S&P Global Market Intelligence LLC awarded $2.29M contract for data subscriptions by Export-Import Bank

Contract Overview

Contract Amount: $2,293,499 ($2.3M)

Contractor: S&P Global Market Intelligence LLC

Awarding Agency: Export-Import Bank of the United States

Start Date: 2020-12-01

End Date: 2025-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: S&P RATINGSDIRECT, CAPITALIQ AND SNL FINANCIAL SUBSCRIPTION

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10041

State: New York Government Spending

Plain-Language Summary

Export-Import Bank of the United States obligated $2.3 million to S&P GLOBAL MARKET INTELLIGENCE LLC for work described as: S&P RATINGSDIRECT, CAPITALIQ AND SNL FINANCIAL SUBSCRIPTION Key points: 1. Contract value of $2.29M over 5 years represents a significant investment in market intelligence. 2. Sole-source award suggests limited competition, potentially impacting price negotiation. 3. Fixed-price contract structure shifts performance risk to the contractor. 4. Subscription service is critical for the agency's market analysis and risk assessment functions. 5. Contract duration of 1825 days aligns with typical data service agreements. 6. The award falls under the 'Internet Publishing and Broadcasting and Web Search Portals' NAICS code.

Value Assessment

Rating: fair

The contract value of $2.29M over five years for data subscriptions appears reasonable given the specialized nature of market intelligence data. Benchmarking against similar contracts for comprehensive financial data services is challenging without more specific details on the data scope and user base. However, the fixed-price nature of the contract provides cost certainty for the agency, though it may not capture potential cost savings if market rates decrease during the contract period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that the Export-Import Bank likely determined that S&P Global Market Intelligence LLC was the only capable provider for the specific data and services required. The lack of competition means there was no opportunity for price discovery through a bidding process, which could potentially lead to a higher price than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. The agency paid the price set by the sole provider without the leverage of competing offers.

Public Impact

The Export-Import Bank of the United States benefits directly from access to critical market data. Services delivered include subscription access to S&P Capital IQ and SNL Financial databases. Geographic impact is national, supporting the agency's operations across the US. Workforce implications include enabling analysts and decision-makers with essential information for trade finance and risk management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Potential for overpayment due to lack of market price discovery.
Dependence on a single vendor for critical data.

Positive Signals

Access to high-quality, specialized market intelligence data.
Fixed-price contract provides budget certainty.
Long-term contract duration ensures continuity of service.

Sector Analysis

The market for financial data and analytics is dominated by a few large players, including S&P Global Market Intelligence. This sector is characterized by high barriers to entry due to the cost of data acquisition, proprietary algorithms, and established client relationships. The contract fits within the broader 'Information Services' sector, specifically focusing on financial data for institutional use. Comparable spending benchmarks are difficult to ascertain without knowing the exact scope of data provided, but large government agencies and financial institutions often invest millions annually in such services.

Small Business Impact

This contract does not appear to involve any small business set-asides. As a sole-source award to a large corporation, there are no direct subcontracting opportunities for small businesses stemming from this specific award. The impact on the small business ecosystem is minimal, as the primary vendor is a large, established entity.

Oversight & Accountability

Oversight for this contract would primarily fall under the Export-Import Bank's internal procurement and financial management departments. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified data services. Transparency is limited due to the sole-source nature of the award, with details of the negotiation process not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Financial Data Services
Market Intelligence Platforms
Economic Analysis Tools
Subscription-Based Information Services

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for non-optimal pricing

Frequently Asked Questions

What is this federal contract paying for?

Export-Import Bank of the United States awarded $2.3 million to S&P GLOBAL MARKET INTELLIGENCE LLC. S&P RATINGSDIRECT, CAPITALIQ AND SNL FINANCIAL SUBSCRIPTION

Who is the contractor on this award?

The obligated recipient is S&P GLOBAL MARKET INTELLIGENCE LLC.

Which agency awarded this contract?

Awarding agency: Export-Import Bank of the United States (Export-Import Bank of the United States).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2020-12-01. End: 2025-11-30.

What is the track record of S&P Global Market Intelligence LLC in providing similar data services to federal agencies?

S&P Global Market Intelligence LLC has a well-established track record in providing comprehensive financial data, analytics, and research to a wide range of clients, including government agencies, financial institutions, and corporations. Their platforms, such as Capital IQ and SNL Financial, are industry standards for market data. While specific contract details with other federal agencies are not publicly detailed in this context, their long-standing presence and reputation in the market suggest a history of delivering reliable data and services. The Export-Import Bank's reliance on them for this sole-source contract further implies confidence in their capabilities and the unique value proposition of their offerings.

How does the per-unit cost of this subscription compare to market rates for similar financial data services?

Determining the precise per-unit cost is challenging without knowing the exact number of users, specific data modules accessed, and the granularity of the data. However, given that S&P Global Market Intelligence provides premium, in-depth financial data and analytics, their subscription costs are generally considered to be at the higher end of the market. The total contract value of $2.29M over five years, divided by the duration, suggests an annual cost of approximately $458,699. This figure needs to be evaluated against the breadth and depth of the data provided, as well as the number of users within the Export-Import Bank who require access. Without competitive bids, it's difficult to ascertain if this represents optimal value for money compared to potential alternative providers or negotiated rates.

What are the primary risks associated with a sole-source award for critical data subscriptions?

The primary risks associated with a sole-source award for critical data subscriptions include a lack of price competition, potentially leading to higher costs for the government. There is also a risk of vendor lock-in, where the agency becomes overly dependent on a single provider, making it difficult and costly to switch vendors in the future. Furthermore, without the pressure of competition, the vendor may have less incentive to innovate or offer superior customer service. The agency also loses the opportunity to explore potentially more cost-effective or feature-rich solutions that might be offered by other vendors if the contract were competed.

How effective is the Export-Import Bank likely to be in achieving its mission with this data subscription?

This data subscription is likely to be highly effective in supporting the Export-Import Bank's mission. The Export-Import Bank's mandate involves facilitating the export of U.S. goods and services by mitigating risks for lenders and investors. Access to S&P Global Market Intelligence's comprehensive data on global markets, industries, companies, and economic trends is crucial for assessing creditworthiness, identifying market opportunities, understanding geopolitical risks, and making informed lending and investment decisions. The detailed financial and operational data provided by platforms like Capital IQ and SNL Financial enables the bank to perform thorough due diligence and risk analysis, thereby enhancing its ability to support U.S. exporters and jobs.

What are the historical spending patterns for financial data subscriptions at the Export-Import Bank or similar agencies?

Historical spending patterns for financial data subscriptions at agencies like the Export-Import Bank typically show a consistent need for such services due to their core functions. Agencies involved in international trade, finance, and risk assessment rely heavily on up-to-date market intelligence. Spending often remains stable or increases gradually over time, reflecting the growing complexity of global markets and the increasing volume of data available. Sole-source awards for these types of services are not uncommon, especially when a particular vendor's data is deeply integrated into agency workflows or is considered the industry standard. However, agencies are generally encouraged to periodically review contracts for potential cost savings and competitive alternatives.

What are the potential implications of this contract on the broader financial data market?

This contract, while significant in value, has a limited impact on the broader financial data market. S&P Global Market Intelligence is a major player in this space, and their contracts with large government entities are part of their regular business operations. The sole-source nature of this award means it doesn't directly stimulate competition or introduce new market entrants. However, it reinforces the market position of S&P Global and highlights the continued demand for high-quality, specialized financial intelligence among government institutions. The value of the contract underscores the premium placed on such data for critical decision-making processes within agencies like the Export-Import Bank.

Industry Classification

NAICS: Information › Other Information Services › Internet Publishing and Broadcasting and Web Search Portals

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

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: $2,293,499

Exercised Options: $2,293,499

Current Obligation: $2,293,499

Actual Outlays: $1,876,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline