DHS Awards $15.8M for ServiceNow Licenses to GovSmart, Inc

Contract Overview

Contract Amount: $15,798,757 ($15.8M)

Contractor: Govsmart, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-25

End Date: 2026-08-28

Contract Duration: 337 days

Daily Burn Rate: $46.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS AWARD IS FOR SERVICENOW (SNOW) LICENSE RENEWALS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.8 million to GOVSMART, INC. for work described as: THIS AWARD IS FOR SERVICENOW (SNOW) LICENSE RENEWALS. Key points: 1. The award focuses on essential ServiceNow software licenses, a critical platform for many government operations. 2. GovSmart, Inc. secured this contract, indicating a competitive landscape for IT software providers. 3. Potential risks include vendor lock-in and the need for ongoing license management to ensure cost-effectiveness. 4. This spending falls within the broader IT services sector, characterized by rapid technological advancements and evolving needs.

Value Assessment

Rating: good

The $15.8 million award for ServiceNow licenses appears reasonable given the software's critical function and the duration of the contract. Benchmarking against similar enterprise software renewals would provide a more precise assessment, but the price seems aligned with market expectations for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to participate.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for essential software licenses, ensuring funds are used efficiently.

Public Impact

Ensures continued access to critical ServiceNow platform for Department of Homeland Security operations. Supports government IT infrastructure and digital transformation initiatives. Potential for cost savings through competitive procurement of software licenses. Highlights the government's reliance on commercial off-the-shelf software solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future renewals.
Dependence on a single software vendor (ServiceNow).

Positive Signals

Awarded through full and open competition.
Supports essential government IT functions.

Sector Analysis

This award falls within the IT services sector, specifically software licensing and maintenance. Government spending on enterprise software like ServiceNow is substantial, reflecting its importance in modernizing operations and improving efficiency across agencies.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to compete or if this specific service is dominated by larger providers.

Oversight & Accountability

The Department of Homeland Security's Office of Procurement Operations managed this award. Standard procurement oversight processes should be in place to ensure compliance and value for money throughout the contract lifecycle.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Potential for price increases in future renewals.
Dependence on a single software vendor (ServiceNow).
Lack of small business participation noted.
Need for ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.8 million to GOVSMART, INC.. THIS AWARD IS FOR SERVICENOW (SNOW) LICENSE RENEWALS.

Who is the contractor on this award?

The obligated recipient is GOVSMART, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2025-09-25. End: 2026-08-28.

What is the total cost of ownership for ServiceNow licenses over the contract period, including potential future renewals and support?

The total cost of ownership over the contract period is approximately $15.8 million. However, a comprehensive analysis would require projecting costs for potential future renewals, including anticipated price escalations and the cost of ongoing support and maintenance. Understanding the total lifecycle cost is crucial for long-term budget planning and assessing the true value of the investment.

What are the specific risks associated with relying on ServiceNow for critical DHS functions, and are there mitigation strategies in place?

Key risks include vendor lock-in, potential security vulnerabilities, and service disruptions. Mitigation strategies could involve robust cybersecurity measures, regular performance reviews, exploring alternative solutions for specific functions, and negotiating favorable contract terms for future renewals to ensure flexibility and manage costs effectively.

How does the pricing of these ServiceNow licenses compare to similar government or commercial contracts for comparable services?

While specific benchmark data is not provided, the award was made under full and open competition, suggesting the price was deemed competitive at the time of award. A detailed comparison would involve analyzing per-unit costs for similar modules and user counts across government agencies and large commercial enterprises to validate the value for money.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 715 CHARLTON AVE STE 100, CHARLOTTESVILLE, VA, 22903

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,798,757

Exercised Options: $15,798,757

Current Obligation: $15,798,757

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD11B

IDV Type: GWAC

Timeline