award was made under a BPA Call, suggesting it leverages an existing Blanket Purchase Agreement. Oversight should focus on adherence to BPA terms and conditions and ongoing performance monitoring.

Related Government Programs

Risk Flags

Tags

software-publishers, social-security-administration, va, bpa-call, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $20.7 million to CARAHSOFT TECHNOLOGY CORP. CALL ORDER FOR 12-MONTH SUBSCRIPTIONS FOR SERVICENOW SOFTWARE.

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2025-03-30. End: 2026-03-29.

What is the total cost of ownership for ServiceNow over a 3-5 year period, considering potential price escalations and implementation costs?

The total cost of ownership over 3-5 years would require projecting annual subscription fees, factoring in potential price increases (often capped by contract terms), and estimating costs for implementation, training, customization, and ongoing support. Without these additional data points, a precise TCO is difficult to ascertain, but the current $20.7M annual spend provides a baseline for future projections.

What are the key performance indicators (KPIs) used to measure the effectiveness of the ServiceNow subscription for the SSA?

Key performance indicators for ServiceNow effectiveness typically include metrics related to workflow efficiency (e.g., ticket resolution times, process cycle times), user adoption rates, system uptime and availability, and the successful automation of specific business processes. The SSA would likely track these to ensure the software delivers expected operational improvements and value.

How does the pricing of this ServiceNow subscription compare to similar enterprise software licenses procured by other federal agencies?

Benchmarking this $20.7M ServiceNow subscription against similar enterprise software licenses requires access to aggregated government procurement data (e.g., FPDS). Factors like user count, module scope, and contract duration influence pricing. A comparative analysis would reveal if the SSA secured competitive pricing relative to market rates for comparable software deployments.

Industry Classification

NAICS: InformationSoftware PublishersSoftware Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 28321325Q00000100

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11493 SUNSET HILLS RD, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $20,665,339

Exercised Options: $20,665,339

Current Obligation: $20,665,339

Actual Outlays: $20,665,339

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 28321325A00040016

IDV Type: BPA

Timeline

Start Date: 2025-03-30

Current End Date: 2026-03-29

Potential End Date: 2026-03-29 00:00:00

Last Modified: 2026-03-27

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