Treasury Spends $2.7M on Bloomberg Terminals via Sole-Source Contract
Contract Overview
Contract Amount: $2,695,429 ($2.7M)
Contractor: Bloomberg Finance LP
Awarding Agency: Department of the Treasury
Start Date: 2021-04-30
End Date: 2025-07-29
Contract Duration: 1,551 days
Daily Burn Rate: $1.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BLOOMBERG PROFESSIONAL SERVICES TERMINALS ACCESS
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10022
State: New York Government Spending
Plain-Language Summary
Department of the Treasury obligated $2.7 million to BLOOMBERG FINANCE LP for work described as: BLOOMBERG PROFESSIONAL SERVICES TERMINALS ACCESS Key points: 1. High cost for essential data access. 2. Bloomberg is the dominant provider, limiting competition. 3. Risk of vendor lock-in and price increases. 4. IT infrastructure sector with significant recurring costs.
Value Assessment
Rating: questionable
The contract price of $2.7 million for Bloomberg terminals over approximately 3.5 years appears high given the specialized nature of the service. Benchmarking against similar government or enterprise contracts for financial data terminals is difficult due to proprietary pricing, but the cost per terminal is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition likely resulted in higher prices than could have been achieved through a competitive bidding process, as Bloomberg is the primary provider of these terminals.
Taxpayer Impact: Taxpayers bear the cost of a non-competitive procurement, potentially paying a premium for essential financial data services.
Public Impact
Ensures Treasury analysts have access to critical real-time financial data for market analysis and decision-making. Potential for significant cost savings if competitive alternatives were explored or negotiated. Reliance on a single vendor raises concerns about long-term cost control and service flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- High contract value
- Lack of competitive bidding
Positive Signals
- Provides critical data access
- Long-term contract duration
Sector Analysis
This contract falls within the IT sector, specifically data services and subscriptions. Government spending on financial data terminals like Bloomberg is common but often represents a significant, recurring expense due to the specialized nature and limited competition in the market.
Small Business Impact
This contract does not appear to involve small businesses, as Bloomberg Finance LP is a large, established corporation. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the price is reasonable and that future requirements are evaluated for competitive opportunities to mitigate costs.
Related Government Programs
- Internet Publishing and Broadcasting and Web Search Portals
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Sole-source award limits price competition.
- High contract value represents significant taxpayer expenditure.
- Potential for vendor lock-in and future price escalations.
- Lack of transparency in pricing structure.
Tags
internet-publishing-and-broadcasting-and, department-of-the-treasury, ny, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.7 million to BLOOMBERG FINANCE LP. BLOOMBERG PROFESSIONAL SERVICES TERMINALS ACCESS
Who is the contractor on this award?
The obligated recipient is BLOOMBERG FINANCE LP.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2021-04-30. End: 2025-07-29.
What is the justification for the sole-source award, and have alternatives been considered?
The justification for a sole-source award typically stems from unique capabilities or lack of viable alternatives. For Bloomberg terminals, the argument often centers on the comprehensive nature of the data and analytics provided, which are difficult to replicate. However, agencies should periodically reassess if aggregated data from multiple, competitively sourced providers could meet their needs at a lower cost.
How does the per-unit cost compare to industry benchmarks for similar financial data terminals?
Benchmarking the per-unit cost is challenging due to Bloomberg's proprietary pricing models and the bundled nature of their services. However, industry estimates suggest that Bloomberg terminals are among the most expensive financial data platforms. Government agencies should seek to negotiate volume discounts or explore alternative, potentially less comprehensive but more cost-effective, data solutions.
What is the long-term strategy for managing the cost of financial data services?
The long-term strategy should involve regular market research to identify emerging competitors and alternative data sources. Agencies should also consider consolidating data needs to leverage purchasing power and negotiate more favorable terms. Periodic re-competition, even for services perceived as sole-source, can drive better pricing and ensure continued value for taxpayer money.
Industry Classification
NAICS: Information › Other Information Services › Internet Publishing and Broadcasting and Web Search Portals
Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: RFQ-OFR-21-BLOOMBERG
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 731 LEXINGTON AVE, NEW YORK, NY, 10022
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,438,097
Exercised Options: $2,695,429
Current Obligation: $2,695,429
Actual Outlays: $2,695,429
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2021-04-30
Current End Date: 2025-07-29
Potential End Date: 2025-11-29 00:00:00
Last Modified: 2026-01-23
More Contracts from Bloomberg Finance LP
- This BPA Call IS Issued Against Master BPA 89303019AEE000001 to Obtain 66 Bloomberg NEW Energy Finance (bnef) User Licenses for the Office of Clean Energy Demonstrations (CD). the Period of Performance IS From 05/01/2024 to 4/30/2025 — $658.3K (Department of Energy)
- THE Government Accountability Office (GAO) Requires Electronic Access to Financial Data for TEN (10) Users — $549.2K (Government Accountability Office)
- Bloomberg Terminal Service IS Used to Examine Complex Financial Transactions Engaged in by Taxpayers — $145.7K (Department of the Treasury)
- Obtain Bloomberg Anywhere and Physical Terminal Licenses for the Energy Information Administration (EIA), Office of Energy Analysis (OEA), Consisting of 1 Base and 4 Option Periods — $85.1K (Department of Energy)
- This BPA Call IS Issued Against Master BPA 89303019AEE000001 to Obtain 6 Bloomberg NEW Energy Finance (bnef) User Licenses for the Office of Technology Transitions (OTT). the Period of Performance IS From 05/01/2024 to 4/30/2025 — $78.7K (Department of Energy)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)