Commerce's $69M USPTO IT contract awarded to MAXIMUS FEDERAL SERVICES, INC. for computer systems design

Contract Overview

Contract Amount: $69,226,405 ($69.2M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Department of Commerce

Start Date: 2021-04-05

End Date: 2024-04-30

Contract Duration: 1,121 days

Daily Burn Rate: $61.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: PATENT PRODUCT BUCKET A: CLASSIFICATION AND PALM

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $69.2 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: PATENT PRODUCT BUCKET A: CLASSIFICATION AND PALM Key points: 1. Contract awarded via full and open competition, suggesting a competitive marketplace. 2. The contract type is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 3. Performance is concentrated in Virginia, with a duration of over three years. 4. The contract focuses on computer systems design services, a critical area for USPTO operations. 5. No small business set-aside was utilized, which may limit direct opportunities for smaller firms. 6. The contract's value is substantial, requiring careful monitoring of performance and cost.

Value Assessment

Rating: good

The contract value of $69.2 million over approximately 3 years for computer systems design services appears reasonable when benchmarked against similar IT service contracts for federal agencies. Without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. However, the use of full and open competition suggests that pricing was likely subjected to market forces, which generally promotes competitive rates. Further analysis would require comparing the specific services rendered against industry standards and the pricing structures of comparable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this specific delivery order. While full and open competition is generally the preferred method for ensuring fair pricing and access to the best solutions, the number of bidders can influence the intensity of price discovery. A higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and access to a wide range of qualified contractors. Full and open competition aims to ensure that the government receives the best value by allowing market forces to drive down costs.

Public Impact

The U.S. Patent and Trademark Office (USPTO) is the primary beneficiary, receiving essential computer systems design services. These services are critical for maintaining and improving the technological infrastructure that supports the patent and trademark application and examination processes. The geographic impact is concentrated in Virginia, where the contractor will likely perform the majority of the work. The contract supports IT professionals and potentially other skilled labor involved in computer systems design and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the specific requirements are not tightly defined.
Dependence on a single contractor for critical IT systems design could pose a risk if performance issues arise.
Ensuring continued innovation and adaptation to evolving technological landscapes within the defined contract scope.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract duration provides stability for service delivery and contractor planning.
Focus on computer systems design addresses a core operational need for the USPTO.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with agencies continually investing in modernizing their infrastructure and digital capabilities. The U.S. Patent and Trademark Office (USPTO) relies heavily on robust IT systems to manage its core functions of examining and issuing patents and trademarks. This contract represents a portion of the broader federal spending on IT modernization and support services, aiming to enhance efficiency and effectiveness in intellectual property management.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside. This means that opportunities for small businesses to directly participate in this specific contract may be limited unless they are part of a subcontracting plan. While MAXIMUS FEDERAL SERVICES, INC. may have small business partners, the primary award does not directly contribute to the government's small business contracting goals through a set-aside mechanism. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Commerce's U.S. Patent and Trademark Office. Accountability measures would be defined in the contract's statement of work, including performance metrics, delivery schedules, and quality standards. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Commerce may have jurisdiction to investigate potential fraud, waste, or abuse related to this contract.

Related Government Programs

USPTO IT Modernization Programs
Federal Civilian IT Services Contracts
Computer Systems Design and Integration Services
Department of Commerce IT Procurement

Risk Flags

Potential for scope creep
Contractor performance monitoring
Integration with existing USPTO systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $69.2 million to MAXIMUS FEDERAL SERVICES, INC.. PATENT PRODUCT BUCKET A: CLASSIFICATION AND PALM

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..

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 $69.2 million.

What is the period of performance?

Start: 2021-04-05. End: 2024-04-30.

What is the specific scope of 'Computer Systems Design Services' covered under this contract?

The specific scope of 'Computer Systems Design Services' under contract number 541512 for MAXIMUS FEDERAL SERVICES, INC. at the U.S. Patent and Trademark Office (USPTO) is not detailed in the provided data. Generally, computer systems design services encompass a broad range of activities including analyzing user needs, designing system architecture, developing software specifications, integrating hardware and software components, and planning for system implementation and maintenance. For the USPTO, these services likely relate to the design and enhancement of systems that manage patent and trademark applications, intellectual property databases, examiner workstations, and public-facing portals. A detailed statement of work (SOW) within the contract documents would provide precise details on the tasks, deliverables, and performance standards.

How does the awarded amount of $69.2 million compare to historical spending on similar IT services by the USPTO?

Comparing the $69.2 million award to historical spending requires access to historical USPTO procurement data. However, federal IT spending is generally substantial and growing, driven by the need for modernization and cybersecurity. Contracts of this magnitude for computer systems design are not uncommon for large federal agencies like the USPTO, which manage complex, data-intensive operations. To provide a precise comparison, one would need to analyze the USPTO's IT spending trends over the past 5-10 years, identifying contracts with similar scopes (e.g., systems design, software development, IT infrastructure support) and durations. This would help determine if this contract represents an increase, decrease, or stable level of investment in such services.

What are the key performance indicators (KPIs) used to evaluate MAXIMUS FEDERAL SERVICES, INC.'s performance on this contract?

Key Performance Indicators (KPIs) for this contract are not explicitly provided in the summary data. However, for computer systems design services, typical KPIs often include adherence to project timelines, successful completion of design milestones, quality of design documentation, system performance post-implementation, user satisfaction, and adherence to budget. The contract's Statement of Work (SOW) would detail these specific metrics and the acceptable performance thresholds. Performance evaluations would likely be conducted periodically by the USPTO's contracting officer's representative (COR) to ensure the contractor is meeting its obligations and delivering value.

What is MAXIMUS FEDERAL SERVICES, INC.'s track record with federal IT contracts, particularly with the Department of Commerce or USPTO?

MAXIMUS FEDERAL SERVICES, INC. has a significant track record of performing federal contracts, including those related to IT services. While specific details of their past performance with the Department of Commerce or the USPTO are not in the provided data, Maximus is known for providing a range of government services, including IT solutions, health and human services IT, and citizen engagement platforms. Their experience often involves large-scale system implementations and support. A thorough review of their contract history, past performance evaluations (e.g., from CPARS - Contractor Performance Assessment Reporting System), and any prior work with the USPTO would be necessary to fully assess their relevant track record for this specific computer systems design contract.

Are there any identified risks associated with this contract, such as technical challenges, contractor performance issues, or cost overruns?

The provided data does not explicitly list risks associated with this contract. However, general risks inherent in large IT system design contracts include technical complexity, potential for integration issues with existing systems, evolving requirements leading to scope creep, contractor performance variability, and the possibility of cost overruns if not managed tightly. Given that this is a delivery order under an IDIQ, the underlying IDIQ vehicle may have undergone risk assessments. Specific risks for this delivery order would be detailed in the contract's risk management plan, if one exists, and would be monitored by the USPTO's program and contracting officials throughout the contract's lifecycle.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1600 TYSONS BLVD STE 300, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $69,226,405

Exercised Options: $69,226,405

Current Obligation: $69,226,405

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0044

IDV Type: GWAC

Timeline