Commerce awards $81.7M for Patent Data Capture FEP to Reed Technology, a sole-source contract

Contract Overview

Contract Amount: $81,723,594 ($81.7M)

Contractor: Reed Technology and Information Services LLC

Awarding Agency: Department of Commerce

Start Date: 2018-01-25

End Date: 2021-01-31

Contract Duration: 1,102 days

Daily Burn Rate: $74.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PATENT DATA CAPTURE FRONT END PROCESSING (FEP)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $81.7 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: PATENT DATA CAPTURE FRONT END PROCESSING (FEP) Key points: 1. Contract value of $81.7M over three years. 2. Sole-source award to Reed Technology and Information Services LLC. 3. Potential risk due to lack of competition. 4. IT sector contract for patent data processing.

Value Assessment

Rating: questionable

The contract value of $81.7M for a three-year period for front-end processing services appears high without competitive benchmarking. The lack of competition makes it difficult to assess if this price is fair and reasonable compared to market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award raises concerns about whether the government achieved the best possible price for these services, potentially impacting taxpayer value.

Public Impact

Taxpayers may be overpaying for patent data processing due to the absence of competitive bidding. The U.S. Patent and Trademark Office relies on a single vendor, creating a potential dependency. Lack of transparency in the procurement process limits public understanding of the contract's value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Contract awarded to a known entity
Clear contract duration

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on data processing for the U.S. Patent and Trademark Office. Spending benchmarks for similar data processing contracts are difficult to ascertain without competitive data.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this sole-source award. It is unclear if small businesses were considered or had an opportunity to participate.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the pricing is justified and that future procurements explore competitive options to maximize taxpayer value.

Related Government Programs

All Other Publishers
Department of Commerce Contracting
U.S. Patent and Trademark Office Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Dependency on a single vendor.
Limited transparency in procurement.
No clear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $81.7 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. PATENT DATA CAPTURE FRONT END PROCESSING (FEP)

Who is the contractor on this award?

The obligated recipient is REED TECHNOLOGY AND INFORMATION SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $81.7 million.

What is the period of performance?

Start: 2018-01-25. End: 2021-01-31.

What justification was provided for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable without competition?

The justification for a sole-source award typically involves demonstrating that only one vendor can meet the specific needs, often due to proprietary technology, unique capabilities, or urgent requirements. The price reasonableness is usually assessed through market research, historical pricing, or independent cost estimates. Without access to the specific justification documentation, it's difficult to confirm the basis for this award and the price validation process.

What are the risks associated with relying on a single vendor for critical patent data processing services over a three-year period?

The primary risks include vendor lock-in, potential price increases in future contracts, and a lack of incentive for the vendor to innovate or improve services. If the vendor experiences performance issues, financial instability, or goes out of business, it could significantly disrupt the USPTO's operations. Furthermore, the absence of competition stifles market innovation and prevents other capable firms from developing expertise in this area.

How does the $81.7M contract value compare to industry benchmarks for similar patent data capture and front-end processing services, considering the lack of competitive bidding?

Without competitive bidding, it is challenging to establish a precise industry benchmark for this specific contract. The $81.7M award over three years suggests a significant investment. A thorough analysis would require comparing the scope of work, service level agreements, and the vendor's specific capabilities against publicly available data for similar IT services, while acknowledging that a sole-source award inherently lacks the price discovery benefits of a competitive process.

Industry Classification

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

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lexisnexis Special Services Inc (UEI: 210244596)

Address: 7 WALNUT GROVE DR, HORSHAM, PA, 19044

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

Financial Breakdown

Contract Ceiling: $104,004,407

Exercised Options: $81,723,594

Current Obligation: $81,723,594

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1500003

IDV Type: IDC

Timeline