DOJ Enterprise ServiceNow ServiceNow Bundling

The Department of Justice, Justice Management Division, issued a bundling justification notice on May 29, 2026, consolidating eleven separate ServiceNow licensing contracts into a single Blanket Purchase Agreement. This is substantial bundling unsuitable for small business award under FAR 7.107-1(b)(3)(iii), combining requirements currently split among five small business contractors (including HUBZone and Service-disabled Veteran-owned firms) and one large business.

The Department is consolidating approximately $16 million in current annual spending into a five-year BPA with an estimated total value of $100 million. The acquisition will be executed through a direct BPA with Carahsoft Technology Corporation, ServiceNow's sole authorized federal distributor under GSA Multiple Award Schedule Contract 47QSWA18D008F. Market research confirms Carahsoft maintains the largest ServiceNow catalog among fifty approved NASA SEWP V resellers and offers lower pricing on GSA MAS compared to alternative channels.

The bundling is justified by projected cumulative cost savings of approximately $26.6 million over five years—exceeding the FAR 7.107-2(c)(3)(ii) threshold of $9.4 million—through elimination of redundant markups, volume discounts, pricing stabilization, and removal of recurring commercial uplift rates. The consolidation aligns with Executive Orders 14240 and 14306 and OMB Memoranda M-25-31 and M-26-10 directing centralized IT procurement.

The Department will notify five incumbent small business contractors at least 30 days before solicitation release and will coordinate subcontracting with the Office of Small and Disadvantage Business Utilization to preserve small business participation opportunities.