DHS awards $9.3M ServiceNow renewal to Norseman Inc., extending IT support for immigration services

Contract Overview

Contract Amount: $9,331,519 ($9.3M)

Contractor: Norseman Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-28

End Date: 2025-09-28

Contract Duration: 365 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICE NOW ANNUAL RENEWAL

Place of Performance

Location: CHANDLER, MARICOPA County, ARIZONA, 85226

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.3 million to NORSEMAN INC for work described as: SERVICE NOW ANNUAL RENEWAL Key points: 1. Contract provides essential IT support for ServiceNow, a critical platform for immigration and customs operations. 2. Renewal ensures continuity of service for a vital government function, mitigating disruption risks. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. Norseman Inc. has secured this renewal, indicating satisfactory performance on the previous contract. 5. The fixed-price contract type helps manage cost certainty for the government. 6. This spending falls within the 'Other Computer Related Services' NAICS code, a common category for IT support.

Value Assessment

Rating: good

The contract value of $9.33 million for a one-year renewal of ServiceNow support appears reasonable given the critical nature of the service. Benchmarking against similar IT support contracts for enterprise software renewals suggests that this price is within expected ranges. The firm fixed-price structure provides cost predictability. Without detailed performance metrics from the previous period, a definitive value-for-money assessment is challenging, but the competitive award process lends some confidence.

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,' which typically means that all responsible sources were permitted to submit a bid. The specific designation suggests that while competition was open, there might have been prior exclusions or specific circumstances leading to this phrasing. The fact that it was competed openly is a positive sign for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The open competition process is beneficial for taxpayers as it encourages multiple vendors to bid, driving down costs and potentially leading to better service quality for the allocated funds.

Public Impact

Immigration and Customs Enforcement (ICE) operations will benefit from continued access to the ServiceNow platform. Essential IT support services for a critical government software platform are being delivered. The contract's impact is primarily national, supporting federal immigration functions. The contract supports IT professionals, likely including those employed by Norseman Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if ServiceNow's proprietary nature limits future competition for support.
Reliance on a single vendor for critical IT support could pose risks if the vendor faces financial or operational challenges.

Positive Signals

Awarded through full and open competition, indicating a competitive market for this service.
Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Renewal suggests satisfactory performance by Norseman Inc. on the prior contract term.

Sector Analysis

This contract falls under the Information Technology sector, specifically within IT services and support. The market for enterprise IT service management platforms like ServiceNow is robust, with significant government and commercial spending. Comparable contracts often involve multi-year renewals for software licenses and associated support, with values ranging widely based on the scope of services and user base. The $9.33 million annual spend is substantial but aligns with the scale of operations for a federal agency like ICE.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Norseman Inc. is the prime contractor, there is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is therefore neutral unless Norseman Inc. voluntarily engages small businesses for support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program managers. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified services. The Inspector General for the Department of Homeland Security may conduct audits or investigations into contract performance and spending if concerns arise.

Related Government Programs

ServiceNow Software and Maintenance
IT Professional Services
Cloud Computing Services
Enterprise Resource Planning (ERP) Support
Federal Civilian IT Modernization

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical IT services
Need for ongoing performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.3 million to NORSEMAN INC. SERVICE NOW ANNUAL RENEWAL

Who is the contractor on this award?

The obligated recipient is NORSEMAN INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $9.3 million.

What is the period of performance?

Start: 2024-09-28. End: 2025-09-28.

What is Norseman Inc.'s track record with federal contracts, particularly for IT support services?

Norseman Inc. has a history of federal contracting, with this award representing a significant renewal for IT support services. Reviewing historical contract data reveals previous awards for similar IT services, indicating a sustained relationship with government agencies. The company's performance on prior contracts, especially those involving critical systems like ServiceNow, would be a key factor in the agency's decision to renew. While specific performance ratings are not detailed here, the renewal itself suggests a level of satisfaction. Further analysis would involve examining past performance evaluations and any documented issues or commendations related to their service delivery.

How does the $9.33 million annual cost compare to similar ServiceNow support contracts or IT service agreements within the federal government?

The $9.33 million annual cost for ServiceNow support renewal is substantial, but its value is best assessed through benchmarking. Comparing this figure to other federal contracts for similar enterprise IT platforms, especially those supporting large agencies like DHS/ICE, is crucial. Factors influencing cost include the number of users, modules licensed, scope of support (e.g., 24/7 vs. business hours), and the level of customization. Without access to a detailed breakdown of services provided and user counts, a precise comparison is difficult. However, this amount appears consistent with the scale of enterprise software support for major federal operations, assuming comprehensive service delivery.

What are the primary risks associated with this contract renewal, and what mitigation strategies are in place?

Key risks include potential vendor lock-in due to the proprietary nature of ServiceNow, reliance on a single vendor for critical IT infrastructure, and the possibility of performance degradation over time. Mitigation strategies often involve robust Service Level Agreements (SLAs) within the contract, clear performance metrics, and regular vendor performance reviews. The competitive nature of the award process also serves as a risk mitigator, as it allows for potential re-competition in the future. Furthermore, agencies typically maintain internal IT expertise to oversee vendor performance and manage the platform, reducing sole-vendor dependency.

How effective has the ServiceNow platform been in supporting U.S. Immigration and Customs Enforcement (ICE) operations, and how does this contract contribute to that effectiveness?

The ServiceNow platform is widely used across government for workflow automation, case management, and IT service management. For ICE, it likely streamlines various operational processes, from case tracking to resource allocation and IT support. This contract renewal ensures the continued availability and support of the platform, which is critical for maintaining operational efficiency and data integrity. The effectiveness of ServiceNow itself is a separate evaluation, but this contract directly supports its ongoing functionality, thereby contributing to ICE's ability to manage its complex mission.

What are the historical spending patterns for ServiceNow support at DHS/ICE, and does this $9.33 million renewal represent an increase or decrease?

Analyzing historical spending data for ServiceNow support at DHS/ICE is essential to contextualize the current $9.33 million award. If previous annual spending was significantly lower, this renewal might indicate an expansion of services, increased user base, or rising costs. Conversely, if past spending was higher, it could suggest cost savings or a reduction in scope. Without prior year data, it's impossible to determine if this represents an increase or decrease. A trend analysis over several years would reveal patterns in IT support expenditure for this critical system.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8172 LARK BROWN RD STE 201, ELKRIDGE, MD, 21075

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,331,519

Exercised Options: $9,331,519

Current Obligation: $9,331,519

Actual Outlays: $9,275,886

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC83B

IDV Type: GWAC

Timeline