Commerce Department awards $6.6M subscription service contract to Elsevier Inc. for scientific publications

Contract Overview

Contract Amount: $6,639,541 ($6.6M)

Contractor: Elsevier Inc.

Awarding Agency: Department of Commerce

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $9.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUBSCRIPTION SERVICE FOR SCIENTIFIC BOOKS, JOURNALS AND EBOOKS

Place of Performance

Location: MARYLAND HEIGHTS, SAINT LOUIS County, MISSOURI, 63043

State: Missouri Government Spending

Plain-Language Summary

Department of Commerce obligated $6.6 million to ELSEVIER INC. for work described as: SUBSCRIPTION SERVICE FOR SCIENTIFIC BOOKS, JOURNALS AND EBOOKS Key points: 1. The contract provides access to essential scientific literature, supporting research and development. 2. Sole-source award raises questions about potential cost savings through competition. 3. Fixed-price contract offers cost certainty for the government. 4. Long-term duration of the contract may impact flexibility and ability to adapt to changing needs. 5. The U.S. Patent and Trademark Office is the primary beneficiary of this subscription service. 6. This spending supports the dissemination of scientific knowledge within the agency.

Value Assessment

Rating: fair

The contract value of $6.6 million over two years for a subscription service is substantial. Without comparable contract data for similar services, it is difficult to definitively benchmark the value for money. However, the sole-source nature of the award suggests that competitive pricing may not have been fully explored, potentially leading to a higher cost than if multiple vendors had bid. The firm fixed-price structure provides budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Elsevier Inc., was solicited. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The justification for a sole-source award would need to demonstrate why only Elsevier could meet the requirement.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution available for accessing scientific literature.

Public Impact

Federal researchers and patent examiners at the U.S. Patent and Trademark Office benefit from access to a wide range of scientific books, journals, and e-books. The service supports innovation and the examination of patent applications by providing up-to-date scientific information. The geographic impact is primarily within the U.S. Patent and Trademark Office facilities, but the knowledge gained can have broader national implications. No direct workforce implications are apparent beyond the existing staff utilizing the resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Potential for vendor lock-in with a single provider for essential scientific resources.
Lack of transparency in the procurement process due to sole-source justification.

Positive Signals

Provides access to critical scientific and technical information for agency operations.
Firm fixed-price contract offers budget certainty.
Long-term contract ensures continuity of access to vital resources.

Sector Analysis

The market for scientific publishing and subscription services is dominated by a few large players, including Elsevier. This sector is characterized by high subscription costs for academic and research institutions. The U.S. Patent and Trademark Office's need for comprehensive scientific literature places it within this specialized market. Comparable spending benchmarks are difficult to ascertain without specific details on the scope of the subscription, but institutional subscriptions to major scientific databases can run into millions of dollars annually.

Small Business Impact

This contract does not appear to involve a small business set-aside. Given the nature of the service and the likely sole-source award to a large established publisher, subcontracting opportunities for small businesses are unlikely to be significant within this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's contracting officer and the U.S. Patent and Trademark Office's program managers. Transparency is limited due to the sole-source nature of the award. Standard contract administration and performance monitoring processes would be in place, but specific details on Inspector General involvement or detailed public reporting are not provided.

Related Government Programs

Federal Research and Development Spending
Government Information Dissemination Services
Scientific and Technical Information Services

Risk Flags

Sole-source award may limit cost savings.
Lack of competitive bidding reduces transparency.
Potential for high cost of scientific literature subscriptions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $6.6 million to ELSEVIER INC.. SUBSCRIPTION SERVICE FOR SCIENTIFIC BOOKS, JOURNALS AND EBOOKS

Who is the contractor on this award?

The obligated recipient is ELSEVIER INC..

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 $6.6 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What is the specific justification for awarding this contract on a sole-source basis to Elsevier Inc.?

The provided data indicates the contract was 'NOT COMPETED' and awarded on a 'SOLE SOURCE' basis. A sole-source justification is typically required when only one responsible source is available or capable of meeting the agency's needs. For a subscription service, this could be due to unique content licensing, proprietary access requirements, or a determination that no other vendor can provide the specific collection of scientific books, journals, and e-books required by the U.S. Patent and Trademark Office. Without the official justification document, the precise reasons remain speculative, but it implies a critical dependency on Elsevier's offerings that cannot be met by competitors.

How does the $6.6 million contract value compare to historical spending on similar subscription services by the U.S. Patent and Trademark Office or other federal agencies?

The provided data does not include historical spending figures for this specific contract or comparable contracts. Benchmarking the $6.6 million value requires access to historical procurement data for scientific subscription services procured by the U.S. Patent and Trademark Office (USPTO) or similar agencies like the National Science Foundation or the National Institutes of Health. Given that Elsevier is a major publisher, this amount could represent a significant portion of their institutional subscription revenue. A detailed analysis would involve comparing the scope of journals, books, and e-books included in this contract against what other agencies receive for similar or lower prices, considering factors like user base size and access levels.

What are the potential risks associated with a sole-source award for scientific literature subscriptions?

The primary risk of a sole-source award for scientific literature subscriptions is the lack of competitive pricing. Without competition, Elsevier Inc. may not be incentivized to offer the lowest possible price, potentially leading to overspending by the government. Another risk is vendor lock-in; if the USPTO becomes heavily reliant on Elsevier's platform and content, switching to a different provider in the future could be complex and costly. Furthermore, the absence of a competitive process reduces transparency and makes it harder to ensure the government is obtaining the best value and most suitable resources available in the market.

What is the scope of the 'SUBSCRIPTION SERVICE FOR SCIENTIFIC BOOKS, JOURNALS AND EBOOKS' being provided by Elsevier Inc.?

The description 'SUBSCRIPTION SERVICE FOR SCIENTIFIC BOOKS, JOURNALS AND EBOOKS' is broad. It implies access to a digital library of scientific publications. The specific scope would detail which journals, book series, and individual e-books are included. This could range from a broad collection covering all scientific disciplines to a highly specialized set focused on areas relevant to patent examination, such as chemistry, materials science, engineering, or biotechnology. The value of the contract ($6.6 million over two years) suggests a comprehensive offering, likely encompassing a significant portion of Elsevier's extensive catalog relevant to the agency's mission.

What is Elsevier Inc.'s track record as a federal contractor, particularly for providing similar subscription services?

Elsevier Inc. is a major global publisher of scientific, technical, and medical information and has a long history of providing subscription services to academic institutions and government agencies worldwide. As a federal contractor, its track record would be reflected in contract databases like FPDS. While specific details on past performance for the U.S. Patent and Trademark Office (USPTO) are not provided here, Elsevier routinely secures contracts for similar services. Its extensive catalog and established digital platform are likely key factors in its selection, even in sole-source situations. A review of its contract history would reveal the number and value of previous awards, any performance issues, and its general standing as a supplier to the federal government.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1333BJ25R00150005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Relx PLC

Address: 230 PARK AVE, NEW YORK, NY, 10169

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

Financial Breakdown

Contract Ceiling: $18,174,551

Exercised Options: $6,639,541

Current Obligation: $6,639,541

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline