Redacted ServiceNow SSJ.pdf

Federal Supply Schedule Sole Source Justification and Approval Under the Authority of GSAR 538.7104-3

Requisition Number: N0025361636017

1. Identification of the Contracting Activity and the Requiring Agency

The contracting activity is the General Services Administration (GSA), Federal Acquisition Service (FAS), Office of Shared Services Delivery. The requiring activity is the U.S. Naval Undersea Warfare Center (NUWC) Division, Keyport, Washington.

2. Nature/Description of Action

This sole source justification and approval supports requisition N0025361636017 received from NUWC Keyport for the one-time purchase of new ServiceNow Human Resource Service Delivery (HRSD) software licenses and associated subscription items detailed in Section 3 below.

3. Description of Supplies and Services

In accordance with agency objectives, the government has a need to procure the new ServiceNow HRSD Licenses and associated subscription items to meet the agency’s needs as outlined in this document.

The following table identifies the complete requirement:

MFR: ServiceNow

Part Number Description Quantity UOI

PROD26867

ServiceNow® HR Service Delivery Enterprise - HR User v6 (Priced Monthly, 2 Year Term). Period of Performance:

08/01/2026 - 07/31/2028

2100 EA

PROD26875 HRSD Enterprise Plus - HR User v2. Period of Performance: 08/01/2026-07/31/2028

2100 EA

Estimated Cost: $XXXXXXX ($XXXXXXX inclusive of the XXXX% GSA markup fee)

4. Identification of Justification Rationale

Pursuant to GSAR 538.7104-3(b)(1)(ii), the rationale for limiting consideration to one source, ServiceNow, is that only one source is capable of providing the required products at the required level of quality because the products are unique or highly specialized.

The Government requires an HR service delivery capability that integrates with the existing ServiceNow environment currently operating at NUWC Keyport. Limiting consideration is necessary because procuring a non-ServiceNow or incompatible product would require a separate system implementation, custom integration, duplicative configuration, user retraining, and potential redevelopment of existing workflows. These actions would create substantial duplication of cost (in the millions), unacceptable schedule impacts, and increased operational and cybersecurity risk.

Market research indicates that other products do not meet, and cannot reasonably be modified to meet, the Government’s requirement for a native HR service delivery capability within the existing ServiceNow platform. DoD ESI is the mandatory acquisition route for DoD commercial software requirements; however, only one applicable ServiceNow contract holder was identified under the relevant DoD ESI BPA. As a result, this requirement will be solicited to only one source.

Accordingly, this justification documents that limiting consideration to ServiceNow is necessary and appropriate because only ServiceNow can provide the required products.

5. Demonstration of the Unique Nature of the Required Supply

On June 12, 2026, the requiring agency submitted supporting documentation for a ServiceNow software sole source justification with requisition package N0025361636017.

The required supply is the ServiceNow Human Resources Service Delivery, or HRSD, module, which is a unique and highly specialized add-on to the existing ServiceNow platform currently operating at NUWC Keyport. The HRSD module is not a standalone HR software product. It is designed to function as a native extension of the existing ServiceNow environment and to add HR service delivery capabilities within the current enterprise service management platform.

The HRSD module is unique because it operates using ServiceNow’s proprietary platform architecture, including the existing workflow engine, data model, user roles, permissions, security protocols, interfaces, reporting tools, and configuration settings. The module expands the current ServiceNow instance already used across multiple functional areas, including IT, Facilities, Security, EEO, Corporate Communications, and Contracts, without requiring a separate system or replacement of the current environment.

The module also includes native generative artificial intelligence, or GenAI, capabilities embedded directly within the ServiceNow workflow environment. This allows GenAI queries, self-service chatbot functionality, and HR workflow automation to operate within the existing ServiceNow platform and Impact Level 4 boundary. This is important because it preserves the existing authorized security environment, maintains established access controls and audit capabilities, and avoids introducing additional cybersecurity, integration, and data protection risks associated with a separate third-party application.

A non-ServiceNow product would not provide the same native interoperability with the current proprietary platform architecture, workflows, security model, user permissions, and authorized operating environment.

Consequently, the ServiceNow HRSD module is uniquely capable of meeting NUWC Keyport’s requirement because it delivers the required HR capabilities as an integrated extension of the existing ServiceNow platform, rather than as a separate or incompatible software solution.

IAW GSAR 538.7104-3(b)(3), this justification will be made publicly available for 30 days within 14 days after award.

6. Determination that the Order Represents the Best Value

In accordance with GSAR 538.7102-2(d)(2), GSA has determined that prices for supplies and fixed-price services under Federal Supply Schedule contracts are fair and reasonable. Because the DoD ESI BPA pricing provides additional discounts from the underlying GSA contract pricing, the DoD ESI BPA pricing is likewise considered fair and reasonable. The required ServiceNow products will be procured through DoD ESI, which offers favorable terms and discounts beyond the contractor’s MAS pricing for DoD commercial software requirements.

The contract specialist will evaluate pricing for the applicable OLM SIN item IAW GSAR 538.7104-2(a)(3) and document the price reasonableness determination in the contract file.

Based on the requirement for the identified ServiceNow products, the need for compatibility with NUWC Keyport’s existing ServiceNow environment, and the favorable pricing available through DoD ESI, awarding an order through DoD ESI is expected to provide the best value to the Government for this acquisition.

7. Description of the Market Research Conducted

In May 2026, the customer conducted initial market research and identified the required software solution as available through the DoD Enterprise Software Initiative, or DoD ESI. The Contract Specialist conducted additional market research during June and July 2026 to identify available sources, applicable acquisition vehicles, pricing, and small business availability for the required ServiceNow software licenses and associated subscription items.

In accordance with DFARS 208.7402(a), departments and agencies shall fulfill requirements for commercial software and commercial software services in accordance with the DoD Enterprise Software Initiative (ESI). DoD ESI is the required acquisition approach for applicable DoD commercial software procurements and supports the safe, compliant acquisition of software for DoD use through established enterprise software agreements. These agreements provide favorable terms and pricing for commercial software and related services. While DoD ESI does not dictate the specific products or services to be acquired, the requiring activity has identified the software and related items necessary to meet its mission need. Ordering instructions are provided at DFARS PGI 208.7403.

The Contract Specialist reviewed GSA Advantage and DoD Enterprise Software Initiative (DoD ESI) and confirmed that PROD26867, ServiceNow® HR Service Delivery Enterprise - HR User v6, is available through both GSA Advantage under Multiple Award Schedule Contract 47QSWA18D008F and DoD ESI under BPA N66001-19-A-0120. Additionally, the Contract Specialist identified substantial cost savings by utilizing DoD ESI pricing. The DoD ESI contract holder advised that the DoD ESI pricing would not be honored if the items were procured through GSA Advantage.

The associated incidental item, PROD26875, HRSD Enterprise Plus - HR User v2, was not identified as a separately awarded contract item on the reviewed contract vehicles. However, the item could be included under the applicable Order-Level Materials Special Item Number (OLM SIN) on both DoD ESI and GSA Advantage, provided that the ordering activity follows all applicable OLM ordering procedures. The DoD ESI Navy BPA Contracting Officer confirmed that use of the OLM SIN is allowable under the DoD ESI Navy BPA when applicable OLM procedures are followed.

Accordingly, the acquisition team may treat PROD26875 as an OLM SIN item in support of the primary ServiceNow software requirement.

Market research identified only one authorized reseller listed on DoD ESI and GSA Advantage for the required ServiceNow item: Carahsoft Technology Corp., which is an other than small business concern. Based on the market research conducted, no small business sources were identified as capable of providing the full requirement through the reviewed vehicles.

The Contract Specialist also reviewed UNICOR and AbilityOne sources and determined that the requirement is not available through either source.

The Contract Specialist reviewed the NASA Solutions for Enterprise-Wide Procurement (SEWP) contract vehicle as a potential acquisition option. A market research request was posted through SEWP for six days to determine whether capable vendors could provide the required items. Based on prior market research experience, vendors that have the required products available on schedule, or that are able and interested in adding or quoting the required items, generally respond within two to three business days. The six-day posting period therefore provided a reasonable opportunity for interested SEWP vendors to respond. No SEWP vendors responded to the market research request.

Although the primary ServiceNow item appeared to be available through SEWP, the associated incidental item was not identified as available, and no vendors responded to confirm capability, availability, pricing, or willingness to quote. Therefore, based on the lack of vendor response and incomplete item availability, SEWP is not considered a reasonable acquisition option for this requirement.

Based on the results of market research, this requirement must be fulfilled through DoD ESI in accordance with DFARS 208.7402(a). DoD ESI is an approved DoD source for the procurement of commercial software licenses, provides the most favorable pricing, supports use of the applicable OLM SIN for the incidental item, and offers a viable acquisition path through an authorized reseller.

The supporting market research documentation is included in the acquisition file.

8. Statement of Actions to Overcome Barriers to Competition

Prior to any subsequent procurement, the market will be reviewed to assess whether any other qualified sources are available and are able to meet the Government’s requirements.

9. Contracting Officer Certification and Approval

I certify that the sole source justification is accurate and complete to the best of my knowledge and belief. Based on the above, I hereby determine that it is in the best interest of the Government and most appropriate for this acquisition to be peculiar to one manufacturer.

Approvals

X_XXXXXXXXXXXXXXXXXX___________________________________________________

Tracy Harper Contracting Officer, Office of Shared Services Delivery

X_XXXXXXXXXXXXXXXXXX___________________________________________________

Janet Schweer GSA Competition Advocate