Commerce's NIST Spends $7.9M on Subscription Services from Elsevier B.V. Through 2026
Contract Overview
Contract Amount: $7,886,089 ($7.9M)
Contractor: Elsevier B.V.
Awarding Agency: Department of Commerce
Start Date: 2022-01-01
End Date: 2026-12-31
Contract Duration: 1,825 days
Daily Burn Rate: $4.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SUBSCRIPTION SERVICES
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $7.9 million to ELSEVIER B.V. for work described as: SUBSCRIPTION SERVICES Key points: 1. Significant expenditure on subscription services highlights reliance on external content providers. 2. Sole-source nature raises questions about potential cost savings through competition. 3. Long-term contract duration (5 years) locks in pricing and limits flexibility. 4. The $7.9M contract represents a substantial investment in information resources for NIST.
Value Assessment
Rating: fair
The contract value of $7.9M over five years for subscription services appears high, especially given the sole-source nature. Benchmarking against similar large-scale subscription agreements for academic and research institutions would be necessary to determine fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and negotiation opportunities, potentially leading to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in the government paying a premium for these subscription services, impacting taxpayer value.
Public Impact
Researchers and staff at NIST will have access to essential subscription-based information resources. The cost of these subscriptions could impact the agency's budget for other research initiatives. Dependence on a single vendor for critical information may pose a risk if service is interrupted.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potential cost savings.
- Long contract duration may not reflect current market pricing.
- Lack of transparency in pricing due to non-competitive nature.
Positive Signals
- Ensures access to critical subscription services for NIST.
- Firm fixed price contract provides budget certainty.
Sector Analysis
Subscription services, particularly for research and data, are crucial for government agencies like NIST. The spending benchmark for such services can vary widely based on the scope and exclusivity of the content. This $7.9M contract is substantial and warrants scrutiny regarding its necessity and cost-effectiveness.
Small Business Impact
This contract does not appear to involve small businesses, as it is a sole-source award to a large, established vendor. Opportunities for small businesses in providing similar or complementary information services were likely missed.
Oversight & Accountability
The sole-source nature of this contract warrants careful oversight to ensure the pricing is fair and the services are essential. Regular reviews of the contract's necessity and value should be conducted by NIST.
Related Government Programs
- Periodical Publishers
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Long-term commitment without market review
- Limited transparency in pricing
Tags
periodical-publishers, department-of-commerce, md, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $7.9 million to ELSEVIER B.V.. SUBSCRIPTION SERVICES
Who is the contractor on this award?
The obligated recipient is ELSEVIER B.V..
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Institute of Standards and Technology).
What is the total obligated amount?
The obligated amount is $7.9 million.
What is the period of performance?
Start: 2022-01-01. End: 2026-12-31.
What specific subscription services are included in this $7.9M contract, and how critical are they to NIST's core mission?
The contract covers periodical subscriptions, likely encompassing a wide range of scientific, technical, and research journals. These are critical for NIST's role in advancing science and technology, providing researchers with access to the latest findings and data. However, the exact scope and necessity of each subscription should be regularly evaluated to ensure alignment with current research priorities and to identify potential redundancies or underutilized resources.
What steps were taken to justify a sole-source award, and what is the potential cost impact of not competing this requirement?
Justification for a sole-source award typically involves demonstrating that only one vendor can provide the required goods or services due to unique capabilities, proprietary information, or urgent needs. Without competition, NIST may have overpaid, as Elsevier B.V. faced no pressure to offer the most competitive pricing. The cost impact could be significant, potentially millions of dollars over the contract's life, representing funds that could have been used for other critical agency functions.
How will NIST ensure the ongoing value and effectiveness of these subscription services throughout the contract's five-year term?
NIST should implement a robust vendor management program, including regular performance reviews and usage analysis of the subscribed content. This involves tracking which resources are most utilized by researchers and identifying any subscriptions that are no longer relevant or cost-effective. Periodic market research and re-evaluation of the necessity of each service can help ensure that the agency continues to receive value and can inform future procurement decisions, potentially leading to renegotiation or competitive bidding when appropriate.
Industry Classification
NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › Periodical Publishers
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 1333ND21QNB130585
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: RADARWEG 29, AMSTERDAM
Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, International Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $7,886,089
Exercised Options: $7,886,089
Current Obligation: $7,886,089
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-01-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-04
Other Department of Commerce Contracts
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (L3harris Technologies, Inc.)
- Engineering Services and Development Leading to the Delivery of the Jpss Common Ground System Instrument and Support — $1.6B (Raytheon Company)
- Enterprise Solutions Framework (ESF) for Multi-Tiered Acquisition Framework for Systems Engineering and Integration - Program Tier Work Order 003 - 2020 Census Technical Integrator — $1.5B (T-Rex Solutions LLC)
- THE Goal of the Decennial Response Integration System (dris) Contract IS to Obtain a Practical Solution to Providing Respondent Assistance and Data Capture for the 2010 Census — $930.7M (Lockheed Martin Services, LLC)
- 2020 Census Questionnaire Assistance (2020 CQA) — $918.3M (Maximus Federal Services, Inc.)