Treasury's $1.5M ServiceNow Hardware Asset Management contract awarded to Carahsoft Technology Corp

Contract Overview

Contract Amount: $150,668 ($150.7K)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of the Treasury

Start Date: 2024-08-28

End Date: 2025-08-27

Contract Duration: 364 days

Daily Burn Rate: $414/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICENOW HARDWARE ASSET MANAGEMENT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $150,667.76 to CARAHSOFT TECHNOLOGY CORP for work described as: SERVICENOW HARDWARE ASSET MANAGEMENT Key points: 1. The contract supports essential IT asset management functions for the Bureau of the Fiscal Service. 2. Awarded via a BPA Call under full and open competition, suggesting a competitive process. 3. The fixed-price contract type helps mitigate cost overrun risks. 4. The duration of one year provides flexibility for ongoing IT asset management needs. 5. The specific NAICS code (511210) indicates a focus on software publishers, aligning with IT asset management tools. 6. The contract's value is relatively modest within the broader federal IT spending landscape.

Value Assessment

Rating: good

The contract value of approximately $1.5 million for a one-year term appears reasonable for IT asset management software and services. Benchmarking against similar federal contracts for ServiceNow modules or IT asset management solutions would provide a more precise value-for-money assessment. However, given the fixed-price nature and the competitive award, it suggests a fair price was likely negotiated. The absence of specific performance metrics in the provided data makes a deep dive into efficiency challenging, but the contract's scope is clearly defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, utilizing a Blanket Purchase Agreement (BPA) Call. This indicates that multiple vendors had the opportunity to bid, fostering price discovery and potentially leading to more competitive pricing. The specific details of the bidding process, such as the number of proposals received, are not provided, but the 'full and open' designation is a positive indicator of a robust competition.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by driving down costs and ensuring the government receives fair market value for the services and software procured.

Public Impact

The Bureau of the Fiscal Service benefits from improved IT hardware asset management capabilities. This contract supports the operational efficiency and compliance of a key Treasury bureau. The services delivered likely include tracking, managing, and optimizing the lifecycle of IT hardware assets. The geographic impact is primarily within the Department of the Treasury's operational footprint. Workforce implications may involve IT personnel utilizing the ServiceNow platform for asset management tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the ServiceNow solution.
The specific ServiceNow modules or functionalities procured are not detailed, limiting a granular understanding of the investment.
Potential for vendor lock-in if the ServiceNow platform becomes deeply integrated into agency workflows without clear exit strategies.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed-price contract type helps control costs and provides budget certainty.
The use of a BPA Call indicates a streamlined procurement process for an established framework.
The contract supports a critical function (IT asset management) for a major federal agency.

Sector Analysis

The federal IT asset management market is a significant segment within the broader IT services sector. Agencies rely on robust asset management to track hardware and software, ensure compliance, optimize spending, and enhance cybersecurity. ServiceNow is a prominent platform in this space, offering comprehensive solutions for IT Service Management (ITSM), including hardware asset management. Comparable spending benchmarks would involve analyzing other federal contracts for similar ServiceNow implementations or IT asset management solutions, which often range from hundreds of thousands to millions of dollars annually depending on scope and user base.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and the prime contractor, Carahsoft Technology Corp, is a large business. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem through this specific contract appears limited unless subcontracting opportunities are pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of the Fiscal Service's IT and procurement departments. As a federal contract, it is subject to review by the Treasury Inspector General's office for potential fraud, waste, or abuse. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. The fixed-price nature of the contract provides a degree of accountability regarding cost.

Related Government Programs

IT Asset Management Software
ServiceNow Platform Contracts
Federal IT Services Procurement
Bureau of the Fiscal Service IT Spending
Department of the Treasury IT Contracts

Risk Flags

Potential for underutilization of procured software/services.
Data accuracy and integrity risks in asset tracking.
Dependency on vendor for platform updates and support.
Integration challenges with existing agency IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $150,667.76 to CARAHSOFT TECHNOLOGY CORP. SERVICENOW HARDWARE ASSET MANAGEMENT

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 (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $150,667.76.

What is the period of performance?

Start: 2024-08-28. End: 2025-08-27.

What is the track record of Carahsoft Technology Corp. in delivering federal IT contracts, particularly those involving ServiceNow?

Carahsoft Technology Corp. is a major reseller of IT solutions to the U.S. government, often acting as a prime contractor or distributor for various software and hardware vendors, including ServiceNow. They have a substantial history of winning federal contracts across numerous agencies. Their business model focuses on providing access to a wide range of IT products through established government purchasing vehicles like GWACs and BPAs. While they are known for their broad reach and ability to facilitate procurement, the direct performance on specific ServiceNow implementations is often dependent on the underlying technology provider or implementation partner they work with. Analyzing their past performance would involve reviewing contract awards for similar services and assessing any reported performance issues or successes across their extensive federal portfolio.

How does the $1.5 million contract value compare to other federal spending on ServiceNow Hardware Asset Management solutions?

The $1.5 million contract value for a one-year term for ServiceNow Hardware Asset Management is within a common range for federal agency procurements of this nature. Larger agencies or those with more complex IT infrastructures might award contracts significantly higher, potentially in the tens of millions over multiple years, encompassing broader IT Service Management (ITSM) suites. Conversely, smaller bureaus or specific project needs might result in contracts in the hundreds of thousands. This particular award appears to be for a focused application of ServiceNow's capabilities. Benchmarking requires comparing it to contracts with similar scope, duration, and specific modules (e.g., HAM Pro vs. basic HAM) across different agencies, considering factors like user count and integration complexity.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential underutilization of the ServiceNow platform, leading to suboptimal return on investment, and challenges in data accuracy for hardware assets. There's also a risk of scope creep if requirements are not clearly defined and managed. Mitigation strategies are likely embedded within the contract's fixed-price structure, which incentivizes the contractor to deliver within budget. The Bureau of the Fiscal Service's project management and oversight teams are responsible for ensuring the platform is used effectively and that data integrity is maintained. Clear performance expectations and regular progress reviews are crucial for managing scope and ensuring successful implementation of hardware asset management functionalities.

How effective is the ServiceNow platform generally in supporting federal IT asset management goals?

ServiceNow's Hardware Asset Management (HAM) module is generally considered a robust and effective solution for federal IT asset management. It aims to provide a centralized system for tracking the entire lifecycle of hardware assets, from procurement to disposal. Key benefits include improved visibility into asset inventory, enhanced compliance with federal regulations (like FISMA), better cost control through optimized asset utilization, and streamlined workflows for asset requests and changes. Its integration capabilities with other IT systems can further enhance its effectiveness. However, the actual effectiveness for any given agency heavily depends on proper implementation, configuration tailored to specific agency needs, user adoption, and ongoing data quality management.

What has been the historical spending trend for IT asset management solutions within the Department of the Treasury or the Bureau of the Fiscal Service?

Analyzing historical spending trends for IT asset management solutions within the Department of the Treasury or the Bureau of the Fiscal Service would require accessing detailed procurement data over several fiscal years. This would involve searching for contracts related to IT asset management, CMDB (Configuration Management Database), IT Service Management (ITSM) tools, and potentially specific vendors like ServiceNow, BMC, or others. Trends might reveal an increasing reliance on integrated platforms like ServiceNow, a shift towards cloud-based solutions, or fluctuations based on budget allocations and modernization initiatives. Without specific historical data, it's difficult to provide precise figures, but federal agencies generally show a consistent need and investment in asset management tools to maintain compliance and operational efficiency.

What are the implications of using a BPA Call for this type of IT service procurement?

Using a Blanket Purchase Agreement (BPA) Call for this IT service procurement implies that a broader BPA was likely already established, possibly through a competitive process, with Carahsoft Technology Corp. or through a government-wide acquisition contract (GWAC) vehicle they utilize. A BPA Call allows agencies to quickly order specific goods or services under pre-negotiated terms and pricing established in the parent BPA. This streamlines the procurement process, reduces administrative burden, and can lead to faster delivery compared to a traditional full and open competition for each individual requirement. It suggests a recognized need for ongoing or recurring IT asset management support, leveraging an existing framework for efficiency.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 20341424Q00015

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: $150,668

Exercised Options: $150,668

Current Obligation: $150,668

Actual Outlays: $150,668

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 2032H520A00026

IDV Type: BPA

Timeline