ServiceNow FSS Sole Source Justification_Final _Redacted_07 21 2026.pdf

Washington, D.C. 20530

FSS Sole Source Justification FAR 8.401(b) & GSAR 538.7104-4 (Items peculiar to one manufacturer)

1. Identification of the agency and the contracting activity.

This Federal Supply Schedule (FSS) sole source justification is prepared by the United States Department of Justice (Department or DOJ) to establish an Enterprise License Agreement (ELA) Blanket Purchase Agreement (BPA) against the General Services Administration’s Multiple Award Schedules (MAS) Program to support the acquisition of ServiceNow software licenses and software maintenance.

The requiring agency is the DOJ and all nine (9) components. The contracting activity is the Justice Management Division (JMD), Office of Acquisition Management (OAM), Procurement Services Section (PSS).

2. Nature and/or description of the action, including a description of the supplies or services required to meet the agency’s needs and the estimated value.

Due to the circumstances described herein, OAM PSS intends to limit competition to ‘items peculiar to one manufacturer’ software licenses, and software maintenance to the ServiceNow brand in accordance with DOJ Class Deviation1 from the Federal Acquisition Regulation (FAR) Part 8 in support of Executive Order (EO) 14275 on “Restoring Common Sense to Federal Procurement,” dated September 23, 2025, FAR 8.401(b) and General Services Acquisition Regulation (GSAR) 538.7104-4.

This individual action will result in the award of a new DOJ ServiceNow ELA BPA on a firm-fixed-pricing arrangement. The primary goal of this BPA is to centralize acquisitions for an enterprise approach to buying brand-name specific ServiceNow software licenses and software maintenance and align with various EOs. The acquisition will be conducted in accordance with GSAR Subpart 538.71 under the authority of GSA’s FSS MAS Program.

Pursuant to GSAR 538.7104-3(b)(1)(ii), OAM intends to limit the number of sources

U.S. Department of Justice

Justice Management Division

Office of Acquisition Management

Limited Sources Justification Page 2 Subject: Items Peculiar to One Manufacturer (Brand Name) for the Department of Justice

ServiceNow Enterprise License Agreement Blanket Purchase Agreement solicited to Carahsoft Technology Corp., the sole authorized GSA FSS MAS distributor of ServiceNow products and services.2

In addition, the BPA will support the Department’s implementation of EO 14240, “Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement,” and Office of Management Budget (OMB) Memorandum M-25-31: “Consolidating Federal Procurement Activities.” Currently, the procurement and management of DOJ ServiceNow subscriptions are fragmented and lack a centralized mechanism for tracking user activity and overall usage. Over a dozen DOJ components use ServiceNow products and services.

DOJ currently has contracts with eight (8) different vendors. The anticipated single-award BPA will consolidate and streamline these contracts under one BPA.

The ServiceNow products and services are integral to DOJ’s day-to-day operating activities. Maintaining DOJ’s ServiceNow subscriptions to optimal functionality is of the utmost importance to its mission to uphold the rule of law. The ServiceNow products and services under this agreement will include IT Workflows, Customer Workflows, Employee Workflows, and Creator Workflows, which support core DOJ operations. The requirements will include technical support services available 24 hours a day, 7 days a week, 365 days a year. All software maintenance and technical support services will include, but will not be limited to: 1) major product and technology releases; 2) technical support; 3) access to ServiceNow support including updates, fixes, security alerts, data fixes and critical patch updates; 4) tax, legal, and regulatory updates; and certification with most existing third-party products/version. ServiceNow software licenses and software maintenance are referred to as Stock Keep Units (SKUs).

The single-award ServiceNow BPA will procure products and services that fall under the ServiceNow portfolio suite. OAM PSS will have the discretion to add new products (to include new versions and updates) and services so long as they fall under the scope of the ServiceNow portfolio and are within the ceiling, period of performance, and terms of conditions of the BPA, and otherwise within the scope of GSA MAS Contract Number

47QSWA18D008F.

The period of performance for the proposed FSS BPA is five years, which includes a one-year base ordering period with additional four (4), one-year ordering periods. The total estimated value of this action for the base and all ordering periods is set at $100 million (see Table 1).

2 This justification addresses the need to limit competition to ServiceNow, as an Item Particular to One Manufacturer. ServiceNow is a proprietary, brand-name solution, and Carahsoft Technology Corp. is the Government Master Distributor and authorized reseller under the GSA MAS (as validated by GSA on January 7, 2026). OAM PSS requested and obtained Carahsoft’s sole source letter of supply dated September 29, 2025. A letter of supply shows that the manufacturer gave the vendor permission to list and sell its products on the GSA MAS. It essentially assures the Government that there will be a continuous source of supply from the contractor with sufficient quantities of product for the duration of a contractor's GSA Schedule. Because Carahsoft Technology Corp. is the sole authorized GSA MAS distributor of ServiceNow products and services, DOJ is limiting competition to Carahsoft Technology Corp. without preparing a separate justification.

Limited Sources Justification Page 3

ServiceNow Enterprise License Agreement Blanket Purchase Agreement

3. Authority and supporting rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

This acquisition is conducted under the authority of FAR 8.401(b) and GSAR 538.7104- 3(b)(1)(ii) and 538.7104-4.

DOJ’s existing information technology (IT) infrastructure relies on ServiceNow products.

This acquisition is critical to ensure that DOJ’s components can continue to fulfill the agency’s mission. Alternative solutions were researched; however, no single software provides the necessary “Suite” of products required by the Department. Alternative software manufacturers do not provide the functionality, breadth of offerings, suite of products, and functional capabilities that ServiceNow products provide. ServiceNow offers four (4) groupings of software modules, which are critical to DOJ’s mission: (1) IT Workflows, (2) Customer Workflows, (3) Employee Workflows, and (4) Creator Workflows. It would take a combination of between three (3) to five (5) different vendors to satisfy the requirements fulfilled by ServiceNow. Using multiple vendors would pose integration challenges to the Department.

ServiceNow allows DOJ to use multiple applications and service lines on one cloud-based platform. The uniqueness of ServiceNow is that it is a platform-first product. Meaning that any and all applications built on it are on the same platform and easy to interconnect and integrate with each of the workflows.

Additionally, ServiceNow partners with many other industry software companies to provide compatible Application Program Interfaces (API) between systems. The ability to use pre-built APIs offers the Department a synergy between products that it could never replicate on its own with custom-built applications, response times, address usage, and response to a variety of data driven analysis needs across IT teams.

Limited Sources Justification Page 4

ServiceNow Enterprise License Agreement Blanket Purchase Agreement

4. Determination by the ordering activity contracting officer that the order represents a fair and reasonable price consistent with GSAR 538.7102-2(d)(2) and 538.7104- 2(a)(3).

On September 3, 2025, in its implementation of EO #14271, GSA under its ‘OneGov Strategy’ secured a landmark agreement with ServiceNow which offers federal agencies significant discounts on their IT Service Management software. As a result, ServiceNow will be looped in as part of our negotiations with Carahsoft to obtain deeper discounts.

Though not required under GSAR 538.7102-2(d)(2), the CO has determined that the BPA pricing will be fair and reasonable. Moreover, additional discounts will be secured at the time of placing orders. The single award BPA will be established using the procedures outlined in GSAR 538.7102-2 and 538.7103.

5. A description of the market research conducted among schedule holders, and the results or a statement of the reason market research was not conducted.

In June 2025, market research was conducted in accordance with FAR Part 10 to determine whether other qualified sources capable of meeting DOJ’s requirements existed. Research included a review of GSA eLibrary, GSA Advantage, GSA e-Buy, and NASA SEWP.

Other potential software solutions include Jira Service Management, ManageEngine Service Desk and SolarWinds Service Desk. DOJ performed an analysis of these solutions based on the following features: Information Technology Infrastructure Library Compliant, Enterprise Scale, Information Technology Business Management, Low Code/No Code, Artificial Intelligence and Machine Learning. While all four vendors could meet a subset of the DOJ’s Information Technology Service Management requirements, only ServiceNow met all of the requirements. The other three manufacturers do not provide the functionality, breadth of offerings, suite of products, functional capabilities and integration that ServiceNow products provide and are necessary for DOJ’s mission. Moreover, transitioning away from ServiceNow would be prohibitively expensive and disruptive.

Replacing ServiceNow is not just replacing software, it would require the replacement of platforms in place that utilize ServiceNow software. It is estimated that the costs to transition to another platform for the dozen or so DOJ Components that currently use ServiceNow would exceed $60 million. Transitioning to a new vendor would require each component to conduct a comprehensive analysis of alternatives. Once a solution is identified, the program office would prepare a new acquisition package which includes a performance work statement, a comprehensive independent cost estimate (IGCE) for labor hours, and other acquisition documents. Included in the IGCE would include hours covering for a risk assessment, authorization to operate, security control implementation, business analysis, customer experience (CX), formulation of new business processes and procedures within a new platform, custom development to build out new processes and procedures which map to each component's business operations, training and change management to switch platforms and data migrations. Building a new requirement and processing a new procurement action takes extensive man hours and time. Based on market research and estimating, a new procurement action and subsequent solicitation, evaluation

Limited Sources Justification Page 5

ServiceNow Enterprise License Agreement Blanket Purchase Agreement and award is estimated at $137,000 per requirement. This estimate includes man hours for the Contracting Officer, the Contracting Officer’s Representative, the Program Manager, Security Analysts, Business Analysts, other Acquisition and Legal Staff, and various staff outside of the department and inside the program office. In 2026, one DOJ division begun implementing a new instance of ServiceNow in their IT environment. The component shared an IGCE for professional services, implementation, training, and licenses. The estimate was approximately five million dollars for the base year. For fourteen component offices to transition to a new workflow management platform, this would cost the department nearly seventy million dollars.

The information obtained through market research supports a firm-fixed-price BPA as the most appropriate contract type since the requirements are well defined.

6. Other facts supporting the justification.

Based on market research conducted in January 2026, ServiceNow is the only product currently identified that satisfies all defined enterprise ITSM and workflow integration requirements without requiring significant customization or multi-vendor integration.

This proposed ELA BPA will provide software license and software maintenance SKUs beyond the scope of the current existing individual contracts. With this BPA, the JMD OCIO will be able to approve, order, and track acquisition of all ServiceNow SKUs DOJ-wide and ensure better inventory management. In addition, JMD OCIO will be able to access essential information such as license status, application of software assurance benefits, and expiration dates.

Finally, the BPA will reduce contracting and open market costs including source searches, development of technical documents and solicitations, and evaluation of quotes. The BPA will further decrease costs, reduce paperwork, and save time across DOJ by eliminating the need for repetitive, individual purchases from a schedule contract.

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

DOJ will continue to monitor commercial solution providers for manufacturers of capable products as well as any future authorized distributors for ServiceNow. To remove or overcome barriers to competition in future acquisitions for this requirement, the agency will work with the program management office to perform additional market research so that other solutions can be considered.

Control No: JMD26JA-PSS0006