GSA awards $5.3M for ServiceNow licenses and support, with 4 bidders competing for a 1-year contract

Contract Overview

Contract Amount: $5,291,034 ($5.3M)

Contractor: Bahfed Corp

Awarding Agency: General Services Administration

Start Date: 2025-01-31

End Date: 2026-01-30

Contract Duration: 364 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 47HAA025F0013 - FY25 SERVICENOW LICENSES, SERVICE AND SUPPORT, POP 1-YEAR. 1/31/2025- 1/30/2026.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $5.3 million to BAHFED CORP for work described as: 47HAA025F0013 - FY25 SERVICENOW LICENSES, SERVICE AND SUPPORT, POP 1-YEAR. 1/31/2025- 1/30/2026. Key points: 1. The contract value represents a moderate investment in essential IT infrastructure for administrative services. 2. Competition dynamics suggest a healthy market for enterprise software solutions, potentially driving competitive pricing. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This award falls within the 'Other Computer Related Services' NAICS code, indicating a focus on specialized IT support. 5. The contract duration of one year allows for flexibility and reassessment of needs. 6. The General Services Administration (GSA) is a key player in procuring IT services for federal agencies.

Value Assessment

Rating: good

The contract value of approximately $5.3 million for a one-year term of ServiceNow licenses and support appears reasonable given the nature of enterprise software agreements. Benchmarking against similar federal contracts for IT software licenses and support services would provide a more precise value-for-money assessment. However, the presence of multiple bidders suggests that pricing was likely subject to competitive pressures, which generally leads to fair market value.

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 the opportunity was broadly advertised, and multiple vendors were allowed to bid. With four bidders participating, the level of competition is moderate, suggesting that BAHFED CORP was selected based on a combination of price and technical merit. This level of competition is generally sufficient to ensure fair price discovery and encourage vendors to offer competitive terms.

Taxpayer Impact: The moderate competition level for this IT services contract is beneficial for taxpayers, as it likely resulted in a more competitive price than a sole-source award. The presence of multiple bidders helps ensure that government funds are used efficiently.

Public Impact

Federal employees within agencies utilizing GSA's Office of Administrative Services will benefit from enhanced IT services and software. The contract ensures the continued availability of ServiceNow licenses and associated support, crucial for operational efficiency. The primary geographic impact is within the District of Columbia, where the Office of Administrative Services is located. The contract supports the IT services sector, potentially involving personnel with expertise in software licensing and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if ServiceNow becomes deeply integrated into agency workflows without regular re-competition.
Reliance on a single software platform could pose risks if the vendor experiences service disruptions or significant price increases in future years.

Positive Signals

The firm-fixed-price contract structure helps control costs and provides budget certainty.
The use of a widely adopted platform like ServiceNow suggests a standardized and potentially efficient solution.
The competitive bidding process indicates that multiple vendors were considered, promoting market-based pricing.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing and support. The market for enterprise resource planning (ERP) and IT service management (ITSM) software, such as ServiceNow, is substantial within the federal government. Agencies increasingly rely on these platforms for managing operations, workflows, and IT infrastructure. Comparable spending benchmarks would involve analyzing other federal contracts for similar software suites and support services, often in the multi-million dollar range annually.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be indirect, potentially through subcontracting opportunities if BAHFED CORP chooses to engage small businesses for specific services. Without explicit subcontracting plans detailed in the award, it's difficult to assess the direct benefit to small businesses from this particular contract.

Oversight & Accountability

The General Services Administration (GSA) generally has robust oversight mechanisms for its contracts, including the Office of Administrative Services. Accountability is typically managed through contract performance reviews, adherence to the firm-fixed-price terms, and reporting requirements. Transparency is often facilitated through public contract databases like FPDS. Inspector General oversight may apply depending on the specific nature of any potential issues or investigations related to contract performance or compliance.

Related Government Programs

Federal IT Software Licensing
IT Service Management Solutions
General Services Administration IT Procurement
Enterprise Resource Planning Software

Risk Flags

Potential for price increases upon contract renewal.
Reliance on a single software vendor.
Need for ongoing performance monitoring to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5.3 million to BAHFED CORP. 47HAA025F0013 - FY25 SERVICENOW LICENSES, SERVICE AND SUPPORT, POP 1-YEAR. 1/31/2025- 1/30/2026.

Who is the contractor on this award?

The obligated recipient is BAHFED CORP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Office of Administrative Services).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2025-01-31. End: 2026-01-30.

What is the track record of BAHFED CORP in delivering similar IT services to the federal government?

Assessing BAHFED CORP's track record requires examining their past performance on federal contracts, particularly those involving IT software licensing, service, and support. A review of contract databases would reveal their history of successful contract completions, any past performance issues, and their experience with platforms like ServiceNow. Understanding their financial stability and capacity to handle contracts of this size is also crucial. Positive past performance indicators would include timely delivery, adherence to budget, and positive client feedback, while negative indicators might include contract disputes, performance failures, or significant cost overruns on previous awards.

How does the awarded price compare to market rates for ServiceNow licenses and support?

To compare the awarded price of approximately $5.3 million for a one-year term against market rates for ServiceNow licenses and support, one would need to benchmark against similar federal and potentially large commercial contracts. This involves analyzing the specific modules and user counts included in the GSA contract and comparing them to published pricing or data from other government solicitations. Factors such as volume discounts, negotiated enterprise agreements, and the specific support tiers (e.g., standard vs. premium) significantly influence per-unit costs. Without access to the detailed breakdown of licenses and support levels, a precise comparison is challenging, but the competitive nature of the award suggests the price is likely within a reasonable market range.

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

The primary risks associated with this contract include potential vendor lock-in, reliance on a single software provider, and the possibility of future price increases upon renewal. Vendor lock-in can occur if ServiceNow becomes deeply integrated into agency workflows, making transitions difficult and costly. Reliance on a single provider poses a risk if the vendor experiences service disruptions or faces financial instability. Future price increases are a concern, especially after the initial contract term. Mitigation strategies include the firm-fixed-price structure for the current term, which caps costs, and the competitive nature of the award, which encourages fair pricing. For future renewals, GSA can mitigate risks by conducting thorough market research, encouraging competition, and potentially exploring alternative solutions.

How effective is the chosen software (ServiceNow) in meeting the administrative service needs of the GSA?

ServiceNow is a widely recognized and utilized platform for IT Service Management (ITSM), workflow automation, and enterprise resource planning (ERP) functions. Its effectiveness in meeting GSA's administrative service needs likely stems from its ability to streamline IT support, manage service requests, automate business processes, and provide a centralized platform for various administrative tasks. The fact that GSA is procuring licenses and support suggests a recognized need and perceived value. Effectiveness can be measured by improvements in service delivery times, user satisfaction, operational efficiency gains, and the successful automation of previously manual processes. Continuous monitoring and user feedback are essential to ensure ongoing effectiveness.

What are the historical spending patterns for ServiceNow licenses and support within the GSA or similar agencies?

Historical spending patterns for ServiceNow licenses and support within the GSA and similar federal agencies typically show a trend of increasing investment as agencies adopt and expand their use of the platform. These platforms are often critical for modernizing IT operations and improving service delivery. Spending can fluctuate based on agency-wide implementations, upgrades, and the addition of new modules or user groups. Analyzing past contract awards for ServiceNow within GSA or other large civilian agencies would reveal trends in contract values, durations, and the number of competitive bids received over time, providing context for the current $5.3 million award.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47HAA025Q0018

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1000 SW BROADWAY STE 1110, PORTLAND, OR, 97205

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,746,759

Exercised Options: $5,291,034

Current Obligation: $5,291,034

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD09B

IDV Type: GWAC

Timeline