Moody's Analytics contract for banking database services awarded by Export-Import Bank for over $194 million

Contract Overview

Contract Amount: $194,007 ($194.0K)

Contractor: Moody's Analytics, Inc.

Awarding Agency: Export-Import Bank of the United States

Start Date: 2022-09-30

End Date: 2027-03-31

Contract Duration: 1,643 days

Daily Burn Rate: $118/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BANKING DB

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10007

State: New York Government Spending

Plain-Language Summary

Export-Import Bank of the United States obligated $194,006.5 to MOODY'S ANALYTICS, INC. for work described as: BANKING DB Key points: 1. The contract value of $194 million over its period of performance suggests a significant investment in data services. 2. The award was made on a sole-source basis, raising questions about potential cost efficiencies and market alternatives. 3. The duration of the contract (over 5 years) indicates a long-term need for these specific banking data services. 4. The fixed-price contract type aims to provide cost certainty for the agency. 5. The service falls under 'All Other Information Services,' a broad category that requires further definition for precise benchmarking. 6. The geographic location of the contractor in New York may have implications for local economic impact.

Value Assessment

Rating: fair

The contract value of $194 million for banking database services over approximately five years is substantial. Without specific details on the scope of data provided and its criticality, direct comparison to similar contracts is challenging. However, the sole-source nature of the award means that competitive pricing benchmarks are unavailable, making it difficult to definitively assess value for money. The fixed-price structure offers some cost predictability, but the absence of competition could lead to higher-than-market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under standard procurement procedures (SAP), indicating a sole-source award. This means that only one vendor, Moody's Analytics, Inc., was considered for this requirement. The lack of competition limits the agency's ability to explore alternative solutions or negotiate based on multiple offers, potentially impacting price discovery and the overall value obtained.

Taxpayer Impact: For taxpayers, a sole-source award means there is no assurance that the government secured the best possible price or terms, as there was no competitive pressure to drive down costs.

Public Impact

The Export-Import Bank of the United States benefits from access to comprehensive banking data, likely supporting its mission of facilitating U.S. exports. The services delivered are information-based, providing critical data for financial analysis and decision-making within the agency. The geographic impact is primarily national, supporting the Ex-Im Bank's operations which span across the U.S. and international trade. There are no direct workforce implications mentioned, as this is a data service contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for overpayment without market-based price validation.

Positive Signals

Fixed-price contract provides cost certainty for the agency.
Long-term contract duration suggests a critical and ongoing need for the service.
Contractor is a well-known entity in the financial data analytics space.

Sector Analysis

The contract falls within the broader Information Services sector, specifically focusing on financial data and analytics. This sector is characterized by high data volumes, sophisticated analytical tools, and significant market players. The market size for financial data services is substantial, driven by the needs of financial institutions, government agencies, and corporations for market intelligence, risk assessment, and regulatory compliance. This contract represents a significant procurement within this niche, likely providing specialized banking data crucial for the Export-Import Bank's operations.

Small Business Impact

As this contract was awarded on a sole-source basis, there is no indication of small business set-aside provisions or subcontracting opportunities being specifically mandated or explored. The nature of specialized financial data services often involves large, established providers, potentially limiting direct participation for smaller businesses unless they are niche providers or subcontractors to the prime. Further analysis would be needed to determine if any subcontracting plans exist.

Oversight & Accountability

Oversight for this contract would primarily reside with the Export-Import Bank of the United States' contracting officers and program managers. As a sole-source award, the justification for the procurement and the evaluation of the contractor's performance would be critical oversight points. Transparency is limited due to the non-competitive nature. There is no specific mention of Inspector General jurisdiction for this particular award, but the agency's IG would typically have oversight over agency spending.

Related Government Programs

Financial Data Services
Information Technology Services
Banking and Financial Services
Data Analytics Platforms

Risk Flags

Sole-source award raises concerns about competition and potential cost efficiencies.
Lack of detailed service description makes value assessment difficult.
Absence of publicly available performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Export-Import Bank of the United States awarded $194,006.5 to MOODY'S ANALYTICS, INC.. BANKING DB

Who is the contractor on this award?

The obligated recipient is MOODY'S ANALYTICS, INC..

Which agency awarded this contract?

Awarding agency: Export-Import Bank of the United States (Export-Import Bank of the United States).

What is the total obligated amount?

The obligated amount is $194,006.5.

What is the period of performance?

Start: 2022-09-30. End: 2027-03-31.

What specific banking data and analytical capabilities does Moody's Analytics provide under this contract, and how do they align with the Export-Import Bank's mission?

The provided data indicates the contract is for 'All Other Information Services' with Moody's Analytics, Inc. While the specific details of the banking data and analytical capabilities are not itemized in the summary, it is reasonable to infer that the Export-Import Bank utilizes this service for critical functions such as assessing country risk, evaluating financial health of potential borrowers or partners, monitoring global economic trends relevant to trade finance, and supporting its overall mission of facilitating U.S. exports. Moody's Analytics is a well-established provider of financial data, credit ratings, and economic research, suggesting the services likely encompass comprehensive financial databases, risk assessment tools, and market intelligence reports tailored to the needs of an institution like the Ex-Im Bank.

What is the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The summary states the contract was 'NOT COMPETED UNDER SAP,' which typically implies a sole-source justification. Common reasons for sole-source awards include unique capabilities possessed by only one vendor, urgent and compelling needs where competition is not feasible, or when the cost of competition would outweigh the benefits. Without the specific justification document, it's impossible to know the exact reason. However, for specialized financial data services, it's possible that Moody's Analytics possesses proprietary data or analytical tools that are deemed essential and not readily available from other sources. The lack of competition means that alternative solutions were likely not formally evaluated through a competitive bidding process.

How does the $194 million contract value compare to historical spending on similar banking data services by the Export-Import Bank or other federal agencies?

The provided data does not include historical spending figures for the Export-Import Bank or comparable agencies on similar services. Therefore, a direct comparison of the $194 million contract value is not possible with the given information. However, $194 million over approximately five years represents a significant annual expenditure, averaging around $38.8 million per year. This suggests a substantial and ongoing requirement for high-value financial data and analytics. To benchmark this, one would need to research spending patterns of agencies like the Treasury Department, Federal Reserve, or other financial regulators on data subscriptions and analytical platforms from providers like Bloomberg, Refinitiv, or S&P Global.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure the quality and timeliness of the banking data?

The provided summary data does not include details on Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, contracts of this magnitude and duration would include specific metrics related to data accuracy, data update frequency, system uptime, and response times for support. The Export-Import Bank would be responsible for monitoring Moody's Analytics' performance against these agreed-upon terms. The absence of this information in the summary means we cannot assess the mechanisms in place to guarantee the quality and timeliness of the banking data provided under this sole-source award.

What is the potential impact of this contract on the broader market for financial data services, particularly concerning competition and pricing?

A sole-source award of this magnitude can have a mixed impact on the broader market. On one hand, it solidifies Moody's Analytics' position as a key provider for a significant government client, potentially influencing their market strategy and investment. On the other hand, it removes a substantial potential contract from the competitive landscape, meaning other financial data providers do not have the opportunity to bid. This can stifle innovation and price competition if other firms perceive barriers to entry or if the government's needs are not being met by a diverse set of vendors. It reinforces the idea that for certain specialized data needs, a limited number of providers may dominate.

Industry Classification

NAICS: Information › Other Information Services › All Other Information Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

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

Parent Company: Moody's Corporation

Address: 7 WORLD TRADE CENTER AT 250 GREENWICH ST, NEW YORK, NY, 10007

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

Financial Breakdown

Contract Ceiling: $241,772

Exercised Options: $194,007

Current Obligation: $194,007

Actual Outlays: $194,007

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline