Executive Office of the President awards $5.2M contract for online subscriptions, raising questions about competition and value

Contract Overview

Contract Amount: $5,234,983 ($5.2M)

Contractor: Relx Inc.

Awarding Agency: Executive Office of the President

Start Date: 2022-12-27

End Date: 2026-12-31

Contract Duration: 1,465 days

Daily Burn Rate: $3.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ONLINE SUBSCRIPTION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503

State: District of Columbia Government Spending

Plain-Language Summary

Executive Office of the President obligated $5.2 million to RELX INC. for work described as: ONLINE SUBSCRIPTION Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The duration of the contract (over 4 years) suggests a need for ongoing services. 3. Lack of competition raises concerns about whether the government secured the best possible price. 4. The specific nature of the online subscription is not detailed, making direct value comparison difficult. 5. The contract's value, while significant, needs to be benchmarked against similar services to assess value for money.

Value Assessment

Rating: questionable

Without detailed service descriptions or comparable contract data, assessing the value for money is challenging. The sole-source nature of this award means there was no opportunity to benchmark pricing against market rates or solicit competitive bids. This lack of competition inherently limits the government's ability to ensure it is receiving optimal pricing. Further analysis would require understanding the specific online subscription service and its market prevalence.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor can provide the required goods or services. The absence of multiple bidders means there was no competitive pressure to drive down prices or encourage innovation. This approach can be justified in specific circumstances but often leads to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from a competitive bidding process. This can result in higher overall expenditure for the same or similar services.

Public Impact

Provides online subscription services to the Executive Office of the President. The primary beneficiaries are likely internal staff and decision-makers within the EOP. The geographic impact is concentrated in Washington D.C., where the EOP is located. No direct workforce implications are apparent from the contract details.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Limited transparency on the specific services provided hinders value assessment.
Long contract duration without competitive re-evaluation could lock in suboptimal terms.

Positive Signals

Ensures continuity of essential online subscription services for the EOP.
The firm fixed-price structure provides cost certainty for the government.

Sector Analysis

The market for online subscription services is vast and diverse, ranging from news and research platforms to software-as-a-service. Government spending in this area is common across many agencies for information access, productivity tools, and specialized data. Without knowing the specific type of subscription, it's difficult to benchmark against comparable spending, but the federal government is a significant consumer of such services.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the award process. Further investigation would be needed to determine if the prime contractor has any small business subcontracting plans in place.

Oversight & Accountability

As a purchase order awarded by the Executive Office of the President, oversight would typically fall under the agency's internal procurement and financial management controls. Transparency is limited due to the sole-source nature and lack of detailed public justification. Inspector General oversight may apply depending on the specific circumstances and potential for fraud or abuse.

Related Government Programs

Executive Office of the President IT Services
Government-wide Subscription Services
Federal Information Technology Contracts

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on service details hinders value assessment.
Potential for inflated pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Executive Office of the President awarded $5.2 million to RELX INC.. ONLINE SUBSCRIPTION

Who is the contractor on this award?

The obligated recipient is RELX INC..

Which agency awarded this contract?

Awarding agency: Executive Office of the President (Executive Office of the President).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2022-12-27. End: 2026-12-31.

What specific online subscription service was procured under this contract?

The provided data indicates the service is an 'ONLINE SUBSCRIPTION' but does not specify the vendor's product or service beyond that general category. The contractor is RELX INC., which offers a wide range of information and analytics services, including legal, scientific, and business information. Without further details, it is impossible to ascertain the exact nature of the subscription, such as whether it is for news aggregation, research databases, software, or other digital content. This lack of specificity is a significant barrier to a thorough value assessment.

Why was this contract awarded on a sole-source basis?

The data explicitly states the contract type as 'NOT COMPETED,' which typically implies a sole-source award. Justifications for sole-source awards usually involve situations where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs where competition is not feasible. However, without a formal justification document being publicly available, the specific reasons for not competing this contract remain unknown. This lack of transparency is a concern for ensuring fair and efficient government spending.

How does the $5.2 million cost compare to similar online subscription services for government agencies?

Benchmarking this $5.2 million contract is challenging without knowing the precise nature of the online subscription. RELX INC. provides various services, and their pricing can vary significantly. For instance, access to specialized legal databases or scientific journals might command different price points than general news subscriptions. To perform a meaningful comparison, one would need to identify comparable contracts for similar services procured by other federal agencies or even within the EOP itself. The sole-source nature of this award also suggests that a competitive price discovery process was bypassed, making direct value-for-money comparisons more difficult.

What is the track record of RELX INC. in providing services to the federal government?

RELX INC. is a large, multinational information and analytics company. They have a history of providing various data, research, and analytics services to government entities. Their federal contracting history would need to be reviewed in detail, looking at past performance on similar contracts, any reported issues or disputes, and overall customer satisfaction. Given their size and scope, it's likely they have experience with government procurement processes. However, the specific performance quality and value delivered on this particular contract remain to be assessed over its duration.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of $5.2 million is the potential for overpayment due to the absence of competition. Without competing bids, the government may not be securing the most cost-effective solution. Other risks include vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting future flexibility and innovation. There's also a risk that the vendor may not prioritize service quality or responsiveness as highly as they would under competitive pressure. Ensuring adequate oversight and performance management becomes crucial in sole-source situations.

Industry Classification

NAICS: Information › Radio and Television Broadcasting Stations › Radio Broadcasting Stations

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: OAS-FY2023-RELX-01

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Relx PLC

Address: 9443 SPRINGBORO PIKE, MIAMISBURG, OH, 45342

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,316,940

Exercised Options: $6,930,783

Current Obligation: $5,234,983

Actual Outlays: $3,959,459

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline