VA Awards $116M ServiceNow SaaS Contract to Metgreen Solutions Inc
Contract Overview
Contract Amount: $116,219,872 ($116.2M)
Contractor: Metgreen Solutions Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2020-09-22
End Date: 2023-09-21
Contract Duration: 1,094 days
Daily Burn Rate: $106.2K/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: SERVICENOW SOFTWARE-AS-A-SERVICE (SAAS) LICENSE ENTITLEMENTS
Place of Performance
Location: OMAHA, DOUGLAS County, NEBRASKA, 68130
State: Nebraska Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $116.2 million to METGREEN SOLUTIONS INC for work described as: SERVICENOW SOFTWARE-AS-A-SERVICE (SAAS) LICENSE ENTITLEMENTS Key points: 1. Significant investment in IT infrastructure for the VA. 2. Metgreen Solutions Inc. secured a substantial contract. 3. Potential risks include vendor lock-in and data security. 4. Focus on IT services, specifically software licensing.
Value Assessment
Rating: fair
The contract value of $116M for ServiceNow SaaS entitlements appears high. Benchmarking against similar large-scale SaaS agreements is necessary to determine if the pricing is competitive, especially given the duration and scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery and potentially lead to higher costs compared to broader competition.
Taxpayer Impact: Taxpayer funds are being used for a significant IT software procurement. Ensuring value for money and efficient use of resources is crucial.
Public Impact
Veterans Affairs gains access to essential ServiceNow capabilities. Potential for improved IT service management and operational efficiency. Concerns about the long-term cost and necessity of this specific software suite.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- High contract value
- Potential for vendor lock-in
Positive Signals
- Essential IT service for VA operations
- Clear contract duration
Sector Analysis
This contract falls within the IT sector, specifically Software-as-a-Service (SaaS) licensing. Spending benchmarks for enterprise-level SaaS solutions can vary widely based on vendor, features, and user base.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight will be critical to ensure Metgreen Solutions Inc. delivers the contracted ServiceNow entitlements effectively and that the VA maximizes the value of this significant investment.
Related Government Programs
- Other Computer Related Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition may inflate costs.
- Potential for vendor lock-in with ServiceNow.
- Reliance on a single vendor for critical IT services.
- Data security and privacy risks associated with SaaS.
Tags
other-computer-related-services, department-of-veterans-affairs, ne, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $116.2 million to METGREEN SOLUTIONS INC. SERVICENOW SOFTWARE-AS-A-SERVICE (SAAS) LICENSE ENTITLEMENTS
Who is the contractor on this award?
The obligated recipient is METGREEN SOLUTIONS INC.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $116.2 million.
What is the period of performance?
Start: 2020-09-22. End: 2023-09-21.
What is the total cost of ownership for this ServiceNow implementation over its lifecycle, including potential future expansions or support?
The total cost of ownership requires a comprehensive analysis beyond the initial $116M award. It should factor in ongoing subscription fees, potential customization costs, integration expenses with existing VA systems, and long-term support and maintenance. Without this broader view, the true financial impact on taxpayers remains unclear.
What are the specific cybersecurity measures and data protection protocols in place for this SaaS contract, given the sensitive nature of VA data?
Robust cybersecurity measures are paramount. The contract should detail Metgreen Solutions Inc.'s adherence to federal data security standards (e.g., FISMA, NIST). This includes encryption, access controls, regular security audits, and incident response plans to safeguard sensitive veteran information from breaches and unauthorized access.
How does the VA plan to measure the effectiveness and return on investment (ROI) of this ServiceNow SaaS deployment?
Effectiveness measurement should involve defining key performance indicators (KPIs) related to IT service delivery, user satisfaction, and operational efficiency improvements. ROI can be assessed by comparing the cost of the ServiceNow solution against quantifiable benefits, such as reduced manual processes, faster issue resolution times, and improved data accessibility for VA staff.
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 › 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: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3203 KOENIGSTEIN AVE, NORFOLK, NE, 68701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $527,619,024
Exercised Options: $116,219,872
Current Obligation: $116,219,872
Actual Outlays: $2,162,595
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD37B
IDV Type: GWAC
Timeline
Start Date: 2020-09-22
Current End Date: 2023-09-21
Potential End Date: 2023-09-21 00:00:00
Last Modified: 2023-09-19
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