Commerce Department awards $44M contract for AI patent search, with Accenture as prime

Contract Overview

Contract Amount: $44,076,745 ($44.1M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Commerce

Start Date: 2019-10-31

End Date: 2023-04-30

Contract Duration: 1,277 days

Daily Burn Rate: $34.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IMPROVE PATENT SEARCH WITH ARTIFICIAL INTELLIGENCE CONTRACTOR SUPPORT FOR RFI PROTOTYPE POP&FPOP: 6 MONTHS FROM DOA. EPMS ID 102001

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $44.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IMPROVE PATENT SEARCH WITH ARTIFICIAL INTELLIGENCE CONTRACTOR SUPPORT FOR RFI PROTOTYPE POP&FPOP: 6 MONTHS FROM DOA. EPMS ID 102001 Key points: 1. Contract aims to enhance patent search capabilities using artificial intelligence. 2. Accenture Federal Services LLC secured the prime contract. 3. The contract duration spans over 3 years, indicating a significant investment. 4. This award falls under computer systems design services. 5. The contract was awarded through full and open competition. 6. The total value is approximately $44 million.

Value Assessment

Rating: good

The contract value of $44 million over approximately 3.5 years suggests a substantial investment in AI-driven patent search technology. Benchmarking against similar large-scale IT modernization efforts within government agencies, this pricing appears within a reasonable range, especially considering the specialized nature of AI development and integration. The firm-fixed-price structure provides cost certainty for the government, although it may limit flexibility if requirements evolve significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and innovative solutions. The presence of a single award (no: 1) suggests that one offer was deemed most advantageous to the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for vendors, which can drive down costs and improve the quality of services received.

Public Impact

The U.S. Patent and Trademark Office (USPTO) is the primary beneficiary, aiming to improve its patent examination process. The contract will deliver enhanced artificial intelligence capabilities for patent searching. This initiative is expected to benefit inventors and businesses by potentially speeding up patent application reviews. The project supports the modernization of critical government IT infrastructure within the Department of Commerce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the AI solution becomes highly proprietary.
Risk of scope creep if the definition of 'improve patent search' is not tightly managed.
Dependence on Accenture's ability to deliver complex AI integration successfully.

Positive Signals

Leveraging AI for patent search can lead to significant efficiency gains for the USPTO.
The use of a firm-fixed-price contract provides budget predictability.
Full and open competition suggests a robust evaluation process and potential for best-value selection.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and the application of artificial intelligence. The market for AI solutions in government is rapidly growing, with agencies seeking to leverage AI for various functions, including data analysis, process automation, and enhanced search capabilities. The USPTO's investment aligns with a government-wide trend towards digital transformation and the adoption of advanced technologies to improve service delivery and operational efficiency.

Small Business Impact

The data indicates this contract was awarded to Accenture Federal Services LLC, a large business. There is no explicit information regarding small business set-asides or subcontracting plans within the provided data. Therefore, the direct impact on small businesses is unclear, though large prime contractors are often encouraged or required to subcontract portions of their work to smaller firms.

Oversight & Accountability

The contract is managed by the Department of Commerce, specifically the U.S. Patent and Trademark Office. Oversight would typically involve program managers monitoring performance against contract deliverables and milestones. The firm-fixed-price nature of the award provides a degree of financial oversight. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible.

Related Government Programs

USPTO IT Modernization Efforts
Federal AI Initiatives
Government Data Analytics Contracts
Computer Systems Design Services

Risk Flags

Potential for vendor lock-in
Complexity of AI integration
Dependence on contractor expertise
Scope management challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $44.1 million to ACCENTURE FEDERAL SERVICES LLC. IMPROVE PATENT SEARCH WITH ARTIFICIAL INTELLIGENCE CONTRACTOR SUPPORT FOR RFI PROTOTYPE POP&FPOP: 6 MONTHS FROM DOA. EPMS ID 102001

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL 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 $44.1 million.

What is the period of performance?

Start: 2019-10-31. End: 2023-04-30.

What is the specific AI technology being implemented for patent search, and what are the expected improvements in search accuracy and speed?

The provided data does not specify the exact AI technologies (e.g., natural language processing, machine learning algorithms, deep learning models) being implemented. However, the objective is to 'IMPROVE PATENT SEARCH WITH ARTIFICIAL INTELLIGENCE'. Expected improvements would likely include higher precision in identifying relevant prior art, reduced time for examiners to conduct searches, and potentially the ability to identify novel connections between different technological domains. The USPTO likely has detailed performance work statements outlining these specific goals and metrics, which are not included in this summary data. The success of the prototype phase mentioned in the data ('RFI PROTOTYPE POP&FPOP') would inform the full deployment.

How does the $44 million contract value compare to historical spending on patent search systems at the USPTO?

The provided data indicates a single delivery order with a value of $44,076,744.60, spanning from October 31, 2019, to April 30, 2023 (approximately 42 months or 3.5 years). To compare this to historical spending, one would need data on previous contracts for patent search systems, including their duration, scope, and total cost. Without this historical context, it's difficult to definitively state whether $44 million represents an increase, decrease, or similar level of investment compared to prior systems. However, the significant value suggests a major upgrade or a comprehensive overhaul of the existing search infrastructure, likely incorporating advanced technologies like AI.

What are the key performance indicators (KPIs) for this contract, and how will Accenture's performance be measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. Typically, for an AI-driven patent search system, KPIs would focus on aspects like search accuracy (e.g., recall and precision rates), search speed (time to return relevant results), examiner efficiency gains (e.g., reduction in search time per application), system uptime and reliability, and user satisfaction. Accenture's performance would be measured against these defined KPIs, likely through regular reporting, system performance monitoring, and potentially user feedback mechanisms. The contract's success hinges on meeting or exceeding these performance benchmarks.

What is Accenture Federal Services LLC's track record with similar large-scale AI implementation projects within the federal government?

Accenture Federal Services LLC has a significant track record of delivering large-scale IT solutions and digital transformation services to various federal agencies. While the specific data here doesn't detail their AI project history, Accenture globally and within the US federal sector has been involved in numerous projects leveraging artificial intelligence, machine learning, and data analytics. They often work on complex system integrations, cloud migrations, and modernization efforts. Their experience would likely include developing and implementing advanced analytics platforms, automation solutions, and potentially AI-powered search or knowledge management systems for other government clients, although specific details for USPTO-like AI patent search projects would require deeper investigation into their portfolio.

What are the potential risks associated with relying on a single vendor (Accenture) for such a critical function as patent search?

Relying on a single vendor like Accenture for a critical function such as patent search introduces several potential risks. Firstly, there's the risk of vendor lock-in, where the USPTO becomes heavily dependent on Accenture's proprietary technology and expertise, making it difficult and costly to switch vendors or bring the capability in-house later. Secondly, if Accenture faces financial difficulties, organizational changes, or strategic shifts, it could disrupt service delivery. Thirdly, a lack of ongoing competition might reduce the incentive for Accenture to continuously innovate or offer the most competitive pricing beyond the initial contract term. Finally, knowledge transfer and continuity can be a challenge if key personnel leave Accenture.

How does this contract align with the broader strategic goals of the USPTO and the Department of Commerce regarding innovation and efficiency?

This contract directly aligns with the strategic goals of both the USPTO and the Department of Commerce. For the USPTO, improving the patent search process is fundamental to its mission of promoting innovation and economic growth by providing reliable and efficient patent examination. Enhancing search capabilities with AI can lead to faster patent grants, clearer intellectual property rights, and reduced backlogs, all contributing to a more robust innovation ecosystem. For the Department of Commerce, investing in advanced technologies like AI within its bureaus, such as the USPTO, supports its broader mandate to foster economic competitiveness and technological advancement across the nation. This initiative positions the USPTO as a leader in adopting cutting-edge technology for governmental functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD STE 300, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $44,076,745

Exercised Options: $44,076,745

Current Obligation: $44,076,745

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $37,175,337

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F540GA

IDV Type: FSS

Timeline