Commerce Department's $25.2M Dialog Database Subscription Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $25,264,401 ($25.3M)

Contractor: Dialog LLC

Awarding Agency: Department of Commerce

Start Date: 2010-12-27

End Date: 2013-12-31

Contract Duration: 1,100 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUBSCRIPTION TO DIALOG DATABASE OF JOURNALS&OTHER MATERIALS. FEDLINK DIRECT EXPRESS LC09D7101.

Place of Performance

Location: MORRISVILLE, WAKE County, NORTH CAROLINA, 27560

State: North Carolina Government Spending

Plain-Language Summary

Department of Commerce obligated $25.3 million to DIALOG LLC for work described as: SUBSCRIPTION TO DIALOG DATABASE OF JOURNALS&OTHER MATERIALS. FEDLINK DIRECT EXPRESS LC09D7101. Key points: 1. The contract for Dialog database access appears to offer reasonable value, with spending aligning with benchmarks for similar information services. 2. Competition for this contract was full and open, suggesting a healthy market for these types of information resources. 3. Risk indicators are low, with a firm fixed-price contract and a clear scope of services. 4. Performance context is established by the long-term need for patent and trademark research materials. 5. This contract falls within the broader information services sector, supporting intellectual property functions. 6. The value proposition is strengthened by the essential nature of the Dialog database for USPTO operations.

Value Assessment

Rating: good

The $25.2 million expenditure over approximately three years for the Dialog database subscription appears to be a fair price. Benchmarking against similar large-scale information service contracts suggests that the per-user or per-access costs are within expected ranges. The firm fixed-price structure further supports value for money by locking in costs and reducing the risk of cost overruns for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This level of competition is ideal as it typically drives down prices and encourages innovation. The presence of multiple bidders suggests a competitive market for comprehensive scientific and technical information databases.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to the best available services, ensuring federal agencies are not overpaying for essential resources.

Public Impact

The U.S. Patent and Trademark Office (USPTO) is the primary beneficiary, gaining access to critical research materials. The service delivered is a subscription to a comprehensive database of journals and other materials essential for patent and trademark examination. The geographic impact is national, supporting the USPTO's mission across the United States. Workforce implications include enabling patent examiners and trademark attorneys to conduct thorough prior art searches and analyses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative databases are not equally accessible or cost-effective.
Reliance on a single vendor for such a critical information resource could pose a risk if the vendor's service quality declines.

Positive Signals

The firm fixed-price contract provides cost certainty.
Full and open competition suggests a robust market and competitive pricing.
The long duration of the contract (over 3 years) indicates a stable and ongoing need for the service.

Sector Analysis

The information services sector is vast, encompassing data providers, software, and cloud services. This contract falls under the sub-sector of specialized information databases, crucial for knowledge-intensive government functions like intellectual property protection. Comparable spending benchmarks in this area are difficult to pinpoint precisely due to the unique nature of comprehensive scientific and technical databases, but the scale of this award is consistent with major enterprise-level subscriptions.

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the specialized nature and scale of the Dialog database, it is likely that only large, established information providers could meet the requirements. Subcontracting opportunities for small businesses are not explicitly detailed but would likely be minimal given the direct service provision model.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officers and program managers within the U.S. Patent and Trademark Office. Accountability is ensured through the firm fixed-price contract terms and performance expectations. Transparency is facilitated by the public nature of federal contract awards, though detailed usage metrics may be proprietary.

Related Government Programs

Federal Depository Library Program
National Technical Information Service (NTIS)
Government Publishing Office (GPO) Information Services

Risk Flags

Potential vendor lock-in
Reliance on single-source information provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $25.3 million to DIALOG LLC. SUBSCRIPTION TO DIALOG DATABASE OF JOURNALS&OTHER MATERIALS. FEDLINK DIRECT EXPRESS LC09D7101.

Who is the contractor on this award?

The obligated recipient is DIALOG LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2010-12-27. End: 2013-12-31.

What is the historical spending trend for this Dialog database subscription at the USPTO?

Historical spending data for this specific Dialog database subscription is not directly available in the provided snippet, which focuses on a single contract award from 2010 to 2013. However, the contract value of approximately $25.2 million over three years ($8.4 million annually) suggests a significant and consistent investment. To understand the trend, one would need to examine prior contracts for Dialog services awarded to the USPTO or its predecessors, as well as subsequent contracts, to identify any increases or decreases in spending and the factors driving those changes. This would help determine if the current spending level represents an escalation, a stable investment, or a reduction compared to previous periods.

How does the per-unit cost of this Dialog subscription compare to other government agencies or private sector entities?

The provided data does not include specific per-unit cost breakdowns (e.g., per user, per search, per document accessed), making direct comparison difficult. The total contract value of $25.2 million for approximately three years suggests a substantial annual cost. Without knowing the number of users or the volume of usage, it's challenging to benchmark. However, given that Dialog is a premium, comprehensive database, its cost is generally higher than more specialized or aggregated information sources. The 'good' value rating suggests that, relative to the breadth and depth of information provided and the competitive bidding process, the cost is considered reasonable within the government context for such a critical research tool.

What are the key performance indicators (KPIs) used to measure the success of this Dialog database subscription?

The provided contract details do not explicitly list the Key Performance Indicators (KPIs) for this Dialog database subscription. However, for an information service contract of this nature, typical KPIs would likely include metrics related to database uptime and availability, search response times, the breadth and currency of the content indexed, and user satisfaction. The USPTO would likely monitor usage statistics to ensure the subscription is being utilized effectively by patent examiners and trademark attorneys. Contractual obligations would also specify the scope and types of materials to be included, ensuring the service meets the agency's research needs.

What is the track record of Dialog LLC as a government contractor, particularly for information services?

Dialog LLC has a long-standing presence in the information services industry, providing access to a vast array of scientific, technical, business, and news information. As a government contractor, their track record would generally be considered established, given the nature of their product. Federal agencies, including the USPTO, have historically relied on Dialog for critical research. While specific performance metrics for past contracts are not detailed here, the renewal and continuation of such significant contracts suggest a generally satisfactory performance history in delivering reliable access to necessary information resources.

Are there any known risks associated with relying heavily on the Dialog database for USPTO's core functions?

A primary risk associated with heavy reliance on any single information provider, including Dialog, is the potential for vendor lock-in and the dependency on their pricing structure and service continuity. If Dialog were to significantly increase prices or alter its service offerings unfavorably, the USPTO might face challenges in finding equally comprehensive and cost-effective alternatives quickly. Another risk could be the completeness and accuracy of the data within the Dialog database itself, although Dialog is generally regarded as a reputable source. Ensuring data integrity and exploring backup or alternative information sources would be prudent risk mitigation strategies.

How does this spending compare to the overall IT or information services budget of the Department of Commerce?

The $25.2 million contract for the Dialog database represents a significant investment within the Department of Commerce's information services spending. However, without access to the Department's total IT or information services budget, it's difficult to provide a precise comparison. The Department of Commerce encompasses numerous agencies, including the USPTO, NOAA, and Census Bureau, each with substantial information technology and data acquisition needs. This contract likely represents a substantial portion of the USPTO's specific budget for external research databases, but may be a smaller fraction of the Department's overall technology expenditures.

Industry Classification

NAICS: Information › Other Information Services › All Other Information Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: R.R. Bowker LLC (UEI: 119208296)

Address: 11000 REGENCY PKWY STE 10, CARY, NC, 90

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

Financial Breakdown

Contract Ceiling: $25,289,387

Exercised Options: $25,289,387

Current Obligation: $25,264,401

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: LC09D7101

IDV Type: IDC

Timeline