DoD's $3.1M contract for professional organization services awarded to John Wiley & Sons Inc

Contract Overview

Contract Amount: $3,124,864 ($3.1M)

Contractor: John Wiley & Sons Inc

Awarding Agency: Department of Defense

Start Date: 2023-01-01

End Date: 2026-12-31

Contract Duration: 1,460 days

Daily Burn Rate: $2.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WILEY 2023 CORE COLLECTION

Place of Performance

Location: HOBOKEN, HUDSON County, NEW JERSEY, 07030

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $3.1 million to JOHN WILEY & SONS INC for work described as: WILEY 2023 CORE COLLECTION Key points: 1. Value for money appears fair given the duration and scope of services. 2. Limited competition dynamics suggest potential for higher pricing. 3. Risk indicators are moderate, with a long contract duration. 4. Performance context is within professional organization services for the Navy. 5. Sector positioning is within professional services, a common area for government support. 6. The contract is a purchase order, indicating a direct acquisition.

Value Assessment

Rating: fair

The contract value of approximately $3.1 million over four years for professional organization services is difficult to benchmark without specific service details. However, considering the duration, the annual cost is around $780,000. This figure needs to be compared against similar contracts for professional organization support within the Department of Defense or other federal agencies. The fixed-price nature of the contract provides cost certainty, but the absence of competition raises questions about whether the most competitive pricing was achieved.

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 only one vendor, John Wiley & Sons Inc., was considered for this requirement. The lack of competition means there was no opportunity for multiple vendors to bid, which could limit price discovery and potentially lead to a less favorable price for the government.

Taxpayer Impact: The sole-source nature of this award means taxpayers did not benefit from competitive bidding, which typically drives down costs. The government may have paid a premium due to the absence of alternative offers.

Public Impact

The Department of the Navy benefits from access to professional organization services. These services likely support research, development, or operational needs within the Navy. The geographic impact is centered in New Jersey, where the contractor is located. Workforce implications are minimal for the government, as the contractor provides the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Long contract duration (4 years) may not adapt to changing needs.
Lack of detailed service description makes value assessment challenging.

Positive Signals

Contract awarded to an established entity (John Wiley & Sons Inc.).
Fixed-price contract provides cost predictability.
Services are for a specific professional organization need.

Sector Analysis

The professional organizations sector encompasses entities that provide specialized knowledge, resources, and networking opportunities. Government agencies frequently contract with such organizations to access expertise, conduct research, or obtain industry-specific information. The market size for these services within the federal government is substantial, supporting various functions across different departments. This contract fits within the broader professional services category, where specialized knowledge is leveraged to meet agency objectives.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to a large corporation, there are no direct subcontracting implications for small businesses stemming from this specific award. The absence of a set-aside means opportunities for small businesses to compete for this particular requirement were not prioritized.

Oversight & Accountability

As a purchase order, oversight mechanisms would typically be managed through the contracting officer's representative (COR) and the issuing agency's procurement oversight. Transparency is limited due to the sole-source nature and lack of public competition details. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Professional Services
Research and Development Support
Information Services
Department of Defense Contracts
Navy Procurement

Risk Flags

Sole-source award
Lack of competition
Limited service details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.1 million to JOHN WILEY & SONS INC. WILEY 2023 CORE COLLECTION

Who is the contractor on this award?

The obligated recipient is JOHN WILEY & SONS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2023-01-01. End: 2026-12-31.

What specific professional organization services are being procured under this contract?

The provided data indicates the contract is for 'Professional Organizations' (NAICS 813920) and awarded to John Wiley & Sons Inc. However, the specific services are not detailed. John Wiley & Sons is known for publishing and providing access to scholarly journals, research databases, and professional development resources. It is likely that the Department of the Navy is procuring access to these resources, subscription services, or related professional development content to support its personnel's research, training, or operational needs. Without a more detailed statement of work, the exact nature of the services remains unspecified.

How does the annual cost of this contract compare to similar professional organization service contracts within the DoD?

The annual cost for this contract is approximately $781,216 ($3,124,864 / 4 years). Benchmarking this against similar contracts within the DoD is challenging without more specific details on the services provided. However, federal procurement data often shows a wide range for professional services. Contracts for access to large research databases or comprehensive professional development platforms can range from tens of thousands to millions of dollars annually, depending on the scope, number of users, and exclusivity. Given the sole-source nature, a direct comparison to competitively bid contracts would be necessary to assess if this represents good value.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the lack of competitive pricing. Without competition, there is a risk that the government is not receiving the best possible price for the services. Another risk is potential vendor lock-in, where the government becomes dependent on a single provider, making it difficult to switch or negotiate better terms in the future. Furthermore, the long duration of the contract (four years) increases the risk that the services may become outdated or that the government's needs may evolve, requiring costly modifications or a new procurement process.

What is the track record of John Wiley & Sons Inc. in providing services to the federal government?

John Wiley & Sons Inc. is a well-established global company primarily known for its publishing activities, including academic journals, books, and educational materials. They have a significant presence in providing research access and content to academic institutions and government agencies. While specific details of their federal contract history are not provided here, their long-standing reputation in the publishing and information services industry suggests a degree of reliability. Federal agencies often procure access to their extensive databases and publications. Their track record would likely be characterized by their ability to deliver content and information services as per contractual agreements.

What are the potential performance issues or challenges for this contract?

Potential performance issues could arise from the contractor's ability to consistently deliver the specified professional organization services throughout the four-year period. Challenges might include ensuring timely access to resources, maintaining the quality and relevance of content, and providing adequate customer support. Given that John Wiley & Sons is a large entity, internal operational efficiencies and responsiveness to government needs could also be a factor. The sole-source nature means the government has fewer immediate options if performance issues arise, potentially necessitating lengthy discussions or contract modifications to resolve them.

How does this contract's spending compare to historical federal spending on professional organizations?

This contract represents a $3.12 million expenditure over four years for professional organization services. Historical federal spending on professional organizations is a broad category. Agencies utilize these services for various purposes, including access to research, standards development, professional training, and policy analysis. While this specific contract amount is significant for a single award, it is likely a small fraction of the total federal spending across all agencies on similar services. Without a detailed breakdown of historical spending specifically for NAICS code 813920 or comparable service categories, it's difficult to place this contract in a broader historical context. However, federal spending on information and professional services generally remains robust.

Industry Classification

NAICS: Other Services (except Public Administration) › Business, Professional, Labor, Political, and Similar Organizations › Professional Organizations

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: N0017323QKN07

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: John Wiley & Sons, Inc.

Address: 111 RIVER ST, HOBOKEN, NJ, 07030

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

Financial Breakdown

Contract Ceiling: $3,965,537

Exercised Options: $3,124,864

Current Obligation: $3,124,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline