CFPB awards $2.36M for ServiceNow support, highlighting IT modernization needs

Contract Overview

Contract Amount: $2,362,908 ($2.4M)

Contractor: A1fedimpact,LLC

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2024-10-24

End Date: 2026-10-23

Contract Duration: 729 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICENOW SUPPORT SERVICES IAW PWS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20194

State: Virginia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $2.4 million to A1FEDIMPACT,LLC for work described as: SERVICENOW SUPPORT SERVICES IAW PWS Key points: 1. Contract value represents a significant investment in maintaining and enhancing critical IT infrastructure. 2. The fixed-price contract structure aims to control costs for the duration of the agreement. 3. Competition was limited, raising questions about potential price discovery and value for money. 4. The duration of the contract suggests a need for sustained support for ServiceNow capabilities. 5. This award falls within the broader trend of federal agencies investing in cloud-based IT solutions. 6. The specific focus on ServiceNow indicates a reliance on this platform for core operations.

Value Assessment

Rating: fair

Benchmarking ServiceNow support services can be challenging due to the specialized nature of the software and varying service levels. The contract's fixed-price nature provides some cost certainty. However, without more detailed performance metrics or comparisons to similar government contracts for ServiceNow support, it is difficult to definitively assess value for money. The award amount of $2.36 million over two years suggests a moderate investment, but the per-unit cost is not readily available for direct comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while competition was sought, certain sources were excluded. This type of competition typically results in fewer bidders than full and open competition. With only two bidders identified, the level of competition is limited, which may impact the government's ability to secure the most competitive pricing and innovative solutions.

Taxpayer Impact: Limited competition can potentially lead to higher prices for taxpayers as the vendor may face less pressure to offer the lowest possible bid. It also reduces the opportunity for a wider range of small businesses to participate.

Public Impact

Federal employees within the Consumer Financial Protection Bureau will benefit from enhanced IT support. The contract ensures the continued operation and potential improvement of ServiceNow, a platform likely used for case management, workflow automation, and IT service management. The geographic impact is primarily within the agency's operational locations, likely concentrated in Washington D.C. The contract supports IT professionals and potentially other roles that rely on the ServiceNow platform for their daily tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing for taxpayers.
The exclusion of sources in the competition process warrants further investigation into the rationale and impact on market access.

Positive Signals

The fixed-price contract type provides cost predictability for the agency.
The award supports the modernization and maintenance of critical IT infrastructure.
The contract duration suggests a commitment to sustained IT service delivery.

Sector Analysis

The federal IT services market is vast, with agencies increasingly relying on specialized software platforms like ServiceNow for operational efficiency. This contract fits within the broader trend of government investment in IT modernization and digital transformation. Comparable spending benchmarks for ServiceNow support services vary widely based on the scope of work, number of users, and service level agreements. However, agencies often allocate significant budgets to maintain and enhance these critical platforms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The limited competition nature of the award also suggests that opportunities for small business subcontracting may be constrained. Further analysis would be needed to determine if the prime contractor has a subcontracting plan that includes small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Consumer Financial Protection Bureau's contracting and program management offices. Accountability measures are usually embedded within the contract's performance work statement (PWS), outlining deliverables, service levels, and remedies for non-performance. Transparency is facilitated through contract award databases like FPDS, though detailed performance reports are often internal.

Related Government Programs

IT Service Management Software
Cloud Computing Services
Software Maintenance Services
Computer Systems Design Services

Risk Flags

Limited Competition
Potential for Price Inflation
Lack of Detailed Performance Benchmarks

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $2.4 million to A1FEDIMPACT,LLC. SERVICENOW SUPPORT SERVICES IAW PWS

Who is the contractor on this award?

The obligated recipient is A1FEDIMPACT,LLC.

Which agency awarded this contract?

Awarding agency: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2024-10-24. End: 2026-10-23.

What is the track record of A1FEDIMPACT, LLC in providing ServiceNow support services to federal agencies?

Information regarding A1FEDIMPACT, LLC's specific track record in providing ServiceNow support services to federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history with similar agencies, and client testimonials. Federal procurement databases often contain past performance information, which would be crucial for understanding the contractor's experience, reliability, and success in delivering comparable services. Without this detailed history, it is difficult to gauge their expertise and suitability for this specific requirement beyond the current award.

How does the awarded price compare to market rates for similar ServiceNow support contracts?

Direct comparison of the awarded price ($2.36 million over two years) to market rates for similar ServiceNow support contracts is challenging without specific details on the scope of services, number of users supported, and service level agreements (SLAs). ServiceNow support can range from basic help desk functions to complex platform development and administration. The 'Computer Systems Design Services' NAICS code (541512) is broad. To benchmark effectively, one would need to identify comparable government or commercial contracts with similar PWS requirements and contract values, adjusting for differences in duration, complexity, and geographic location. The limited competition also makes it harder to ascertain if the price reflects optimal market value.

What are the primary risks associated with this contract, given the limited competition?

The primary risk associated with this contract, given the limited competition ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with only two bidders), is the potential for reduced price competition. This could lead to the government paying a higher price than if there were more bidders vying for the contract. Another risk is a potential decrease in innovation, as the vendor may feel less pressure to offer cutting-edge solutions. Furthermore, limited competition can sometimes indicate barriers to entry for other qualified vendors, which might warrant an investigation into the exclusion criteria. Ensuring robust contract management and performance monitoring becomes even more critical to mitigate these risks.

How effective is the Consumer Financial Protection Bureau (CFPB) in managing its IT service contracts?

Assessing the overall effectiveness of the CFPB in managing its IT service contracts requires a broader analysis of their procurement history, contract performance metrics, and audit findings. This single contract award provides limited insight into their general management capabilities. However, the agency's commitment to IT modernization, as evidenced by this ServiceNow support contract, suggests an understanding of the importance of these services. Effective contract management involves clear PWS, diligent oversight, performance evaluations, and proactive risk mitigation. Without access to internal CFPB performance reviews or IG reports specifically on their IT contract management, a definitive judgment on their effectiveness cannot be made.

What is the historical spending pattern of the CFPB on ServiceNow or similar IT support services?

The provided data does not include historical spending patterns for the CFPB on ServiceNow or similar IT support services. To analyze this, one would need to examine past contract awards for IT services, specifically those related to platform support, software maintenance, and IT consulting, over several fiscal years. This would involve querying federal procurement databases for contracts awarded by the CFPB to identify trends in spending, the types of services procured, and the contractors involved. Understanding historical spending can reveal patterns of investment, potential cost increases or decreases over time, and the agency's evolving reliance on specific technologies like ServiceNow.

What are the implications of the 'Delivery Order' (aw: DELIVERY ORDER) contract type for this ServiceNow support?

The 'Delivery Order' (aw: DELIVERY ORDER) designation typically applies to indefinite-delivery, indefinite-quantity (IDIQ) contracts or similar multiple-award vehicles, where specific task orders or delivery orders are issued against a pre-existing contract. However, in this context, it might refer to a specific order placed against a larger contract vehicle. If this is a standalone contract, 'Delivery Order' might be a misnomer or refer to the delivery of services over time. If it's part of a larger IDIQ, it means this $2.36M represents a specific call for services under a broader agreement. The implications are that the services are being procured incrementally, and the total value could potentially be higher if it's part of a larger IDIQ with future orders. It also suggests a need for ongoing, but perhaps not continuous, service delivery.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 9531CB24Q0074

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10928 HUNTER GATE WAY, RESTON, VA, 20194

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, 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, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $6,143,241

Exercised Options: $2,977,736

Current Obligation: $2,362,908

Actual Outlays: $1,727,238

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB21D0427

IDV Type: GWAC

Timeline