CFPB renews ServiceNow license for $3.07M, extending support through December 2026

Contract Overview

Contract Amount: $3,068,384 ($3.1M)

Contractor: Countertrade Products, Inc.

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2024-12-30

End Date: 2026-12-30

Contract Duration: 730 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICENOW LICENSE RENEWAL

Place of Performance

Location: ARVADA, JEFFERSON County, COLORADO, 80003

State: Colorado Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $3.1 million to COUNTERTRADE PRODUCTS, INC. for work described as: SERVICENOW LICENSE RENEWAL Key points: 1. Value for money assessed against market rates for similar enterprise software licenses. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and reliance on a single software platform. 4. Performance context relies on the vendor's ability to provide continuous support and updates. 5. Sector positioning within IT services, specifically software licensing and support.

Value Assessment

Rating: good

The contract value of $3.07 million for a two-year ServiceNow license renewal appears reasonable when benchmarked against typical enterprise software subscription costs. ServiceNow is a widely adopted platform, and its pricing is generally competitive within the SaaS market. The firm fixed-price structure provides cost certainty for the Consumer Financial Protection Bureau (CFPB). Further analysis would involve comparing the specific modules and user counts to similar government or commercial contracts to confirm optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple vendors were allowed to bid. The presence of 8 bidders suggests a healthy level of competition for this type of IT service. This broad participation is generally favorable for price discovery and ensures the government has access to a range of solutions and pricing options.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging vendors to offer their best pricing.

Public Impact

The primary beneficiary is the Consumer Financial Protection Bureau (CFPB), which gains continued access to essential workflow automation and IT service management capabilities. Services delivered include the renewal of licenses for the ServiceNow platform, ensuring ongoing operational support and access to software updates. The geographic impact is primarily within the CFPB's operational locations, supporting its internal IT infrastructure. Workforce implications involve enabling CFPB IT staff to manage and utilize the platform effectively for internal operations and service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a critical software platform.
Reliance on a single vendor for essential IT services could pose continuity risks if not managed proactively.

Positive Signals

Full and open competition suggests a robust procurement process.
Firm fixed-price contract provides budget predictability.
Contract duration aligns with typical software renewal cycles.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on enterprise software licensing and support. The market for platforms like ServiceNow is characterized by a few dominant players and numerous specialized service providers. Government spending on such platforms is substantial, driven by the need for efficient IT operations, workflow automation, and service management across various agencies. Benchmarks for similar enterprise software renewals often consider user count, module scope, and support levels.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside provisions. While Countertrade Products, Inc. is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this specific award. Further review of the contract details would be needed to assess potential small business participation or impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Consumer Financial Protection Bureau. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services and software access. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Software Licensing
Enterprise Resource Planning (ERP) Systems
Cloud-Based Software Services
IT Service Management (ITSM) Platforms

Risk Flags

Vendor Lock-in
Software Dependency
Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $3.1 million to COUNTERTRADE PRODUCTS, INC.. SERVICENOW LICENSE RENEWAL

Who is the contractor on this award?

The obligated recipient is COUNTERTRADE PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2024-12-30. End: 2026-12-30.

What is the track record of Countertrade Products, Inc. in delivering ServiceNow solutions to federal agencies?

Information regarding Countertrade Products, Inc.'s specific track record with ServiceNow solutions for federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client references for this vendor, particularly concerning their experience with similar software platforms and government clients. Understanding their history with ServiceNow implementations, support, and renewals would be crucial for evaluating their capability to fulfill this contract effectively and provide ongoing value.

How does the per-user cost of this ServiceNow license compare to other federal agencies or commercial entities?

The provided data does not include per-user cost details, making a direct comparison difficult. To assess this, one would need to know the number of users and the specific ServiceNow modules licensed under this $3.07 million contract. Benchmarking would involve comparing this per-user rate against publicly available pricing for similar ServiceNow enterprise agreements within the federal government (e.g., through GSA schedules or other agency contracts) or against commercial enterprise pricing structures. Without this granular data, a precise value-for-money assessment on a per-unit basis is limited.

What are the key performance indicators (KPIs) used to measure the success of this ServiceNow license renewal?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for software license renewals like ServiceNow, KPIs would focus on aspects such as system uptime and availability, response times for technical support, successful deployment of updates and patches, user satisfaction, and adherence to service level agreements (SLAs). The contracting officer and CFPB program managers would be responsible for defining and monitoring these KPIs to ensure the vendor meets its obligations and the platform delivers expected value.

What is the historical spending pattern of the CFPB on ServiceNow or similar IT platforms?

The provided data only pertains to this specific $3.07 million renewal. To understand historical spending patterns, one would need to analyze previous contract awards for ServiceNow or comparable IT platforms by the CFPB over several fiscal years. This would involve searching federal procurement databases for prior contracts, noting their values, durations, and scopes. Analyzing this trend would reveal whether spending on such platforms is increasing, decreasing, or remaining stable, and whether this renewal represents a significant deviation from past investments.

What are the potential risks associated with relying on a single vendor for a critical IT platform like ServiceNow?

Relying on a single vendor like ServiceNow for a critical IT platform presents several risks. These include vendor lock-in, where switching to another provider becomes prohibitively expensive or complex. There's also the risk of price increases upon renewal, as the vendor may have significant leverage. Operational risks include potential service disruptions if the vendor experiences technical issues or financial instability. Furthermore, the agency's ability to innovate or adopt new technologies might be constrained by the vendor's roadmap and pricing structure for new features.

How does the 'full and open competition after exclusion of sources' procurement method impact the final price and vendor selection?

The 'full and open competition after exclusion of sources' method aims to maximize competition while potentially allowing for specific exclusions based on defined criteria, though the data doesn't specify the exclusion reason here. By allowing all responsible sources to submit offers, it theoretically drives down prices through market forces and encourages a wider range of solutions. The presence of 8 bidders suggests this method was effective in attracting multiple offers. This approach generally benefits taxpayers by fostering a competitive environment that leads to better pricing and potentially more innovative solutions compared to sole-source or limited competition scenarios.

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

Solicitation ID: 9531CB25Q0020

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7585 W 66TH AVE, ARVADA, CO, 80003

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

Financial Breakdown

Contract Ceiling: $3,833,404

Exercised Options: $3,068,384

Current Obligation: $3,068,384

Actual Outlays: $2,962,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC65B

IDV Type: GWAC

Timeline