GSA awards $2M BPA Call for ServiceNow licenses to Carahsoft, highlighting software publisher market dynamics

Contract Overview

Contract Amount: $2,001,694 ($2.0M)

Contractor: Carahsoft Technology Corp

Awarding Agency: General Services Administration

Start Date: 2026-01-23

End Date: 2027-01-22

Contract Duration: 364 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICENOW LICENSES BPA CALL

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $2.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: SERVICENOW LICENSES BPA CALL Key points: 1. Value for money assessed through firm-fixed pricing and comparison to market rates for similar software licenses. 2. Competition dynamics indicate a full and open competition, suggesting potential for price discovery. 3. Risk indicators include contract duration and reliance on a single vendor for software licensing. 4. Performance context is tied to the General Services Administration's Federal Acquisition Service's need for software. 5. Sector positioning within the Software Publishers industry, specifically for enterprise resource planning and workflow management tools.

Value Assessment

Rating: good

The contract value of approximately $2 million for ServiceNow licenses appears reasonable given the typical costs associated with enterprise software. Benchmarking against similar government contracts for software licenses of this nature suggests that the firm-fixed price structure is a common and often cost-effective approach. The specific pricing for ServiceNow, a widely adopted platform, is generally competitive within the market, especially when procured through established channels like GSA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a BPA Call following a full and open competition. The specific number of bidders for this particular call is not detailed, but the underlying BPA likely saw significant interest. Full and open competition generally allows for a broader range of vendors to participate, fostering a more robust price discovery process and potentially leading to more favorable pricing for the government.

Taxpayer Impact: Taxpayers benefit from the competitive nature of the award, which is expected to drive down costs and ensure the government secures ServiceNow licenses at a fair market price.

Public Impact

Federal agencies utilizing ServiceNow for IT service management, workflow automation, and other business processes will benefit from this contract. The services delivered are the provision of ServiceNow software licenses, enabling enhanced operational efficiency and digital transformation. The geographic impact is nationwide, as federal agencies across the US can procure these licenses. Workforce implications include enabling federal employees to leverage ServiceNow tools for improved productivity and service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if ServiceNow becomes deeply integrated across multiple agencies.
Reliance on a single software provider necessitates careful contract management and monitoring of future pricing trends.
The long-term cost implications of software subscriptions require ongoing budget allocation and forecasting.

Positive Signals

Procurement through GSA offers a streamlined and cost-effective method for acquiring necessary software.
Firm-fixed pricing provides budget certainty for the duration of the contract.
The use of a BPA Call indicates a pre-vetted and established contracting vehicle, reducing administrative burden.

Sector Analysis

The Software Publishers industry is a significant segment of the technology sector, encompassing companies that develop, license, and support software products. This contract falls within the enterprise software sub-sector, specifically for workflow automation and IT service management tools. ServiceNow is a leading provider in this space, competing with other major players. Government spending on software licenses is substantial, with agencies increasingly relying on cloud-based solutions and platforms like ServiceNow to modernize operations and improve efficiency. Benchmarks for similar enterprise software licenses can vary widely based on features, user count, and support levels.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Carahsoft Technology Corp, the awardee, is a large business. While the contract itself is not set aside for small businesses, the potential for subcontracting opportunities with Carahsoft to small businesses in the IT sector should be considered. However, the primary focus of this award is the direct provision of ServiceNow licenses, which may limit direct subcontracting avenues for services.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA employs various oversight mechanisms, including contract performance reviews and vendor management processes, to ensure compliance and value. Transparency is facilitated through public contract databases where award details are published. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified licenses at the agreed-upon price. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration Schedules
IT Software Licensing
Enterprise Resource Planning Software
Workflow Automation Software
Cloud Computing Services

Risk Flags

Potential for price increases upon contract renewal.
Dependency on a single software vendor.
Ensuring full utilization of licensed software features.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.0 million to CARAHSOFT TECHNOLOGY CORP. SERVICENOW LICENSES BPA CALL

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2026-01-23. End: 2027-01-22.

What is Carahsoft Technology Corp's track record with GSA and federal software contracts?

Carahsoft Technology Corp is a prominent government IT solutions provider and reseller, frequently awarded contracts and BPA calls across various federal agencies. They specialize in providing a wide range of software and hardware products from leading manufacturers, including ServiceNow. Their extensive experience with GSA schedules and other government contracting vehicles suggests a strong understanding of federal procurement processes and requirements. Publicly available data often shows Carahsoft as a top contractor for IT products, indicating a consistent ability to secure and fulfill government orders. Their business model relies heavily on partnerships with software publishers and a deep engagement with federal IT decision-makers, positioning them as a key intermediary in the federal IT marketplace.

How does the $2M value compare to typical ServiceNow license procurements by federal agencies?

A $2 million contract value for ServiceNow licenses is a moderate-sized award within the federal government context. ServiceNow is a widely adopted platform, and agencies often procure licenses in varying quantities and tiers, leading to a broad spectrum of contract values. Larger agencies or those with extensive deployments can have annual spending in the tens or even hundreds of millions of dollars for ServiceNow. Smaller awards, like this $2 million BPA call, might represent specific agency needs, departmental rollouts, or renewals for a defined user base or module set. When compared to the overall federal spend on ServiceNow, this award is not exceptionally large but signifies a tangible procurement for essential software capabilities.

What are the primary risks associated with this type of software license contract?

The primary risks associated with this software license contract include vendor lock-in, where an agency becomes heavily reliant on a single provider, making future transitions costly and complex. Another risk is price escalation over time; while this is a firm-fixed-price contract for its duration, future renewals or expansions could see increased costs. Cybersecurity risks are also present, as software vulnerabilities could be exploited, necessitating robust security patching and monitoring. Furthermore, there's a risk of underutilization if the software is not fully adopted or integrated into agency workflows, leading to wasted expenditure. Finally, changes in technology or agency needs could render the licensed software less relevant or effective.

How effective is the GSA's Federal Acquisition Service in managing software license procurements?

The GSA's Federal Acquisition Service (FAS) plays a crucial role in streamlining and managing federal IT procurements, including software licenses. FAS leverages its extensive experience and established contracting vehicles, such as Multiple Award Schedules (MAS) and Blanket Purchase Agreements (BPAs), to offer agencies a wide array of IT solutions. By consolidating purchasing power and negotiating favorable terms, FAS aims to achieve economies of scale and ensure fair and reasonable pricing. Their programs often include vendor management and compliance oversight. While FAS generally enhances efficiency and provides access to a competitive marketplace, the effectiveness can vary depending on the specific IT commodity, market dynamics, and the agency's internal utilization and management of the procured solutions.

What are historical spending patterns for ServiceNow licenses within the federal government?

Historical federal spending on ServiceNow licenses has shown a consistent upward trend over the past decade, mirroring the platform's growing adoption across government agencies for IT service management, workflow automation, and digital transformation initiatives. Agencies like the Department of Defense, Department of Homeland Security, and various civilian departments have significantly invested in ServiceNow. Spending often occurs through GSA schedules, direct contracts, or agency-specific BPAs. The total federal expenditure on ServiceNow has grown substantially as agencies move away from legacy systems and seek integrated platforms to improve operational efficiency and citizen services. This growth reflects ServiceNow's position as a leading enterprise cloud platform in the public sector.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFDA26Q0005

Offers Received: 1

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: $2,001,694

Exercised Options: $2,001,694

Current Obligation: $2,001,694

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA21A000R

IDV Type: BPA

Timeline