GSA awards Moody's Analytics $2.78M for CARMAC Data Subscription, raising concerns over limited competition

Contract Overview

Contract Amount: $2,782,111 ($2.8M)

Contractor: Moody's Analytics, Inc.

Awarding Agency: General Services Administration

Start Date: 2023-10-30

End Date: 2026-10-29

Contract Duration: 1,095 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMERCIAL AND RESIDENTIAL MORTGAGE AND CLIMATE (CARMAC) DATA SUBSCRIPTION

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10007

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $2.8 million to MOODY'S ANALYTICS, INC. for work described as: COMMERCIAL AND RESIDENTIAL MORTGAGE AND CLIMATE (CARMAC) DATA SUBSCRIPTION Key points: 1. The contract for mortgage and climate data is valued at $2.78 million over three years. 2. Moody's Analytics, Inc. is the sole provider, indicating a lack of competition. 3. The 'Not Competed Under SAP' designation suggests potential for better pricing through competition. 4. The sector is information services, crucial for financial and environmental risk assessment.

Value Assessment

Rating: questionable

The $2.78 million price tag for a three-year subscription to specialized data needs careful benchmarking. Without competitive bids, it's difficult to ascertain if this price represents fair market value compared to similar data services or potential alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under Simplified Acquisition Procedures (SAP), suggesting it was likely awarded through a limited or sole-source justification. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this essential data subscription.

Public Impact

Access to critical mortgage and climate data impacts financial markets and policy decisions. The subscription supports risk assessment for both commercial and residential sectors. Transparency in government data procurement is essential for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for overpayment
Lack of transparency in procurement

Positive Signals

Provides essential data for risk assessment
Long-term contract ensures data continuity

Sector Analysis

The information services sector, particularly data providers like Moody's Analytics, plays a vital role in economic and environmental analysis. Spending benchmarks vary widely based on data specificity and provider.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. The award to a large, established firm like Moody's suggests a focus on specialized data capabilities.

Oversight & Accountability

The 'Not Competed Under SAP' status warrants further review by oversight bodies to ensure the government obtained the best value and explored all competitive options.

Related Government Programs

Web Search Portals and All Other Information Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in procurement process
Sole-source award raises questions about market availability

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.8 million to MOODY'S ANALYTICS, INC.. COMMERCIAL AND RESIDENTIAL MORTGAGE AND CLIMATE (CARMAC) DATA SUBSCRIPTION

Who is the contractor on this award?

The obligated recipient is MOODY'S ANALYTICS, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2023-10-30. End: 2026-10-29.

What specific factors justified not competing this contract, and were alternative data sources considered?

The justification for not competing this contract needs to be thoroughly documented. Agencies must demonstrate that competition was not feasible or would not result in best value. This includes exploring if similar data could be obtained from other sources, including smaller businesses, or if the unique nature of CARMAC data necessitates a sole-source award.

How does the cost of this subscription compare to publicly available climate and mortgage data, or similar commercial offerings?

A detailed cost-benefit analysis is required to benchmark this $2.78 million expenditure. Comparing the subscription cost against the price of aggregated public data, or against similar data products from competitors (if available), would reveal if the premium paid is justified by the unique value proposition of CARMAC data.

What are the long-term implications of relying on a single, non-competed provider for critical economic and climate data?

Long-term reliance on a single provider, especially without demonstrated competition, poses risks of price escalation and potential service stagnation. It also limits opportunities for innovation and for other firms to enter the market, potentially reducing overall market efficiency and government savings.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 86615724Q00001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Moody's Corporation

Address: 7 WORLD TRADE CENTER AT 250 GREENWICH ST, NEW YORK, NY, 10007

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

Financial Breakdown

Contract Ceiling: $5,130,639

Exercised Options: $2,782,111

Current Obligation: $2,782,111

Actual Outlays: $2,136,389

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline