DoD's $72.2M ServiceNow Contract with Carahsoft: Full & Open Competition
Contract Overview
Contract Amount: $72,228,593 ($72.2M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Defense
Start Date: 2022-09-17
End Date: 2024-09-16
Contract Duration: 730 days
Daily Burn Rate: $98.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SERVICENOW LICENSES, LEARNING CREDITS AND IMPLEMENTATION AND TAILORING SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $72.2 million to CARAHSOFT TECHNOLOGY CORP for work described as: SERVICENOW LICENSES, LEARNING CREDITS AND IMPLEMENTATION AND TAILORING SERVICES Key points: 1. Significant investment in ServiceNow platform for defense operations. 2. Carahsoft Technology Corp is the primary awardee. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans two years, indicating ongoing service needs.
Value Assessment
Rating: good
The contract value of $72.2M over two years appears reasonable for enterprise software licenses and implementation services. Benchmarking against similar large-scale ServiceNow deployments would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. It suggests multiple vendors had the opportunity to bid, potentially driving down costs and ensuring fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure and services, with competition aiming to maximize value for money.
Public Impact
Enhances IT capabilities for the Defense Counterintelligence and Security Agency. Supports critical functions through a widely adopted enterprise platform. Potential for improved workflow and data management within the agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with enterprise software.
- Reliance on a single vendor for critical IT services.
Positive Signals
- Utilizes a competitive bidding process.
- Supports a key defense agency's operational needs.
Sector Analysis
This contract falls within the IT sector, specifically software licensing and professional services. Spending benchmarks for enterprise software in government often vary widely based on agency size and specific platform needs.
Small Business Impact
The awardee, Carahsoft Technology Corp, is a reseller, and while they may work with small business partners, this specific contract does not indicate direct small business participation as the prime awardee.
Oversight & Accountability
The contract was awarded under a BPA Call, which implies a pre-existing agreement. Oversight would focus on adherence to contract terms, service delivery, and financial accountability throughout the performance period.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Defense Counterintelligence and Security Agency Programs
Risk Flags
- Potential for cost creep in implementation services.
- Dependence on a single software vendor.
- Risk of scope expansion beyond initial requirements.
- Ensuring effective knowledge transfer to agency personnel.
Tags
software-publishers, department-of-defense, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.2 million to CARAHSOFT TECHNOLOGY CORP. SERVICENOW LICENSES, LEARNING CREDITS AND IMPLEMENTATION AND TAILORING SERVICES
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).
What is the total obligated amount?
The obligated amount is $72.2 million.
What is the period of performance?
Start: 2022-09-17. End: 2024-09-16.
What is the specific breakdown of costs between licenses, learning credits, and implementation services?
The provided data does not detail the cost allocation across licenses, learning credits, and implementation services. A more granular breakdown would be necessary to assess the value proposition of each component and identify potential areas for cost optimization or negotiation in future procurements.
What are the key performance indicators (KPIs) for the implementation and tailoring services?
Specific Key Performance Indicators (KPIs) for the implementation and tailoring services are not detailed in the provided data. Establishing clear, measurable KPIs is crucial for ensuring successful service delivery, managing vendor performance, and verifying that the agency's objectives for adopting ServiceNow are met effectively.
How does the per-unit cost of ServiceNow licenses compare to other federal agencies or commercial entities?
A direct per-unit cost comparison is not feasible with the current data. While the total contract value is known, the number of units (licenses) and their specific types are not specified. Benchmarking would require access to detailed pricing information and the volume of licenses procured.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HS002122Q0013
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: $174,073,572
Exercised Options: $72,228,593
Current Obligation: $72,228,593
Actual Outlays: $27,078,477
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600119A0120
IDV Type: BPA
Timeline
Start Date: 2022-09-17
Current End Date: 2024-09-16
Potential End Date: 2027-09-16 00:00:00
Last Modified: 2026-01-22
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