EPA licenses agricultural pesticide data for $291K to Kynetec USA Inc. under a sole-source purchase order

Contract Overview

Contract Amount: $2,910,408 ($2.9M)

Contractor: Kynetec USA Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2023-10-19

End Date: 2026-10-18

Contract Duration: 1,095 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: AGRICULTURAL PESTICIDE USAGE DATA LICENSE AND ACCESS TOCOR: BRIANA OTTE

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63146

State: Missouri Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $2.9 million to KYNETEC USA INC. for work described as: AGRICULTURAL PESTICIDE USAGE DATA LICENSE AND ACCESS TOCOR: BRIANA OTTE Key points: 1. Value for money is difficult to assess due to the sole-source nature of the award. 2. Competition dynamics were limited, with the contract awarded without full and open competition. 3. Risk indicators are moderate, given the relatively small contract value and fixed-price terms. 4. Performance context is for data licensing and access, a specific niche service. 5. Sector positioning is within market research and public opinion polling services for the EPA.

Value Assessment

Rating: fair

The contract value of $291,040 for a three-year data license is modest. Without competitive bidding, it's challenging to benchmark the pricing against market rates or similar contracts. The fixed-price nature of the purchase order provides some cost certainty for the government, but the absence of competition prevents a thorough value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source purchase order. This indicates that the agency likely identified a specific need that could only be met by Kynetec USA Inc., or that the procurement process did not allow for broader competition. The limited competition means there was no opportunity for multiple vendors to bid, potentially impacting price discovery.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the lowest possible price that could have been achieved through a more open bidding process.

Public Impact

The Environmental Protection Agency (EPA) benefits from access to agricultural pesticide usage data. This data is crucial for regulatory analysis, environmental impact assessments, and policy development. The services delivered involve licensing and access to this specific dataset. The geographic impact is national, as EPA's regulatory scope covers the entire United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for taxpayers.
Lack of transparency in the justification for sole-sourcing.
Contract duration of three years may lock in pricing without market adjustments.

Positive Signals

Fixed-price contract provides cost predictability.
Modest contract value suggests a focused and potentially manageable scope.
Award to an established entity (Kynetec USA Inc.) may imply specialized expertise.

Sector Analysis

The contract falls under the market research and public opinion polling services sector (NAICS 541910). This sector encompasses firms that gather and analyze data on market conditions, public opinion, and consumer behavior. The EPA's need for agricultural pesticide usage data aligns with this sector, as such data is vital for understanding market trends and public perception related to agricultural practices and environmental impact. Comparable spending in this sector for government agencies can vary widely depending on the scope and complexity of research required.

Small Business Impact

The contract was awarded to Kynetec USA Inc. and there is no indication of a small business set-aside. Given the sole-source nature, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the award process. Further analysis would be needed to determine if Kynetec USA Inc. has a history of subcontracting with small businesses on other contracts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. As a purchase order, it is subject to standard procurement regulations and internal agency oversight. Transparency is limited due to the sole-source award, and specific Inspector General jurisdiction would depend on whether the contract falls under broader EPA audit initiatives.

Related Government Programs

Environmental Data Licensing
Agricultural Data Services
Market Research Services
Public Opinion Polling
Environmental Protection Agency Contracts

Risk Flags

Sole-source award
Limited competition justification
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $2.9 million to KYNETEC USA INC.. AGRICULTURAL PESTICIDE USAGE DATA LICENSE AND ACCESS TOCOR: BRIANA OTTE

Who is the contractor on this award?

The obligated recipient is KYNETEC USA INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2023-10-19. End: 2026-10-18.

What is Kynetec USA Inc.'s track record with the federal government, particularly with the EPA?

A review of federal procurement data indicates that Kynetec USA Inc. has received multiple federal contracts, primarily from agencies like the Environmental Protection Agency (EPA) and the Department of Agriculture. These contracts often involve data collection, market research, and analysis related to agricultural and environmental topics. While specific performance details for each contract are not publicly detailed in summary data, the consistent awarding of contracts suggests a level of satisfaction or specialized capability recognized by these agencies. Further investigation into individual contract performance reports and past performance evaluations would be necessary for a comprehensive assessment of their track record.

How does the $291,040 value of this data license compare to similar EPA data acquisition contracts?

Benchmarking this contract's value requires comparing it to similar data licensing and acquisition agreements by the EPA. Given the specific nature of agricultural pesticide usage data, direct comparisons can be difficult without knowing the scope, exclusivity, and duration of data access. However, for a three-year license of specialized data, $291,040 is a modest sum. Many EPA data acquisition contracts, especially those involving large-scale research or complex datasets, can range from hundreds of thousands to millions of dollars. The relatively low value here suggests either a niche dataset, limited access rights, or a specific segment of data being licensed.

What are the primary risks associated with this sole-source award for agricultural pesticide data?

The primary risk associated with this sole-source award is the potential for overpayment due to the lack of competitive bidding. Without multiple vendors vying for the contract, the government may not be securing the most cost-effective solution. Another risk is the potential for vendor lock-in, where the agency becomes reliant on Kynetec USA Inc. for this specific data, making future transitions difficult or costly. Furthermore, the justification for sole-sourcing needs to be robust; if it was not adequately justified, it could indicate a lapse in procurement best practices. Finally, there's a risk that alternative data sources or methods might be more efficient or comprehensive, but were not explored due to the sole-source approach.

How effective is the EPA in utilizing agricultural pesticide usage data for its regulatory and policy objectives?

The effectiveness of the EPA in utilizing agricultural pesticide usage data is generally considered high, as this data is fundamental to its mission. This information directly informs the EPA's pesticide registration and review processes, helping to assess risks to human health and the environment. The data supports the development of regulations, labeling requirements, and best management practices aimed at mitigating potential harm. Furthermore, it aids in monitoring compliance and evaluating the impact of pesticide use on ecosystems and agricultural sustainability. While the EPA's utilization is critical, the effectiveness is contingent on the quality, completeness, and timeliness of the data acquired, underscoring the importance of contracts like this one.

What are the historical spending patterns for agricultural data or market research by the EPA?

Historical spending patterns for agricultural data and market research by the EPA show a consistent investment in acquiring information to support its regulatory and environmental protection mandates. While specific figures fluctuate annually, the EPA regularly procures services and data related to pesticide usage, environmental monitoring, agricultural practices, and related market dynamics. These expenditures can range from small, targeted data licenses like the one awarded to Kynetec USA Inc., to much larger contracts for comprehensive research studies, surveys, and data analysis platforms. Analyzing historical spending reveals a strategic allocation of resources towards data-driven decision-making in environmental policy and regulation.

Could this agricultural pesticide data be obtained through more competitive means in the future?

The potential for obtaining agricultural pesticide data through more competitive means in the future depends on several factors. If the data is proprietary and exclusively held by Kynetec USA Inc., then future competition might be limited unless other sources emerge or the EPA develops alternative data collection strategies. However, if the data is derived from publicly available sources or if Kynetec USA Inc.'s license allows for sublicensing or broader data sharing, the EPA could potentially solicit bids from multiple vendors in the future. The agency's procurement strategy, including the justification for sole-sourcing versus full and open competition, will be key. Exploring data aggregation services or partnerships could also open avenues for competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Marketing Research and Public Opinion Polling

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1807 PARK 270 DR, SAINT LOUIS, MO, 63146

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: $2,910,408

Exercised Options: $2,910,408

Current Obligation: $2,910,408

Actual Outlays: $2,910,408

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline