SSA Spends $1.7M on ServiceNow Subscriptions via Carahsoft Technology Corp
Contract Overview
Contract Amount: $1,721,433 ($1.7M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Social Security Administration
Start Date: 2026-03-27
End Date: 2026-04-29
Contract Duration: 33 days
Daily Burn Rate: $52.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SUBSCRIPTIONS TO SERVICENOW SOFTWARE.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Social Security Administration obligated $1.7 million to CARAHSOFT TECHNOLOGY CORP for work described as: SUBSCRIPTIONS TO SERVICENOW SOFTWARE. Key points: 1. Spending on ServiceNow subscriptions is a significant operational cost for the SSA. 2. Carahsoft Technology Corp. is a key reseller, indicating potential market concentration. 3. The contract's fixed price and BPA call award method warrant scrutiny for value. 4. Software Publishers sector spending benchmarks are relevant for assessing this expenditure.
Value Assessment
Rating: fair
The $1.72M expenditure for ServiceNow subscriptions appears high, especially given the short duration. Benchmarking against similar government-wide contracts for ServiceNow or comparable SaaS solutions is crucial to determine if the pricing is competitive and reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under a BPA call with full and open competition, this method should theoretically drive competitive pricing. However, the reliance on a specific reseller like Carahsoft may limit the true price discovery and could indicate a less competitive outcome than anticipated.
Taxpayer Impact: Taxpayers are funding essential software subscriptions. While competition was sought, the final price paid needs validation against market rates to ensure efficient use of public funds.
Public Impact
Ensures critical IT infrastructure for the Social Security Administration. Supports ongoing operations and service delivery through essential software. Potential for cost savings if pricing is optimized through further competition or negotiation. Highlights reliance on specific software vendors and resellers in government IT.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized software.
- Reseller reliance may obscure direct vendor pricing.
- Short contract duration could lead to frequent re-procurement costs.
Positive Signals
- Awarded under full and open competition.
- Utilizes a Blanket Purchase Agreement (BPA) call, a common government procurement vehicle.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
The IT sector, particularly software subscriptions, represents a growing area of government spending. Benchmarks for SaaS contracts vary widely, but consistent spending on platforms like ServiceNow suggests a recognized need and integration within agency operations.
Small Business Impact
While Carahsoft Technology Corp. is a large reseller, the contract details do not explicitly indicate set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved in the supply chain or if opportunities were missed.
Oversight & Accountability
The use of a BPA call suggests existing contract vehicles are being leveraged. Oversight should focus on ensuring the pricing within this call remains competitive and aligned with the original BPA's intent, and that the agency is not overpaying for the subscription.
Related Government Programs
- Software Publishers
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Potential for high reseller markups.
- Limited visibility into direct vendor pricing.
- Risk of vendor lock-in with specialized software.
- Need for ongoing price benchmarking to ensure value.
Tags
software-publishers, social-security-administration, va, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $1.7 million to CARAHSOFT TECHNOLOGY CORP. SUBSCRIPTIONS TO 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 $1.7 million.
What is the period of performance?
Start: 2026-03-27. End: 2026-04-29.
What is the total cost of ServiceNow subscriptions across all federal agencies, and how does this specific contract's per-user or per-feature cost compare?
Determining the total federal spend on ServiceNow requires aggregating data across multiple agencies and contract vehicles. Comparing per-unit costs is challenging due to varying license types, user counts, and feature sets. However, agencies should regularly benchmark against GSA schedules or other government-wide agreements to ensure they are receiving competitive pricing for their specific subscription needs.
Given Carahsoft's role as a reseller, what is the potential markup, and how does this impact the overall value proposition for the SSA?
Carahsoft operates as a reseller, meaning their pricing includes a margin. The exact markup is not publicly disclosed and can vary. The SSA should ensure that the final price paid, even through a reseller, is competitive with direct purchasing options or other reseller channels. Understanding the value-added services Carahsoft provides is also key to assessing the overall proposition.
How effectively does this ServiceNow subscription support the SSA's mission-critical functions, and are there alternative solutions that could offer better value or performance?
ServiceNow is widely used for IT service management, workflow automation, and case management, which are likely critical for the SSA's operations. Evaluating effectiveness involves assessing uptime, user satisfaction, and the achievement of specific operational goals. A periodic review of the market for alternative platforms is prudent to ensure continued value and alignment with evolving agency needs and technological advancements.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $2,119,433
Exercised Options: $1,721,433
Current Obligation: $1,721,433
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 28321325A00040016
IDV Type: BPA
Timeline
Start Date: 2026-03-27
Current End Date: 2026-04-29
Potential End Date: 2026-04-29 00:00:00
Last Modified: 2026-04-02
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