IRS awards $6.3M contract to S&P Global for data services, raising competition concerns
Contract Overview
Contract Amount: $63,050 ($63.0K)
Contractor: S&P Global Market Intelligence LLC
Awarding Agency: Department of the Treasury
Start Date: 2022-09-01
End Date: 2025-09-22
Contract Duration: 1,117 days
Daily Burn Rate: $56/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PANJIVA
Place of Performance
Location: FAIRVIEW HEIGHTS, SAINT CLAIR County, ILLINOIS, 62208
State: Illinois Government Spending
Plain-Language Summary
Department of the Treasury obligated $63,050 to S&P GLOBAL MARKET INTELLIGENCE LLC for work described as: PANJIVA Key points: 1. The contract value is $6.3 million. 2. S&P Global Market Intelligence LLC is the sole awardee. 3. The award method raises questions about competition and price discovery. 4. The sector is IT, specifically Internet Publishing and Broadcasting.
Value Assessment
Rating: questionable
The contract was not competed under Simplified Acquisition Procedures (SAP). Without competitive bidding, it's difficult to assess if the $6.3 million price represents fair market value compared to similar data services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED UNDER SAP', indicating a limited competition approach. This method may not yield the best price for taxpayers as it bypasses standard competitive processes designed to drive down costs.
Taxpayer Impact: The lack of full and open competition could result in higher costs for taxpayers than a competitively bid contract.
Public Impact
Taxpayers may be paying more for data services due to limited competition. The IRS is relying on a single vendor for critical data, potentially increasing risk. Transparency in government contracting is reduced when full competition is not pursued.
Waste & Efficiency Indicators
Waste Risk Score: 56 / 10
Warning Flags
- Limited competition
- Lack of price benchmark
- Potential for overpayment
Positive Signals
- Specific vendor selected
- Clear contract duration
Sector Analysis
This contract falls within the IT sector, specifically for Internet Publishing and Broadcasting and Web Search Portals. Government spending in this area often involves data acquisition and analysis services, with benchmarks varying widely based on data scope and vendor.
Small Business Impact
There is no indication that small businesses were considered or involved in this procurement, as it was not competed under SAP and awarded to a large corporation.
Oversight & Accountability
The award method 'NOT COMPETED UNDER SAP' suggests a potential gap in oversight regarding competitive sourcing. Further review is needed to ensure accountability and adherence to best practices for taxpayer value.
Related Government Programs
- Internet Publishing and Broadcasting and Web Search Portals
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Lack of full and open competition
- Potential for inflated pricing
- Limited transparency in award process
- No clear small business participation
- Reliance on a single data provider
Tags
internet-publishing-and-broadcasting-and, department-of-the-treasury, il, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $63,050 to S&P GLOBAL MARKET INTELLIGENCE LLC. PANJIVA
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 $63,050.
What is the period of performance?
Start: 2022-09-01. End: 2025-09-22.
What specific data and analytical capabilities does S&P Global provide under this contract, and how do they directly support the IRS's mission?
The contract specifies 'Internet Publishing and Broadcasting and Web Search Portals' (NAICS 519130). This likely includes access to market intelligence, financial data, and economic indicators crucial for tax administration, compliance, and economic analysis. The IRS may use this data to identify trends, assess economic impacts on tax revenue, and inform policy decisions.
What is the justification for not competing this contract, and what steps were taken to ensure a fair and reasonable price was negotiated?
The data provided states 'NOT COMPETED UNDER SAP'. A formal justification for this limited competition approach would be required. Without competitive quotes, the IRS must rely on internal cost analysis or market research to determine price reasonableness. The absence of competition makes independent verification of a fair price challenging.
How does the IRS plan to measure the effectiveness and value derived from this $6.3 million data services contract over its duration?
The IRS should establish clear performance metrics and key performance indicators (KPIs) tied to the specific data and analytical outputs. Regular reviews of these metrics, alongside an assessment of how the data contributed to IRS objectives (e.g., improved forecasting, enhanced compliance strategies), will be crucial for evaluating the contract's effectiveness and value for money.
Industry Classification
NAICS: Information › Other Information Services › Internet Publishing and Broadcasting and Web Search Portals
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
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: $63,050
Exercised Options: $63,050
Current Obligation: $63,050
Actual Outlays: $63,050
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2022-09-01
Current End Date: 2025-09-22
Potential End Date: 2025-09-22 18:27:44
Last Modified: 2026-04-01
More Contracts from S&P Global Market Intelligence LLC
- This IS a Definitive Contract to Acquire Financial Data Analysis Subscription Services — $15.7M (Department of the Treasury)
- Access to Capital IQS Financial Data — $2.6M (Department of Justice)
- S&P Ratingsdirect, Capitaliq and SNL Financial Subscription — $2.3M (Export-Import Bank of the United States)
- Nursing Home Merger and Acquisitions — $632.7K (Government Accountability Office)
- S&P — $421.7K (Pension Benefit Guaranty Corporation)
View all S&P Global Market Intelligence LLC federal contracts →
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)