NIH awards $24.7M contract for EBSCO Subscription Services, spanning over a decade

Contract Overview

Contract Amount: $24,715,789 ($24.7M)

Contractor: Ebsco Subscription Services

Awarding Agency: Department of Health and Human Services

Start Date: 2002-08-15

End Date: 2013-08-31

Contract Duration: 4,034 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.7 million to EBSCO SUBSCRIPTION SERVICES for work described as: Key points: 1. Contract value indicates significant investment in information resources. 2. Long contract duration suggests a stable, ongoing need for these services. 3. Full and open competition was utilized, implying a robust bidding process. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The award was made by the Department of Health and Human Services (HHS). 6. NIH is the specific agency utilizing these subscription services.

Value Assessment

Rating: fair

The contract's total value of $24.7 million over approximately 11 years suggests an average annual spend of around $2.25 million. Without specific details on the scope of services or the number of subscriptions provided, a direct value-for-money assessment is challenging. However, compared to other large-scale information resource procurements for federal agencies, this amount falls within a typical range for comprehensive subscription services supporting extensive research and operational needs. The fixed-price nature provides some cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple vendors to offer their best pricing and terms to secure the award. The presence of two bids suggests a moderate level of competition for this specific requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices and ensures the government receives competitive market rates for the services procured.

Public Impact

Researchers and staff within the National Institutes of Health (NIH) benefit from access to a wide range of subscription-based information resources. These services likely support critical research, development, and operational functions within HHS. The geographic impact is primarily national, serving the information needs of NIH facilities and personnel across the United States. The contract ensures continuous access to vital academic journals, databases, and other digital content essential for scientific advancement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Potential for price increases in subsequent contract periods if competition diminishes.
Reliance on a single vendor for a broad range of subscription services may limit flexibility.

Positive Signals

Full and open competition suggests a well-managed procurement process.
Fixed-price contract provides budget certainty.
Long-term award indicates a consistent and valued service.

Sector Analysis

This contract falls within the broader Information Services and Technology sector, specifically focusing on digital content and subscription management. The market for academic and scientific journal subscriptions is dominated by a few large publishers and aggregators. Federal agencies, particularly those in research and development like NIH, are significant consumers of these services, often procuring them through large, multi-year contracts to ensure access to a vast array of scholarly literature and databases. Benchmarking this spending against similar large-scale information resource contracts for federal research institutions would provide further context on its relative scale.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the nature of large-scale subscription services, it is common for prime contracts to be awarded to larger, established vendors. However, the prime contractor may engage small businesses for subcontracting opportunities related to service delivery or support, though this is not explicitly detailed in the award information.

Oversight & Accountability

The contract's oversight would typically fall under the purview of the contracting officer and program managers within NIH and HHS. Standard government procurement regulations and contract management practices would apply. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight is also a standard component of federal contract management, ensuring accountability and investigating potential fraud, waste, or abuse.

Related Government Programs

Federal Research and Development Spending
Information Technology Services
Library and Information Services
Academic and Scientific Publishing Contracts

Risk Flags

Long contract duration may limit flexibility and introduce potential for price creep.
Moderate competition (2 bids) could indicate a less than optimal price discovery.
Scope of services not detailed, making precise value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.7 million to EBSCO SUBSCRIPTION SERVICES. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is EBSCO SUBSCRIPTION SERVICES.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2002-08-15. End: 2013-08-31.

What specific types of subscription services were included in this $24.7 million award?

The provided data does not specify the exact types of subscription services covered by this contract. However, given the awarding agency (NIH) and the contractor (EBSCO SUBSCRIPTION SERVICES), it is highly probable that the contract encompassed a broad range of academic journals, scientific databases, e-books, and other digital information resources crucial for biomedical research. EBSCO is a major provider of such services to academic and government institutions. The duration of the contract (over 11 years) suggests a comprehensive and ongoing need for these resources to support the extensive research activities at NIH.

How does the $24.7 million total contract value compare to similar procurements for information resources at NIH or other federal research agencies?

The total contract value of $24.7 million over approximately 11 years equates to an average annual expenditure of roughly $2.25 million. This figure is substantial but falls within the expected range for large federal research institutions like NIH, which require extensive access to a vast array of scientific literature, databases, and specialized information resources. Agencies such as the National Science Foundation (NSF) or the Department of Energy's research arms also procure similar services, with contract values often in the millions annually, depending on the scope and breadth of resources covered. Without a detailed breakdown of the specific resources included, a precise comparison is difficult, but the scale is consistent with the information needs of a major research entity.

What are the potential risks associated with a long-term contract like this, spanning over a decade?

Long-term contracts, such as this one spanning over 11 years, carry several potential risks. Firstly, there's the risk of vendor lock-in, where the government becomes heavily reliant on a single provider, making it difficult and costly to switch vendors even if better alternatives emerge. Secondly, pricing can become a concern; while fixed-price contracts offer initial certainty, the absence of regular re-competition or market checks over an extended period could lead to above-market rates in later years if the vendor's costs decrease or market prices shift unfavorably. Thirdly, technological advancements or changes in research needs might render the contracted services less optimal over time, and adapting a long-term, fixed contract to such changes can be challenging and may require costly modifications.

What does the fact that only two bids were received imply about the competition for this contract?

Receiving only two bids for a contract awarded under full and open competition suggests a moderately competitive environment. While more bids are generally preferred to ensure the most competitive pricing and terms, two bidders still indicate that the requirement was sufficiently defined and accessible to attract multiple interested parties. This level of competition is often sufficient to drive reasonable pricing, especially for specialized services where the market may be consolidated. However, it is less competitive than procurements attracting numerous offers, which could potentially yield even greater cost savings for the government.

How does the fixed-price contract type benefit the government in this scenario?

A firm fixed-price (FFP) contract type, as indicated for this award, is generally advantageous for the government when the scope of work is well-defined and risks of cost overruns are relatively low. In this case, it provides the NIH with cost certainty, meaning the contractor assumes the risk of any cost overruns. The government knows the total price it will pay for the subscription services upfront, simplifying budgeting and financial management. This structure incentivizes the contractor to manage its own costs efficiently to maintain profitability, which can indirectly benefit the government through competitive pricing during the bidding process.

What is EBSCO SUBSCRIPTION SERVICES' track record with federal government contracts, particularly for information resources?

EBSCO SUBSCRIPTION SERVICES is a well-established and frequent provider of subscription services to federal agencies. They are known for aggregating a wide array of academic journals, databases, and other digital content. A review of federal procurement data would likely reveal numerous contracts awarded to EBSCO across various agencies, including defense, health, education, and research institutions. Their consistent presence in federal contracting suggests a proven ability to meet government requirements, navigate procurement processes, and deliver the necessary information resources. Their extensive catalog and established relationships with publishers make them a common choice for large-scale information needs.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 2801 YOUNGFIELD STREET, GOLDEN

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

Financial Breakdown

Contract Ceiling: $18,294,093

Exercised Options: $10,111,634

Current Obligation: $24,715,789

Timeline