Commerce's USPTO Spends $223M on Patent Data Capture Services with Reed Technology

Contract Overview

Contract Amount: $223,263,498 ($223.3M)

Contractor: Reed Technology and Information Services LLC

Awarding Agency: Department of Commerce

Start Date: 2021-02-01

End Date: 2022-07-31

Contract Duration: 545 days

Daily Burn Rate: $409.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PATENT DATA CAPTURE SERVICES - PROVIDES SERVICES FOR THE ENTIRE LIFE CYCLE OF THE PATENT APPLICATION PROCESS, FROM THE INITIAL FILING OF THE APPLICATION TO THE FINAL DISPOSITION OF THE APPLICATION

Place of Performance

Location: HORSHAM, MONTGOMERY County, PENNSYLVANIA, 19044

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Commerce obligated $223.3 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: PATENT DATA CAPTURE SERVICES - PROVIDES SERVICES FOR THE ENTIRE LIFE CYCLE OF THE PATENT APPLICATION PROCESS, FROM THE INITIAL FILING OF THE APPLICATION TO THE FINAL DISPOSITION OF THE APPLICATION Key points: 1. Contract awarded to Reed Technology and Information Services LLC for comprehensive patent application lifecycle services. 2. Significant spending of $223M highlights the importance of efficient patent processing. 3. The contract was not competed, raising questions about potential price discovery and value. 4. Services cover the entire patent application process, from filing to disposition.

Value Assessment

Rating: questionable

The contract value of $223M is substantial. Without competition, it's difficult to assess if this represents fair market value compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may prevent the government from securing the best possible pricing.

Taxpayer Impact: The lack of competition could lead to taxpayers overpaying for these essential patent data capture services.

Public Impact

Impacts the efficiency and speed of the patent application process for inventors and businesses. Ensures accurate and comprehensive data management for intellectual property. Supports the U.S. innovation ecosystem by facilitating patent filings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Sole-source award

Positive Signals

Essential service for USPTO operations
Long-term contract duration

Sector Analysis

This contract falls under administrative and support services, specifically related to publishing and data processing. The $223M spend is significant for this niche within the government contracting sector.

Small Business Impact

The contract was awarded to Reed Technology and Information Services LLC, a single entity. There is no indication of small business participation or subcontracting within the provided data.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure the government is receiving adequate value and that the contractor is meeting all performance requirements.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for overpayment
Limited transparency in pricing
No clear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $223.3 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. PATENT DATA CAPTURE SERVICES - PROVIDES SERVICES FOR THE ENTIRE LIFE CYCLE OF THE PATENT APPLICATION PROCESS, FROM THE INITIAL FILING OF THE APPLICATION TO THE FINAL DISPOSITION OF THE APPLICATION

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 $223.3 million.

What is the period of performance?

Start: 2021-02-01. End: 2022-07-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives that meet the specific requirements. Further investigation into the contract file would be needed to determine the precise rationale used by the U.S. Patent and Trademark Office in this instance.

How does the pricing compare to industry benchmarks for similar patent data capture services?

Without a competitive bidding process, direct comparison to industry benchmarks is challenging. A thorough market research analysis would be required to assess if the $223M contract value aligns with prevailing rates for comparable services, considering the scope and duration.

What mechanisms are in place to ensure the effectiveness and quality of the patent data capture services provided?

Standard contract management practices, including performance metrics, service level agreements, and regular reviews, should be in place. The U.S. Patent and Trademark Office would be responsible for monitoring contractor performance and ensuring adherence to contract terms and quality standards.

Industry Classification

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

Product/Service Code: PHOTO, MAP, PRINT, PUBLICATION › PHOTOGR, MAPPING, PRINTING, PUBLISH

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1333BJ21R00151002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $457,397,465

Exercised Options: $278,599,941

Current Obligation: $223,263,498

Actual Outlays: $-9,216

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline