GSA Spends $131M on Dunn & Bradstreet Subscription Services, Lacking Competition

Contract Overview

Contract Amount: $131,102,847 ($131.1M)

Contractor: DUN & Bradstreet, Inc

Awarding Agency: General Services Administration

Start Date: 2015-10-30

End Date: 2020-12-29

Contract Duration: 1,887 days

Daily Burn Rate: $69.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DUNN AND BRADSTREET SUBSCRIPTION SERVICES IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $131.1 million to DUN & BRADSTREET, INC for work described as: DUNN AND BRADSTREET SUBSCRIPTION SERVICES IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Significant expenditure of $131M over five years for essential business data. 2. Sole-source award raises concerns about price discovery and potential overpayment. 3. Lack of competition limits opportunities for potentially more cost-effective solutions. 4. The contract supports critical government functions requiring reliable business intelligence.

Value Assessment

Rating: questionable

The $131M price tag for a five-year subscription to credit bureau data appears high, especially given the lack of competitive bidding. Without market comparisons or alternative vendor assessments, it's difficult to ascertain if this represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating no competition was sought. This method bypasses the price discovery benefits typically achieved through competitive solicitations, potentially leading to inflated costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in higher costs than could have been achieved through a competitive process, impacting taxpayer value.

Public Impact

Government agencies rely on this data for critical decision-making, including risk assessment and vendor vetting. Taxpayers fund this substantial expenditure, highlighting the need for fiscal responsibility in procurement. The long-term nature of the contract suggests a reliance on Dunn & Bradstreet's services for ongoing operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Lack of competition
Potential for overpayment

Positive Signals

Essential service provided
Long contract duration indicates consistent need

Sector Analysis

The IT and professional services sector, particularly data and analytics, sees significant government spending. Benchmarks for similar data subscription services are hard to establish without competitive data, but $131M over five years is a substantial investment.

Small Business Impact

This contract does not appear to involve small businesses as prime contractors. The sole-source nature and the specific services provided by Dunn & Bradstreet likely preclude small business participation in this particular award.

Oversight & Accountability

The sole-source justification and the significant expenditure warrant close oversight to ensure the government is receiving adequate value. Transparency in the procurement process is crucial for accountability.

Related Government Programs

Credit Bureaus
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of competition
Potential for overpayment
High contract value
Sole-source justification unclear

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $131.1 million to DUN & BRADSTREET, INC. DUNN AND BRADSTREET SUBSCRIPTION SERVICES IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is DUN & BRADSTREET, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $131.1 million.

What is the period of performance?

Start: 2015-10-30. End: 2020-12-29.

What specific functionalities and data access are provided by Dunn & Bradstreet that justify the sole-source award and the high cost?

The contract likely provides access to Dunn & Bradstreet's comprehensive databases of business information, including financial health, credit risk, company profiles, and supply chain data. These services are crucial for government functions like vetting contractors, assessing financial risks, and understanding market dynamics. However, the justification for sole-source and the associated cost requires detailed validation against alternative data sources or potential competitive offerings.

Were alternative data providers or solutions evaluated before determining a sole-source award was necessary?

The data indicates a sole-source award, suggesting that a full and open competition was not conducted. While specific justifications for sole-sourcing are not provided, agencies typically cite unique capabilities, lack of market alternatives, or urgent needs. Without further documentation, it's unclear if a thorough market research process was undertaken to explore all viable options, including those from smaller or alternative data providers.

How does the government ensure the ongoing value and necessity of this subscription service, given its long duration and significant cost?

Ensuring ongoing value involves regular performance reviews, needs assessments, and potentially re-evaluating the market periodically, even within a sole-source context if feasible. The government should continuously monitor usage, data relevance, and compare costs against evolving market prices for similar services to confirm the subscription remains the most effective and economical solution.

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: ID15160003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DUN & Bradstreet Inc.

Address: 11710 PLAZA AMERICA DR STE 900, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $216,299,445

Exercised Options: $131,102,847

Current Obligation: $131,102,847

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline