DOE's $1.7M Legal Subscription Contract with West Publishing Corporation Raises Value Concerns
Contract Overview
Contract Amount: $1,707,587 ($1.7M)
Contractor: West Publishing Corporation
Awarding Agency: Department of Energy
Start Date: 2012-09-24
End Date: 2017-09-30
Contract Duration: 1,832 days
Daily Burn Rate: $932/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ON-LINE SUBSCRIPTION SERVICE FOR LEGAL RESOURCES AND INFORMATION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426
Plain-Language Summary
Department of Energy obligated $1.7 million to WEST PUBLISHING CORPORATION for work described as: ON-LINE SUBSCRIPTION SERVICE FOR LEGAL RESOURCES AND INFORMATION Key points: 1. The contract awarded to West Publishing Corporation for legal resources represents a significant expenditure. 2. Competition was full and open, but the pricing assessment needs further scrutiny. 3. Potential risks include the long duration and the fixed-price nature of the contract. 4. The sector is Information Services, with potential for cost savings through competitive bidding.
Value Assessment
Rating: questionable
The contract's value of $1.7 million over five years for online legal resources warrants further investigation. Without specific benchmarks or comparisons to similar services, it's difficult to definitively assess if the pricing is competitive or represents good value for the taxpayer.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the long duration and fixed-price nature may limit the government's ability to benefit from market fluctuations or negotiate better terms over time.
Taxpayer Impact: The long-term commitment and fixed-price structure could potentially lead to overpayment if market prices for legal resources decrease or if usage patterns change significantly.
Public Impact
Federal agencies rely on access to legal resources for regulatory compliance and operational needs. The cost of information services can be substantial, impacting overall agency budgets. Ensuring competitive pricing for subscription services is crucial for responsible stewardship of taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5 years)
- Fixed-price contract
- Lack of specific performance metrics
Positive Signals
- Full and open competition utilized
- Awarded to a known provider
Sector Analysis
The Information Services sector, particularly for specialized legal resources, can be prone to high costs due to proprietary databases and limited providers. Benchmarking against similar government or commercial contracts is essential to ensure fair pricing.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Federal Energy Regulatory Commission (FERC) awarded this contract. Oversight would involve monitoring usage, ensuring service delivery meets requirements, and evaluating the ongoing need and cost-effectiveness of the subscription.
Related Government Programs
- All Other Information Services
- Department of Energy Contracting
- Federal Energy Regulatory Commission Programs
Risk Flags
- Potential for overpayment due to long-term fixed-price contract.
- Lack of detailed cost breakdown or justification.
- Limited visibility into actual usage and benefit realization.
- Risk of vendor lock-in for essential legal resources.
Tags
all-other-information-services, department-of-energy, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $1.7 million to WEST PUBLISHING CORPORATION. ON-LINE SUBSCRIPTION SERVICE FOR LEGAL RESOURCES AND INFORMATION
Who is the contractor on this award?
The obligated recipient is WEST PUBLISHING CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Federal Energy Regulatory Commission).
What is the total obligated amount?
The obligated amount is $1.7 million.
What is the period of performance?
Start: 2012-09-24. End: 2017-09-30.
What is the specific legal information provided by West Publishing Corporation, and how critical is it to FERC's operations?
The specific legal resources likely include case law, statutes, regulations, and legal analysis tools essential for FERC's regulatory functions. Understanding the criticality helps justify the expenditure and assess potential risks associated with service disruption or inadequate coverage.
Were there alternative providers considered during the full and open competition, and what were their proposed costs?
Investigating alternative providers and their bids would reveal the competitiveness of West Publishing Corporation's offer. If other providers offered similar services at a significantly lower cost, it would indicate potential overpricing or a missed opportunity for savings.
How will FERC ensure the value and necessity of this subscription are re-evaluated throughout its 5-year term?
FERC should establish clear performance metrics and conduct periodic reviews of the subscription's utilization and relevance. This includes assessing if the content remains current and essential, and exploring opportunities for renegotiation or seeking more cost-effective solutions if market conditions change.
Industry Classification
NAICS: Information › Other Information Services › All Other Information Services
Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Thomson Company Inc, the
Address: 610 OPPERMAN DR, SAINT PAUL, MN, 55123
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,707,587
Exercised Options: $1,707,587
Current Obligation: $1,707,587
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: LC09D7012
IDV Type: IDC
Timeline
Start Date: 2012-09-24
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2026-04-10
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