DoD's $29M ServiceNow License Awarded to Carahsoft Amidst 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: 999
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SERVICE NOW 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: SERVICE NOW SOFTWARE LICENSE Key points: 1. Significant contract value of $29M for ServiceNow software. 2. Carahsoft Technology Corp is the sole awardee. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract falls under the Software Publishers NAICS code (511210).
Value Assessment
Rating: good
The contract value of $29M for ServiceNow software appears reasonable given the nature of enterprise software licenses. Benchmarking against similar large-scale software procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to competitive pricing. The use of a BPA Call indicates a pre-negotiated framework, potentially streamlining the process while still allowing for competition.
Taxpayer Impact: Taxpayer funds are being utilized for essential software, with competition aiming to ensure value for money.
Public Impact
Ensures continued access to critical ServiceNow platform for the Air Force. Supports digital transformation initiatives within the Department of Defense. Potential for integration with other defense systems. Software licensing costs can be a significant portion of IT budgets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with enterprise software.
- Reliance on a single vendor for critical software.
Positive Signals
- Utilizes full and open competition.
- Awarded to a known software reseller.
- Firm Fixed Price contract type.
Sector Analysis
This contract falls within the Information Technology sector, specifically software licensing. IT spending for government agencies is substantial, with software licenses representing a key component of operational budgets.
Small Business Impact
While the awardee is Carahsoft Technology Corp, a large reseller, the underlying competition method (full and open) may have allowed for small business participation in the bidding process, though not directly evident from this award.
Oversight & Accountability
The use of a BPA Call suggests that oversight mechanisms are in place through the underlying BPA. Further review of the specific BPA and call order would be needed to assess detailed oversight.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost escalation in future renewals.
- Dependence on a single software vendor.
- Risk of scope creep if additional modules are added without proper oversight.
- Data security and privacy implications of cloud-based software.
Tags
software-publishers, department-of-defense, il, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.0 million to CARAHSOFT TECHNOLOGY CORP. SERVICE NOW 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 total cost of ownership for this ServiceNow license over its potential lifecycle, considering maintenance, support, and future upgrades?
The total cost of ownership extends beyond the initial $29M license fee. It includes ongoing annual maintenance and support charges, which can be a significant percentage of the license cost. Future upgrades or module additions will also incur additional expenses. A comprehensive lifecycle cost analysis is crucial for accurate budgeting and value assessment over the software's operational lifespan.
How does the per-unit cost of this ServiceNow license compare to other federal agencies or commercial entities procuring similar software?
Benchmarking the per-unit cost against similar federal or commercial procurements is essential for validating value. Factors like volume discounts, specific modules included, and contract duration significantly influence pricing. Without access to detailed pricing structures and competitor bids from the full and open competition, a precise comparison is difficult, but the award value suggests a substantial enterprise-level deployment.
What specific ServiceNow modules are included in this $29M license, and how do they align with the Air Force's current and future operational needs?
The provided data does not specify the ServiceNow modules included in the $29M license. Understanding the specific modules (e.g., IT Service Management, HR Service Delivery, Customer Service Management) is critical to assess their alignment with the Air Force's strategic objectives and operational requirements. A detailed breakdown would allow for an evaluation of whether the procured capabilities fully address identified needs or if there's potential for underutilization or unmet 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: 999
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: N6600119A0120
IDV Type: BPA
Timeline
Start Date: 2023-09-25
Current End Date: 2024-09-24
Potential End Date: 2024-09-24 00:00:00
Last Modified: 2026-01-22
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