NRC awards $3.7M for ServiceNow, with V3GATE, LLC securing the contract

Contract Overview

Contract Amount: $3,743,245 ($3.7M)

Contractor: V3gate, LLC

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2022-03-30

End Date: 2027-03-30

Contract Duration: 1,826 days

Daily Burn Rate: $2.0K/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: PURCHASE OF SERVICENOW LICENSES AND ASSOCIATED SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $3.7 million to V3GATE, LLC for work described as: PURCHASE OF SERVICENOW LICENSES AND ASSOCIATED SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating potential for future task orders. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The North American Industry Classification System (NAICS) code 541519 covers a broad range of computer-related services. 6. The contract duration of five years allows for sustained IT support.

Value Assessment

Rating: good

The contract value of $3.7 million over five years for ServiceNow licenses and support averages to approximately $748,000 annually. This figure seems competitive for enterprise-level IT software licensing and support, especially considering the specialized nature of government IT needs. Benchmarking against similar government contracts for IT software and support services would provide a more precise value-for-money assessment, but initial indications suggest a fair price point.

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,' which implies that while the initial solicitation might have had some exclusions, the final award was made through a broad competitive process. The presence of three bidders suggests a moderate level of competition. A higher number of bidders typically leads to more aggressive pricing and better value for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple vendors to bid, potentially driving down costs and ensuring the government receives competitive pricing.

Public Impact

The Nuclear Regulatory Commission (NRC) benefits from enhanced IT infrastructure and support. Users within the NRC will have access to updated ServiceNow functionalities for workflow management and IT service delivery. The contract supports IT operations primarily within Maryland, where the NRC is headquartered. The contract likely supports a workforce of IT professionals and end-users within the NRC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if ServiceNow becomes deeply integrated into NRC's core operations without clear exit strategies.
Reliance on a single software platform could pose risks if the platform experiences significant outages or security vulnerabilities.
The 'exclusion of sources' in the competition description warrants further investigation to ensure no viable competitors were unfairly excluded.

Positive Signals

The use of a firm fixed-price contract type provides cost certainty for the government.
The contract is awarded under a broad NAICS code, allowing flexibility in service delivery.
The five-year duration allows for stable IT support and planning.

Sector Analysis

The contract falls within the broader Information Technology (IT) sector, specifically focusing on software licensing and support services. The market for enterprise IT service management (ITSM) platforms like ServiceNow is robust, with significant government spending in this area. Comparable spending benchmarks would involve analyzing other federal agencies' procurements of similar ITSM solutions, which often range from hundreds of thousands to millions of dollars annually depending on the scope and user base.

Small Business Impact

There is no indication that this contract involved small business set-asides, as the 'ss' field is false. The prime contractor, V3GATE, LLC, is not explicitly identified as a small business in the provided data. Subcontracting opportunities for small businesses are not detailed but could exist if V3GATE engages them for specialized support or services related to the ServiceNow platform.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Nuclear Regulatory Commission. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services and licenses. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Software Licensing
IT Support Services
Cloud-Based Software
Enterprise Resource Planning (ERP) Software
IT Service Management (ITSM)

Risk Flags

Competition Level: While 'full and open', only 3 bidders participated, which could indicate limited effective competition.
Contract Duration: A 5-year term for software licenses and support requires careful ongoing management to ensure continued value.
Platform Dependency: Significant reliance on a single vendor's platform (ServiceNow) can create long-term strategic risks.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $3.7 million to V3GATE, LLC. PURCHASE OF SERVICENOW LICENSES AND ASSOCIATED SUPPORT

Who is the contractor on this award?

The obligated recipient is V3GATE, LLC.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2022-03-30. End: 2027-03-30.

What is the track record of V3GATE, LLC in delivering similar IT services to federal agencies?

Information regarding V3GATE, LLC's specific track record for delivering ServiceNow licenses and associated support to federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client references for V3GATE, LLC. Federal procurement databases and past performance questionnaires (PPQs) are key resources for this analysis. Understanding their experience with similar-sized contracts and government IT environments is crucial for evaluating their capability to fulfill this NRC requirement effectively and on time.

How does the annual cost of this ServiceNow contract compare to other federal agencies' spending on similar platforms?

The annual cost for this contract is approximately $748,000 ($3.7M / 5 years). To benchmark this effectively, we would need to compare it against federal spending data for similar ServiceNow deployments or comparable ITSM platforms (e.g., BMC, Ivanti) across agencies of similar size and complexity. Factors such as the number of users, modules licensed, and level of support (e.g., 24/7 vs. business hours) significantly influence pricing. Without access to a detailed breakdown of licensed modules and user counts for the NRC contract, a precise comparison is difficult, but this annual figure appears within a reasonable range for enterprise-level ITSM solutions in the federal space.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential vendor lock-in with ServiceNow, reliance on a single platform's stability and security, and the possibility of scope creep if requirements are not clearly defined. Mitigation strategies include the firm fixed-price contract type, which caps costs, and the competitive bidding process, which aims to secure favorable terms. The NRC's internal IT governance and oversight mechanisms are also critical for managing risks. Furthermore, ensuring robust Service Level Agreements (SLAs) within the contract can help mitigate performance-related risks and ensure timely support.

How effective is the ServiceNow platform in meeting the Nuclear Regulatory Commission's IT service management needs?

The effectiveness of the ServiceNow platform in meeting the NRC's specific needs is not directly assessed by this contract data alone. ServiceNow is a widely adopted ITSM tool known for its capabilities in IT workflow automation, incident management, problem management, and service catalog management. Its effectiveness for the NRC would depend on how well it is configured and utilized to support the agency's unique operational requirements, regulatory functions, and IT service delivery goals. User adoption rates and feedback from NRC staff would be key indicators of its practical effectiveness.

What are the historical spending patterns for ServiceNow or similar IT services at the Nuclear Regulatory Commission?

Historical spending data for ServiceNow or comparable IT services at the NRC is not provided in this dataset. To analyze historical patterns, one would need to examine prior contract awards for IT software, licenses, and support services issued by the NRC over several fiscal years. This would involve searching federal procurement databases for relevant NAICS codes and contract descriptions. Understanding past spending trends can help identify patterns of increasing or decreasing investment in IT infrastructure and software, and assess the consistency of procurement strategies.

What does the 'full and open competition after exclusion of sources' designation imply for the procurement process?

This designation suggests that the initial solicitation may have had specific criteria that excluded certain types of vendors or solutions. However, the 'full and open' aspect indicates that after these initial exclusions, the remaining pool of potential offerors was allowed to compete without further restrictions. This approach aims to balance the need for specialized solutions or compliance with certain requirements against the principle of broad competition. The specific reasons for the initial exclusion of sources would need further investigation to ensure they were justified and did not unduly limit competition, thereby potentially impacting price discovery and taxpayer value.

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 - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 31310022Q0038

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 555 MIDDLE CREEK PKWY STE 120, COLORADO SPRINGS, CO, 80921

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,743,245

Exercised Options: $3,743,245

Current Obligation: $3,743,245

Actual Outlays: $2,796,986

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD27B

IDV Type: GWAC

Timeline