DHS awards $4M LexisNexis subscription for Coast Guard Western Alaska, raising value-for-money questions

Contract Overview

Contract Amount: $4,032 ($4.0K)

Contractor: Relx Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-01

End Date: 2027-03-31

Contract Duration: 729 days

Daily Burn Rate: $6/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LEXIS NEXIS SUBSCRIPTION FOR USCG SECTOR WESTERN ALASKA

Place of Performance

Location: FORT RICHARDSON, ANCHORAGE County, ALASKA, 99505

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4,032 to RELX INC. for work described as: LEXIS NEXIS SUBSCRIPTION FOR USCG SECTOR WESTERN ALASKA Key points: 1. The contract's value-for-money is questionable given the lack of competition and the nature of the service. 2. Competition dynamics are severely limited, with the award being sole-source. 3. Risk indicators include potential overpayment due to sole-sourcing and the lack of a competitive benchmark. 4. Performance context is specific to the U.S. Coast Guard Sector Western Alaska's information needs. 5. Sector positioning is within the information services industry, specifically legal and business research. 6. The duration of the contract (729 days) suggests a recurring need for these services.

Value Assessment

Rating: questionable

The sole-source nature of this award prevents a direct comparison to similar contracts or market rates. Without competitive bidding, it is difficult to ascertain if the $4.03 million price represents fair market value for LexisNexis subscription services. The government may be paying a premium due to the lack of alternative providers being considered. Benchmarking against other federal agencies' LexisNexis contracts, if available and competitively sourced, would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis to RELX INC. This indicates that the U.S. Coast Guard identified LexisNexis as the only acceptable source for this requirement. The lack of competition means there were no other bidders, and therefore no price discovery through a bidding process.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these information services due to the absence of a competitive bidding process. Sole-source awards can lead to higher costs compared to those secured through open competition.

Public Impact

The primary beneficiary is the U.S. Coast Guard Sector Western Alaska, which gains access to critical legal and business information. Services delivered include access to a comprehensive database of legal, news, and business information. Geographic impact is focused on the Western Alaska region, supporting Coast Guard operations there. Workforce implications involve providing Coast Guard personnel in Western Alaska with essential research tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Potential for over-reliance on a single vendor without exploring alternatives.
Limited transparency into the justification for sole-source award.

Positive Signals

Ensures access to critical information for Coast Guard operations in a remote region.
Provides a consistent and reliable source of legal and business data.
Firm Fixed Price contract type helps in budget predictability.

Sector Analysis

This contract falls within the Information Services sector, specifically focusing on legal and business research platforms. The market for such services is dominated by a few large providers, including LexisNexis. Federal agencies frequently procure these types of subscriptions to support legal, policy, and operational research. Comparable spending benchmarks are difficult to establish without knowing the specific subscription tiers and user counts, but agency-wide legal research subscriptions can range from tens of thousands to millions of dollars annually.

Small Business Impact

This contract does not appear to involve any small business set-asides or subcontracting requirements. As a sole-source award to a large corporation (RELX INC.), there is no direct impact on the small business ecosystem through this specific procurement. The focus is on fulfilling the information needs of the U.S. Coast Guard.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and financial management offices. Accountability measures are inherent in the contract terms, particularly the Firm Fixed Price structure. Transparency is limited by the sole-source nature of the award; the justification for this procurement method would be key. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

LexisNexis Government Contracts
Legal Research Services
Information Services Procurement
Department of Homeland Security Subscriptions
U.S. Coast Guard Information Technology

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment due to lack of competition.
Limited transparency on justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4,032 to RELX INC.. LEXIS NEXIS SUBSCRIPTION FOR USCG SECTOR WESTERN ALASKA

Who is the contractor on this award?

The obligated recipient is RELX INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $4,032.

What is the period of performance?

Start: 2025-04-01. End: 2027-03-31.

What is the specific justification for awarding this LexisNexis subscription on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and awarded as a sole-source purchase order. A full justification for a sole-source award typically requires demonstrating that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs where competition is not feasible. Without the official Justification and Approval (J&A) document, the precise reasons remain unknown, but it implies the U.S. Coast Guard determined LexisNexis was the only viable option for their specific requirements in Western Alaska.

How does the $4.03 million cost compare to similar federal agency subscriptions for LexisNexis?

Direct comparison is challenging without knowing the exact scope, user numbers, and specific LexisNexis products included in this $4.03 million award. However, federal agencies often negotiate enterprise-wide licenses or specific departmental subscriptions. For instance, other large agencies might have similar or higher total spending on LexisNexis, but the per-user cost or value derived could differ significantly based on negotiation power and competition. The sole-source nature of this award suggests the government did not leverage competitive pressure to potentially lower the price, making a direct value comparison difficult without internal agency benchmarks or publicly available competitive contract data.

What are the primary risks associated with a sole-source award for information services like LexisNexis?

The primary risks associated with a sole-source award for information services like LexisNexis include potential overpayment, lack of innovation, and vendor lock-in. Without competition, the government may not achieve the best possible pricing, as the vendor faces less pressure to offer discounts. Furthermore, relying on a single provider can stifle innovation, as there's no incentive for the vendor to improve services beyond maintaining the current offering. Vendor lock-in is also a concern, as switching providers can be costly and disruptive, especially if the services are deeply integrated into agency workflows. This contract's duration and value amplify these risks.

What is the historical spending pattern for LexisNexis subscriptions by the U.S. Coast Guard or DHS?

Analyzing historical spending patterns for LexisNexis subscriptions by the U.S. Coast Guard or the Department of Homeland Security (DHS) would require access to historical contract databases. Typically, agencies like the Coast Guard would have recurring needs for legal and research databases, leading to consistent, often sole-source or limited-competition, awards for such services. Understanding past spending levels, contract durations, and any competitive solicitations would provide context for the current $4.03 million award. Without specific historical data, it's presumed this represents a continuation of essential information services procurement.

How does the contract duration of 729 days (approx. 2 years) impact the assessment of value?

A contract duration of approximately two years (729 days) for a $4.03 million LexisNexis subscription suggests a significant and ongoing need for these information services by the U.S. Coast Guard Sector Western Alaska. While longer durations can sometimes indicate better pricing through multi-year commitments, the sole-source nature of this award tempers that potential benefit. It locks the government into this specific vendor and price for the contract period, limiting flexibility. From a value perspective, it means the government is committed to this expenditure for an extended period without the opportunity to re-evaluate market alternatives or competitive pricing during that time.

Industry Classification

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

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

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

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: $10,560

Exercised Options: $10,560

Current Obligation: $4,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline