DHS awards $20M for ServiceNow support, with CACI NSS, LLC securing the contract

Contract Overview

Contract Amount: $19,983,358 ($20.0M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-29

End Date: 2025-10-10

Contract Duration: 376 days

Daily Burn Rate: $53.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SERVICENOW DEVELOPMENT AND ARCHITECTURE SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.0 million to CACI NSS, LLC for work described as: SERVICENOW DEVELOPMENT AND ARCHITECTURE SUPPORT SERVICES 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. Potential risks include reliance on a single vendor for critical IT architecture. 4. Performance context is within IT services, a common area for federal spending. 5. This contract positions CACI NSS, LLC as a key provider for ServiceNow solutions within DHS. 6. The contract's time and materials pricing model may require close monitoring to control costs.

Value Assessment

Rating: good

The contract value of approximately $20 million for a 13-month period for ServiceNow development and architecture support appears within a reasonable range for specialized IT services. Benchmarking against similar contracts for enterprise IT platform support suggests that this pricing is competitive. The time and materials (T&M) contract type, while offering flexibility, necessitates diligent oversight to ensure cost-effectiveness and prevent scope creep. Without specific details on the labor categories and rates, a precise value-for-money assessment is challenging, but the overall award size does not immediately raise red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the use of full and open competition generally fosters a competitive environment, which is expected to lead to better pricing and service offerings. This approach allows the government to leverage the widest possible pool of qualified contractors, promoting innovation and efficiency.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the increased number of firms vying for the contract.

Public Impact

The Department of Homeland Security (DHS) will benefit from enhanced ServiceNow capabilities. Services delivered include development and architecture support for the ServiceNow platform. The geographic impact is primarily within DHS operations, likely supporting federal employees and contractors. Workforce implications may include the need for specialized ServiceNow developers and architects, potentially sourced from CACI NSS, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the time and materials pricing structure.
Dependence on a single contractor for critical ServiceNow architecture could pose a risk.
Scope creep could increase the overall cost beyond initial projections without strict management.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration provides stability for ongoing IT support needs.
Focus on a critical enterprise IT platform (ServiceNow) indicates strategic investment.

Sector Analysis

The IT services sector, particularly within enterprise resource planning (ERP) and IT service management (ITSM) platforms like ServiceNow, is a significant area of federal spending. This contract fits within the broader category of IT professional services, which includes software development, system integration, and architecture support. Comparable spending benchmarks for similar ITSM platform support contracts can vary widely based on the complexity of the environment and the specific services required. The market for ServiceNow expertise is competitive, with numerous firms offering specialized skills.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to CACI NSS, LLC, a large business, suggests that the primary focus was on securing specialized expertise for the ServiceNow platform. The impact on the small business ecosystem is neutral in this instance, as there were no explicit provisions to engage small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the Department of Homeland Security. Accountability measures will be tied to the performance work statement (PWS) and the terms of the time and materials contract. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Software Development and Engineering
Enterprise Resource Planning (ERP) Support
IT Service Management (ITSM)
Cloud Computing Services

Risk Flags

Time and Materials Contract Type
Potential for Vendor Lock-in
Reliance on Single Contractor for Critical Systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.0 million to CACI NSS, LLC. SERVICENOW DEVELOPMENT AND ARCHITECTURE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2024-09-29. End: 2025-10-10.

What is the historical spending pattern for ServiceNow support services within DHS?

Historical spending on ServiceNow support services within the Department of Homeland Security (DHS) has likely been substantial, reflecting the platform's critical role in managing IT service delivery, workflows, and operational processes across the department. While specific historical dollar amounts for this exact contract type or vendor are not provided, federal agencies typically invest significant resources in maintaining and enhancing enterprise-level platforms like ServiceNow. This includes funding for development, customization, integration, and ongoing administration. Trends often show increasing investment as agencies expand their use of ServiceNow to new modules and departments, aiming for greater efficiency and standardization. The duration and value of this current award suggest a continued commitment to leveraging ServiceNow capabilities within DHS.

How does the awarded price compare to market rates for similar ServiceNow development and architecture support?

Assessing the precise market rate comparison for this $20 million contract is challenging without detailed labor category rates and hours. However, the time and materials (T&M) nature of the contract means the final cost is driven by actual labor hours expended and material costs, plus a fixed fee or profit. Market rates for specialized ServiceNow expertise, including architects and senior developers, can be high due to demand and the required skill sets. If CACI NSS, LLC's proposed rates are competitive within the established federal IT services market and align with industry benchmarks for similar skill sets, the overall value could be considered good. Agencies often use rate ceilings and conduct market research to ensure T&M rates are fair and reasonable before award.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

Key performance indicators (KPIs) for this ServiceNow development and architecture support contract would typically be defined in the Performance Work Statement (PWS). These KPIs are crucial for measuring the contractor's success and ensuring the government receives the intended value. Common KPIs for such IT support services might include system uptime and availability, response times for issue resolution, successful completion of development sprints or project milestones, adherence to architectural standards, and user satisfaction. Performance will likely be monitored through regular progress reports, technical reviews, and potentially user feedback mechanisms. The COR will be responsible for tracking these KPIs and formally assessing CACI NSS, LLC's performance against the contract requirements.

What is CACI NSS, LLC's track record with similar federal IT support contracts, particularly for ServiceNow?

CACI NSS, LLC has a significant track record supporting federal agencies with IT services, including complex system development and architecture. While specific details on their ServiceNow expertise within DHS prior to this award are not detailed here, CACI generally possesses broad capabilities across various IT domains. Their past performance on similar contracts, which would have been evaluated during the procurement process, likely demonstrated their ability to manage large-scale IT projects, provide skilled personnel, and meet performance requirements. Federal procurement databases and past performance questionnaires provide insights into a contractor's history, which is a critical factor in award decisions for significant contracts like this one.

Are there any specific risks associated with relying on CACI NSS, LLC for critical ServiceNow architecture support?

The primary risk associated with relying on any single contractor for critical IT architecture support, including CACI NSS, LLC for ServiceNow, is vendor lock-in and potential knowledge transfer challenges. If CACI develops deep, proprietary knowledge of DHS's specific ServiceNow architecture, it could become difficult and costly for DHS to transition to another vendor or bring the capability in-house later. Another risk is the potential for performance degradation if key personnel leave CACI or if the company faces financial instability. However, robust contract management, including requirements for documentation, knowledge sharing, and potentially transition assistance clauses, can mitigate these risks. The government's evaluation of CACI's past performance would have addressed their ability to manage such risks.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 14370 NEWBROOK DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,983,358

Exercised Options: $19,983,358

Current Obligation: $19,983,358

Actual Outlays: $16,655,774

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70RTAC20A00000003

IDV Type: BPA

Timeline