HHS awards $93.3M for HEIN ONLINE enterprise-wide subscription, impacting FDA research and development

Contract Overview

Contract Amount: $93,320 ($93.3K)

Contractor: William S. Hein & CO., Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2023-04-19

End Date: 2027-05-31

Contract Duration: 1,503 days

Daily Burn Rate: $62/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HEIN ONLINE ENTERPRISE-WIDE SUBSCRIPTION

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $93,320 to WILLIAM S. HEIN & CO., INC. for work described as: HEIN ONLINE ENTERPRISE-WIDE SUBSCRIPTION Key points: 1. The contract value of $93.3 million over approximately 4 years suggests a significant investment in information resources. 2. The use of a firm-fixed-price contract indicates that the government has a clear understanding of the scope and cost. 3. The award to William S. Hein & Co., Inc. suggests a specialized provider for legal and research databases. 4. The contract's duration of over 4 years provides stability for the agency's information access needs. 5. The primary beneficiary appears to be the Food and Drug Administration (FDA) for its research and regulatory functions.

Value Assessment

Rating: good

The contract value of $93.3 million for a 4-year enterprise-wide subscription to HEIN ONLINE appears reasonable given the scope of providing comprehensive legal and research materials to a major federal agency like the FDA. Benchmarking against similar enterprise-wide information service contracts for federal agencies would provide further context, but the fixed-price nature suggests a predictable cost for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The number of bidders is not specified, but the competitive process should have driven a fair market price for the HEIN ONLINE subscription. This approach maximizes the potential for cost savings and ensures the government accesses the best available services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality, ensuring federal funds are used efficiently.

Public Impact

Researchers and scientists within the FDA will benefit from access to a vast repository of legal and regulatory information. The subscription supports the FDA's mission in drug approval, food safety, and public health research. The geographic impact is national, as the FDA operates across the United States. The contract supports the information services sector by engaging a specialized vendor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative information sources are not actively explored.
Reliance on a single vendor for critical research materials could pose a risk if service disruptions occur.

Positive Signals

The firm-fixed-price contract provides cost certainty for the duration of the award.
Full and open competition suggests a robust market evaluation was conducted.
The long-term nature of the contract ensures continuity of essential information services for the FDA.

Sector Analysis

This contract falls within the information services and digital content sector, specifically focusing on legal and regulatory databases. The market for such enterprise-wide subscriptions is characterized by specialized providers catering to large organizations. The $93.3 million award represents a significant investment in knowledge management for a federal agency, comparable to other large-scale data and research service procurements.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. William S. Hein & Co., Inc. is a well-established company, and it is unlikely that this large enterprise-wide subscription would be subcontracted to small businesses in a significant way, though specific subcontracting plans are not detailed here. The focus is on securing a comprehensive service from a primary vendor.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm-fixed-price contract, financial oversight focuses on ensuring the vendor meets the terms of service. The Department of Health and Human Services' Office of Inspector General may conduct audits or investigations if performance issues or financial irregularities arise. Transparency is maintained through contract databases like FPDS.

Related Government Programs

Federal Research Information Services
Legal Information Databases
Government Information Technology Services
FDA Information Management

Risk Flags

Potential for vendor lock-in
Reliance on single source for critical information

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $93,320 to WILLIAM S. HEIN & CO., INC.. HEIN ONLINE ENTERPRISE-WIDE SUBSCRIPTION

Who is the contractor on this award?

The obligated recipient is WILLIAM S. HEIN & CO., INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $93,320.

What is the period of performance?

Start: 2023-04-19. End: 2027-05-31.

What is the historical spending pattern for HEIN ONLINE subscriptions by the Department of Health and Human Services or the FDA?

Historical spending data for HEIN ONLINE subscriptions by HHS or the FDA prior to this award is not readily available in the provided data. However, the current award of $93.3 million suggests a substantial and potentially ongoing need for this service. To assess historical patterns, one would need to access detailed procurement histories for similar information services over multiple fiscal years. This would involve searching databases like FPDS-NG for previous contracts awarded to William S. Hein & Co., Inc. or competitors for similar enterprise-wide legal and research database subscriptions by the FDA or other HHS agencies. Understanding past spending levels, contract durations, and competition dynamics would provide crucial context for evaluating the current award's value and necessity.

How does the per-user cost of this HEIN ONLINE subscription compare to similar federal agency contracts?

Determining the precise per-user cost is challenging without knowing the exact number of users covered by this enterprise-wide subscription. However, if we assume a large user base within the FDA, the total contract value of $93.3 million spread over approximately 1503 days (roughly 4 years) suggests a significant but potentially justifiable cost for comprehensive access. To benchmark, one would need to identify comparable federal contracts for enterprise-wide legal and research database subscriptions, ascertain their total value, duration, and user counts, and then calculate a comparable per-user, per-year metric. Without this comparative data, it's difficult to definitively state if the per-unit cost is high or low relative to the market.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or service level agreements (SLAs) for this HEIN ONLINE subscription contract. Typically, such contracts would include clauses related to uptime, data accessibility, search functionality, customer support response times, and data update frequency. The FDA would have established these requirements to ensure the reliability and effectiveness of the service. Failure to meet these SLAs could trigger remedies outlined in the contract. A thorough review of the contract document itself would be necessary to identify these specific performance standards and their associated penalties or incentives.

What is William S. Hein & Co., Inc.'s track record with federal government contracts, particularly for information services?

William S. Hein & Co., Inc. has a history of providing legal and research materials to various entities, including government agencies. While specific details of their federal contract performance are not in the provided data, their ability to secure a large, full-and-open competition contract with the FDA for an enterprise-wide subscription suggests a positive track record and established capabilities. Federal procurement systems (like FPDS-NG) would contain more granular data on their past performance ratings, contract values, and agency clients. Generally, securing such a significant contract implies they meet the government's standards for reliability, quality, and service delivery in the information services domain.

What are the potential risks associated with relying on a single vendor for critical research and legal information?

The primary risks associated with relying on a single vendor like William S. Hein & Co., Inc. for critical research and legal information include potential service disruptions (e.g., technical outages, data access issues), price increases upon renewal if competition is limited in the future, and the risk of the vendor discontinuing or altering the service. Vendor lock-in is also a concern, making it difficult and costly to switch to an alternative provider. Furthermore, the scope of information provided might not perfectly align with evolving agency needs if the vendor's offerings become static. Robust contract management, including regular performance reviews and contingency planning, is essential to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2350 NORTH FOREST RD, GETZVILLE, NY, 14068

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $118,995

Exercised Options: $93,320

Current Obligation: $93,320

Actual Outlays: $68,615

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline