USSOCOM awards $5.5M for ServiceNow licenses and services to Carahsoft Technology Corp
Contract Overview
Contract Amount: $5,509,352 ($5.5M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Defense
Start Date: 2025-12-31
End Date: 2026-12-30
Contract Duration: 364 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: USSOCOM SERVICE NOW PROFESSIONAL SERVICES AND SOFTWARE LICENSES. SEE ATTACHED SOW AND QUOTE.
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $5.5 million to CARAHSOFT TECHNOLOGY CORP for work described as: USSOCOM SERVICE NOW PROFESSIONAL SERVICES AND SOFTWARE LICENSES. SEE ATTACHED SOW AND QUOTE. Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Duration of one year with an option for a second year provides flexibility. 4. Software Publishers industry code (NAICS 511210) aligns with the stated need for software licenses. 5. No small business set-aside noted, suggesting a focus on larger prime contractors or direct sales. 6. The contract is for professional services and software licenses, indicating a comprehensive solution. 7. Geographic location of Florida (ST/SN) may indicate the primary operational area for these services.
Value Assessment
Rating: good
The contract value of $5.51 million for one year of ServiceNow professional services and software licenses appears reasonable given the nature of enterprise software and associated support. Benchmarking against similar government contracts for ServiceNow implementations and licensing would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns, which is a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a 'Full and Open Competition' via a BPA Call. This suggests that the underlying BPA was competed broadly, allowing multiple vendors to bid. The specific call order likely involved a competitive process among BPA holders. The level of competition for the BPA itself is a key factor in ensuring fair pricing and access to a range of qualified vendors.
Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by leveraging market forces.
Public Impact
USSOCOM personnel will benefit from enhanced IT service management capabilities through ServiceNow. The contract delivers essential software licenses and professional services for IT operations. The primary geographic impact is likely within USSOCOM's operational areas, potentially concentrated in Florida. Workforce implications include potential training needs for personnel utilizing the ServiceNow platform and support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized software like ServiceNow.
- Reliance on a single vendor for both software and professional services could limit future flexibility.
- Ensuring adequate knowledge transfer from professional services to internal USSOCOM staff is crucial for long-term self-sufficiency.
Positive Signals
- Use of a BPA Call streamlines the procurement process for recurring needs.
- Firm Fixed Price contract provides cost certainty for the awarded period.
- The contract duration allows for stable service delivery and planning.
Sector Analysis
This contract falls within the Software Publishers (NAICS 511210) sector, specifically related to IT Service Management (ITSM) software. ServiceNow is a leading platform in this space, used by many government agencies for IT operations, customer service, and workflow automation. The market for ITSM software and related professional services is substantial, with significant government spending allocated annually to such solutions to improve efficiency and service delivery.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (sb: false). This suggests that the primary awardee, Carahsoft Technology Corp., is likely a large business, or that the BPA under which this call was made did not include small business set-aside provisions for this particular task order. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.
Oversight & Accountability
Oversight for this contract would typically fall under USSOCOM's contracting and program management offices. As a firm fixed-price contract awarded via a BPA Call, the primary accountability lies in the delivery of the specified software licenses and professional services according to the Statement of Work (SOW). Transparency is generally maintained through contract award databases and reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- IT Service Management Software
- Enterprise Resource Planning Software
- Cloud-based Software Solutions
- Professional IT Services
- Defense Agency IT Modernization
Risk Flags
- Potential for cost creep if options are exercised without re-competition.
- Dependence on a single software vendor.
- Ensuring adequate knowledge transfer for long-term sustainment.
Tags
it-service-management, software-licenses, professional-services, ussoom, department-of-defense, firm-fixed-price, full-and-open-competition, bpa-call, carahsoft-technology-corp, florida, naics-511210
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.5 million to CARAHSOFT TECHNOLOGY CORP. USSOCOM SERVICE NOW PROFESSIONAL SERVICES AND SOFTWARE LICENSES. SEE ATTACHED SOW AND QUOTE.
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $5.5 million.
What is the period of performance?
Start: 2025-12-31. End: 2026-12-30.
What is Carahsoft Technology Corp.'s track record with USSOCOM and other federal agencies for similar ServiceNow contracts?
Carahsoft Technology Corp. is a major reseller of IT solutions to the U.S. government, including ServiceNow. They frequently win contracts through various procurement vehicles like GWACs and BPAs. Their track record typically involves providing software licenses and professional services across numerous agencies. For USSOCOM specifically, Carahsoft has likely supported various IT initiatives. A detailed review of historical contract awards would reveal the frequency, value, and nature of their past engagements with USSOCOM and other defense entities, providing insight into their performance and reliability in delivering ServiceNow solutions.
How does the $5.51 million contract value compare to typical government spending on ServiceNow licenses and professional services for a one-year period?
The $5.51 million contract value for one year of ServiceNow professional services and software licenses is within a common range for enterprise-level government deployments. ServiceNow's licensing costs can be substantial, particularly for advanced modules and a large user base. Professional services, including implementation, customization, and ongoing support, add significantly to the total cost. Compared to other federal agencies of similar size and scope of operations to USSOCOM, this figure is not unusually high. However, a precise benchmark would require comparing the specific modules licensed, the number of users, and the scope of professional services against comparable contracts awarded to other agencies or through different procurement vehicles.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Key risks include potential cost increases if the one-year term is extended without re-competition, vendor lock-in due to the specialized nature of ServiceNow, and performance risks if the professional services do not meet USSOCOM's requirements. Mitigation strategies often involve careful SOW development, performance metrics, and the option for future re-competition. The firm fixed-price nature mitigates cost overrun risks for the current term. Ensuring clear deliverables and acceptance criteria within the SOW is crucial for managing performance risks. The BPA Call structure itself implies some level of pre-competition, which can reduce acquisition risk.
How effective is the use of a BPA Call for procuring ServiceNow services and licenses for USSOCOM?
Using a BPA Call for recurring needs like ServiceNow licenses and professional services can be highly effective. BPAs streamline the procurement process by establishing pre-negotiated terms, conditions, and pricing, allowing agencies to issue task orders more rapidly than starting a new full and open competition each time. This can lead to faster delivery of needed capabilities and potentially better pricing due to the volume established under the BPA. The effectiveness hinges on the initial competition for the BPA itself and ensuring that task orders remain within the scope and spirit of the original BPA.
What is the historical spending pattern for ServiceNow or similar IT service management solutions within USSOCOM?
Historical spending patterns for ServiceNow within USSOCOM would likely show a trend of increasing investment in IT modernization and service management capabilities. Agencies like USSOCOM often consolidate IT tools onto platforms like ServiceNow to improve efficiency, security, and data visibility across disparate units. Previous contracts might have been for smaller scopes, specific modules, or different vendors before consolidating onto a preferred platform. Analyzing past spending would reveal the growth trajectory of ServiceNow adoption, identify any significant one-time implementation costs versus recurring license/support fees, and provide context for the current $5.51 million award.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
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
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: $26,539,151
Exercised Options: $5,509,352
Current Obligation: $5,509,352
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: N6600119A0120
IDV Type: BPA
Timeline
Start Date: 2025-12-31
Current End Date: 2026-12-30
Potential End Date: 2029-12-30 00:00:00
Last Modified: 2026-01-16
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