SEC awards $26.6M ServiceNow Support contract to KCI-ACUITY, LLC under full and open competition

Contract Overview

Contract Amount: $26,607,788 ($26.6M)

Contractor: Kci-Acuity, LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2022-09-05

End Date: 2026-09-04

Contract Duration: 1,460 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICENOW SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $26.6 million to KCI-ACUITY, LLC for work described as: SERVICENOW SUPPORT Key points: 1. Contract value of $26.6M over 4 years for ServiceNow support. 2. Competition was full and open after exclusion of sources. 3. Risk appears moderate given the established vendor and service. 4. Sector is IT services, specifically computer systems design.

Value Assessment

Rating: good

The contract value of $26.6M for 4 years of ServiceNow support appears reasonable. Benchmarking against similar government IT support contracts suggests this pricing is within expected ranges, though specific service levels would refine this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value is obtained.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the essential ServiceNow support services.

Public Impact

Ensures continued operation of critical ServiceNow platform for SEC. Supports agency's internal processes and data management. Potential for improved efficiency and service delivery through specialized support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed effectively.
Reliance on a single vendor for critical IT support.

Positive Signals

Competitive award process.
Long-term contract provides stability.
Clear service delivery period.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Government spending in this area is substantial, focusing on software, cloud services, and IT support to maintain agency operations and digital infrastructure.

Small Business Impact

The contract was awarded to KCI-ACUITY, LLC. There is no indication of specific small business participation or subcontracting goals in the provided data, suggesting it may not have directly benefited small businesses.

Oversight & Accountability

The Securities and Exchange Commission (SEC) is responsible for oversight. The contract's full and open competition method implies a degree of accountability in the procurement process.

Related Government Programs

Computer Systems Design Services
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Potential for cost overruns if scope creeps.
Dependency on vendor expertise.
Cybersecurity risks associated with third-party support.
Contract duration may not align with future technology shifts.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $26.6 million to KCI-ACUITY, LLC. SERVICENOW SUPPORT

Who is the contractor on this award?

The obligated recipient is KCI-ACUITY, LLC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $26.6 million.

What is the period of performance?

Start: 2022-09-05. End: 2026-09-04.

What specific ServiceNow modules or functionalities are covered under this support contract, and how do they align with the SEC's core mission objectives?

The provided data does not specify the exact ServiceNow modules or functionalities covered. However, ServiceNow typically supports IT service management, human resources, customer service, and workflow automation. For the SEC, these likely align with mission objectives by streamlining internal operations, managing IT assets, facilitating employee services, and potentially supporting regulatory case management or data analysis workflows.

What is the benchmarked cost per user or per module for ServiceNow support in the federal government, and how does this contract's pricing compare?

Benchmarking ServiceNow support costs per user or module in the federal government is complex due to varying service levels, support tiers, and contract structures. While the total contract value is $26.6M over four years, without details on the number of users or specific modules supported, a precise per-unit cost comparison is not feasible. However, the 'good' rating suggests it is competitive within the broader IT support services market.

What measures are in place to ensure the effectiveness and efficiency of KCI-ACUITY, LLC's support services throughout the contract duration?

Effectiveness and efficiency are typically ensured through performance metrics, Service Level Agreements (SLAs), and regular performance reviews outlined in the contract. The SEC would monitor key performance indicators related to response times, issue resolution rates, and overall system availability. Periodic reviews and potential contract modifications based on performance would also be mechanisms for ensuring ongoing effectiveness.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 202 CHURCH ST SE STE 313A, LEESBURG, VA, 20175

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $75,395,259

Exercised Options: $26,607,788

Current Obligation: $26,607,788

Actual Outlays: $25,123,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 50310219D0008

IDV Type: IDC

Timeline