IT services contract for ServiceNow Professional Services awarded to I TECH AG LLC for over $2.4 million

Contract Overview

Contract Amount: $2,464,322 ($2.5M)

Contractor: I Tech AG LLC

Awarding Agency: U.S. International Development Finance Corporation

Start Date: 2025-03-25

End Date: 2027-03-24

Contract Duration: 729 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICENOW PROFESSIONAL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20527

State: District of Columbia Government Spending

Plain-Language Summary

U.S. International Development Finance Corporation obligated $2.5 million to I TECH AG LLC for work described as: SERVICENOW PROFESSIONAL SERVICES Key points: 1. The contract value of $2.46 million for a 2-year period suggests a moderate investment in IT support. 2. The award to I TECH AG LLC indicates a specific capability match for the required ServiceNow services. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The duration of 729 days provides a stable period for service delivery and performance evaluation. 5. The North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design. 6. The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process with specific justifications.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed information on the specific services provided under ServiceNow. However, a $2.46 million contract over two years for specialized IT professional services is within a typical range for government agencies. Without comparable contract data for similar ServiceNow implementations or support, it's difficult to definitively assess if this represents excellent value. The firm fixed-price structure is a positive indicator for cost control, but the ultimate value will depend on the quality and effectiveness of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation implies that while the competition was intended to be broad, specific sources were excluded, likely due to pre-existing conditions or specific requirements not fully detailed in the provided data. The number of bidders (17) is a positive sign of competition, but the exclusion of sources may have limited the overall competitive landscape. This approach can sometimes lead to higher prices if the excluded sources would have offered more competitive bids.

Taxpayer Impact: The competitive process, despite exclusions, involved 17 bidders, which likely helped in achieving a reasonable price. However, the exclusion of certain sources warrants scrutiny to ensure taxpayers did not miss out on potentially better value.

Public Impact

The U.S. International Development Finance Corporation (DFC) benefits from enhanced IT capabilities through these ServiceNow professional services. The services delivered are expected to support the DFC's mission by improving the efficiency and effectiveness of its IT systems. The contract is geographically focused on the District of Columbia, where the DFC is headquartered. The contract supports the IT workforce by engaging a professional services firm to augment internal capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type requires further investigation to understand the rationale and potential impact on price.
Limited public information on the specific deliverables makes it challenging to assess the full scope and potential risks.
The reliance on external professional services for core IT functions could indicate potential gaps in internal expertise or capacity.

Positive Signals

The contract was awarded under full and open competition, indicating a broad initial search for qualified vendors.
A significant number of bidders (17) suggests strong market interest and availability of qualified contractors.
The firm fixed-price contract type transfers cost overrun risk to the contractor, which is favorable for the government.
The contract duration of two years provides stability for service delivery and performance management.

Sector Analysis

The IT professional services sector is a large and dynamic market, with government spending on system design and integration services being a significant component. Contracts like this, focused on specific platforms like ServiceNow, are common as agencies seek to optimize their IT operations and leverage specialized software. The market is characterized by a mix of large system integrators and specialized boutique firms. Spending benchmarks for similar ServiceNow professional services contracts can vary widely based on complexity, duration, and the specific modules or functionalities being implemented or supported.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary focus is on the prime contractor, I TECH AG LLC.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. International Development Finance Corporation's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally facilitated through contract award databases, though detailed performance metrics and specific oversight activities are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Computer Systems Design Services
Software Implementation Services
IT Support Services
Cloud Services Support

Risk Flags

Competition Type: 'Full and Open Competition After Exclusion of Sources' requires justification and potential impact on price.
Limited Scope Detail: Specific deliverables and performance metrics are not publicly detailed, hindering full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

U.S. International Development Finance Corporation awarded $2.5 million to I TECH AG LLC. SERVICENOW PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is I TECH AG LLC.

Which agency awarded this contract?

Awarding agency: U.S. International Development Finance Corporation (U.S. International Development Finance Corporation).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2025-03-25. End: 2027-03-24.

What is the specific nature of the ServiceNow professional services being provided under this contract?

The provided data indicates the contract is for 'SERVICENOW PROFESSIONAL SERVICES' under NAICS code 541512 (Computer Systems Design Services). While the specific tasks are not detailed, professional services for ServiceNow typically encompass a range of activities. These can include implementation of new ServiceNow modules, customization and configuration of the platform to meet agency-specific workflows, integration with other enterprise systems, ongoing maintenance and support, system upgrades, and potentially training for agency personnel. The U.S. International Development Finance Corporation likely utilizes ServiceNow for IT Service Management (ITSM), IT Operations Management (ITOM), or other business workflow automation capabilities. The exact scope would be detailed in the contract's Statement of Work (SOW).

How does the awarded price of $2.46 million compare to similar ServiceNow professional services contracts for a 2-year duration?

Directly comparing the $2.46 million price tag for 24 months (729 days) requires access to a comprehensive database of similar government contracts, including details on the scope of work, contractor's labor rates, and specific ServiceNow modules involved. However, for a federal agency of the DFC's size and mission, this amount appears to be within a reasonable range for comprehensive professional services related to a platform like ServiceNow. Factors influencing price include the level of customization, integration complexity, number of users supported, and the specific modules being utilized (e.g., ITSM, HR Service Delivery, Security Operations). Without more granular data on comparable contracts, a precise benchmark is difficult, but it doesn't immediately suggest overpricing or underbidding.

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

Key risks include potential scope creep, contractor underperformance, and the possibility that the 'exclusion of sources' limited competitive pricing. Scope creep is mitigated by the firm fixed-price contract type, which incentivizes the contractor to manage the scope tightly. Contractor underperformance risk is managed through standard contract oversight, performance metrics (likely detailed in the SOW), and the potential for remedies if performance is unsatisfactory. The risk associated with limited competition is harder to mitigate post-award but relies on the initial justification for excluding sources being sound and the competitive process among the remaining bidders being robust. Transparency regarding the reasons for source exclusion would enhance risk assessment.

What is the track record of I TECH AG LLC in delivering similar IT professional services to the federal government?

Information on I TECH AG LLC's specific track record with federal IT professional services, particularly for ServiceNow, is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards to the company, and their demonstrated experience with similar platforms and agency requirements. Federal agencies typically conduct pre-award reviews of a contractor's past performance to gauge their capability and reliability. Without access to these performance records, it's difficult to definitively assess their track record.

How does the competition level (17 bidders, but with exclusions) impact the value for taxpayers?

Having 17 bidders initially suggests a healthy level of competition, which generally benefits taxpayers by driving down prices and encouraging innovation. However, the 'exclusion of sources' introduces a layer of uncertainty. If the excluded sources were capable and would have offered competitive bids, their exclusion could potentially lead to a higher price than might have been achieved in a truly unrestricted full and open competition. The value for taxpayers depends on whether the remaining 17 bidders provided sufficient competitive pressure to yield a fair market price, and whether the justification for excluding sources was valid and served a legitimate government interest without unduly limiting competition.

What is the historical spending pattern for ServiceNow professional services at the U.S. International Development Finance Corporation?

The provided data does not include historical spending patterns for ServiceNow professional services at the U.S. International Development Finance Corporation (DFC). To analyze this, one would need to examine past contract awards for similar services to the DFC over several fiscal years. This would reveal trends in spending, the number and types of contractors utilized, and the average value and duration of such contracts. Understanding historical spending helps in contextualizing the current award, identifying potential increases or decreases in investment, and assessing consistency in IT service procurement strategies.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 77344425Q0021

Offers Received: 17

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: $7,953,908

Exercised Options: $2,464,322

Current Obligation: $2,464,322

Actual Outlays: $508,168

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $910,872

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0317

IDV Type: GWAC

Timeline