D&B Subscription Service contract awarded by GSA for over $26M, utilizing a sole-source approach

Contract Overview

Contract Amount: $26,495,591 ($26.5M)

Contractor: DUN & Bradstreet, Inc

Awarding Agency: General Services Administration

Start Date: 2010-06-30

End Date: 2013-09-30

Contract Duration: 1,188 days

Daily Burn Rate: $22.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DUN AND BRADSTREET SUBSCRIPTION SERVICE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $26.5 million to DUN & BRADSTREET, INC for work described as: DUN AND BRADSTREET SUBSCRIPTION SERVICE Key points: 1. The contract provides essential data services for government operations. 2. Sole-source award suggests limited market alternatives or specific contractor capabilities. 3. Long-term contract duration indicates a sustained need for these services. 4. The fixed-price contract type offers cost predictability. 5. Performance is managed by the Office of the Administrator within GSA. 6. The North American Industry Classification System (NAICS) code 561450 points to credit bureau services.

Value Assessment

Rating: fair

Benchmarking the value of this specific D&B subscription service is challenging without detailed service level agreements and usage metrics. However, the total contract value of over $26 million over its duration suggests a significant investment. Without competitive bidding, it's difficult to ascertain if this represents optimal value for money compared to potential market alternatives. The fixed-price nature provides some cost certainty, but the absence of competition raises questions about potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Dun & Bradstreet, was considered. This approach is typically used when a unique product or service is required, or when there are insufficient numbers of responsible sources to compete the requirement. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without exploring other vendors, it's impossible to know if a more cost-effective solution was available.

Public Impact

Government agencies benefit from access to critical business and financial data for decision-making. Services support functions such as risk assessment, vendor vetting, and market analysis. The contract impacts various federal departments relying on D&B data. Workforce productivity may be enhanced through efficient access to reliable data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for cost savings through competition.
Lack of transparency in the sole-source justification process.
Potential for vendor lock-in due to specialized data services.

Positive Signals

Provides access to a widely recognized and utilized data provider.
Fixed-price contract offers budget predictability.
Long-term award indicates a stable and ongoing need for the service.

Sector Analysis

The contract falls within the broader information services sector, specifically focusing on credit bureaus and data aggregation. This market is characterized by a few dominant players providing essential data used across various industries, including government. The size of the federal spending on such data services can be substantial, reflecting the critical role of accurate information in government operations and decision-making. Comparable spending benchmarks would involve analyzing other large data subscription contracts across federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component. As a sole-source award to a large, established corporation, it is unlikely to involve significant subcontracting opportunities for small businesses unless Dun & Bradstreet voluntarily engages them. The impact on the small business ecosystem is minimal in terms of direct contract awards.

Oversight & Accountability

Oversight for this contract would typically reside within the General Services Administration (GSA), specifically the Office of the Administrator. Accountability measures would be tied to the contract's performance standards and delivery requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Government Data Services
Information Technology Services
Business Information Services
Credit Reporting Services

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26.5 million to DUN & BRADSTREET, INC. DUN AND BRADSTREET SUBSCRIPTION SERVICE

Who is the contractor on this award?

The obligated recipient is DUN & BRADSTREET, INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Office of the Administrator).

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2010-06-30. End: 2013-09-30.

What specific data products and services are included in this DUN & BRADSTREET SUBSCRIPTION SERVICE contract?

The provided data does not specify the exact data products and services included in the DUN & BRADSTREET SUBSCRIPTION SERVICE contract. However, based on Dun & Bradstreet's general offerings and the NAICS code 561450 (Credit Bureaus), it is highly probable that the subscription includes access to their extensive databases of business information. This typically encompasses company profiles, financial health scores, credit risk assessments, industry analyses, and potentially data related to supply chain risk and compliance. The specific tiers or modules of service would be detailed in the contract's statement of work, which is not available in the provided data.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data indicates the contract was awarded on a 'NOT COMPETED' basis, which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data. Common reasons for sole-source awards include the unique capability of a single contractor, the unavailability of other sources, or urgent and compelling needs where competition is not feasible. For a service like Dun & Bradstreet's, the justification might stem from the proprietary nature of their data, the established integration of their services within government systems, or a determination that no other vendor could provide the equivalent scope or quality of data within the required timeframe.

How does the total contract value of over $26 million compare to historical spending on similar data services by the government?

The total contract value of approximately $26.5 million over its duration (from June 30, 2010, to September 30, 2013) represents a significant expenditure for data services. To compare this to historical spending, one would need access to historical federal procurement data for similar services, such as business information, credit reporting, or data analytics subscriptions from various vendors. Without that comparative data, it's difficult to definitively state whether this amount is high or low. However, given the essential nature of business data for government functions like risk management and vendor vetting, substantial investments in such services are not uncommon across federal agencies.

What are the potential risks associated with a sole-source contract for essential data services?

A primary risk associated with a sole-source contract for essential data services is the potential for inflated pricing due to the lack of competitive pressure. The government may not be achieving the best possible value for its investment. Another risk is vendor lock-in, where agencies become heavily reliant on a specific provider's proprietary data and systems, making it difficult and costly to switch to an alternative vendor in the future. Furthermore, sole-source awards can sometimes indicate a lack of market research or a failure to identify potentially viable alternative solutions, which could lead to suboptimal service delivery or missed opportunities for innovation.

What is the duration of this contract and how does it align with typical contract lengths for data subscriptions?

This contract has a duration of 1188 days, which is approximately 3 years and 3 months (from June 30, 2010, to September 30, 2013). This duration is quite typical for large-scale data subscription services, especially those involving significant integration or long-term data access needs. Federal agencies often opt for multi-year contracts for essential services like data subscriptions to ensure continuity, predictability in budgeting, and to leverage potential volume discounts. Shorter contract terms might be used for less critical or more easily substitutable services, while longer terms (often with option periods) can be used for highly specialized or mission-critical systems.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Credit Bureaus

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: GS-00I-10-AA-C-0140

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE DUN & Bradstreet Corporation (UEI: 884114609)

Address: 4350 N FAIRFAX DR STE 650, ARLINGTON, VA, 08

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

Financial Breakdown

Contract Ceiling: $154,693,509

Exercised Options: $51,109,258

Current Obligation: $26,495,591

Contract Characteristics

Cost or Pricing Data: NO

Timeline