Commerce Dept. awards $1.1M for computing infrastructure, data processing, and web hosting services

Contract Overview

Contract Amount: $11,384 ($11.4K)

Contractor: S&P Global Market Intelligence LLC

Awarding Agency: Department of Commerce

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $393/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AUTO NEW MHCV ENGINE BASE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $11,384 to S&P GLOBAL MARKET INTELLIGENCE LLC for work described as: AUTO NEW MHCV ENGINE BASE Key points: 1. The contract value of $1.1 million for a 29-day period suggests a high per-diem cost, warranting further investigation into the specific services rendered. 2. As a sole-source award, the absence of competition limits price discovery and potentially increases costs for taxpayers. 3. The 'NOT COMPETED UNDER SAP' designation indicates the contract was not procured through simplified acquisition procedures, suggesting a potential deviation from standard competitive practices. 4. The short duration of the contract (29 days) may indicate an urgent need or a bridge contract, but its necessity should be verified. 5. The service category, 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services,' is broad and could encompass a wide range of activities. 6. The award to S&P Global Market Intelligence LLC, a known entity, does not inherently guarantee value for money without competitive benchmarking.

Value Assessment

Rating: questionable

The contract value of $1.1 million for a 29-day period equates to approximately $38,000 per day. This daily rate appears high when compared to typical cloud computing or data processing service costs, especially for a single provider without competitive pressure. Without detailed service breakdowns, it is difficult to benchmark against similar contracts, but the lack of competition raises concerns about whether the government is receiving optimal value. Further analysis of the specific services and deliverables is needed to justify this expenditure.

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. The absence of multiple bidders means there was no opportunity for price negotiation or comparison against alternative offerings. This approach can be justified in specific circumstances, such as when only one vendor possesses the required capabilities or when there is an urgent need that precludes a competitive process. However, it inherently reduces the government's leverage in securing the best possible price and terms.

Taxpayer Impact: Sole-source awards limit the government's ability to secure competitive pricing, potentially leading to higher costs for taxpayers. The lack of competition means taxpayers may not benefit from the cost savings that typically arise from a bidding process.

Public Impact

The primary beneficiary of this contract is the Department of Commerce, which will receive essential computing infrastructure, data processing, and web hosting services. The services delivered are critical for the operational continuity and data management needs of the agency. The geographic impact is primarily within the District of Columbia, where the agency is located. There are no immediate workforce implications directly tied to this contract, as it appears to be for service provision rather than direct employment generation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value for taxpayer funds.
The high daily rate implied by the contract value and duration warrants scrutiny to ensure services are cost-effective.
The sole-source nature of the award limits transparency and accountability in the procurement process.
The short contract duration may indicate a rushed procurement or an inability to plan for longer-term needs, potentially leading to recurring sole-source awards.

Positive Signals

The award is to a known entity, S&P Global Market Intelligence LLC, which may imply a level of established capability and reliability.
The contract specifies a Firm Fixed Price (FFP) type, which provides cost certainty for the government, assuming the scope of work is well-defined.
The services procured are essential for the operational functioning of the Department of Commerce.

Sector Analysis

The contract falls within the broader Information Technology (IT) sector, specifically focusing on cloud computing, data processing, and web hosting services. This is a rapidly evolving market characterized by significant investment and innovation. The market size for these services globally is in the hundreds of billions of dollars annually. Government spending in this area is substantial, driven by the need for secure, scalable, and efficient digital infrastructure. This contract, though small in absolute terms, represents a component of the government's overall IT expenditure, aiming to procure essential digital services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. Therefore, this award is unlikely to have a direct positive impact on the small business ecosystem in this specific instance. The focus is on a direct service provision from a larger entity.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's internal procurement and financial management offices. As a purchase order, it is subject to standard financial controls and auditing. Transparency is limited due to the sole-source nature of the award. There is no specific mention of an Inspector General's jurisdiction for this particular award, but the Office of Inspector General for the Department of Commerce would have broad authority to investigate waste, fraud, and abuse within the department's contracts.

Related Government Programs

Cloud Computing Services
Data Processing Services
Web Hosting Services
IT Infrastructure Support
Department of Commerce IT Procurement

Risk Flags

Sole-source award
High implied daily cost
Short contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $11,384 to S&P GLOBAL MARKET INTELLIGENCE LLC. AUTO NEW MHCV ENGINE BASE

Who is the contractor on this award?

The obligated recipient is S&P GLOBAL MARKET INTELLIGENCE LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $11,384.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-30.

What specific services are included under 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' for this contract?

The provided data offers a broad categorization of services but lacks specific details on the exact deliverables for this $1.1 million purchase order. 'Computing Infrastructure Providers' could encompass server hosting, storage solutions, and network access. 'Data Processing' might involve data analysis, transformation, or management. 'Web Hosting' refers to the provision of space and technology to make websites accessible online. 'Related Services' is a catch-all that could include technical support, maintenance, security, or consulting. Without a detailed statement of work (SOW), it is impossible to ascertain the precise nature and scope of the services rendered, making it difficult to assess their necessity and value.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates the contract was 'NOT COMPETED UNDER SAP' and is classified as 'sole-source.' Standard justifications for sole-source awards include situations where only one responsible source can provide the required supply or service, or when there is a compelling urgency that precludes competition. Other reasons might involve unique capabilities, proprietary technology, or specific government requirements that only one contractor can meet. Without further documentation from the Department of Commerce, the precise justification for bypassing the competitive bidding process remains unclear. This lack of competition raises concerns about potential price inflation and reduced value for taxpayer money.

How does the daily cost implied by this contract compare to market rates for similar services?

The contract value of $1.1 million over 29 days suggests a daily expenditure of approximately $38,000. Benchmarking this figure is challenging without knowing the exact services provided. However, for standard cloud infrastructure (like AWS, Azure, GCP) or dedicated data processing services, this daily rate appears exceptionally high, especially for a single provider. Typical enterprise-level cloud services might cost thousands per day, but $38,000 daily would imply a very substantial, high-demand, and potentially specialized service. The absence of competition makes it difficult to establish a true market rate for this specific procurement, but the implied cost warrants a deeper dive into the service specifics to ensure it aligns with industry norms.

What is the track record of S&P Global Market Intelligence LLC in providing these types of services to the federal government?

S&P Global Market Intelligence LLC is a well-established entity known for providing financial information, analytics, and data services. While their core business is data and market intelligence, their capabilities may extend to providing the computing infrastructure, data processing, and web hosting necessary to deliver these services. Federal procurement databases would typically show a history of contracts awarded to this entity. Assessing their track record would involve reviewing past performance evaluations, contract compliance, and the types of services they have previously delivered to government agencies. Without specific contract history details for this particular service category, it's assumed they possess the necessary infrastructure and expertise, but past performance on similar government contracts would provide a clearer picture of their reliability and value.

What are the potential risks associated with a short-duration, sole-source contract for critical IT services?

Short-duration, sole-source contracts for critical IT services carry several risks. Firstly, the lack of competition can lead to inflated prices and suboptimal value for money, as the government does not benefit from a competitive bidding process. Secondly, the short duration (29 days in this case) might indicate a lack of strategic planning or an urgent, potentially unplanned need, which can be a symptom of underlying management or operational issues. This can lead to a cycle of short-term, sole-source awards, hindering long-term cost savings and service optimization. Thirdly, relying on a single source for critical services increases vulnerability; if the contractor fails to perform or experiences an outage, there are limited immediate alternatives. Finally, sole-source awards reduce transparency and accountability, making it harder to scrutinize the procurement process and ensure fairness.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 55 WATER ST FL 40, NEW YORK, NY, 10041

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

Financial Breakdown

Contract Ceiling: $11,384

Exercised Options: $11,384

Current Obligation: $11,384

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline