DoD Education Activity Spends $12.1M on Book Publishers, Lacking Competition

Contract Overview

Contract Amount: $12,124,535 ($12.1M)

Contractor: Mcgraw-Hill Companies, Inc., the

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2011-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TERRA NOVA ASSESSMENT

Place of Performance

Location: MONTEREY, MONTEREY County, CALIFORNIA, 93940

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to MCGRAW-HILL COMPANIES, INC., THE for work described as: TERRA NOVA ASSESSMENT Key points: 1. Significant spending on book publishing services by DoD Education Activity. 2. Contract awarded to McGraw-Hill Companies, Inc. with no competition. 3. Potential for overpayment due to lack of competitive bidding. 4. Sector is book publishing, a mature industry with established players.

Value Assessment

Rating: questionable

The total award amount of $12.1M over 5 years for book publishing services appears high given the lack of competition. Without competitive bids, it's difficult to assess if the pricing is fair market value.

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 potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: Taxpayers may have overpaid due to the absence of competitive pressure to secure the best possible price for these book publishing services.

Public Impact

Students and educators rely on these published materials for their education. The lack of competition raises concerns about the quality and cost-effectiveness of educational resources provided. Future contracts in this area should prioritize competitive bidding to ensure value for taxpayer dollars.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Long contract duration

Positive Signals

Established vendor
Specific need addressed

Sector Analysis

The book publishing sector is well-established with numerous providers. Spending benchmarks for similar educational materials can vary widely based on content and quantity, but a lack of competition typically inflates costs.

Small Business Impact

The data does not indicate whether small businesses were considered or had an opportunity to compete for this contract. Sole-source awards often exclude small business participation.

Oversight & Accountability

The absence of competition suggests potential weaknesses in oversight regarding procurement practices. Further review is needed to understand why this contract was not competed.

Related Government Programs

Book Publishers
Department of Defense Contracting
Department of Defense Education Activity Programs

Risk Flags

Sole-source award
Lack of price competition
Potential for cost overruns
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to MCGRAW-HILL COMPANIES, INC., THE. TERRA NOVA ASSESSMENT

Who is the contractor on this award?

The obligated recipient is MCGRAW-HILL COMPANIES, INC., THE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of Defense Education Activity).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2006-10-01. End: 2011-09-30.

What was the justification for not competing this significant contract for educational materials?

The provided data indicates the contract was 'NOT COMPETED' but does not offer a specific justification. Typically, sole-source contracts require a documented justification, such as a unique capability or urgent need, which is absent here. This lack of transparency is concerning for accountability.

How does the $12.1M award compare to market rates for similar book publishing services?

Without competitive bids, a direct market rate comparison is challenging. However, the book publishing industry is mature, and the absence of competition for a $12.1M contract over five years suggests the government may not have secured the most cost-effective pricing available in the open market.

What is the potential risk to educational outcomes if these materials are overpriced or of suboptimal quality due to lack of competition?

Overpricing could divert funds from other educational needs, impacting resource availability. While quality isn't explicitly flagged as an issue, a non-competitive process can sometimes lead to complacency in maintaining high standards or innovating. This could indirectly affect the effectiveness of educational delivery.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › Book Publishers

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: S&P Global Inc. (UEI: 001213206)

Address: 20 RYAN RANCH RD, MONTEREY, CA, 90

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

Financial Breakdown

Contract Ceiling: $12,189,015

Exercised Options: $12,124,535

Current Obligation: $12,124,535

Contract Characteristics

Cost or Pricing Data: NO

Timeline