HHS awards $6M for ServiceNow support to AT-IMPACT LLC, with 4 years of service

Contract Overview

Contract Amount: $6,045,138 ($6.0M)

Contractor: At-Impact LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-02-14

End Date: 2026-02-13

Contract Duration: 1,460 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SERVICENOW ADMINISTRATION, DEVELOPMENT AND CONFIGURATION SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.0 million to AT-IMPACT LLC for work described as: SERVICENOW ADMINISTRATION, DEVELOPMENT AND CONFIGURATION SERVICES. Key points: 1. Contract value appears reasonable for a 4-year term covering specialized IT services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include vendor lock-in and the need for ongoing performance monitoring. 4. This contract supports critical administrative functions within the Department of Health and Human Services. 5. The IT services sector is characterized by rapid technological change and high demand for specialized skills.

Value Assessment

Rating: good

The contract value of approximately $6 million over four years for ServiceNow administration, development, and configuration services appears to be within a reasonable range for specialized IT support. Benchmarking against similar contracts for enterprise software support is challenging without more specific service details, but the duration and scope suggest a fair market price. The use of labor hours indicates flexibility in resource allocation, which can be cost-effective if managed efficiently.

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 multiple vendors were likely solicited and allowed to bid. The specific details of the exclusion of sources are not provided, but the 'full and open' designation generally implies a robust competitive process. The number of bidders is not specified, but the process aims to ensure fair pricing through market forces.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it promotes competitive pricing and encourages a wider pool of vendors to offer their services, potentially leading to better value.

Public Impact

The Office of the Assistant Secretary for Administration within HHS benefits from enhanced ServiceNow capabilities. Services include administration, development, and configuration of the ServiceNow platform. The geographic impact is primarily within the District of Columbia, where the agency is located. This contract supports the IT workforce by requiring specialized skills in ServiceNow.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single vendor for critical platform support could pose a risk.
Ensuring continued alignment with evolving ServiceNow features and best practices.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract duration provides stability for essential IT support services.
Focus on a widely adopted enterprise platform like ServiceNow indicates strategic IT investment.

Sector Analysis

The IT services sector, particularly enterprise resource planning (ERP) and IT service management (ITSM) platforms like ServiceNow, is a significant and growing market. Federal agencies increasingly rely on such platforms for streamlining operations, improving efficiency, and enhancing data management. Spending in this area is driven by the need for modern, integrated systems to support complex government functions. Comparable spending benchmarks would typically involve analyzing IT support contracts for similar enterprise software solutions across various federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, AT-IMPACT LLC, is not a small business for this award. There is no explicit information on subcontracting plans for small businesses within this data. The lack of a small business set-aside means that opportunities for small business participation may be limited unless AT-IMPACT LLC voluntarily includes them in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' contracting officers and program managers. The contract's performance will likely be monitored through regular reporting, performance reviews, and adherence to service level agreements. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

IT Service Management Software
Enterprise Resource Planning (ERP) Systems Support
Cloud-based IT Solutions
Federal Civilian Agency IT Modernization

Risk Flags

Potential for vendor lock-in
Reliance on specialized IT skills
Need for continuous performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.0 million to AT-IMPACT LLC. SERVICENOW ADMINISTRATION, DEVELOPMENT AND CONFIGURATION SERVICES.

Who is the contractor on this award?

The obligated recipient is AT-IMPACT LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $6.0 million.

What is the period of performance?

Start: 2022-02-14. End: 2026-02-13.

What is the track record of AT-IMPACT LLC in delivering similar ServiceNow support services to federal agencies?

Assessing the track record of AT-IMPACT LLC requires a review of their past performance on federal contracts, particularly those involving ServiceNow administration, development, and configuration. Information on past performance can often be found in federal procurement databases, agency performance evaluations, and contractor capability statements. Key indicators to examine would include successful completion of similar projects, client satisfaction ratings, adherence to schedules and budgets, and any history of performance issues or disputes. Without specific past performance data for AT-IMPACT LLC on comparable ServiceNow contracts, it is difficult to definitively assess their capabilities for this specific award. However, the fact that they were awarded this contract under full and open competition suggests they met the agency's minimum requirements and were deemed capable of performing the required services.

How does the awarded value of $6.04 million compare to market rates for similar ServiceNow support contracts?

The awarded value of approximately $6.04 million over a four-year period (February 2022 to February 2026) for ServiceNow administration, development, and configuration services needs to be benchmarked against market rates for similar contracts. This comparison is complex due to variations in contract scope, service levels, labor categories, geographic locations, and the specific modules of ServiceNow being supported. Generally, ServiceNow support contracts can range significantly. Factors influencing cost include the complexity of the implementation, the number of users, the required support hours, and the level of expertise needed for development and customization. A rough estimate for enterprise-level ServiceNow support can range from hundreds of thousands to several million dollars annually, depending on these factors. The $1.5 million annual average for this contract suggests it is within a plausible range for a federal agency's comprehensive ServiceNow needs, but a definitive comparison would require access to detailed market research and pricing data for comparable federal contracts.

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

The primary risks associated with this ServiceNow support contract include potential vendor lock-in, where the agency becomes overly reliant on AT-IMPACT LLC's expertise, making future transitions difficult or costly. Another risk is the potential for scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Performance risk, related to the quality and timeliness of services delivered, is also a concern. Mitigation strategies typically involve clearly defined contract statements of work, robust performance monitoring by the agency's contracting officer's representative (COR), regular performance reviews, and adherence to established service level agreements (SLAs). The contract's structure, including defined deliverables and payment milestones, also serves as a control mechanism. Furthermore, the competitive nature of the initial award aims to select a vendor with a proven ability to manage these risks.

How effective is the ServiceNow platform in supporting the administrative functions of the Office of the Assistant Secretary for Administration at HHS?

The effectiveness of the ServiceNow platform in supporting the administrative functions of the Office of the Assistant Secretary for Administration (OASA) at HHS is contingent on its specific implementation and utilization. ServiceNow is designed to streamline various administrative processes, including IT service management, human resources service delivery, customer service management, and workflow automation. If OASA is leveraging ServiceNow for functions such as IT ticket management, onboarding/offboarding processes, facilities requests, or knowledge management, it can significantly enhance efficiency, improve service delivery times, and provide better visibility into operational performance. The continued investment in and renewal of support for this platform suggest that HHS finds it effective for its administrative needs. However, the true measure of effectiveness would involve analyzing specific performance metrics related to the administrative processes managed through ServiceNow, such as resolution times, user satisfaction, and process automation rates.

What has been the historical spending trend for ServiceNow support services at HHS or similar agencies?

Historical spending trends for ServiceNow support services at HHS and similar large federal agencies have generally shown an increasing trajectory over the past decade. As agencies modernize their IT infrastructure and seek to consolidate disparate systems, platforms like ServiceNow have become central to managing IT operations, HR functions, and other administrative workflows. Spending typically includes software licensing, implementation services, ongoing administration, development, and specialized support. For large agencies like HHS, annual spending on comprehensive ServiceNow solutions can easily reach several million dollars, encompassing multiple contracts for different aspects of the platform's lifecycle. This trend is driven by the platform's versatility, scalability, and its ability to integrate various business processes. Benchmarking against other cabinet-level agencies with similar operational complexities would likely reveal comparable investment levels in enterprise ITSM and workflow automation tools.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: C-88922-8A

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 24917 CASTLETON DR, CHANTILLY, VA, 20152

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $6,720,023

Exercised Options: $6,045,138

Current Obligation: $6,045,138

Actual Outlays: $4,997,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00242

IDV Type: GWAC

Timeline