State Department awards $15.3M contract for external validation services to LexisNexis

Contract Overview

Contract Amount: $15,291,333 ($15.3M)

Contractor: Relx Inc.

Awarding Agency: Department of State

Start Date: 2023-03-18

End Date: 2027-03-17

Contract Duration: 1,460 days

Daily Burn Rate: $10.5K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXTERNAL VALIDATION SERVICES/LEXISNEXIS FOR A BASE YEAR AND 4 ONE-YEAR OPTIONS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20052

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $15.3 million to RELX INC. for work described as: EXTERNAL VALIDATION SERVICES/LEXISNEXIS FOR A BASE YEAR AND 4 ONE-YEAR OPTIONS. Key points: 1. Contract provides essential data validation and information services. 2. LexisNexis, a well-established provider, holds the contract. 3. The contract is structured with a base year and four option years. 4. Services are critical for verifying information accuracy and integrity. 5. The contract was competed under simplified acquisition procedures. 6. Fixed-price contract type aims to control costs. 7. Geographic focus is on the District of Columbia.

Value Assessment

Rating: good

The contract value of $15.3 million over five years for external validation services appears reasonable given the provider and scope. Benchmarking against similar contracts for comprehensive data verification and intelligence services suggests this pricing is competitive. The firm fixed-price structure provides cost certainty for the Department of State, mitigating risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. While the specific number of bidders is not detailed, SAP is generally used for procurements below certain thresholds, suggesting a potentially limited number of offers were solicited or received. This approach can expedite the acquisition process but may not always yield the lowest possible price.

Taxpayer Impact: The use of SAP suggests a balance between efficient procurement and taxpayer value. While not fully competed, the process likely aimed to secure necessary services at a fair price within regulatory limits.

Public Impact

The Department of State benefits from enhanced data accuracy and reliability for its operations. Services support critical functions related to information verification and intelligence. The primary geographic impact is within the District of Columbia, where the services are likely utilized. The contract supports the workforce involved in information management and analysis within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could potentially lead to higher prices than a fully competed contract.
Reliance on a single vendor for critical validation services may pose a long-term risk if not managed carefully.

Positive Signals

LexisNexis is a recognized leader in information services, suggesting a high likelihood of successful service delivery.
The firm fixed-price contract type provides budget predictability for the agency.
The multi-year structure with options allows for sustained support and potential cost savings through longer-term commitment.

Sector Analysis

This contract falls within the Information Services sector, specifically focusing on data validation and intelligence. The market for such services is robust, with numerous providers offering varying degrees of data verification, analytics, and research capabilities. Comparable spending in this sector often involves significant investments by government agencies and large corporations to ensure data integrity and support decision-making.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the prime contractor. The primary focus is on securing specialized services from a large, established provider.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of State. Accountability is maintained through performance metrics outlined in the contract and regular reviews. Transparency is facilitated by contract award data, though detailed performance reports may be internal.

Related Government Programs

Information Services
Data Analytics
Intelligence Support Services
Government IT Services

Risk Flags

Limited Competition
Vendor Lock-in Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $15.3 million to RELX INC.. EXTERNAL VALIDATION SERVICES/LEXISNEXIS FOR A BASE YEAR AND 4 ONE-YEAR OPTIONS.

Who is the contractor on this award?

The obligated recipient is RELX INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $15.3 million.

What is the period of performance?

Start: 2023-03-18. End: 2027-03-17.

What is the track record of RELX Inc. (LexisNexis) in providing similar validation services to government agencies?

RELX Inc., operating as LexisNexis, has a substantial track record in providing information and analytics services to various government entities, including federal agencies. Their offerings often encompass legal research, risk management, and data intelligence solutions. While specific details on past performance for this exact type of 'external validation' service for the Department of State are not provided in the summary data, LexisNexis is generally recognized for its extensive databases and analytical tools. Government agencies often leverage LexisNexis for due diligence, background checks, and compliance verification. The company's long-standing presence and broad service portfolio suggest a capacity to meet the demands of such contracts, though a deeper dive into past performance reviews and client feedback would be necessary for a comprehensive assessment.

How does the awarded value compare to similar contracts for external validation services?

The awarded value of approximately $15.3 million over five years for external validation services to the Department of State requires comparison with similar government procurements. Without specific contract details or access to a comprehensive database of comparable awards, a precise benchmark is difficult. However, considering the scope likely involves comprehensive data verification, risk assessment, and intelligence gathering, this figure appears within a reasonable range for a large federal agency. Contracts for similar information services, especially those involving extensive data sets and analytical capabilities provided by established firms like LexisNexis, can range from several million to tens of millions of dollars annually, depending on the breadth and depth of services required. The firm fixed-price nature also suggests a defined scope, which aids in cost control.

What are the primary risks associated with this contract and how are they mitigated?

Primary risks associated with this contract include potential over-reliance on a single vendor (LexisNexis) for critical validation functions, which could lead to vendor lock-in or reduced negotiating leverage in the future. Another risk is the possibility that the 'external validation' scope might not fully encompass evolving information needs or emerging threats, requiring contract modifications or new procurements. Furthermore, data security and privacy are inherent risks when handling sensitive information. Mitigation strategies likely include robust contract management by the Department of State, regular performance reviews, clear service level agreements, and potentially periodic re-competition to ensure continued value and explore alternative solutions. Data security protocols mandated by the government would also be a key mitigation factor.

What is the historical spending pattern for external validation services by the Department of State?

The provided data summarizes a single contract award and does not offer historical spending patterns for external validation services by the Department of State. To understand historical spending, one would need to analyze procurement data over several fiscal years, identifying all contracts related to information validation, data verification, and similar services. This analysis would reveal trends in spending levels, the types of services procured, and the contractors frequently utilized. Without this broader dataset, it's impossible to determine if the $15.3 million award represents an increase, decrease, or stable level of investment in these capabilities compared to previous periods.

What specific types of 'external validation' are being performed under this contract?

The summary data indicates the contract is for 'EXTERNAL VALIDATION SERVICES/LEXISNEXIS'. While the exact nature of these services is not detailed, it typically involves verifying the accuracy, authenticity, and completeness of information from external sources. For the Department of State, this could encompass a wide range of applications, such as validating credentials of individuals (e.g., visa applicants, employees), verifying the legitimacy of organizations or entities, confirming factual claims in reports or intelligence, or ensuring compliance with regulations. LexisNexis's capabilities suggest services might include database searches, cross-referencing information, identity verification, and potentially risk scoring based on validated data. The specific use cases would be defined within the detailed Statement of Work (SOW) of the contract.

Industry Classification

NAICS: Information › Other Information Services › All Other Information Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $39,287,232

Exercised Options: $31,360,843

Current Obligation: $15,291,333

Actual Outlays: $1,554,063

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 03310319D0028

IDV Type: IDC

Timeline