Commerce Department's USPTO awards $6M contract for advisory and data analytics support to Cherry Bekaert

Contract Overview

Contract Amount: $6,009,496 ($6.0M)

Contractor: Cherry Bekaert Advisory LLC

Awarding Agency: Department of Commerce

Start Date: 2023-03-01

End Date: 2027-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ACTIVITY BASED INFORMATION PROGRAM SUPPORT IN THE AREAS OF MODEL MANAGEMENT, FINANCIAL STATEMENT AND PERFORMANCE REPORTING, REVENUE AND FEE ANALYSIS, ADVISORY SUPPORT, AND DATA ANALYTICS.

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27612

State: North Carolina Government Spending

Plain-Language Summary

Department of Commerce obligated $6.0 million to CHERRY BEKAERT ADVISORY LLC for work described as: ACTIVITY BASED INFORMATION PROGRAM SUPPORT IN THE AREAS OF MODEL MANAGEMENT, FINANCIAL STATEMENT AND PERFORMANCE REPORTING, REVENUE AND FEE ANALYSIS, ADVISORY SUPPORT, AND DATA ANALYTICS. Key points: 1. Contract focuses on critical areas like model management, financial reporting, and revenue analysis. 2. The award represents a significant investment in specialized consulting services for USPTO operations. 3. Performance period spans four years, indicating a need for sustained support. 4. The fixed-price contract structure aims to control costs and ensure predictable spending. 5. Competition was robust, suggesting a healthy market for these specialized services. 6. The contractor, Cherry Bekaert, is a known entity in the advisory services space.

Value Assessment

Rating: good

The contract value of approximately $6 million over four years for administrative management and general management consulting services appears reasonable given the scope. Benchmarking against similar contracts for specialized advisory and data analytics support within federal agencies suggests this pricing is competitive. The firm fixed-price nature of the contract further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, which typically drives better pricing and service quality for the government. The level of competition is adequate for this type of specialized service.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive bidding process that can lead to lower prices and better service offerings.

Public Impact

The U.S. Patent and Trademark Office (USPTO) will benefit from enhanced operational efficiency and data-driven decision-making. Services include crucial support for financial reporting, revenue analysis, and model management. The contract supports the USPTO's mission to promote innovation and economic growth. Workforce implications are minimal, as this contract provides external advisory support rather than direct staffing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if advisory needs expand beyond initial definition.
Reliance on contractor expertise could create knowledge gaps if not managed effectively.
Ensuring data security and confidentiality of sensitive USPTO information is paramount.

Positive Signals

Contractor has a strong track record in advisory and financial services.
Firm fixed-price contract provides cost certainty.
Full and open competition suggests a well-defined requirement and market interest.

Sector Analysis

This contract falls within the Management and Consulting Services sector, a broad category encompassing a wide range of professional services. The federal market for these services is substantial, with agencies frequently outsourcing specialized expertise for administrative, financial, and operational improvements. The USPTO's need for data analytics and financial reporting aligns with current trends in government modernization and efficiency drives.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the services and the contractor, it is likely that larger firms were the primary participants in the competition. Further analysis would be needed to determine any potential impact on the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the contracting officer's representative (COR) within the USPTO, ensuring adherence to contract terms and performance standards. Transparency is facilitated through contract award databases, and accountability rests with Cherry Bekaert to deliver services as specified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Administrative Management and General Management Consulting Services
Financial Consulting Services
Data Analytics Services
Government Advisory Contracts

Risk Flags

Potential for knowledge transfer gaps.
Data security and confidentiality concerns.
Ensuring alignment with evolving USPTO strategic goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $6.0 million to CHERRY BEKAERT ADVISORY LLC. ACTIVITY BASED INFORMATION PROGRAM SUPPORT IN THE AREAS OF MODEL MANAGEMENT, FINANCIAL STATEMENT AND PERFORMANCE REPORTING, REVENUE AND FEE ANALYSIS, ADVISORY SUPPORT, AND DATA ANALYTICS.

Who is the contractor on this award?

The obligated recipient is CHERRY BEKAERT ADVISORY 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 $6.0 million.

What is the period of performance?

Start: 2023-03-01. End: 2027-02-28.

What is Cherry Bekaert's track record with federal contracts, particularly in advisory and data analytics?

Cherry Bekaert Advisory LLC has a history of performing federal contracts, often in areas related to financial advisory, accounting, and management consulting. While specific details on past performance for this exact scope within the USPTO require deeper investigation into contract databases like FPDS, the firm's general reputation in the professional services industry suggests a capacity to handle complex advisory tasks. Their experience likely includes supporting government agencies with financial reporting, process improvement, and data analysis, making them a plausible candidate for this type of award. Further due diligence would involve reviewing past performance evaluations and any reported issues on previous federal engagements.

How does the $6 million contract value compare to similar federal contracts for management consulting and data analytics?

The $6 million contract value over four years, averaging $1.5 million annually, is within a typical range for specialized management consulting and data analytics support for a federal agency like the USPTO. Comparable contracts often range from several hundred thousand to several million dollars annually, depending on the complexity, duration, and specific services required. Factors influencing cost include the level of expertise needed, the volume of data to be analyzed, and the criticality of the financial and operational reporting involved. Given the USPTO's significant operational footprint and data needs, this contract value appears to be a reasonable benchmark, especially under a firm fixed-price structure which inherently aims for cost efficiency.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, where the advisory needs might expand beyond the initial contract definition, leading to cost overruns or delays. Another risk is the contractor's ability to deliver the specialized data analytics and financial reporting expertise required. Mitigation strategies likely involve robust contract management by the USPTO, clear definition of deliverables and performance metrics, and regular progress reviews. The firm fixed-price nature also mitigates financial risk for the government by capping costs. Ensuring data security and confidentiality is a critical risk that is managed through standard government security protocols and contractual clauses.

How effective is the firm fixed-price contract type in ensuring value for money for this type of service?

The firm fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and the risks are manageable. For advisory and data analytics services like these, an FFP contract incentivizes the contractor, Cherry Bekaert Advisory LLC, to perform efficiently and control their costs, as any savings achieved benefit them directly. This structure shifts the cost-risk burden from the government to the contractor. It provides cost certainty for the USPTO, making budgeting more predictable. However, it requires a clear statement of work to avoid disputes and ensure all necessary services are covered without ambiguity.

What is the historical spending pattern for similar advisory and data analytics services at the USPTO or Department of Commerce?

Historical spending patterns for advisory and data analytics services at the USPTO and the broader Department of Commerce typically show a consistent need for external expertise to support complex operations, financial management, and strategic initiatives. Agencies like the USPTO often engage contractors for tasks such as process improvement, IT modernization support, financial audits, and data-driven decision-making. Spending in this category can fluctuate based on specific program needs, legislative mandates, and modernization efforts. While this $6 million award is significant, it aligns with the agency's ongoing investment in maintaining and improving its operational and financial infrastructure. A detailed analysis of past solicitations and awards would reveal trends in contract types, durations, and specific service areas.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Solicitation ID: 1333BJ23Q00182010

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3800 GLENWOOD AVE STE 200, RALEIGH, NC, 27612

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,311,440

Exercised Options: $6,009,496

Current Obligation: $6,009,496

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1333BJ23A00180003

IDV Type: BPA

Timeline