Ginnie Mae ServiceNow Enterprise Solutions contract awarded to I TECH AG LLC for $9.7M

Contract Overview

Contract Amount: $9,725,966 ($9.7M)

Contractor: I Tech AG LLC

Awarding Agency: General Services Administration

Start Date: 2024-07-01

End Date: 2026-06-30

Contract Duration: 729 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GINNIE MAE SERVICENOW ENTERPRISE SOLUTIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $9.7 million to I TECH AG LLC for work described as: GINNIE MAE SERVICENOW ENTERPRISE SOLUTIONS Key points: 1. Contract value of $9.7 million over two years suggests a significant investment in IT infrastructure. 2. The award to I TECH AG LLC indicates a competitive procurement process. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The duration of 729 days aligns with typical enterprise software implementation timelines. 5. The contract falls under Computer Systems Design Services, a common category for IT modernization efforts.

Value Assessment

Rating: good

The contract value of $9.7 million for two years of ServiceNow enterprise solutions appears reasonable given the scope of enterprise-wide IT support. Benchmarking against similar GSA contracts for IT services suggests this pricing is competitive. The firm-fixed-price structure further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a robust competitive process where multiple vendors were likely considered. With 7 bids received, the level of competition suggests a healthy market for these services and provides a strong basis for price discovery.

Taxpayer Impact: The extensive competition is beneficial for taxpayers as it likely drove down pricing and ensured the government secured a capable vendor at a fair market rate.

Public Impact

Ginnie Mae employees will benefit from improved IT service management and operational efficiency. The contract delivers enterprise-level IT solutions, enhancing the agency's digital infrastructure. The primary geographic impact is within the District of Columbia, where Ginnie Mae is headquartered. The contract supports the IT workforce by providing essential tools and platforms for their work.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future needs are heavily reliant on this specific ServiceNow implementation.
Ensuring adequate knowledge transfer and documentation to mitigate risks associated with contractor dependency.

Positive Signals

The use of a widely adopted platform like ServiceNow suggests a focus on industry best practices.
The competitive award process indicates a commitment to obtaining quality services at a reasonable cost.
The firm-fixed-price contract type provides cost predictability for the agency.

Sector Analysis

The IT services sector, particularly cloud-based enterprise solutions like ServiceNow, is a rapidly growing area within federal IT spending. GSA's role as an aggregator for such services allows agencies to leverage economies of scale. Comparable spending benchmarks for enterprise IT solutions often range from several million to tens of millions of dollars annually, depending on the scope and user base.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, I TECH AG LLC, may engage small businesses for subcontracting opportunities. The overall impact on the small business ecosystem will depend on the extent to which subcontracting is utilized and whether small businesses are included in future competitive phases.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through GSA's contract award databases, though specific performance metrics may not be publicly disclosed.

Related Government Programs

Ginnie Mae IT Modernization Efforts
GSA IT Schedule 70 Contracts
Enterprise Resource Planning (ERP) Systems
Cloud Computing Services for Federal Agencies

Risk Flags

Potential for vendor lock-in
User adoption challenges
Integration complexity with existing systems

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.7 million to I TECH AG LLC. GINNIE MAE SERVICENOW ENTERPRISE SOLUTIONS

Who is the contractor on this award?

The obligated recipient is I TECH AG LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $9.7 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-06-30.

What is the track record of I TECH AG LLC in delivering similar enterprise IT solutions to federal agencies?

Information regarding I TECH AG LLC's specific track record with ServiceNow enterprise solutions for federal agencies would require a deeper dive into contract databases and performance reviews. Generally, for contracts of this nature, agencies assess past performance through sources like the Contractor Performance Assessment Reporting System (CPARS). A review of CPARS data, if available for I TECH AG LLC, would provide insights into their timeliness, quality of work, and overall customer satisfaction on previous federal contracts. Without direct access to this specific performance data, it's difficult to definitively assess their track record for this particular type of service.

How does the awarded amount compare to similar ServiceNow implementations in the federal government?

The awarded amount of $9.7 million over approximately two years for Ginnie Mae's ServiceNow enterprise solutions can be benchmarked against similar federal contracts. ServiceNow implementations vary significantly in cost based on modules deployed, number of users, and complexity of integrations. GSA's IT Schedule and other contract vehicles often list rates for ServiceNow professional services. A preliminary comparison suggests that for a comprehensive enterprise deployment, this figure is within a reasonable range, especially considering it covers software, implementation, and ongoing support. However, a precise comparison would necessitate knowing the specific modules and user count involved in Ginnie Mae's deployment.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep, vendor lock-in, and challenges in user adoption. Scope creep can be mitigated through robust contract management, clear definition of deliverables, and change control processes. Vendor lock-in is a common concern with enterprise software; mitigation involves ensuring data portability and considering multi-vendor strategies for future needs where feasible. User adoption risks are addressed through comprehensive training and change management plans, which are typically part of successful IT solution implementations. The firm-fixed-price nature of the contract also helps mitigate cost overrun risks for the government.

How effective is the chosen ServiceNow platform in meeting Ginnie Mae's IT service management needs?

The effectiveness of ServiceNow in meeting Ginnie Mae's IT service management needs is contingent on the specific modules implemented and how well they align with Ginnie Mae's operational requirements. ServiceNow is a leading platform for IT Service Management (ITSM), IT Operations Management (ITOM), and IT Business Management (ITBM), known for its capabilities in automating workflows, improving service delivery, and providing visibility into IT infrastructure. Its effectiveness will be measured by improvements in ticket resolution times, reduction in manual processes, enhanced asset management, and overall user satisfaction with IT services. Ginnie Mae's internal assessments and user feedback post-implementation will be critical indicators of its effectiveness.

What are the historical spending patterns for Ginnie Mae's IT services, and how does this contract fit?

Analyzing Ginnie Mae's historical spending on IT services would reveal trends in their technology investments. This $9.7 million contract for ServiceNow enterprise solutions represents a significant, focused investment in modernizing their IT service management capabilities. It suggests a strategic shift towards a unified platform for IT operations, potentially consolidating disparate systems and improving efficiency. If Ginnie Mae previously relied on multiple vendors or legacy systems for similar functions, this contract signifies a move towards a more integrated and potentially cost-effective approach. Understanding past spending on help desk software, asset management tools, and IT process automation would provide context for this contract's place within their overall IT budget.

What are the implications of the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type indicates that the solicitation was broadly advertised, allowing all responsible sources to submit offers. However, specific sources may have been excluded from consideration based on pre-defined criteria or specific requirements of the solicitation. This typically happens when certain conditions are met, such as when it's determined that only a limited number of sources can fulfill the requirement, or after a previous competitive process where only certain vendors were found capable. For taxpayers, this method aims to ensure fair competition while potentially streamlining the process by focusing on qualified vendors, ideally leading to competitive pricing and a high-quality solution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFDA23Q0044

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1220 N FILLMORE ST STE 400, ARLINGTON, VA, 22201

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,635,751

Exercised Options: $9,725,966

Current Obligation: $9,725,966

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB22D0317

IDV Type: GWAC

Timeline