Treasury's $182M ServiceNow Contract Awarded to Countertrade Products, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $182,442,070 ($182.4M)
Contractor: Countertrade Products, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2024-12-16
End Date: 2028-12-15
Contract Duration: 1,460 days
Daily Burn Rate: $125.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT - SERVICENOW
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20020
Plain-Language Summary
Department of the Treasury obligated $182.4 million to COUNTERTRADE PRODUCTS, INC. for work described as: IT - SERVICENOW Key points: 1. Significant contract value of over $182 million for IT services. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Potential risk associated with a single award for a critical IT platform. 4. IT sector spending is substantial, with ServiceNow being a common enterprise solution.
Value Assessment
Rating: good
The contract's pricing is based on a firm-fixed-price structure, which provides cost certainty. Benchmarking against similar ServiceNow enterprise license and support contracts would be necessary for a definitive assessment, but the value appears within a reasonable range for a multi-year, comprehensive deployment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently by securing favorable pricing for essential IT services.
Public Impact
Ensures continued operation and support for critical IT services used across the Treasury Department. Impacts federal employees relying on ServiceNow for workflow management and IT support. Potential for future enhancements and integrations of ServiceNow capabilities within the agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single vendor reliance for a critical platform.
- Long-term contract duration (4 years).
Positive Signals
- Awarded via full and open competition.
- Firm-fixed-price contract type.
Sector Analysis
This contract falls within the Information Technology sector, specifically for enterprise software solutions like ServiceNow, which is widely adopted by government agencies for IT service management and workflow automation. Spending in this area is consistently high due to the need for modern digital infrastructure.
Small Business Impact
The data indicates that the awardee is Countertrade Products, Inc. There is no explicit information provided regarding small business participation or subcontracting goals within this specific award. Further investigation would be needed to determine the extent of small business involvement.
Oversight & Accountability
The award is subject to standard federal procurement oversight. The firm-fixed-price structure provides some cost control. The duration of the contract necessitates ongoing monitoring to ensure performance and value delivery align with the initial objectives.
Related Government Programs
- Electronic Computer Manufacturing
- Department of the Treasury Contracting
- Departmental Offices Programs
Risk Flags
- Potential for vendor lock-in.
- Long-term reliance on a single provider.
- Lack of explicit small business participation noted.
- Need for ongoing performance monitoring.
Tags
electronic-computer-manufacturing, department-of-the-treasury, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $182.4 million to COUNTERTRADE PRODUCTS, INC.. IT - SERVICENOW
Who is the contractor on this award?
The obligated recipient is COUNTERTRADE PRODUCTS, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Departmental Offices).
What is the total obligated amount?
The obligated amount is $182.4 million.
What is the period of performance?
Start: 2024-12-16. End: 2028-12-15.
What is the specific scope of services included in this ServiceNow contract, and how does it align with Treasury's strategic IT goals?
The contract likely covers licensing, implementation, maintenance, and support for the ServiceNow platform. Its alignment with strategic goals would depend on Treasury's specific objectives regarding digital transformation, IT service management maturity, and operational efficiency. A detailed review of the contract's statement of work and Treasury's IT strategy documents would be required for a comprehensive answer.
What are the potential risks associated with relying on a single vendor for such a critical IT platform over a four-year period?
Key risks include vendor lock-in, potential price increases upon renewal, and the possibility of the vendor discontinuing specific features or support. If the vendor experiences financial instability or strategic shifts, it could disrupt Treasury's operations. Mitigating these risks often involves strong contract management, performance monitoring, and contingency planning.
How effectively does the firm-fixed-price structure manage costs for a complex IT service like ServiceNow, and what is the benchmark for 'good' pricing?
A firm-fixed-price contract provides cost predictability for the government, shifting most cost overrun risk to the contractor. However, for complex IT services, it's crucial that the initial price reflects a thorough understanding of requirements. Benchmarking against similar government or commercial contracts for comparable ServiceNow modules and user counts is essential to determine if the pricing is competitive and represents good value.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7585 W 66TH AVE, ARVADA, CO, 80003
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $182,442,070
Exercised Options: $182,442,070
Current Obligation: $182,442,070
Actual Outlays: $197,640,415
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC05B
IDV Type: GWAC
Timeline
Start Date: 2024-12-16
Current End Date: 2028-12-15
Potential End Date: 2028-12-15 00:00:00
Last Modified: 2026-01-12
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