Federal Purchases from Commerical Data Vendors

[James Love <love@essential.org>]

TAP-INFO Internet Distribution List

TAXPAYER ASSETS PROJECT
INFORMATION POLICY NOTE
November 15, 1993


HOW MUCH DOES THE FEDERAL GOVERNMENT SPEND ON ONLINE LEGAL
RESEARCH?  

The federal government does not keep systematic track of agency
expenditures on commercial database vendors.  However, there are
data from the Library of Congress FEDLINK program, which is a
centralized procurement program that negotiates a government wide
price that agencies can "ride."  In fiscal year 1991, FEDLINK
expenditures were $49.5 million.  The largest vendor under
FEDLINK was Mead's (LEXIS/NEXIS) service, and the third largest
was West Publishing's WESTLAW.


     Fiscal Year 1991 FEDLINK purchases

     Mead Data (LEXIS/NEXIS)       $15.866   million

     West Services (WESTLAW)         6.316   million

          total:                   $22.182   million

These are not all federal expenditures on LEXIS/NEXIS, since
agencies often purchase the services outside the FEDLINK
contract.  For example, in fy 1991, the Administrative Office of
the U.S. Courts reported expenditures of $1.6 million on LEXIS on
$1.4 million on WESTLAW.  Counting only the FEDLINK contracts and
the Administrative Office of the U.S. Courts, public expenditures
on LEXIS/NEXIS and WESTLAW were more than $25 million in fy 1991.

Both LEXIS/NEXIS and WESTLAW provide access to federal government
legal information and other items, including privately
copyrighted information, such as West headnotes, or the NEXIS
access to items such as the New York Times.  LEXIS and WESTLAW
also provide access to many other types of government
information, including state court cases and laws, and patent
information, among other items.



WHICH AGENCIES BUY DATA ONLINE?

The largest customers under the FEDLINK program are the military,
followed by the Departments of Commerce, Treasury, and Justice.

                       fy 1991 FEDLINK expenditures
                          (all FEDLINK vendors)

Military                                         $ 17.667  million
     Department of Defense              1.331     
     Department of the Air Force        2.249
     Department of the Army             9.126
     Department of the Navy/Marines     4.961
     
Department of Commerce                           $ 5.029  million
Department of the Treasury                         4.691
Department of Justice                              4.080
Department of Health/Human Services                2.215

Department of Energy                               2.207
SEC                                                1.218
EPA                                                1.101

Administrative Office of the U.S. Courts
  (non-FEDLINK)                                  $ 3.000  million

    jamie love
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