Treasury's IRS Awards $15.7M for Financial Data Analysis Subscription Services to S&P Global
Contract Overview
Contract Amount: $15,710,060 ($15.7M)
Contractor: S&P Global Market Intelligence LLC
Awarding Agency: Department of the Treasury
Start Date: 2022-09-29
End Date: 2026-09-29
Contract Duration: 1,461 days
Daily Burn Rate: $10.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS IS A DEFINITIVE CONTRACT TO ACQUIRE FINANCIAL DATA ANALYSIS SUBSCRIPTION SERVICES
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10041
State: New York Government Spending
Plain-Language Summary
Department of the Treasury obligated $15.7 million to S&P GLOBAL MARKET INTELLIGENCE LLC for work described as: THIS IS A DEFINITIVE CONTRACT TO ACQUIRE FINANCIAL DATA ANALYSIS SUBSCRIPTION SERVICES Key points: 1. Significant investment in essential financial data for IRS operations. 2. Sole source award raises questions about competition and potential cost savings. 3. Long-term contract (4 years) locks in pricing but limits flexibility. 4. Focus on data services highlights the growing importance of information in tax administration.
Value Assessment
Rating: fair
The contract value of $15.7M over four years appears substantial. Without comparable contract data for similar financial data subscription services, it's difficult to definitively assess if the pricing is competitive. Benchmarking against industry standards for data access and analysis tools would be necessary.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs than if multiple vendors had competed. The rationale for not competing the award needs further examination to ensure best value for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential financial data services.
Public Impact
Enhances IRS capabilities in financial analysis and potentially fraud detection. Supports tax administration by providing critical market and financial data. Long-term commitment ensures continuity of service but may miss out on future market innovations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
- Long-term commitment may not reflect evolving market prices
Positive Signals
- Provides critical data for IRS operations
- Long-term contract ensures service continuity
Sector Analysis
The Information Technology sector, specifically data services, is crucial for modern government functions. Spending benchmarks for similar data subscription services vary widely based on data scope and user base. This contract falls within the realm of specialized data acquisition for analytical purposes.
Small Business Impact
The awardee, S&P Global Market Intelligence LLC, is a large corporation. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the IRS obtained fair pricing and that the procurement process was justified. Transparency regarding the justification for not competing the award is essential.
Related Government Programs
- Internet Publishing and Broadcasting and Web Search Portals
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for vendor lock-in with a long-term contract.
- Limited transparency on the justification for non-competition.
- High contract value requires robust oversight.
Tags
internet-publishing-and-broadcasting-and, department-of-the-treasury, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $15.7 million to S&P GLOBAL MARKET INTELLIGENCE LLC. THIS IS A DEFINITIVE CONTRACT TO ACQUIRE FINANCIAL DATA ANALYSIS SUBSCRIPTION SERVICES
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 the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $15.7 million.
What is the period of performance?
Start: 2022-09-29. End: 2026-09-29.
What specific financial data analysis capabilities does this subscription provide that are unique or indispensable to the IRS?
The contract specifies 'Financial Data Analysis Subscription Services,' suggesting access to market data, company financials, economic indicators, and potentially analytical tools. The IRS likely utilizes this data for tax compliance, economic analysis related to tax policy, and potentially identifying financial fraud or evasion schemes. The exact scope and unique value proposition would need to be detailed in the contract's statement of work.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
Sole-source awards typically require a strong justification, such as a unique capability possessed by only one vendor or a critical need that cannot be met through competition within the required timeframe. The IRS would need to document this justification thoroughly. Fair and reasonable pricing is usually determined through market research, comparison to similar contracts, or negotiation based on established cost principles.
How will the effectiveness of these financial data services be measured to ensure they are contributing to the IRS's mission and providing value for taxpayer money?
Effectiveness can be measured through key performance indicators (KPIs) outlined in the contract, such as data accuracy, timeliness of updates, availability of the platform, and user satisfaction. The IRS should track how the data supports specific operational goals, like improved tax gap estimations, enhanced audit selection, or better economic forecasting. Regular performance reviews with S&P Global are crucial.
Industry Classification
NAICS: Information › Other Information Services › Internet Publishing and Broadcasting and Web Search Portals
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 2032H8-22-R-00007
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: $19,951,285
Exercised Options: $15,710,060
Current Obligation: $15,710,060
Actual Outlays: $11,593,210
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-29
Current End Date: 2026-09-29
Potential End Date: 2027-09-29 10:51:27
Last Modified: 2025-09-24
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