HHS awards $10.28M for NLM subscription services to EBSCO Information Services, a sole-source contract

Contract Overview

Contract Amount: $10,280,000 ($10.3M)

Contractor: Ebsco Information Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-30

End Date: 2026-06-30

Contract Duration: 273 days

Daily Burn Rate: $37.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NICHD/NLM: SERVICE: SUBSCRIPTION SERVICES FOR NATIONAL LIBRARY OF MEDICINE (NLM): NON-SEVERABLE

Place of Performance

Location: BIRMINGHAM, SHELBY County, ALABAMA, 35242

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.3 million to EBSCO INFORMATION SERVICES, LLC for work described as: NICHD/NLM: SERVICE: SUBSCRIPTION SERVICES FOR NATIONAL LIBRARY OF MEDICINE (NLM): NON-SEVERABLE Key points: 1. The contract is for essential subscription services for the National Library of Medicine. 2. EBSCO Information Services is the sole provider, raising concerns about competition. 3. The contract value is $10.28 million over 273 days. 4. The sector is primarily IT/Information Services, supporting critical research infrastructure.

Value Assessment

Rating: fair

The contract value of $10.28 million for a 273-day period suggests a high per-unit cost. Benchmarking against similar subscription service contracts for large libraries or research institutions would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the services were procured through a competitive bidding process.

Public Impact

Ensures continued access to vital medical information for researchers and healthcare professionals. Potential for increased costs due to sole-source nature impacts budget allocation. Supports the operational needs of a critical national resource, the National Library of Medicine.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Short contract duration (273 days) may indicate a need for future competitive procurement.
High cost per day for subscription services.

Positive Signals

Ensures continuity of essential services for a critical national resource.
Contract is for a well-defined service (subscriptions).

Sector Analysis

The contract falls within the IT and Information Services sector, specifically supporting a major government library. Spending benchmarks for similar large-scale subscription services for academic or research institutions are typically high, but the sole-source nature warrants scrutiny.

Small Business Impact

This contract was awarded to EBSCO Information Services, LLC, a large business. There is no indication of subcontracting opportunities for small businesses within this sole-source award.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure the pricing is fair and reasonable. Future procurements should explore competitive options to maximize value.

Related Government Programs

Periodical Publishers
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Short contract duration may indicate a stop-gap measure
High cost per day

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.3 million to EBSCO INFORMATION SERVICES, LLC. NICHD/NLM: SERVICE: SUBSCRIPTION SERVICES FOR NATIONAL LIBRARY OF MEDICINE (NLM): NON-SEVERABLE

Who is the contractor on this award?

The obligated recipient is EBSCO INFORMATION SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-06-30.

What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?

The justification for the sole-source award is not provided in the data. However, the agency should have a documented rationale, such as unique capabilities or prior successful performance. To ensure fair pricing, the agency should conduct a thorough price analysis, comparing the proposed costs to historical data, commercial price lists, and potentially other similar contracts, even if sole-sourced.

What is the risk associated with relying on a single vendor for critical NLM subscription services?

The primary risk is the lack of competitive pressure, which can lead to inflated prices and reduced service innovation. There's also a dependency risk; if EBSCO faces operational issues, NLM's access to vital information could be disrupted. This highlights the importance of robust contract management and contingency planning.

How does this contract contribute to the overall effectiveness of the National Library of Medicine's mission?

This contract is crucial for the NLM's mission by ensuring uninterrupted access to a vast array of periodicals and subscription-based resources. These resources are fundamental for medical research, education, and public health information dissemination. Without these subscriptions, the NLM's ability to serve its user base would be severely compromised.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › Periodical Publishers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75N94025R00010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5724 HIGHWAY 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: $15,410,000

Exercised Options: $10,280,000

Current Obligation: $10,280,000

Actual Outlays: $5,646,766

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline