PBGC Spends $2.9M on Westlaw Subscription for Legal Research

Contract Overview

Contract Amount: $2,903,400 ($2.9M)

Contractor: West Publishing Corporation

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2022-09-01

End Date: 2026-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $2.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WESTLAW SUBSCRIPTION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $2.9 million to WEST PUBLISHING CORPORATION for work described as: WESTLAW SUBSCRIPTION Key points: 1. High cost for a subscription service. 2. Sole source procurement limits competition. 3. Potential for overpayment due to lack of competition. 4. IT/Information Services sector.

Value Assessment

Rating: questionable

The $2.9 million cost for a 4-year subscription to Westlaw appears high, especially considering potential bulk discounts or alternative providers. Without competitive bidding, it's difficult to ascertain fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, likely due to the perceived unique nature of the Westlaw service. This lack of competition prevents price discovery and may lead to inflated costs for the government.

Taxpayer Impact: Taxpayers are likely paying a premium for this subscription due to the absence of competitive bidding.

Public Impact

Essential legal research tool for government agencies. Ensures access to up-to-date legal information. Supports agency decision-making and compliance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High subscription cost
Potential for vendor lock-in

Positive Signals

Essential service for agency operations
Long-term contract provides stability

Sector Analysis

This spending falls within the Information Technology (IT) sector, specifically for information services and legal research platforms. Benchmarks for similar government-wide legal research contracts are not readily available but typically involve competitive solicitations.

Small Business Impact

This contract was awarded to West Publishing Corporation, a large business. There is no indication that small businesses were involved in providing this specific service or subcontracting opportunities.

Oversight & Accountability

The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Standard procurement regulations should apply, but the sole-source nature warrants scrutiny to ensure the price is justified.

Related Government Programs

Internet Publishing and Broadcasting and Web Search Portals
Pension Benefit Guaranty Corporation Contracting
Pension Benefit Guaranty Corporation Programs

Risk Flags

Sole-source justification questionable
High unit cost for subscription
Lack of competitive pricing pressure
Potential for overpayment

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $2.9 million to WEST PUBLISHING CORPORATION. WESTLAW SUBSCRIPTION

Who is the contractor on this award?

The obligated recipient is WEST PUBLISHING CORPORATION.

Which agency awarded this contract?

Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-08-31.

What is the justification for awarding this contract as sole-source?

The justification for a sole-source award typically rests on the unique capabilities or proprietary nature of the product or service. For Westlaw, this often relates to its extensive database, search functionalities, and integration with other legal tools. However, agencies should still explore if alternative solutions or aggregated purchasing could offer better value.

Could the PBGC have obtained a better price through competitive bidding?

It is highly probable that competitive bidding would have resulted in a lower price. When multiple vendors are allowed to compete, they are incentivized to offer their best pricing to secure the contract. The absence of competition removes this incentive, potentially leading to higher costs for the government.

What is the long-term value proposition of this subscription?

The long-term value lies in providing consistent and comprehensive access to legal information, which is crucial for the PBGC's mission. However, the value is diminished if the price is not competitive. Regular re-evaluation of the subscription's necessity and market alternatives is essential to ensure ongoing value.

Industry Classification

NAICS: Information › Other Information Services › Internet Publishing and Broadcasting and Web Search Portals

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 16PBGC22Q0054

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Thomson Company Inc, the

Address: 610 OPPERMAN DR, EAGAN, MN, 55123

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $3,684,492

Exercised Options: $2,903,400

Current Obligation: $2,903,400

Actual Outlays: $2,145,048

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline