DoD's $24M Periodical Publishing Contract with Wolters Kluwer Health Raises Questions on Competition and Value
Contract Overview
Contract Amount: $24,074,844 ($24.1M)
Contractor: Wolters Kluwer Health, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-12-29
End Date: 2020-12-30
Contract Duration: 1,828 days
Daily Burn Rate: $13.2K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF OVID&APA
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.1 million to WOLTERS KLUWER HEALTH, INC. for work described as: IGF::OT::IGF OVID&APA Key points: 1. Significant contract value of $24M for periodical publishing services. 2. Sole-source award to Wolters Kluwer Health, Inc. limits competitive pricing. 3. Long contract duration (2015-2020) may indicate potential for price creep. 4. The Defense Health Agency is the primary procuring entity. 5. NAICS code 511120 points to the periodical publishing sector.
Value Assessment
Rating: questionable
The $24M contract value for periodical publishing is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for specialized publications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under Simplified Acquisition Procedures (SAP) and was awarded as a sole-source definitive contract. This lack of competition likely resulted in higher prices and limited opportunities for other vendors to offer services.
Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium for these periodical publishing services, as competitive market forces were not leveraged to drive down costs.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Limited transparency into the pricing justification for this sole-source award. Potential for reduced access to diverse information sources if competition is stifled.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation indicated
Positive Signals
- Definitive contract awarded
- Firm fixed price contract type
Sector Analysis
The periodical publishing sector is diverse, with many potential vendors. A $24M contract for these services, especially if sole-source, deviates from typical competitive procurement practices seen in this industry, suggesting a potential lack of market research or a specific justification for the sole-source award.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award likely precluded any opportunities for small business participation.
Oversight & Accountability
The sole-source award and lack of competition warrant further oversight to ensure the Defense Health Agency obtained the best value for taxpayer dollars. A review of the justification for the sole-source award is recommended.
Related Government Programs
- Periodical Publishers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Sole-source award raises concerns about fair pricing and competition.
- Lack of small business participation.
- Long contract duration may lead to complacency or price escalation.
- Absence of competitive bidding limits transparency and potential cost savings.
- Need for justification review for sole-source award.
Tags
periodical-publishers, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.1 million to WOLTERS KLUWER HEALTH, INC.. IGF::OT::IGF OVID&APA
Who is the contractor on this award?
The obligated recipient is WOLTERS KLUWER HEALTH, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $24.1 million.
What is the period of performance?
Start: 2015-12-29. End: 2020-12-30.
What was the specific justification for awarding this $24M periodical publishing contract on a sole-source basis, and was a thorough market analysis conducted to ensure no other vendors could meet the
The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and awarded as a 'sole-source' definitive contract. Without further documentation, the specific justification remains unclear. A comprehensive market analysis is crucial in sole-source procurements to validate that no other capable vendors exist or that unique circumstances necessitate a single source, thereby ensuring fair pricing and maximizing value for the government.
How does the $24M contract value for periodical publishing compare to industry benchmarks for similar services, especially considering the lack of competitive bidding?
Benchmarking this $24M contract is challenging without detailed service specifications and a competitive landscape analysis. However, sole-source awards often result in prices higher than those achieved through open competition. The absence of competitive bids suggests this price may not represent the best value achievable, potentially exceeding market rates for similar periodical publishing services.
What is the potential impact on the Defense Health Agency's access to diverse and up-to-date information if a single vendor holds such a large, long-term contract without competition?
A long-term, sole-source contract can limit the agency's exposure to innovative solutions and diverse content from other publishers. While the current vendor may provide adequate services, the lack of competition could stifle the introduction of new formats, technologies, or a broader range of publications, potentially impacting the comprehensiveness and timeliness of information available to the agency.
Industry Classification
NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › Periodical Publishers
Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: HT001116R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wolters Kluwer Health Inc.
Address: 16522 HUNTERS GREEN PKWY, HAGERSTOWN, MD, 21740
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,074,844
Exercised Options: $24,074,844
Current Obligation: $24,074,844
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-12-29
Current End Date: 2020-12-30
Potential End Date: 2020-12-30 00:00:00
Last Modified: 2025-04-21
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