FCC awards $11.5M ServiceNow subscription to Carahsoft, highlighting potential for cost savings
Contract Overview
Contract Amount: $11,530,887 ($11.5M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Federal Communications Commission
Start Date: 2022-03-30
End Date: 2027-03-29
Contract Duration: 1,825 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SERVICENOW SOFTWARE SUBSCRIPTION SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Federal Communications Commission obligated $11.5 million to CARAHSOFT TECHNOLOGY CORP for work described as: SERVICENOW SOFTWARE SUBSCRIPTION SERVICES Key points: 1. The contract value is $11.5 million over five years. 2. Carahsoft Technology Corp is the sole awardee. 3. The contract type is Firm Fixed Price, indicating predictable costs. 4. The sector is IT, specifically software subscriptions.
Value Assessment
Rating: good
The $11.5 million contract over five years averages $2.3 million annually. Benchmarking against similar large-scale enterprise software subscriptions suggests this pricing is competitive, especially considering the breadth of ServiceNow's platform.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. However, the specific awardee, Carahsoft, often acts as a reseller, so the ultimate price discovery depends on their negotiated terms with ServiceNow.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential software services.
Public Impact
Federal agencies rely on platforms like ServiceNow for critical IT operations and workflow management. The subscription model ensures access to the latest software features and support. This award supports the FCC's digital transformation efforts.
Waste & Efficiency Indicators
Waste Risk Score: 63 / 10
Warning Flags
- Potential for price increases upon renewal.
- Dependence on a single vendor for critical software.
Positive Signals
- Long-term contract provides budget stability.
- Full and open competition suggests competitive pricing.
Sector Analysis
This contract falls within the Information Technology sector, specifically for enterprise software subscriptions. IT spending for agencies like the FCC is crucial for modernizing operations and improving service delivery. Benchmarks for similar software subscriptions vary widely based on user count and modules, but $2.3M annually is within a reasonable range for a large federal agency.
Small Business Impact
While Carahsoft Technology Corp is the direct awardee, the underlying software is provided by ServiceNow. Analysis of subcontracting opportunities for small businesses within this specific award is not detailed in the provided data.
Oversight & Accountability
The Federal Communications Commission is responsible for overseeing this contract. Standard government oversight mechanisms for software procurement and performance apply.
Related Government Programs
- Electronic Computer Manufacturing
- Federal Communications Commission Contracting
- Federal Communications Commission Programs
Risk Flags
- Vendor lock-in potential
- Reliance on third-party reseller
- Future price increases
- Cybersecurity risks associated with cloud software
Tags
electronic-computer-manufacturing, federal-communications-commission, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Federal Communications Commission awarded $11.5 million to CARAHSOFT TECHNOLOGY CORP. SERVICENOW SOFTWARE SUBSCRIPTION SERVICES
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Federal Communications Commission (Federal Communications Commission).
What is the total obligated amount?
The obligated amount is $11.5 million.
What is the period of performance?
Start: 2022-03-30. End: 2027-03-29.
What is the total cost of ownership over the contract's lifespan, including potential price escalations?
The total awarded value is $11.5 million over five years. Without specific escalation clauses detailed, the average annual cost is approximately $2.3 million. A full cost of ownership analysis would require examining renewal terms, potential price increases, and the cost of integrating additional modules or services over the contract's duration.
What are the specific performance metrics and service level agreements (SLAs) tied to this subscription?
The provided data does not detail specific performance metrics or Service Level Agreements (SLAs). Typically, such contracts include clauses for uptime, support response times, and software update availability. The FCC would monitor these to ensure Carahsoft and ServiceNow meet their obligations.
How does the FCC plan to measure the return on investment (ROI) for this ServiceNow subscription?
Measuring ROI for enterprise software like ServiceNow often involves tracking improvements in process efficiency, reduction in manual work, enhanced data analytics capabilities, and better citizen service delivery. The FCC would likely establish baseline metrics before implementation and track progress against these goals.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $11,530,887
Exercised Options: $11,530,887
Current Obligation: $11,530,887
Actual Outlays: $9,437,855
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC03B
IDV Type: GWAC
Timeline
Start Date: 2022-03-30
Current End Date: 2027-03-29
Potential End Date: 2027-03-29 00:00:00
Last Modified: 2026-03-17
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