SSA Spends $20.7M on ServiceNow Subscriptions via Carahsoft, Awarded Under BPA Call
Contract Overview
Contract Amount: $20,665,339 ($20.7M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Social Security Administration
Start Date: 2025-03-30
End Date: 2026-03-29
Contract Duration: 364 days
Daily Burn Rate: $56.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CALL ORDER FOR 12-MONTH SUBSCRIPTIONS FOR SERVICENOW SOFTWARE.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Social Security Administration obligated $20.7 million to CARAHSOFT TECHNOLOGY CORP for work described as: CALL ORDER FOR 12-MONTH SUBSCRIPTIONS FOR SERVICENOW SOFTWARE. Key points: 1. Significant investment in essential IT infrastructure for the Social Security Administration. 2. Relies on a single vendor, Carahsoft Technology Corp, for ServiceNow software. 3. Potential for cost savings through competitive bidding and volume discounts. 4. IT sector spending benchmark for software subscriptions is a key consideration.
Value Assessment
Rating: good
The total award amount of $20.7M for a 12-month subscription appears reasonable given the nature of enterprise software. Benchmarking against similar large-scale software license agreements would provide a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. This method is expected to foster price discovery and potentially lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required software.
Public Impact
Ensures continued operation of critical IT systems for the Social Security Administration. Supports agency-wide access to ServiceNow for workflow automation and case management. Potential impact on user experience and productivity based on software performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor lock-in risk with specialized software.
- Potential for price increases in future renewals.
- Dependence on a single awardee for critical software.
Positive Signals
- Awarded under full and open competition.
- Supports essential government functions.
- Long-term subscription provides budget predictability.
Sector Analysis
This spending falls within the IT sector, specifically software publishers. Government spending on enterprise software like ServiceNow is common for agencies seeking to modernize operations and improve efficiency.
Small Business Impact
While the awardee is Carahsoft Technology Corp, which often partners with small businesses, this specific contract does not indicate direct small business participation in the prime award. Further analysis of subcontracting would be needed.
Oversight & Accountability
The award was made under a BPA Call, suggesting it leverages an existing Blanket Purchase Agreement. Oversight should focus on adherence to BPA terms and conditions and ongoing performance monitoring.
Related Government Programs
- Software Publishers
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on a single vendor for critical software.
- Risk of price increases in future contract periods.
- Need for ongoing performance monitoring to ensure value.
Tags
software-publishers, social-security-administration, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $20.7 million to CARAHSOFT TECHNOLOGY CORP. CALL ORDER FOR 12-MONTH SUBSCRIPTIONS FOR SERVICENOW SOFTWARE.
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $20.7 million.
What is the period of performance?
Start: 2025-03-30. End: 2026-03-29.
What is the total cost of ownership for ServiceNow over a 3-5 year period, considering potential price escalations and implementation costs?
The total cost of ownership over 3-5 years would require projecting annual subscription fees, factoring in potential price increases (often capped by contract terms), and estimating costs for implementation, training, customization, and ongoing support. Without these additional data points, a precise TCO is difficult to ascertain, but the current $20.7M annual spend provides a baseline for future projections.
What are the key performance indicators (KPIs) used to measure the effectiveness of the ServiceNow subscription for the SSA?
Key performance indicators for ServiceNow effectiveness typically include metrics related to workflow efficiency (e.g., ticket resolution times, process cycle times), user adoption rates, system uptime and availability, and the successful automation of specific business processes. The SSA would likely track these to ensure the software delivers expected operational improvements and value.
How does the pricing of this ServiceNow subscription compare to similar enterprise software licenses procured by other federal agencies?
Benchmarking this $20.7M ServiceNow subscription against similar enterprise software licenses requires access to aggregated government procurement data (e.g., FPDS). Factors like user count, module scope, and contract duration influence pricing. A comparative analysis would reveal if the SSA secured competitive pricing relative to market rates for comparable software deployments.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 28321325Q00000100
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: $20,665,339
Exercised Options: $20,665,339
Current Obligation: $20,665,339
Actual Outlays: $20,665,339
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 28321325A00040016
IDV Type: BPA
Timeline
Start Date: 2025-03-30
Current End Date: 2026-03-29
Potential End Date: 2026-03-29 00:00:00
Last Modified: 2026-03-27
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