Commerce Department awards $6.8M for Springer Nature digital content, lacking competition

Contract Overview

Contract Amount: $6,807,080 ($6.8M)

Contractor: Springer Nature Customer Service Center LLC

Awarding Agency: Department of Commerce

Start Date: 2022-01-26

End Date: 2026-12-31

Contract Duration: 1,800 days

Daily Burn Rate: $3.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 1000 - SPRINGER NATURE SUBSCRIPTION SUBSCRIPTION TO ONLINE JOURNALS, EBOOK COLLECTIONS, AND OTHER ELECTRONIC PUBLICATIONS OFFERED BY SPRINGER NATURE CUSTOMER SERVICE CENTER, LLC. SEE APPENDIX A TITLE LIST FOR FULL CONTENT

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10004

State: New York Government Spending

Plain-Language Summary

Department of Commerce obligated $6.8 million to SPRINGER NATURE CUSTOMER SERVICE CENTER LLC for work described as: 1000 - SPRINGER NATURE SUBSCRIPTION SUBSCRIPTION TO ONLINE JOURNALS, EBOOK COLLECTIONS, AND OTHER ELECTRONIC PUBLICATIONS OFFERED BY SPRINGER NATURE CUSTOMER SERVICE CENTER, LLC. SEE APPENDIX A TITLE LIST FOR FULL CONTENT Key points: 1. Value for money is difficult to assess due to the lack of competitive bidding. 2. The contract was awarded on a sole-source basis, limiting price discovery. 3. Risk indicators are moderate, with a long performance period and firm fixed-price terms. 4. Performance context involves providing essential digital resources to the USPTO. 5. This contract falls within the broader 'Publishing' sector, supporting information access.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without competitive bids. The price of $6.8 million over five years for digital subscriptions suggests a significant investment in information resources. Without comparable sole-source contracts or market analysis for similar comprehensive digital library services, it's difficult to definitively assess if this represents excellent value. However, the firm fixed-price structure provides cost certainty for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Springer Nature Customer Service Center, LLC, was solicited. This approach bypasses the typical competitive bidding process, which usually involves multiple vendors submitting proposals. The lack of competition means there was no opportunity for price negotiation or comparison against alternative providers, potentially leading to a higher price than if the contract had been competed.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these digital resources due to the absence of a competitive bidding process. The government did not leverage market forces to drive down costs.

Public Impact

USPTO personnel benefit from access to a wide range of online journals, ebook collections, and other electronic publications. The services delivered are critical for research, development, and operational needs within the patent and trademark office. The geographic impact is primarily national, supporting USPTO operations regardless of location. Workforce implications include enabling USPTO employees to stay current with industry advancements and legal precedents.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Long contract duration (5 years) could lock in potentially suboptimal pricing.
Lack of transparency in the justification for sole-source procurement.

Positive Signals

Provides access to essential, high-value digital content for USPTO operations.
Firm fixed-price contract offers budget certainty.
Contractor is a known provider of specialized academic and scientific content.

Sector Analysis

This contract falls within the broader 'Publishing' sector, specifically focusing on digital subscriptions for academic and scientific content. The market for such specialized digital libraries is often concentrated, with a few key providers dominating. The U.S. Patent and Trademark Office's need for comprehensive research materials makes this type of subscription essential. Comparable spending benchmarks are difficult to establish due to the proprietary nature of subscription packages and the sole-source award.

Small Business Impact

This contract does not appear to involve any small business set-asides or subcontracting requirements. The award is made directly to a large commercial entity, Springer Nature. Therefore, there is no direct impact on the small business ecosystem through this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Commerce's U.S. Patent and Trademark Office. Transparency is limited due to the sole-source nature of the award. Accountability measures would be tied to the delivery of the specified electronic publications and adherence to the firm fixed-price terms. There is no specific mention of Inspector General jurisdiction for this particular contract.

Related Government Programs

Federal Library and Information Services
Information Technology Services
Research and Development Support
Intellectual Property Services

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $6.8 million to SPRINGER NATURE CUSTOMER SERVICE CENTER LLC. 1000 - SPRINGER NATURE SUBSCRIPTION SUBSCRIPTION TO ONLINE JOURNALS, EBOOK COLLECTIONS, AND OTHER ELECTRONIC PUBLICATIONS OFFERED BY SPRINGER NATURE CUSTOMER SERVICE CENTER, LLC. SEE APPENDIX A TITLE LIST FOR FULL CONTENT

Who is the contractor on this award?

The obligated recipient is SPRINGER NATURE CUSTOMER SERVICE CENTER LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $6.8 million.

What is the period of performance?

Start: 2022-01-26. End: 2026-12-31.

What is the justification for awarding this contract on a sole-source basis?

The provided data does not explicitly state the justification for the sole-source award. Typically, sole-source procurements are justified when only one responsible source is available or capable of providing the required supplies or services. This could be due to unique capabilities, proprietary technology, or specific content exclusivity. Without further documentation, it's presumed that the USPTO determined Springer Nature was the only viable provider for their specific digital content needs at the time of award. Further investigation into the contract file would be required to ascertain the precise justification.

How does the cost of this contract compare to similar digital subscription services for government agencies?

Direct comparison of this contract's cost to similar services is challenging due to the sole-source nature of the award and the specific, potentially unique, bundle of content provided by Springer Nature. Without competitive bids, it's difficult to establish a market price. However, $6.8 million over five years averages to approximately $1.36 million per year. Government agencies often negotiate bulk discounts for subscriptions. To assess value, one would need to compare the breadth and depth of content, user access levels, and licensing terms against other major academic publishers' offerings, ideally through a competitive process or publicly available benchmark data for similar large-scale institutional subscriptions.

What are the risks associated with a sole-source contract of this duration?

The primary risk with a sole-source contract, especially one spanning five years, is the potential for overpayment due to a lack of competitive pressure. The contractor may not have an incentive to offer the lowest possible price. Additionally, if the agency's needs evolve, they may be locked into a contract that becomes less suitable or cost-effective over time. There's also a risk that alternative, potentially more innovative or cost-efficient solutions from other vendors might be overlooked. The absence of competition can also reduce transparency in pricing and negotiation.

What is the track record of Springer Nature Customer Service Center, LLC as a government contractor?

The provided data indicates that Springer Nature Customer Service Center, LLC is the contractor for this specific award. Information regarding their broader track record as a government contractor, including past performance on other federal contracts, past disputes, or compliance issues, is not included in the provided snippet. A comprehensive assessment would require searching federal procurement databases like SAM.gov or FPDS for their contract history across various agencies to evaluate their reliability, pricing, and overall performance.

How does this spending align with historical federal spending on digital information resources?

Historical federal spending on digital information resources, including academic journals and databases, has been substantial and generally increasing over the years as agencies move towards digital-first strategies. The Department of Commerce, and specifically the USPTO, relies heavily on access to technical and legal literature. While $6.8 million is a significant sum, it needs to be viewed in the context of the USPTO's overall budget and its mission requirements. Without specific historical spending data for the USPTO's digital subscriptions or comparable agency-wide spending trends, it's difficult to definitively state alignment. However, such expenditures are typical for large research-intensive government entities.

What are the potential performance issues or challenges with providing online journal and ebook access?

Potential performance issues with providing online journal and ebook access include technical difficulties such as website downtime, slow loading speeds, or problems with the digital rights management (DRM) system. Ensuring seamless access for all authorized users across different devices and locations can be challenging. Content availability might also be an issue if the publisher restricts access to certain articles or books. Furthermore, keeping the subscription up-to-date with the latest publications and ensuring the platform is user-friendly and searchable are critical performance aspects that require ongoing attention from the contractor.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › All Other Publishers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 NEW YORK PLZ STE 4600, NEW YORK, NY, 10004

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

Financial Breakdown

Contract Ceiling: $6,807,080

Exercised Options: $6,807,080

Current Obligation: $6,807,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline