VA awards $6.3M for CINAHL subscription, a sole-source purchase order for information services

Contract Overview

Contract Amount: $6,268,834 ($6.3M)

Contractor: Ebsco Information Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-18

End Date: 2026-09-17

Contract Duration: 1,248 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CINAHL SUBSCRIPTION

Place of Performance

Location: BIRMINGHAM, SHELBY County, ALABAMA, 35242

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.3 million to EBSCO INFORMATION SERVICES, LLC for work described as: CINAHL SUBSCRIPTION Key points: 1. The contract value of $6.3M over approximately 4 years suggests a significant investment in specialized information resources. 2. As a sole-source award, the absence of competition may limit price negotiation and potentially lead to higher costs. 3. The fixed-price contract type shifts cost risk to the contractor, which can be beneficial for the government if costs are well-managed. 4. The duration of the contract (1248 days) indicates a long-term need for the subscribed service. 5. The specific service, CINAHL, points to a need for nursing and allied health literature, crucial for clinical practice and education within the VA. 6. The award to EBSCO Information Services, LLC, suggests a reliance on established vendors for specialized database access.

Value Assessment

Rating: fair

The VA's award of $6.3M for the CINAHL subscription represents a substantial expenditure for specialized information services. Without competitive bidding, it is difficult to benchmark the value for money against alternative providers or negotiated rates. The fixed-price nature of the contract provides cost certainty for the government, but the lack of competition raises concerns about whether the most advantageous price was secured. Further analysis would require understanding the specific features and scope of the CINAHL database and comparing its cost to similar databases or previous VA procurements for this service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, EBSCO Information Services, LLC, was solicited. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from multiple qualified offerors. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they generally result in less price competition and may not yield the best value for the government. The absence of multiple bidders means the VA did not benefit from a range of proposals and pricing strategies.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the most cost-effective solution, as competitive pressures that drive down prices were absent.

Public Impact

The primary beneficiaries are VA healthcare professionals, including nurses, researchers, and allied health practitioners, who gain access to critical clinical and research information. The service delivered is access to the CINAHL (Cumulative Index to Nursing and Allied Health Literature) database, a comprehensive resource for evidence-based practice. The geographic impact is nationwide, supporting VA healthcare facilities and personnel across all states. This contract supports the professional development and clinical decision-making of the VA's extensive healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing compared to a competitively bid contract.
Sole-source awards can set a precedent for future non-competitive procurements if not carefully managed.
Reliance on a single vendor for critical information resources poses a potential risk if that vendor experiences service disruptions.

Positive Signals

The contract is for a critical information resource (CINAHL) essential for nursing and allied health professionals.
The fixed-price contract type provides budget certainty for the VA.
The award ensures continued access to vital research and clinical literature for VA staff.

Sector Analysis

The market for specialized academic and professional databases is dominated by a few large information service providers. EBSCO Information Services is a major player in this sector, offering a wide range of subscription-based content. The VA's procurement falls within the broader information services and digital content subscription market, which is characterized by recurring revenue models and the need for robust digital delivery platforms. Comparable spending benchmarks would involve looking at other large federal agencies or academic institutions that subscribe to similar comprehensive databases.

Small Business Impact

This contract does not appear to involve a small business set-aside, as it was awarded sole-source to EBSCO Information Services, LLC, a large established company. There is no indication of subcontracting opportunities for small businesses within this specific award. The focus is on direct service provision from the primary contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers responsible for information resources. Accountability is established through the terms and conditions of the firm-fixed-price purchase order, requiring the contractor to provide uninterrupted access to the CINAHL database. Transparency is limited due to the sole-source nature of the award, with details of the justification for non-competition not publicly detailed in the provided data.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA)
VA Information Technology Programs
Healthcare Information Systems
Academic and Research Databases

Risk Flags

Sole-source award lacks competitive pricing.
Potential for price escalation in future renewals.
Dependency on a single vendor for critical information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.3 million to EBSCO INFORMATION SERVICES, LLC. CINAHL SUBSCRIPTION

Who is the contractor on this award?

The obligated recipient is EBSCO INFORMATION SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2023-04-18. End: 2026-09-17.

What is the historical spending pattern for CINAHL subscriptions by the Department of Veterans Affairs?

The provided data indicates a new award for the CINAHL subscription starting in April 2023 and ending in September 2026, with a total value of $6.3 million. To understand historical spending, one would need to access previous contract awards for this specific database or similar nursing and allied health literature resources. Analyzing past expenditures would reveal trends in pricing, contract duration, and vendor choices, helping to contextualize the current award's value and the rationale behind its sole-source determination. Without prior data, it's challenging to assess if this $6.3M represents an increase, decrease, or consistent level of investment in this critical resource.

What specific justification was provided for awarding this contract on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED' and is a 'SOLE SOURCE'. However, the specific justification for this sole-source determination is not detailed in the abbreviated data. Typically, federal agencies must justify sole-source awards under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can provide the required supplies or services, or when a public exigency requires immediate procurement. For a specialized database like CINAHL, the justification might stem from exclusive licensing rights held by EBSCO Information Services, or a determination that no other vendor can provide the exact same comprehensive content and functionality required by the VA's nursing and allied health professionals. A full review of the contract file would be necessary to ascertain the precise justification.

How does the per-unit cost of this CINAHL subscription compare to market rates or similar contracts?

The provided data does not offer a clear 'per-unit' cost as the contract is for a broad subscription service rather than individual units. The total award is $6,268,834.46 over approximately 4 years (1248 days). To benchmark this, one would need to know the number of users or access points covered by this subscription, or compare the total cost to similar large-scale database subscriptions procured by other federal agencies or major academic institutions. Given the sole-source nature, direct comparison to market rates is difficult, as competitive bidding often drives prices down. Without more granular data on usage or comparable contracts, assessing the precise value-for-money on a per-unit basis is challenging.

What is EBSCO Information Services, LLC's track record with the federal government, particularly the VA?

EBSCO Information Services, LLC is a well-established provider of subscription-based content and research tools, and it is highly probable they have a significant track record with various federal agencies, including the Department of Veterans Affairs. Their core business involves supplying academic journals, databases, and other information resources to libraries and institutions worldwide. To assess their specific track record with the VA, one would typically examine historical contract data, looking for previous awards for CINAHL or other EBSCO-provided services. This would reveal the frequency of awards, contract values, performance history, and any past issues or commendations. A positive history with the VA would suggest reliability and familiarity with the agency's needs.

What are the potential risks associated with relying on a single vendor for essential clinical literature access?

Relying on a single vendor like EBSCO Information Services for the CINAHL subscription presents several potential risks. Firstly, there's the risk of price escalation in future contract renewals, especially if the sole-source justification remains unchallenged or unchanged. Secondly, service disruptions, whether due to technical issues, cyberattacks, or vendor business decisions, could significantly impact the VA's healthcare professionals' ability to access critical information, potentially affecting patient care and research. Thirdly, vendor lock-in can occur, making it difficult and costly to switch to alternative providers even if better options emerge. Finally, a lack of competition might disincentivize the vendor from innovating or offering enhanced services beyond the contracted scope.

Industry Classification

NAICS: Information › Web Search Portals, Libraries, Archives, and Other Information Services › Web Search Portals and All Other Information Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C77623Q0291

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5724 HWY 280 E, BIRMINGHAM, AL, 35242

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,001,210

Exercised Options: $6,268,834

Current Obligation: $6,268,834

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline