Commerce Dept. awards $286.7M contract to Reed Technology for patent office support

Contract Overview

Contract Amount: $286,667,429 ($286.7M)

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: $260.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RTIS PAT PRTG 1/25/2018 - 3/09/18 FUNDING DELIVERY ORDER - TBD

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $286.7 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: RTIS PAT PRTG 1/25/2018 - 3/09/18 FUNDING DELIVERY ORDER - TBD Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant funding allocated for IT support services. 3. Long contract duration (over 3 years) may impact price competitiveness. 4. The 'All Other Publishers' NAICS code is broad and may not fully capture the specialized nature of the services.

Value Assessment

Rating: fair

The contract value of $286.7 million over approximately 3 years suggests a substantial investment. Without specific benchmarks for similar IT support services at the USPTO, it's difficult to definitively assess pricing, but the scale indicates a significant expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition on a contract of this magnitude means taxpayers may be overpaying for the services provided.

Public Impact

Impacts the efficiency and effectiveness of the U.S. Patent and Trademark Office's operations. Affects the processing of patents and trademarks, potentially influencing innovation and business growth. Ensures the continued functioning of critical IT infrastructure supporting intellectual property management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Large contract value
Long contract duration

Positive Signals

Supports critical USPTO functions
Potential for long-term vendor relationship

Sector Analysis

This contract falls within the IT services sector, specifically supporting administrative and publishing functions for a government agency. IT services for federal agencies are a significant spending area, with benchmarks varying widely based on service type and complexity.

Small Business Impact

The data does not indicate any specific provisions or considerations for small business participation in this contract. As a sole-source award, opportunities for small businesses to subcontract may be limited.

Oversight & Accountability

Oversight would be crucial to ensure that Reed Technology and Information Services LLC is meeting the performance requirements outlined in the contract and that the pricing remains reasonable despite the lack of competition.

Related Government Programs

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

Risk Flags

Sole-source award limits competition and price discovery.
Large contract value increases financial risk.
Long contract duration may lead to price escalation.
Potential for vendor lock-in.
Broad NAICS code may obscure specific service costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $286.7 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. RTIS PAT PRTG 1/25/2018 - 3/09/18 FUNDING DELIVERY ORDER - TBD

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 $286.7 million.

What is the period of performance?

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

What specific IT services are included in this contract, and how do they align with the USPTO's core mission?

The contract likely covers a range of IT support services essential for the USPTO's operations, such as system maintenance, network management, software development, and data processing. These services are critical for the efficient processing of patent and trademark applications, managing intellectual property databases, and supporting the agency's digital infrastructure, directly aligning with its mission to foster innovation and economic growth.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without further details, it's assumed the agency determined Reed Technology possessed specific expertise or resources unavailable elsewhere. However, the absence of competition inherently limits price discovery, making robust cost analysis and negotiation vital to ensure fair pricing for taxpayers.

How will the performance and value of this contract be monitored over its duration to ensure effectiveness and prevent cost overruns?

Effective monitoring will involve establishing clear performance metrics and key performance indicators (KPIs) tied to service level agreements. Regular performance reviews, audits, and progress reports from the contractor are essential. The agency should also conduct periodic market research to benchmark costs and ensure the contractor's pricing remains competitive relative to the market, even in a sole-source scenario, to guarantee value for taxpayer money.

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: $412,141,955

Exercised Options: $286,667,429

Current Obligation: $286,667,429

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1500003

IDV Type: IDC

Timeline