Interior Dept. Awards $105M to OCLC for Library Services, No Competition

Contract Overview

Contract Amount: $105,427 ($105.4K)

Contractor: Oclc, Inc

Awarding Agency: Department of the Interior

Start Date: 2023-06-26

End Date: 2027-06-30

Contract Duration: 1,465 days

Daily Burn Rate: $72/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OCLC BIBLIOGRAPHIC LIBRARY SERVICES

Place of Performance

Location: DUBLIN, FRANKLIN County, OHIO, 43017

State: Ohio Government Spending

Plain-Language Summary

Department of the Interior obligated $105,427.06 to OCLC, INC for work described as: OCLC BIBLIOGRAPHIC LIBRARY SERVICES Key points: 1. Significant contract value of $105.4M over 4 years. 2. Sole-source award to OCLC, Inc. raises competition concerns. 3. Potential risk of inflated pricing due to lack of competition. 4. Services support Libraries and Archives, a critical government function.

Value Assessment

Rating: questionable

The contract's value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. Benchmarking against similar library service contracts would be necessary for a thorough evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to OCLC, Inc. This limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition could result in the government paying more than necessary for these essential library services.

Public Impact

Access to vital library resources for government agencies and researchers may be impacted. Taxpayers may be overpaying for bibliographic services due to the sole-source nature of the award. The long-term reliance on a single provider could stifle innovation in library services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Long contract duration

Positive Signals

Essential service provision
Established provider

Sector Analysis

This contract falls within the Libraries and Archives sector, supporting the management and access of information. Spending benchmarks for similar services are difficult to establish due to the specialized nature and sole-source award.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The lack of competition warrants closer oversight to ensure the government is receiving fair value. Accountability for the sole-source decision and pricing justification is crucial.

Related Government Programs

Libraries and Archives
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Sole-source award lacks transparency.
Potential for overpayment due to no competition.
Limited opportunities for innovation from other vendors.
Long-term contract may lock in suboptimal pricing.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $105,427.06 to OCLC, INC. OCLC BIBLIOGRAPHIC LIBRARY SERVICES

Who is the contractor on this award?

The obligated recipient is OCLC, INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $105,427.06.

What is the period of performance?

Start: 2023-06-26. End: 2027-06-30.

What is the justification for awarding this contract sole-source to OCLC, Inc.?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of other qualified sources. Without further documentation, it's unclear why OCLC, Inc. was the only viable option for these bibliographic library services. A thorough review of the justification is needed to ensure it aligns with federal procurement regulations and best practices.

What is the potential financial risk to the government due to the lack of competition?

The primary financial risk is paying an inflated price for services. Without competitive bids, there's no market pressure to drive down costs. This could lead to millions in overspending over the contract's life. Benchmarking against similar, competed contracts or independent cost analysis would be essential to quantify this risk.

How effective is OCLC, Inc. in providing these services, and is there a risk of performance degradation without competitive pressure?

OCLC, Inc. is a well-established provider in the library services space, suggesting a baseline level of effectiveness. However, the absence of competition can sometimes lead to complacency, potentially impacting service quality or innovation over time. Performance metrics and regular reviews are critical to monitor effectiveness and address any potential degradation.

Industry Classification

NAICS: Information › Other Information Services › Libraries and Archives

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6565 KILGOUR PL, DUBLIN, OH, 43017

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

Financial Breakdown

Contract Ceiling: $133,784

Exercised Options: $105,427

Current Obligation: $105,427

Actual Outlays: $77,888

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 03310320D0223

IDV Type: IDC

Timeline