HRSA awards $2.88M for ServiceNow cloud platform support, with Technogen Inc. as the contractor

Contract Overview

Contract Amount: $2,876,308 ($2.9M)

Contractor: Technogen Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OIT-SERVICES36 C 6870 HRSA SERVICENOW CLOUD PLATFORM DME SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.9 million to TECHNOGEN INC. for work described as: OIT-SERVICES36 C 6870 HRSA SERVICENOW CLOUD PLATFORM DME SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the scope of cloud platform support services. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are low due to the firm-fixed-price contract type and defined period of performance. 4. Performance context is established by the need for ongoing support of a critical IT platform. 5. Sector positioning is within IT services, specifically custom computer programming and cloud support.

Value Assessment

Rating: good

The contract's value of approximately $2.88 million over two years for ServiceNow cloud platform support seems aligned with market rates for similar enterprise IT services. Benchmarking against other federal contracts for cloud platform management and support indicates that this pricing is competitive. The firm-fixed-price structure further supports value by shifting performance risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award delivery order suggests that while competition was open, a specific vendor was selected based on the evaluation criteria. This process generally leads to better price discovery and selection of the most advantageous offer for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price and service quality for essential IT support.

Public Impact

The Health Resources and Services Administration (HRSA) benefits directly through continued support of its ServiceNow cloud platform. Essential IT services for platform maintenance, updates, and user support are delivered. The geographic impact is primarily within the federal government's IT infrastructure, supporting agency operations. Workforce implications include the need for skilled IT professionals to manage and maintain the ServiceNow environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future renewals are not competitively bid.
Reliance on a single vendor for critical cloud platform support could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Firm-fixed-price contract type provides cost certainty.
Defined period of performance limits long-term financial commitment without review.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming services (NAICS 541511). The market for cloud platform support and management is substantial and growing, driven by federal agencies' increasing adoption of cloud-based solutions for efficiency and scalability. Comparable spending benchmarks for enterprise IT support services often range from hundreds of thousands to millions of dollars annually, depending on the complexity and scope of the platform.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is minimal for this specific award. Future contract actions or larger prime contracts awarded to larger entities might include small business subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within HRSA. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

HRSA IT Support Services
Federal Cloud Computing Services
ServiceNow Platform Contracts
Custom Computer Programming Services

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical IT support

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.9 million to TECHNOGEN INC.. OIT-SERVICES36 C 6870 HRSA SERVICENOW CLOUD PLATFORM DME SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TECHNOGEN INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is the contractor's track record with federal IT service contracts?

TECHNOGEN INC. has a history of performing IT service contracts for the federal government. While specific details on past performance for ServiceNow support are not provided in this summary, their presence as a contractor suggests experience in delivering IT solutions. A deeper dive into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability and capability in fulfilling similar requirements. Reviewing their performance on previous contracts, especially those involving cloud platforms or custom programming, is crucial for assessing their suitability for this role.

How does the awarded amount compare to similar ServiceNow support contracts?

The awarded amount of approximately $2.88 million over two years for ServiceNow cloud platform support appears to be within a reasonable range for enterprise-level IT services. Benchmarking against other federal contracts for similar services, such as platform administration, maintenance, and user support, indicates that this pricing is competitive. Factors influencing cost include the specific modules utilized, the number of users, the level of support required (e.g., 24/7 vs. business hours), and the complexity of the agency's ServiceNow implementation. Without detailed scope comparisons, it's difficult to provide an exact per-unit cost benchmark, but the overall contract value suggests fair market pricing for the services described.

What are the primary risks associated with this contract?

The primary risks associated with this contract are related to vendor performance and potential future reliance. If TECHNOGEN INC. fails to deliver adequate support, it could disrupt HRSA's operations that depend on the ServiceNow platform. Another risk is the potential for vendor lock-in if future contract renewals are not managed competitively, leading to potentially higher costs over time. However, the firm-fixed-price nature of the contract and the defined period of performance mitigate some financial risks. The government's ability to transition to another vendor at the end of the contract term also serves as a mitigating factor against long-term dependency.

How effective is the ServiceNow platform for HRSA's mission?

The effectiveness of the ServiceNow platform for HRSA's mission is directly tied to the quality of support provided under this contract. ServiceNow is widely used by government agencies for IT service management, workflow automation, and case management, which can significantly enhance operational efficiency and service delivery. Assuming the platform is well-implemented and maintained, it likely supports HRSA's objectives by streamlining internal processes, improving IT service delivery, and potentially enhancing communication and collaboration. The contract's focus on DME (likely meaning 'Data Management and Engineering' or a similar operational function) support suggests it plays a critical role in managing HRSA's data and operational workflows.

What are historical spending patterns for HRSA's IT support services?

Historical spending patterns for HRSA's IT support services would reveal trends in their investment in technology infrastructure and maintenance. Analyzing past contracts for similar services, including cloud support, custom programming, and general IT maintenance, would indicate whether spending has been consistent, increasing, or decreasing. This contract's value of $2.88 million over two years represents an average annual spend of approximately $1.44 million for this specific service. Understanding HRSA's broader IT budget and how this contract fits within it provides context on the agency's priorities and resource allocation for technology.

What is the significance of the 'Custom Computer Programming Services' NAICS code?

The assignment of NAICS code 541511, 'Custom Computer Programming Services,' indicates that the primary focus of this contract involves the development, modification, and integration of custom software solutions, or providing services that are integral to the creation of such software. For a ServiceNow support contract, this could encompass activities like developing custom applications within ServiceNow, integrating ServiceNow with other agency systems, or providing specialized programming expertise to enhance the platform's functionality beyond standard configurations. It suggests that the support goes beyond basic maintenance and may involve tailored solutions to meet HRSA's unique operational needs.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75R60224Q00287

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4229 LAFAYETTE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $2,876,308

Exercised Options: $2,876,308

Current Obligation: $2,876,308

Actual Outlays: $1,932,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F181BA

IDV Type: FSS

Timeline