Treasury's $3.27M ServiceNow License Renewal Awarded to Carahsoft, Highlighting Software Publisher Market Dynamics

Contract Overview

Contract Amount: $3,273,769 ($3.3M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of the Treasury

Start Date: 2025-10-17

End Date: 2026-10-16

Contract Duration: 364 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICENOW SOFTWARE LICENSE RENEWALS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.3 million to CARAHSOFT TECHNOLOGY CORP for work described as: SERVICENOW SOFTWARE LICENSE RENEWALS Key points: 1. Value-for-money assessment indicates a need for detailed benchmarking against similar software license renewals. 2. Competition dynamics show a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are low, with a firm fixed-price contract and clear deliverables. 4. Performance context is tied to essential software licensing for government operations. 5. Sector positioning is within the IT Software Publishers industry, a critical area for government modernization.

Value Assessment

Rating: fair

The contract value of $3.27 million for a one-year ServiceNow software license renewal appears within a typical range for enterprise-level software agreements. However, without specific details on the modules licensed, user counts, or support levels, a precise value-for-money assessment is challenging. Benchmarking against other federal agencies or similar private sector contracts for comparable ServiceNow deployments would be necessary to determine if the pricing is competitive. The firm fixed-price nature provides cost certainty, but the absence of detailed cost breakdowns limits deeper analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive offers. The use of a BPA Call suggests that a broader contract vehicle was already in place, streamlining the competition process for this specific renewal.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best possible price through market forces.

Public Impact

Federal employees across the Office of the Comptroller of the Currency will benefit from continued access to essential ServiceNow software. The services delivered include the renewal of software licenses crucial for IT service management, workflow automation, and operational efficiency. The geographic impact is concentrated in the District of Columbia, where the Office of the Comptroller of the Currency is headquartered. Workforce implications are minimal, as this is a software license renewal rather than a new system implementation or major service change.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future renewals if market competition diminishes.
Dependence on a single software vendor (ServiceNow) can create long-term strategic risks.
Ensuring adequate license utilization to maximize value for the expenditure.

Positive Signals

Continued access to critical IT service management software.
Firm fixed-price contract provides budget predictability.
Awarded through full and open competition, suggesting market responsiveness.

Sector Analysis

The IT Software Publishers sector is a vital component of the federal technology landscape, providing the foundational software that enables government operations. Spending in this sector is consistently high, driven by the need for modern, efficient, and secure digital services. ServiceNow is a major player in this market, offering a suite of products for IT service management, workflow automation, and employee experience. This contract represents a typical renewal for a widely adopted enterprise software solution within the federal government.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is Carahsoft Technology Corp a small business. The primary contractor, Carahsoft, is known for its role as a reseller and aggregator, often facilitating government purchases of software from various manufacturers. While this specific award may not directly benefit small businesses through set-asides, Carahsoft's business model can indirectly support small businesses by providing them access to government contract vehicles.

Oversight & Accountability

Oversight for this contract would primarily fall under the Office of the Comptroller of the Currency's contracting and financial management offices. The firm fixed-price nature of the contract simplifies oversight by focusing on delivery and adherence to terms. Transparency is facilitated by the contract award notice. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) Schedules
IT Software Licensing
Enterprise Resource Planning (ERP) Software
Cloud-Based Software Solutions
Software Maintenance and Support Contracts

Risk Flags

Potential for vendor lock-in with enterprise software.
Need for detailed cost benchmarking to ensure competitive pricing.
Reliance on reseller for software procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.3 million to CARAHSOFT TECHNOLOGY CORP. SERVICENOW SOFTWARE LICENSE RENEWALS

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2025-10-17. End: 2026-10-16.

What specific ServiceNow modules are included in this $3.27 million renewal, and how do these align with the Office of the Comptroller of the Currency's current IT service management needs?

The provided data does not specify the exact ServiceNow modules covered by this $3.27 million renewal. ServiceNow offers a broad suite of products, including IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), HR Service Delivery, Customer Service Management (CSM), and more. To assess the value and alignment, a detailed breakdown of licensed modules and their intended use cases within the OCC is necessary. Understanding which modules are being renewed and whether they are fully utilized or if new functionalities are being acquired is crucial for determining if the expenditure directly supports the agency's strategic IT objectives and operational requirements.

How does the per-unit cost of this ServiceNow license renewal compare to similar contracts awarded to Carahsoft Technology Corp or other federal agencies for comparable ServiceNow deployments?

Benchmarking the per-unit cost for this $3.27 million ServiceNow license renewal against similar federal contracts is challenging without more granular data. Key metrics for comparison would include the number of users (full or partial), specific modules licensed (e.g., ITSM Pro, CSM Enterprise), and the level of support included. Carahsoft Technology Corp often acts as a reseller, so comparing their pricing against direct vendor sales or other resellers requires careful consideration of the underlying agreements. A comprehensive analysis would involve querying contract databases for similar ServiceNow procurements, factoring in contract type, duration, and the specific product suite to establish a fair market price and assess value for money.

What is Carahsoft Technology Corp's track record with federal ServiceNow contracts, and have there been any performance issues or disputes associated with their previous awards?

Carahsoft Technology Corp has a significant track record of winning and fulfilling federal contracts, including those involving ServiceNow software licenses. As a major government IT reseller, they leverage various contract vehicles, such as GSA Schedules, to provide software solutions to numerous agencies. While specific performance issues or disputes related to their ServiceNow contracts are not detailed in the provided data, agencies typically monitor contractor performance through contract administration and performance evaluations. A review of past performance information (PPI) or CPARS (Contractor Performance Assessment Reporting System) reports, if available, would offer deeper insights into Carahsoft's historical performance on similar contracts.

Given the firm fixed-price nature of this contract, what are the potential risks associated with scope creep or unforeseen technical requirements that could impact the total cost to the government?

The firm fixed-price (FFP) contract structure for this ServiceNow license renewal aims to mitigate cost risks by establishing a set price for the defined scope. However, potential risks can still arise. Scope creep, where additional features or modules are requested beyond the original agreement, could necessitate contract modifications and potentially increase costs if not managed carefully. Unforeseen technical requirements, such as integration challenges with other systems or unexpected support needs, might also lead to requests for additional services. Effective contract management, clear communication channels, and a robust change control process are essential to prevent scope creep and manage any emergent technical needs within the FFP framework or through appropriate contract adjustments.

How does the annual spending on ServiceNow licenses by the Office of the Comptroller of the Currency compare to historical spending patterns for this software over the past five years?

The provided data only includes the current award for the upcoming year (ending October 2026), totaling $3.27 million. To analyze historical spending patterns, data from previous years would be required. This would involve examining past contract awards for ServiceNow licenses by the OCC, noting the contract values, durations, and any changes in scope or modules. Comparing the current $3.27 million annual expenditure against these historical figures would reveal trends, such as increasing or decreasing costs, changes in license volume, or shifts in the software modules utilized. Such an analysis is crucial for identifying potential cost efficiencies or understanding the growth in the agency's reliance on ServiceNow.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW26Q00015

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: $3,273,769

Exercised Options: $3,273,769

Current Obligation: $3,273,769

Actual Outlays: $2,996,609

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 2032H520A00026

IDV Type: BPA

Timeline