ServiceNow Consolidation Memo_9 Sep 2025 _redacted.pdf

CONTROLLED UNCLASSIFIED INFORMATION

CUI

DEPARTMENT OF THE AIR FORCE (DAF)

AIR FORCE DISTRICT OF WASHINGTON (AFDW)

CONTRACTING DIRECTORATE (PK)

DETERMINATIONS AND FINDINGS (D&F)

CONSOLIDATION OF CONTRACT REQUIREMENTS

FOR

SERVICENOW CONSOLIDATION

FINDINGS

PURPOSE.

The plays a pivotal role in enabling and sustaining digital operations across 70 organizations within the DAF. oversees ServiceNow, the core platform powering the DAF’s Enterprise IT as a Service (EITaaS) capability, which supports over 700,000 end users worldwide. Through this platform, delivers essential enterprise capabilities including IT Service Management (ITSM), which standardizes and streamlines IT processes across DAF enterprise systems and MAJCOM, FLDCOM, and DRU infrastructures. It also enables Customer Service Management (CSM) for mission-enabling workflows such as Human Resources service delivery, Program Portfolio Management (PPM) for governance and visibility over IT investments and modernization efforts, and Hardware and Software Asset Management (HAM/SAM) to ensure accountability and optimization of IT assets. ServiceNow is not merely a tool—it is a mission-critical enabler of operational continuity, cyber resilience, and strategic decision-making across the Air Force.

The purpose of this determination is to document that the proposed consolidation is necessary and justified in accordance with 15 U.S.C. 657q as implemented in FAR 7.107-2(b) which states that the “benefits of the acquisition would substantially exceed the benefits that would be derived from each of the alternative contacting approaches….” This action does not constitute bundling of this requirement. It consolidates 46 large business Service Now contracts into a single call order using DoD ESI mandatory source in accordance with DFARS 208.7402. This approach will deliver significant advantages to the Government, including more favorable terms and conditions, streamlined contract administration, reduced procurement lead times, and measurable cost avoidance-while ensuring enterprise wide standardization and enhanced mission support. A list of all 46 contracts is attached.

a. Market Research Conducted:

The DAF conducted market research and determined that consolidating all 46 contracts into one call order was beneficial to the Government.

b. Alternative Contracting Approaches:

The DAF evaluated alternative contacting approaches; however, because all 46 contracts involve the same provider, a consolidated approach offers the greatest benefit to the DAF. Consolidation maximizes efficiencies, streamlines administration, and enhances value, whereas alternative methods would yield fewer advantages and introduce greater cost inefficiencies.

c. Determination Coordinated with Small Business:

The determination for consolidation was coordinated with the AFDW Office of Small Business (AFDW/SB), whose review confirmed concurrence with the proposed strategy.

d. Any negative Impact by the acquisition strategy on contracting with small business concerns:

CONTROLLED UNCLASSIFIED INFORMATION

The proposed acquisition strategically consolidates 46 existing ServiceNow contracts—each awarded to a Large Business Concern—into a DoD ESI BPA call order in accordance with DFARS 208.7402. As no Small Business Concerns are currently performing under these contracts, this action will not displace or negatively impact any small business participation.

e. Steps taken to include small business concerns in the acquisition strategy: The Department of Defense (DoD) Enterprise Software Initiative (ESI) Blanket Purchase Agreement (BPA) is a mandatory source for ServiceNow software licenses and Carahsoft Technology Corporation is the only authorized reseller of ServiceNow Software licenses via DoD ESI BPA N66001-19-A-012. Given the mandatory source, the DAF’s market research concluded that no additional steps could be taken to increase small businesses in this acquisition strategy.

f. Cost Savings/Price reduction:

Executive Order 14240, titled "Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement," significantly reshapes how the DAF approaches IT strategy and procurement planning. By directing federal agencies to centralize the acquisition of common goods and services—including software and IT—this order compels the Air Force to align its procurement practices with governmentwide contracts. This shift streamlines acquisition cycles, reduces duplication, and promotes the use of “Best-in-Class” contract vehicles, particularly for enterprise platforms like ServiceNow. As a result, must adopt a category management framework, ensuring that IT investments are both cost-effective and mission aligned. With assuming responsibility for IT procurement logistics, Air Force IT leaders can focus more strategically on cybersecurity, modernization, and operational readiness. Additionally, the order introduces heightened oversight and accountability, requiring updates to internal governance and acquisition workflows. Ultimately, Executive Order 14240 transforms procurement into a strategic enabler of digital transformation and mission execution across the Air Force.

Currently, the management of DAF ServiceNow subscriptions is fragmented and lacks a centralized mechanism for tracking user activity and overall usage. This absence of visibility not only impedes operational oversight and accountability, but also limits the DAF’s ability to make informed decisions about resource allocation and platform optimization. By implementing robust usage tracking, the DAF can unlock critical insights that pave the way toward a consumption-based model or other flexible procurement options with Carahsoft Technology Corporation—ultimately aligning costs more closely with actual demand and improving fiscal efficiency. Preliminary analyses suggest that these improvements could yield cost savings of up to annually, driven by reduced overprovisioning, streamlined licensing, and more strategic purchasing aligned with real-time usage data.

Furthermore, consolidating the current 46 individual ServiceNow contracts into a single enterprise-wide agreement will dramatically reduce the cost and complexity associated with obtaining the required Authority to Operate (ATO). Each separate contract currently demands its own ATO process, which involves duplicative security assessments, documentation, and approvals—driving up both time and expense. By streamlining to one unified contract, the DAF can eliminate redundant efforts and achieve significant cost savings. Based on current estimates, this consolidation could reduce ATO-related costs by approximately , while also accelerating deployment timelines and improving overall compliance efficiency.

DETERMINATION

Consolidating ServiceNow contracts is necessary and justified when the benefits of this acquisition would substantially exceed the benefits that would be derived from each of the alternative contracting approaches identified.