USDA awards $52.8M contract for data analytics to LexisNexis Risk Solutions, citing sole-source justification

Contract Overview

Contract Amount: $52,800 ($52.8K)

Contractor: Lexisnexis Risk Solutions FL Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $145/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FM-DATA ANALYTICS_ IDIQ 12319825D5000

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $52,800 to LEXISNEXIS RISK SOLUTIONS FL INC. for work described as: FM-DATA ANALYTICS_ IDIQ 12319825D5000 Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 364 days suggests a focused, short-term need for services. 3. Fixed-price contract type aims to control costs, but competition is key to value. 4. No small business set-aside indicates potential missed opportunities for smaller firms. 5. The contract falls under credit bureau services, a specialized data domain. 6. Performance is concentrated in Virginia, potentially impacting broader geographic reach.

Value Assessment

Rating: fair

The contract value of $52.8 million for a 364-day period appears high for a single delivery order, especially given the sole-source nature. Without competitive bids, it's difficult to benchmark the pricing against market rates or similar contracts. The fixed-price structure provides some cost certainty, but the absence of competition raises concerns about whether the government is achieving optimal value for money. Further analysis would require understanding the specific data analytics services provided and their criticality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without a bidding process, there's less incentive for the contractor to offer the lowest possible price.

Public Impact

The Food and Nutrition Service (FNS) within the USDA is the primary beneficiary, likely using the data analytics for program integrity, fraud detection, or operational efficiency. Services delivered are expected to be in the realm of credit bureau data analysis, crucial for verifying information and assessing risk. The geographic impact is primarily within Virginia, where the contractor will perform the work. Workforce implications are minimal for the government, with the bulk of the work performed by LexisNexis Risk Solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for better value.
High contract value for a single delivery order warrants scrutiny of necessity and pricing.
Lack of small business participation may exclude innovative smaller firms.

Positive Signals

Fixed-price contract type offers cost certainty for the government.
LexisNexis is a known entity in risk solutions, suggesting established capabilities.
Contract duration is defined, providing a clear performance period.

Sector Analysis

The contract falls within the 'Credit Bureaus' industry (NAICS 561450), a segment of the broader business services sector focused on data aggregation, analysis, and risk assessment. This sector is characterized by significant data holdings and specialized analytical capabilities. Comparable spending benchmarks are difficult to establish without knowing the specific services, but large government contracts for data analytics are common across various agencies, often involving sensitive information and requiring robust security protocols.

Small Business Impact

This contract does not appear to include a small business set-aside. The award to LexisNexis Risk Solutions, a large corporation, suggests that subcontracting opportunities for small businesses are unlikely unless specifically mandated or pursued by the prime contractor. This represents a missed opportunity to leverage the small business industrial base for government contracts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting officers and program managers. The Food and Nutrition Service (FNS) would be responsible for monitoring performance and ensuring compliance with contract terms. Transparency may be limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Data Analytics Services
Credit Reporting Services
Government Information Technology Services
Fraud Prevention Contracts

Risk Flags

Sole-source award
Potential for overpricing due to lack of competition
Limited transparency in procurement process

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $52,800 to LEXISNEXIS RISK SOLUTIONS FL INC.. FM-DATA ANALYTICS_ IDIQ 12319825D5000

Who is the contractor on this award?

The obligated recipient is LEXISNEXIS RISK SOLUTIONS FL INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food and Nutrition Service).

What is the total obligated amount?

The obligated amount is $52,800.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What specific data analytics services are being procured under this contract?

The provided data indicates the contract falls under NAICS code 561450 (Credit Bureaus), suggesting the services involve the use of credit bureau data for analytics. This could encompass a range of activities such as identity verification, fraud detection, risk assessment, background checks, or data enrichment for various USDA programs, potentially within the Food and Nutrition Service. The exact nature of the analytics (e.g., predictive modeling, data mining, statistical analysis) and the specific data sources utilized would need further clarification from the contract's statement of work.

What is the justification for the sole-source award, and were alternatives considered?

Sole-source awards are typically justified when only one responsible source can satisfy the agency's needs. For LexisNexis Risk Solutions, this could be due to proprietary data access, unique analytical platforms, or specialized expertise in credit bureau data that cannot be replicated by other vendors. The justification document, if publicly available, would detail the specific reasons and confirm whether limited competition or urgent requirements necessitated bypassing a broader solicitation process. Without this justification, it's presumed that the agency determined LexisNexis was the only viable option.

How does the $52.8 million value compare to similar data analytics contracts within the USDA or other federal agencies?

Benchmarking this $52.8 million contract is challenging without specific details on the services. However, large federal contracts for data analytics, particularly those involving sensitive data or complex analysis, can range from tens to hundreds of millions of dollars over their lifecycle. Given this is a delivery order with a 364-day duration, the annual value is substantial. Comparing it to other sole-source awards for similar data services would be most relevant, but such data is not readily available. A competitive bid process would have provided a clearer market price.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

Specific Key Performance Indicators (KPIs) are not detailed in the provided summary data. However, for a contract involving credit bureau data analytics, typical KPIs might include accuracy rates in fraud detection, timeliness of data analysis, completeness of reports, adherence to data security protocols, and successful integration with existing USDA systems. Performance measurement would likely involve regular reviews by the contracting officer's representative (COR) and potentially user feedback from the FNS programs utilizing the analytics.

What is LexisNexis Risk Solutions' track record with federal government contracts, particularly with the USDA?

LexisNexis Risk Solutions has a history of contracting with various U.S. federal agencies, including the Department of Agriculture. Their work often involves providing data and analytics for identity verification, fraud prevention, and risk management. While specific details of past USDA contracts are not provided here, their presence in the federal market suggests familiarity with government procurement processes and requirements. A deeper dive into their contract history would reveal the scope and success of previous engagements.

What are the potential risks associated with a sole-source award for critical data analytics services?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and potentially suboptimal service quality or innovation. There's also a risk of vendor lock-in, making it difficult and costly to switch providers in the future. Furthermore, reliance on a single vendor for critical data analytics could pose a security risk if that vendor experiences a breach. Ensuring robust contract oversight and performance management becomes even more crucial in sole-source situations.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Relx PLC

Address: 1000 ALDERMAN DR, ALPHARETTA, GA, 30005

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

Financial Breakdown

Contract Ceiling: $219,120

Exercised Options: $52,800

Current Obligation: $52,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12319825D5000

IDV Type: IDC

Timeline