Treasury's IRS awards $248K for electronic research, raising questions about competition and value

Contract Overview

Contract Amount: $248,400 ($248.4K)

Contractor: Lexisnexis Risk Solutions FL Inc.

Awarding Agency: Department of the Treasury

Start Date: 2026-03-01

End Date: 2026-05-31

Contract Duration: 91 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INTERIM CONTRACT THAT SUPPLIES ELECTRONIC RESEARCH FOR ASSET AND LOCATOR SERVICES IN SUPPORT OF THE RESEARCH, APPLIED ANALYTICS AND STATISTICS (RAAS) DIVISION.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20222

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $248,400 to LEXISNEXIS RISK SOLUTIONS FL INC. for work described as: INTERIM CONTRACT THAT SUPPLIES ELECTRONIC RESEARCH FOR ASSET AND LOCATOR SERVICES IN SUPPORT OF THE RESEARCH, APPLIED ANALYTICS AND STATISTICS (RAAS) DIVISION. Key points: 1. Contract awarded without competition, limiting price discovery and potentially increasing costs. 2. Limited duration of the contract suggests a short-term need or a bridge to a larger effort. 3. The service provided, electronic research for asset and locator services, is critical for tax administration. 4. The award mechanism as a purchase order under simplified acquisition procedures warrants further scrutiny. 5. The contractor, LexisNexis Risk Solutions FL Inc., is a known provider in the information services space. 6. The fixed-price contract type offers some cost certainty but doesn't mitigate potential overpricing due to lack of competition.

Value Assessment

Rating: questionable

The contract value of $248,400 for a 91-day period appears high on a daily basis, especially given the lack of competition. Without comparable contract data or a clear understanding of the specific services rendered, it is difficult to benchmark the value effectively. The absence of a competitive bidding process means there's no market validation of the price, raising concerns about whether the government is receiving optimal value for its investment. Further analysis would be needed to compare the per-unit cost of the research services to industry standards or alternative solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP), indicating a sole-source or limited competition award. The specific justification for not competing is not provided, but this approach bypasses the standard competitive process designed to ensure fair and reasonable pricing. With only one vendor considered, there is no opportunity for other qualified companies to offer their services, potentially leading to higher costs and less innovation. The lack of transparency in the procurement process is a significant concern.

Taxpayer Impact: Taxpayers may be overpaying for these essential research services due to the absence of competitive pressure. The government's ability to secure the best possible price is diminished when contracts are not openly competed.

Public Impact

The Internal Revenue Service (IRS) benefits directly from this contract by obtaining critical electronic research capabilities. Asset and locator services are essential for tax administration, including investigations, audits, and revenue collection. The services support the Research, Applied Analytics and Statistics (RAAS) Division, indicating a focus on data-driven decision-making. The contract's impact on the broader workforce is likely minimal, as it provides a specialized research tool rather than direct employment generation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about fair pricing and potential overspending.
The sole-source nature of the award limits transparency and accountability in the procurement process.
The short duration of the contract may indicate a stop-gap measure, potentially leading to recurring sole-source awards.
The specific details of the 'electronic research' are not fully elaborated, making it difficult to assess the necessity and scope.
The use of a purchase order under SAP for a non-trivial amount warrants further investigation into procurement procedures.

Positive Signals

The contract provides essential services for tax administration and data analysis.
The firm-fixed-price contract type offers cost predictability for the government.
The contractor, LexisNexis, is an established provider in the information services market.
The contract duration is clearly defined, providing a specific timeframe for service delivery.

Sector Analysis

The contract falls within the Information Services sector, specifically Web Search Portals and All Other Information Services (NAICS 519290). This sector is characterized by companies providing access to information, search engines, and data aggregation services. The market size for such services is substantial, driven by the increasing reliance on data for decision-making across government and private industries. Comparable spending benchmarks are difficult to establish without more specific service details, but government agencies frequently procure data and research services from providers like LexisNexis.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award was made directly to LexisNexis Risk Solutions FL Inc., and the nature of the service suggests it is likely performed by the prime contractor. Without a competitive process, it's impossible to assess any potential impact on the small business ecosystem, as opportunities for small businesses to participate were not explored.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Internal Revenue Service (IRS) and the Department of the Treasury. As a purchase order awarded under simplified acquisition procedures, it may receive less intensive oversight compared to larger, formally competed contracts. Transparency is limited due to the lack of a competitive process and detailed public justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IRS Data Analytics Services
Federal Information Services Contracts
Asset and Locator Services Procurement
Research and Development Support Contracts
Treasury Department IT and Data Services

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency
Short Contract Duration
Unclear Service Scope

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $248,400 to LEXISNEXIS RISK SOLUTIONS FL INC.. INTERIM CONTRACT THAT SUPPLIES ELECTRONIC RESEARCH FOR ASSET AND LOCATOR SERVICES IN SUPPORT OF THE RESEARCH, APPLIED ANALYTICS AND STATISTICS (RAAS) DIVISION.

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 the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $248,400.

What is the period of performance?

Start: 2026-03-01. End: 2026-05-31.

What specific electronic research capabilities are being procured, and how do they differ from publicly available or previously contracted services?

The contract description is broad, referring to 'electronic research for asset and locator services.' This could encompass a wide range of data retrieval and analysis, from public records searches to specialized financial or legal databases. Without further clarification, it's difficult to ascertain the unique value proposition of this specific service. The IRS likely requires sophisticated tools for identifying assets, verifying ownership, and locating individuals or entities for tax enforcement and compliance purposes. However, the lack of detail makes it challenging to assess if the procured services are truly unique or if similar capabilities could be obtained through more competitive means or existing government-wide contracts.

What is the justification for awarding this contract on a sole-source basis, particularly under Simplified Acquisition Procedures?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP.' This suggests that either the procurement was conducted under specific sole-source authority (e.g., FAR Part 13.5 for commercial items, or other justifications like urgency or lack of sources) or it was simply not competed. Simplified Acquisition Procedures (SAP) are typically used for purchases up to $250,000, but they still generally require some form of competition unless specific exceptions apply. The absence of a stated justification for sole-sourcing is a significant gap. Agencies must document why competition is not feasible. Without this documentation, it raises concerns about adherence to procurement regulations and the potential for missed opportunities to obtain better value through competition.

How does the daily cost of this contract compare to industry benchmarks for similar research and data services?

The contract is valued at $248,400 for a 91-day period, equating to approximately $2,724 per day. Benchmarking this daily rate is challenging without knowing the precise scope and volume of research services provided. LexisNexis offers various subscription-based services, and pricing can vary significantly based on the databases accessed, the number of users, and the level of support. Given the lack of competition, it's difficult to determine if this daily rate represents fair market value. A competitive process would have yielded bids from multiple vendors, allowing for a direct comparison of pricing for equivalent services. Further investigation into LexisNexis's standard pricing for comparable government or commercial clients would be necessary for a more robust comparison.

What is the track record of LexisNexis Risk Solutions FL Inc. in providing similar services to the federal government?

LexisNexis Risk Solutions is a well-established provider of data and analytics services, including those relevant to risk assessment, compliance, and investigative research. They have a significant presence in the federal market, supplying various agencies with information solutions. Their track record generally includes providing access to extensive databases covering public records, legal information, and business data. While their experience is relevant, the specific performance on this particular interim contract, especially given its sole-source nature and short duration, is not detailed here. Past performance reviews and contract databases would offer more insight into their specific delivery quality and reliability for the government.

What are the potential risks associated with relying on a sole-source provider for critical research services?

Relying on a sole-source provider for critical services like asset and locator research introduces several risks. Firstly, it eliminates price competition, potentially leading to higher costs for the government and taxpayers. Secondly, it can foster vendor lock-in, making it difficult and costly to switch providers in the future. Thirdly, without the pressure of competition, there may be less incentive for the vendor to innovate or improve service quality. Lastly, a sole-source award can raise concerns about fairness and transparency in the procurement process, potentially signaling a lack of due diligence in exploring alternative solutions or sources.

Given the short duration (91 days), is this contract intended as a bridge to a larger, competitively procured effort?

The short duration of this contract (91 days, approximately three months) strongly suggests it may be an interim solution or a bridge to a more substantial, long-term contract. Agencies often use such short-term awards to maintain essential services while a larger procurement process is underway. This could be due to the expiration of a previous contract, an unforeseen need, or the time required to develop detailed requirements and solicitations for a full and open competition. If this is indeed a bridge contract, the focus should be on ensuring the transition to a competitively awarded contract is managed efficiently and effectively to avoid prolonged reliance on sole-source arrangements.

Industry Classification

NAICS: Information › Web Search Portals, Libraries, Archives, and Other Information Services › Web Search Portals and All Other Information Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 2043FY-26-Q-00014

Offers Received: 1

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: $248,400

Exercised Options: $248,400

Current Obligation: $248,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline