DoD's $26.1M ServiceNow Contract with Carahsoft: Full and Open Competition, Firm Fixed Price
Contract Overview
Contract Amount: $26,142,289 ($26.1M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Defense
Start Date: 2022-09-21
End Date: 2025-09-20
Contract Duration: 1,095 days
Daily Burn Rate: $23.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SERVICENOW SOFTWARE LICENSES AND PROFESSIONAL SERVICES
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110
Plain-Language Summary
Department of Defense obligated $26.1 million to CARAHSOFT TECHNOLOGY CORP for work described as: SERVICENOW SOFTWARE LICENSES AND PROFESSIONAL SERVICES Key points: 1. Significant investment in ServiceNow software and services by the Department of Defense. 2. Carahsoft Technology Corp is the primary contractor, indicating a potentially concentrated supply chain. 3. The contract utilizes full and open competition, suggesting a robust price discovery process. 4. Firm Fixed Price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $26.1M over three years appears reasonable for enterprise software licenses and professional services. 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 fosters competitive pricing. The use of a BPA Call suggests a streamlined process within an existing framework.
Taxpayer Impact: Full and open competition is intended to secure the best value for taxpayers by encouraging multiple bidders and driving down prices.
Public Impact
Ensures the Department of the Navy has access to critical ServiceNow capabilities for its operations. Supports the ongoing digital transformation efforts within the DoD. Potential for cost savings through competitive bidding on enterprise software solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single primary contractor (Carahsoft) for a large sum.
- Potential for vendor lock-in with enterprise software solutions.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls within the IT sector, specifically software licensing and related professional services. Spending benchmarks for enterprise software suites within large government agencies are typically in the millions, making this value significant but not unusual.
Small Business Impact
While Carahsoft Technology Corp is the prime contractor, the data does not indicate if small businesses were involved in subcontracting opportunities. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The contract is managed by the Department of the Navy, part of the larger Department of Defense. Standard DoD oversight mechanisms for contract performance and financial management are expected to be in place.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for vendor lock-in
- Concentration of contract value with one prime
- Limited visibility into specific service vs. license costs
- Dependence on a single software platform
Tags
software-publishers, department-of-defense, ca, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.1 million to CARAHSOFT TECHNOLOGY CORP. SERVICENOW SOFTWARE LICENSES AND PROFESSIONAL SERVICES
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 Navy).
What is the total obligated amount?
The obligated amount is $26.1 million.
What is the period of performance?
Start: 2022-09-21. End: 2025-09-20.
What is the specific breakdown of costs between software licenses and professional services?
The provided data aggregates the total contract value without specifying the allocation between software licenses and professional services. A detailed breakdown would be necessary to assess the value proposition of each component and identify potential areas for cost optimization or negotiation in future procurements.
What is the competitive landscape for ServiceNow software and services within the federal government?
While this specific contract was awarded under full and open competition, the broader federal market for ServiceNow may have limited resellers or direct sales channels. Understanding the number of actual bidders and their pricing strategies would reveal the true level of competition and its impact on the final price.
How does the per-unit cost of ServiceNow licenses compare to commercial or other government agency rates?
Without specific per-unit pricing details, a direct comparison is challenging. However, the firm fixed price nature and full and open competition suggest an effort to achieve favorable government rates. Benchmarking against GSA schedules or other agency contracts for similar license types and quantities is crucial for a definitive assessment.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › 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: $30,906,820
Exercised Options: $28,134,450
Current Obligation: $26,142,289
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600119A0120
IDV Type: BPA
Timeline
Start Date: 2022-09-21
Current End Date: 2025-09-20
Potential End Date: 2025-09-20 00:00:00
Last Modified: 2026-01-22
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