DoD's $29M ServiceNow HR Software License Awarded to Carahsoft Under Full and Open Competition

Contract Overview

Contract Amount: $29,026,419 ($29.0M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2023-09-25

End Date: 2024-09-24

Contract Duration: 365 days

Daily Burn Rate: $79.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICENOW HR SERVICE DELIVERY ENTERPRISE SOFTWARE LICENSE

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $29.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: SERVICENOW HR SERVICE DELIVERY ENTERPRISE SOFTWARE LICENSE Key points: 1. Significant investment in enterprise HR software for the Air Force. 2. Carahsoft Technology Corp is the primary contractor, indicating a potential reseller model. 3. The contract is for a one-year term, suggesting ongoing needs and potential for future renewals. 4. Fixed-price contract type aims to control costs, but software licensing can be complex. 5. The NAICS code 511210 points to the software publishing industry.

Value Assessment

Rating: good

The $29 million price tag for a one-year enterprise HR software license appears within a reasonable range for large-scale government deployments. Benchmarking against similar enterprise software contracts would provide a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific nature of enterprise software licensing and the role of resellers like Carahsoft can influence the final price discovery.

Taxpayer Impact: Taxpayers benefit from competitive bidding, but the overall value depends on the software's effectiveness and long-term utility for the Department of Defense.

Public Impact

Modernizes HR processes for Air Force personnel. Potential for improved employee self-service and HR efficiency. Ensures access to critical software for defense operations. Supports the software publishing industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with enterprise software.
Reliance on a single reseller could impact future pricing negotiations.
Effectiveness of the software in meeting evolving HR needs is unproven.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type.
Supports critical defense operations.

Sector Analysis

The Department of Defense's spending on software licenses, particularly for enterprise resource planning and HR management, is substantial. This contract falls within the IT sector, specifically software publishers, aligning with government efforts to modernize digital infrastructure.

Small Business Impact

While Carahsoft Technology Corp is a large reseller, the contract does not explicitly mention subcontracting opportunities for small businesses. Further analysis would be needed to determine if small businesses are involved in the delivery or support of this software.

Oversight & Accountability

The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of software utilization, performance, and cost-effectiveness will be crucial for accountability.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for high cost of enterprise software.
Reliance on a single vendor for critical HR functions.
Complexity of software licensing and maintenance.
Need for robust cybersecurity measures for HR data.
Ensuring user adoption and training effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 million to CARAHSOFT TECHNOLOGY CORP. SERVICENOW HR SERVICE DELIVERY ENTERPRISE SOFTWARE LICENSE

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $29.0 million.

What is the period of performance?

Start: 2023-09-25. End: 2024-09-24.

What is the specific functionality and expected return on investment for this ServiceNow HR Service Delivery software?

The ServiceNow HR Service Delivery platform aims to streamline HR operations by providing a centralized system for case management, employee self-service, and knowledge base access. The expected ROI would stem from reduced HR administrative overhead, faster resolution of employee queries, and improved employee satisfaction through efficient service delivery. Quantifying this ROI requires tracking metrics like case resolution times, HR staff workload reduction, and employee feedback.

How does the firm fixed price structure mitigate risks associated with software license inflation or scope creep?

A firm fixed price contract locks in the cost of the software license for the specified term, protecting the government from unexpected price increases by the vendor or publisher. This structure mitigates the risk of inflation impacting the license fee. However, it does not inherently prevent scope creep if additional modules or services are requested beyond the initial agreement, which would likely require separate contract modifications and potentially additional costs.

What mechanisms are in place to ensure the software remains effective and relevant to the Air Force's evolving HR needs over its lifecycle?

Ensuring long-term effectiveness requires proactive contract management and vendor engagement. This includes regular performance reviews, user feedback collection, and staying abreast of software updates and new features released by ServiceNow. The government should establish clear performance metrics and potentially include clauses for software modernization or upgrades within future contract renewals to maintain relevance and address evolving HR requirements.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11493 SUNSET HILLS RD, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $29,026,419

Exercised Options: $29,026,419

Current Obligation: $29,026,419

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0119Y

IDV Type: FSS

Timeline