FTC awards $9.5M for ServiceNow support, including ITSM and HRSD, to Leidos, Inc
Contract Overview
Contract Amount: $9,500,446 ($9.5M)
Contractor: Leidos, Inc.
Awarding Agency: Federal Trade Commission
Start Date: 2022-04-01
End Date: 2026-03-31
Contract Duration: 1,460 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TASK ORDER 8 - SERVICENOW SERVICES FOR ITSM, HRSD, NUVOLO, PLATFORM SUPPORT, ISSO SUPPORT AND FUTURE MODULES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20580
Plain-Language Summary
Federal Trade Commission obligated $9.5 million to LEIDOS, INC. for work described as: TASK ORDER 8 - SERVICENOW SERVICES FOR ITSM, HRSD, NUVOLO, PLATFORM SUPPORT, ISSO SUPPORT AND FUTURE MODULES Key points: 1. Value for money assessed through firm-fixed-price contract type, aiming for predictable costs. 2. Competition dynamics indicate a full and open approach, potentially driving competitive pricing. 3. Risk indicators include contract duration and reliance on a single vendor for critical IT services. 4. Performance context is tied to essential IT Service Management (ITSM) and HR Service Delivery (HRSD) functions. 5. Sector positioning within 'Other Computer Related Services' highlights a common need for IT platform support. 6. The contract's value is moderate within the broader IT services market.
Value Assessment
Rating: good
The contract's firm-fixed-price structure suggests an effort to control costs. Benchmarking against similar ServiceNow support contracts is challenging without specific service level agreements and detailed scope. However, the total award value of $9.5 million over approximately four years appears reasonable for comprehensive platform support, including specialized modules and ISSO functions. The BPA Call award mechanism suggests it was part of a pre-competed framework, potentially offering some cost efficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the full and open nature suggests a competitive process was intended to yield the best value. This approach typically allows for a wider range of potential solutions and pricing strategies from various vendors.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services compared to less competitive procurement methods.
Public Impact
Federal Trade Commission (FTC) employees benefit from improved IT service management and HR service delivery. Essential IT services including ITSM, HRSD, and platform support are maintained and enhanced. Geographic impact is primarily within the District of Columbia, where the FTC is headquartered. Workforce implications include ensuring IT staff have the necessary tools and support for their roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for critical IT functions could pose a risk if the vendor faces financial instability or strategic shifts.
- The extended duration of the contract (nearly four years) necessitates ongoing monitoring to ensure continued value and performance.
- Scope creep could increase costs if future module implementations are not carefully managed and priced.
Positive Signals
- The firm-fixed-price contract type provides cost certainty for the FTC.
- Awarding under a BPA Call suggests leveraging existing, pre-competed agreements for efficiency.
- Full and open competition aims to ensure the best possible value is obtained through market forces.
Sector Analysis
The IT services sector, particularly for enterprise software platforms like ServiceNow, is highly competitive. This contract falls within the 'Other Computer Related Services' category, which encompasses a broad range of IT support and consulting. Spending on IT modernization and platform support is a significant area for federal agencies, with billions allocated annually across various departments. Comparable spending benchmarks would depend on the specific modules and support levels required, but this award is within a typical range for comprehensive enterprise platform management.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The prime contractor, Leidos, Inc., is a large business, and their subcontracting plans would be governed by general federal acquisition regulations for large business prime contractors.
Oversight & Accountability
Oversight for this contract will likely be managed by the Federal Trade Commission's contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the public nature of federal contract awards. While specific Inspector General jurisdiction isn't detailed, the FTC's Office of Inspector General would have oversight authority over potential fraud, waste, or abuse related to this contract.
Related Government Programs
- IT Platform Support Services
- Enterprise Resource Planning (ERP) Support
- IT Service Management (ITSM) Solutions
- Human Resources Information Systems (HRIS) Support
- Cloud-based IT Services
- Federal Civilian Agency IT Modernization
Risk Flags
- Vendor Lock-in Risk
- Performance Monitoring Challenges
- Scope Creep Potential
- Contract Duration Management
Tags
it-services, servicenow, ftc, federal-trade-commission, firm-fixed-price, full-and-open-competition, bpa-call, district-of-columbia, computer-related-services, it-support, itsm, hrsd
Frequently Asked Questions
What is this federal contract paying for?
Federal Trade Commission awarded $9.5 million to LEIDOS, INC.. TASK ORDER 8 - SERVICENOW SERVICES FOR ITSM, HRSD, NUVOLO, PLATFORM SUPPORT, ISSO SUPPORT AND FUTURE MODULES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Federal Trade Commission (Federal Trade Commission).
What is the total obligated amount?
The obligated amount is $9.5 million.
What is the period of performance?
Start: 2022-04-01. End: 2026-03-31.
What is Leidos, Inc.'s track record with federal ServiceNow contracts?
Leidos, Inc. has a significant history of performing IT services for the federal government, including work related to enterprise platforms. While specific details on their ServiceNow contract portfolio are not publicly itemized in this data, their broad IT capabilities suggest experience with similar large-scale implementations and support. Federal procurement databases often show Leidos as a prime contractor on numerous IT-related task orders and contracts across various agencies. Their performance history on other complex IT projects would be a key indicator of their ability to successfully execute this ServiceNow support contract, focusing on factors like on-time delivery, budget adherence, and technical proficiency.
How does the $9.5 million award compare to similar ServiceNow support contracts at the FTC or other agencies?
Benchmarking this $9.5 million award requires understanding the specific scope of services, modules supported (ITSM, HRSD, Nuvolo, ISSO), and the duration (nearly 4 years). For a comprehensive enterprise-level ServiceNow implementation and ongoing support, this value appears moderate. Larger agencies with more extensive ServiceNow footprints might award significantly higher amounts for broader platform management, custom development, and integration services. Conversely, smaller agencies or those with more limited ServiceNow usage might have smaller contracts. The FTC's specific needs for ITSM and HRSD, along with specialized support, position this award within a reasonable range for a mid-sized federal agency's requirements.
What are the primary risks associated with this contract for the Federal Trade Commission?
The primary risks for the FTC revolve around vendor lock-in and potential performance issues. Relying on a single vendor, Leidos, Inc., for critical ServiceNow functions like ITSM and HRSD creates dependency. If Leidos experiences financial difficulties, undergoes significant strategic changes, or fails to meet performance expectations, the FTC could face disruptions. The contract's duration of nearly four years amplifies this risk, as issues may not be identified or rectified quickly. Furthermore, managing scope creep for future module implementations is crucial to prevent cost overruns. Ensuring robust service level agreements (SLAs) and continuous performance monitoring are key mitigation strategies.
How effective is the firm-fixed-price contract type in ensuring program effectiveness for ServiceNow support?
The firm-fixed-price (FFP) contract type is generally effective in controlling costs and ensuring predictability for well-defined services. For routine ServiceNow support, maintenance, and potentially standardized module implementations, FFP provides clarity on the total cost. This encourages the contractor to manage their resources efficiently to maintain profitability. However, for highly complex or evolving IT services where the scope might change significantly, FFP can sometimes disincentivize innovation or lead to disputes if requirements are not perfectly defined upfront. For the FTC's stated needs, FFP likely promotes effectiveness by ensuring a defined set of services are delivered within a set budget, but careful scope management remains critical.
What are the historical spending patterns for IT services at the Federal Trade Commission?
Analyzing historical spending patterns for IT services at the FTC would require access to detailed budget and procurement data over multiple fiscal years. Generally, federal agencies like the FTC allocate substantial portions of their budgets to IT infrastructure, software licenses, maintenance, and support services to maintain operational capabilities. Spending on platforms like ServiceNow is common as agencies seek to modernize and streamline IT and HR functions. Trends often show an increasing reliance on cloud-based solutions and managed services. Without specific FTC historical data, it's assumed their IT spending aligns with broader federal trends towards digital transformation and efficient service delivery.
What is the significance of the 'Other Computer Related Services' NAICS code (541519) in the context of this contract?
The NAICS code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide array of IT services not specifically classified elsewhere. This includes services like IT support, network management, disaster recovery, and specialized IT consulting. For this contract, it signifies that the FTC requires comprehensive support for its ServiceNow platform, extending beyond basic IT help desk functions to include specialized modules (ITSM, HRSD), platform administration, and potentially security support (ISSO). This code reflects the multifaceted nature of modern IT service delivery, where agencies often need integrated solutions that don't fit neatly into more specific IT service categories.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 29FTC122Q0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST, 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: $25,522,442
Exercised Options: $10,760,430
Current Obligation: $9,500,446
Actual Outlays: $8,418,547
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 29FTC118A0009
IDV Type: BPA
Timeline
Start Date: 2022-04-01
Current End Date: 2026-03-31
Potential End Date: 2031-09-30 00:00:00
Last Modified: 2026-03-11
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