DOT's FHWA Renews ServiceNow Licenses for $8.8M, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $8,809,017 ($8.8M)
Contractor: Bahfed Corp
Awarding Agency: Department of Transportation
Start Date: 2023-09-29
End Date: 2026-09-28
Contract Duration: 1,095 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TASK ORDER TO RENEW SERVICENOW LICENSES.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590
Plain-Language Summary
Department of Transportation obligated $8.8 million to BAHFED CORP for work described as: TASK ORDER TO RENEW SERVICENOW LICENSES. Key points: 1. Significant spending on essential IT infrastructure for the Federal Highway Administration. 2. Competition was open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to software license renewals and vendor lock-in. 4. IT sector spending, specifically on SaaS solutions for government operations.
Value Assessment
Rating: good
The $8.8 million price for a 3-year ServiceNow license renewal appears reasonable given the platform's comprehensive capabilities and the competitive bidding process. Benchmarking against similar government SaaS contracts would provide further validation.
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, indicating a robust price discovery process. This method generally leads to more competitive pricing than sole-source or limited competition.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential IT services, preventing overpayment for software licenses.
Public Impact
Ensures continued operation of critical IT systems for the Federal Highway Administration. Supports data management, workflow automation, and service delivery for agency staff. Potential for cost savings through competitive bidding on essential software.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Warning Flags
- Reliance on a single software vendor for core IT functions.
- Potential for price increases in future renewals.
- Ensuring adequate training and adoption for full ROI.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract limits cost uncertainty.
- Long-term renewal ensures operational continuity.
Sector Analysis
This contract falls within the IT sector, specifically for Software as a Service (SaaS) solutions. Government spending on enterprise IT platforms like ServiceNow is substantial and growing, reflecting the need for modern digital infrastructure.
Small Business Impact
The data does not indicate if small businesses were involved in this specific task order. However, large enterprise software contracts often involve prime contractors who may subcontract to smaller IT service providers.
Oversight & Accountability
The award was made under full and open competition, suggesting adherence to procurement regulations. Continued oversight will be necessary to ensure the agency maximizes the value of the ServiceNow platform and manages future renewals effectively.
Related Government Programs
- Other Computer Related Services
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Vendor Lock-in
- Potential for Future Price Increases
- Software Underutilization
- Cybersecurity Risks
Tags
other-computer-related-services, department-of-transportation, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $8.8 million to BAHFED CORP. TASK ORDER TO RENEW SERVICENOW LICENSES.
Who is the contractor on this award?
The obligated recipient is BAHFED CORP.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Highway Administration).
What is the total obligated amount?
The obligated amount is $8.8 million.
What is the period of performance?
Start: 2023-09-29. End: 2026-09-28.
What is the specific functionality ServiceNow provides to the Federal Highway Administration?
ServiceNow provides a cloud-based platform for IT service management, workflow automation, and operational efficiency. For the FHWA, this likely includes managing IT assets, tracking service requests, automating internal processes, and potentially supporting broader agency operations beyond traditional IT.
What are the risks associated with renewing a large software license like ServiceNow?
Key risks include vendor lock-in, where switching providers becomes prohibitively expensive or complex. There's also the risk of price escalations in future renewals, potential underutilization of features leading to wasted investment, and security vulnerabilities if the platform isn't managed properly.
How does this contract contribute to the FHWA's overall mission effectiveness?
By ensuring continuity of essential IT services, this renewal directly supports the FHWA's mission. A well-functioning ServiceNow platform can streamline operations, improve data accessibility, enhance collaboration, and ultimately enable the agency to more effectively manage transportation infrastructure projects and policies.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: WC2023S80CIOK0227
Offers Received: 5
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: $8,809,017
Exercised Options: $8,809,017
Current Obligation: $8,809,017
Actual Outlays: $8,809,017
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD09B
IDV Type: GWAC
Timeline
Start Date: 2023-09-29
Current End Date: 2026-09-28
Potential End Date: 2026-09-28 00:00:00
Last Modified: 2026-01-06
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