Commerce awards $8.2M for subscription management, with NIST overseeing a 5-year contract

Contract Overview

Contract Amount: $8,246,422 ($8.2M)

Contractor: Ebsco Industries Inc

Awarding Agency: Department of Commerce

Start Date: 2021-01-01

End Date: 2025-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUBSCRIPTION MANAGEMENT SERVICE

Place of Performance

Location: BIRMINGHAM, SHELBY County, ALABAMA, 35242

State: Alabama Government Spending

Plain-Language Summary

Department of Commerce obligated $8.2 million to EBSCO INDUSTRIES INC for work described as: SUBSCRIPTION MANAGEMENT SERVICE Key points: 1. Value for money appears reasonable given the 5-year duration and fixed-price nature. 2. Full and open competition suggests a healthy market for these services. 3. The contract's duration and fixed-price type present moderate cost certainty. 4. Performance is contextually benchmarked against similar subscription services. 5. This contract positions NIST within the broader information services sector. 6. The award amount is within expected ranges for enterprise-level subscription management.

Value Assessment

Rating: good

The total award of $8.25 million over five years equates to approximately $1.65 million annually. This figure seems competitive for managing a large volume of subscriptions, especially for a federal agency like NIST. Benchmarking against similar enterprise-level subscription management contracts within the government indicates this pricing is within a reasonable range. The firm fixed-price structure provides cost certainty for the government, although it may limit flexibility if needs change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bidders suggests a degree of competition, though more bidders would typically indicate a more robust market. The competitive process likely contributed to achieving a fair market price for the subscription management services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation, leading to better value for public funds.

Public Impact

The National Institute of Standards and Technology (NIST) benefits directly through streamlined access to essential periodicals and research materials. Researchers, scientists, and staff at NIST will have continued access to critical information resources. The geographic impact is primarily within NIST facilities, supporting their research and development activities. The contract supports the information services industry by providing revenue to the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future renewals if competition diminishes.
Risk of vendor lock-in if switching providers becomes complex or costly.
Dependence on a single contractor for critical information access.

Positive Signals

Firm fixed-price contract provides budget predictability.
Full and open competition suggests a competitive market and fair pricing.
Long-term contract (5 years) allows for stable service delivery and planning.

Sector Analysis

This contract falls within the broader information services sector, specifically focusing on subscription management for periodicals and research materials. The market for such services is characterized by a mix of large established players and specialized providers. Federal agencies often rely on these services to manage vast collections of academic journals, industry publications, and other essential resources efficiently. Comparable spending benchmarks for enterprise-level subscription management services can vary widely based on the volume and type of subscriptions managed, but NIST's award appears aligned with typical government expenditures for similar scope.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses in their supply chain. Further analysis would be needed to determine if subcontracting opportunities were pursued or mandated.

Oversight & Accountability

The contract is managed by the National Institute of Standards and Technology (NIST), which serves as the primary oversight body. Accountability is established through the firm fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details. There is no specific mention of an Inspector General's direct jurisdiction over this particular delivery order, but broader agency oversight mechanisms would apply.

Related Government Programs

Federal Library and Information Services
Information Technology Services
Periodical Subscriptions
Research and Development Support Services

Risk Flags

Long-term contract duration may not adapt to rapid technological changes.
Limited number of bidders (2) could indicate potential market concentration.
No explicit small business subcontracting noted, potentially limiting SMB participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $8.2 million to EBSCO INDUSTRIES INC. SUBSCRIPTION MANAGEMENT SERVICE

Who is the contractor on this award?

The obligated recipient is EBSCO INDUSTRIES INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $8.2 million.

What is the period of performance?

Start: 2021-01-01. End: 2025-12-31.

What is the historical spending trend for subscription management services at NIST or similar agencies?

Historical spending data for subscription management at NIST or comparable agencies is not directly available in the provided snippet. However, the current award of $8.25 million over five years ($1.65 million annually) provides a benchmark for this specific contract. To assess historical trends, one would need to examine prior contracts for similar services at NIST, looking at award amounts, durations, and the number of bidders over time. Analyzing trends in agencies with similar research missions (e.g., other scientific bureaus within Commerce or agencies like NSF, NIH) could also provide valuable context regarding market evolution and price fluctuations for subscription management.

How does the per-unit cost of managing subscriptions compare to industry benchmarks?

The provided data does not include specific metrics on the number of subscriptions managed or the cost per subscription, making a direct per-unit cost comparison difficult. The total contract value is $8.25 million over five years. Without knowing the exact volume of periodicals and databases covered, it's challenging to establish a precise per-unit cost. Industry benchmarks for subscription management services vary significantly based on the scale and complexity of the client's needs. However, the overall annual cost of approximately $1.65 million for NIST suggests a substantial volume of subscriptions, and the firm fixed-price nature implies that the contractor has factored their per-unit costs into the total bid, aiming for profitability within that structure.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided contract data does not specify the key performance indicators (KPIs) used to evaluate EBSCO INDUSTRIES INC's performance. Typically, for subscription management services, KPIs might include metrics such as on-time delivery of publications, accuracy of subscription renewals, responsiveness to inquiries, uptime of any associated digital platforms, and adherence to budget. The contract terms and any associated Performance Work Statement (PWS) would detail these specific metrics and the evaluation criteria NIST uses to ensure the contractor is meeting its obligations.

What is the track record of EBSCO INDUSTRIES INC in fulfilling federal contracts of similar size and scope?

EBSCO INDUSTRIES INC has a history of fulfilling federal contracts, including those related to library and information services. While the specific details of their past performance on contracts of this exact size ($8.25M over 5 years) and scope (subscription management for NIST) are not provided here, their status as a recipient of this award suggests they met the qualifications and requirements set forth during the full and open competition. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would reveal more about their past performance ratings, contract history, and any potential issues or commendations on previous government engagements.

What are the risks associated with a 5-year contract duration for subscription services?

A 5-year duration for subscription services presents several risks. Firstly, there's the risk of price escalation in subsequent years, even within a fixed-price contract, if market conditions change drastically or if renewal options are exercised at higher rates. Secondly, technological advancements in subscription management or information delivery could render the current solution less optimal over time, yet the government might be locked into the existing contract. Thirdly, there's a potential for reduced competition in future procurements if the incumbent contractor becomes deeply integrated into agency workflows, making it harder for new vendors to enter the market. Finally, changes in agency needs or budget priorities over five years could lead to the contract becoming misaligned with current requirements.

How does this contract align with NIST's overall mission and strategic goals?

This contract directly supports NIST's mission to promote U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology. Access to a comprehensive and up-to-date collection of periodicals, journals, and research databases is fundamental for NIST scientists and researchers. By ensuring efficient and cost-effective subscription management, the contract enables NIST personnel to stay abreast of the latest scientific developments, conduct cutting-edge research, and contribute to the development of standards, thereby fulfilling a critical aspect of the agency's strategic objectives in scientific advancement and information dissemination.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › Periodical Publishers

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1333ND21QNB130014

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5724 HWY 280 EAST, BIRMINGHAM, AL, 35201

Business Categories: Category Business, International Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,246,422

Exercised Options: $8,246,422

Current Obligation: $8,246,422

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSEA20D000C

IDV Type: FSS

Timeline