New Opportunity Analysis

SSA IT Spending Forecast: ServiceNow & Legacy System Modernization

The Social Security Administration's Office of Acquisition and Grants presents a unique contracting landscape characterized by steady procurement patterns focused on legacy system maintenance and ServiceNow platform investments. Based on recent contract activity analysis, several key trends emerge that may signal future opportunities for government IT contractors.

Current Procurement Landscape

SSA's recent contracting activity reveals a consistent focus on system renewals and maintenance, with all identified contracts falling under NAICS code 541519 (Other Computer Related Services). This pattern suggests the agency prioritizes maintaining operational continuity while gradually modernizing its IT infrastructure.

The agency's procurement approach appears heavily renewal-focused, with contracts for:

  • Snowbound Rastermaster system renewals
  • Soteri Secret SCA maintenance
  • Rocket Software annual renewals
  • ServiceNow platform operations

ServiceNow Platform Investment Trends

SSA's documented use of ServiceNow platforms indicates a strategic commitment to IT Service Management (ITSM) modernization. This investment pattern suggests the agency may expand its ServiceNow implementation in coming years, potentially creating opportunities for:

  • ServiceNow module expansions and customizations
  • Integration services connecting legacy systems to ServiceNow
  • Training and change management support
  • ServiceNow performance optimization and governance

Legacy System Modernization Signals

The presence of renewal contracts for systems like Snowbound Rastermaster and Rocket Software products suggests SSA operates significant legacy infrastructure. This creates potential opportunities for contractors specializing in:

  • Legacy system migration and modernization
  • Document management system upgrades
  • Mainframe modernization services
  • Cloud migration planning and execution

IT Service Support Center (ITSSC) Opportunities

The Request for Information (RFI) for ITSSC Recompete represents a significant potential opportunity. This suggests SSA may be preparing to rebid comprehensive IT support services, which could include:

  • Help desk and user support services
  • Infrastructure monitoring and maintenance
  • ServiceNow administration and support
  • Security operations and compliance support

Predicted Contract Opportunities for 2025-2026

Based on observed patterns, contractors may want to position for several types of opportunities:

Short-Term Opportunities (6-12 months)

  • ServiceNow implementation support and customization
  • Legacy system maintenance renewals
  • ITSSC recompete contract award

Medium-Term Opportunities (12-24 months)

  • Comprehensive IT modernization initiatives
  • Cloud migration services
  • Cybersecurity enhancement projects
  • Data analytics and reporting platform implementations

Strategic Positioning Recommendations

Contractors looking to capitalize on SSA opportunities should consider:

  • ServiceNow Expertise: Develop deep capabilities in ServiceNow ITSM, ITOM, and security modules
  • Legacy Integration: Build competencies in connecting legacy systems to modern platforms
  • Security Clearance: Many SSA contracts may require security clearances given the sensitive nature of social security data
  • Past Performance: Establish track record with other federal agencies in similar modernization efforts
  • Partnership Strategy: Consider teaming arrangements with established SSA contractors

Market Intelligence Actions

Proactive contractors should:

  • Monitor SSA's IT Strategic Plan updates for modernization priorities
  • Track the ITSSC recompete timeline and requirements
  • Engage with SSA through industry days and vendor outreach events
  • Develop relationships with current SSA IT contractors for potential teaming

While SSA's procurement patterns suggest steady, renewal-focused spending, the agency's ServiceNow investments and ITSSC recompete activities indicate potential for larger modernization contracts. Contractors with strong ServiceNow capabilities and legacy modernization experience may find significant opportunities in the coming 12-24 months, particularly as the agency balances operational continuity with IT transformation goals.

Source Data