Commerce awards $73.7M contract for Patent Center IT support, a recompete for established services

Contract Overview

Contract Amount: $73,748,760 ($73.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Commerce

Start Date: 2024-04-01

End Date: 2026-12-31

Contract Duration: 1,004 days

Daily Burn Rate: $73.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THIS IS A RECOMPETE FOR THE PATENT PRODUCT PATENT ADMINISTRATIVE CENTER (PAC) AND OPERATIONS AND MAINTENANCE (O&M) SUPPORT SERVICES FOR APPLICATIONS.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $73.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THIS IS A RECOMPETE FOR THE PATENT PRODUCT PATENT ADMINISTRATIVE CENTER (PAC) AND OPERATIONS AND MAINTENANCE (O&M) SUPPORT SERVICES FOR APPLICATIONS. Key points: 1. Contract is a recompete, suggesting stable requirements and potential for contractor familiarity. 2. Full and open competition was utilized, indicating a broad market approach. 3. The contract value appears reasonable for IT operations and maintenance support. 4. Services are critical to the U.S. Patent and Trademark Office's core functions. 5. The duration of the contract extends over two fiscal years. 6. This award represents a significant investment in maintaining essential IT infrastructure.

Value Assessment

Rating: good

The contract value of approximately $73.7 million over roughly 3 years (including potential option periods) for IT operations and maintenance support for the Patent Administrative Center (PAC) appears to be within a reasonable range for services of this nature. Benchmarking against similar IT support contracts for federal agencies of comparable size and scope would provide a more precise value-for-money assessment. The fixed price nature of the delivery order, based on labor hours, allows for cost control, but the ultimate value depends on the efficiency of the contractor's service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were likely solicited and had the opportunity to bid. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The specific number of bidders is not provided, but the method of competition indicates a broad market search.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions, ultimately aiming for the best value.

Public Impact

The U.S. Patent and Trademark Office (USPTO) and its employees benefit from reliable IT systems. Businesses and inventors seeking patents will experience continued operational support for the PAC. The contract supports IT services in Virginia, contributing to the local tech workforce. The continuity of these services ensures the efficient processing of patent applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the incumbent's solution is highly proprietary.
Risk of cost overruns if labor hour estimates are inaccurate or scope creep occurs.
Dependence on a single contractor for critical IT infrastructure.

Positive Signals

Recompete nature suggests successful past performance by the incumbent.
Full and open competition indicates a commitment to market-based pricing.
Clear definition of services (PAC and O&M) reduces ambiguity.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. The market for government IT support is substantial, with agencies increasingly relying on specialized contractors for application maintenance, system design, and operational support. The USPTO's need for robust IT infrastructure to manage its patent and trademark processes makes this a key contract within the government's technology spending landscape. Comparable spending benchmarks would involve analyzing IT O&M contracts across various federal agencies.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, the prime contractor, Science Applications International Corporation (SAIC), may engage small businesses for subcontracting opportunities to fulfill specific aspects of the contract, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Patent and Trademark Office (USPTO) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Department of Commerce's Office of Inspector General (OIG) may also conduct audits or investigations into the contract's financial and performance aspects to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

USPTO IT Modernization Efforts
Federal Civilian Agency IT Operations Support
Patent and Trademark Application Processing Systems
Government IT Infrastructure Maintenance

Risk Flags

Potential for scope creep in IT services contracts.
Reliance on incumbent contractor's institutional knowledge.
Cybersecurity risks associated with sensitive patent data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $73.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THIS IS A RECOMPETE FOR THE PATENT PRODUCT PATENT ADMINISTRATIVE CENTER (PAC) AND OPERATIONS AND MAINTENANCE (O&M) SUPPORT SERVICES FOR APPLICATIONS.

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

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 $73.7 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-12-31.

What is the historical spending trend for PAC and O&M support services at the USPTO?

Analyzing historical spending for Patent Administrative Center (PAC) and Operations and Maintenance (O&M) support services at the U.S. Patent and Trademark Office (USPTO) is crucial for understanding budget trends and contractor performance over time. While specific historical data for this exact contract vehicle is not provided in the summary, general trends in federal IT spending indicate a consistent and often increasing demand for such services. Agencies like the USPTO rely heavily on IT to manage complex intellectual property processes. Therefore, it's probable that spending in this area has been substantial and potentially growing, reflecting the need for system upgrades, cybersecurity enhancements, and ongoing operational support. A deeper dive would involve examining prior contract awards for similar services, their values, durations, and any modifications or task orders issued, to identify patterns in expenditure and identify potential areas of cost efficiency or escalation.

How does the awarded amount compare to the original contract ceiling or estimated value?

The provided data indicates an award amount of $73,748,760.09 for this delivery order. Without information on the original contract ceiling or the estimated value prior to award, a direct comparison is not possible. Delivery orders are typically issued against a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar contract vehicle. The award amount represents the value obligated for this specific order. To assess if this amount is aligned with expectations, one would need to review the parent contract's details, including its total ceiling value, the estimated value of services solicited, and any pre-negotiated rates. If this award represents a significant portion of a larger contract's ceiling, it might suggest a substantial scope of work. Conversely, if it's a smaller portion, it could indicate phased delivery or multiple orders.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for IT Operations and Maintenance (O&M) support services, such as those provided for the Patent Administrative Center (PAC), are critical for ensuring service quality and contractor accountability. While specific KPIs for this contract are not detailed in the summary, typical metrics in such agreements include system uptime and availability (e.g., 99.9% availability for critical systems), response times for issue resolution (e.g., critical issues resolved within 4 hours), incident resolution rates, patch management compliance, security vulnerability remediation timelines, and user satisfaction scores. Performance is often evaluated through regular reports submitted by the contractor and assessed by government personnel. Failure to meet these KPIs can result in contractual remedies, including potential financial penalties or termination.

What is the track record of Science Applications International Corporation (SAIC) in performing similar government IT contracts?

Science Applications International Corporation (SAIC) has a substantial track record of performing complex IT services and systems integration contracts for various U.S. federal agencies. They are a large, established government contractor with extensive experience in areas such as cloud computing, cybersecurity, data analytics, and enterprise IT modernization. SAIC has held numerous prime contracts supporting agencies like the Department of Defense, NASA, and civilian departments. Their performance history generally includes managing large-scale IT infrastructure, developing and maintaining software applications, and providing mission-critical support. While specific performance details for this particular recompete are not provided, SAIC's overall profile suggests they possess the resources, expertise, and experience necessary to execute this contract effectively. A thorough review of their past performance ratings and any past performance issues on similar contracts would offer further insight.

Are there any specific cybersecurity requirements or risks associated with this contract?

Given that this contract supports the Patent Administrative Center (PAC) and its associated IT applications for the U.S. Patent and Trademark Office (USPTO), cybersecurity is undoubtedly a critical consideration. The USPTO handles sensitive intellectual property data, making its systems attractive targets for cyber threats. Therefore, the contract likely incorporates stringent cybersecurity requirements mandated by federal regulations such as NIST SP 800-53, FISMA, and agency-specific policies. These requirements would cover areas like access control, data encryption, vulnerability management, incident response, and continuous monitoring. Risks associated with this contract include potential data breaches, system intrusions, denial-of-service attacks, and insider threats. The contractor, SAIC, would be responsible for implementing robust security measures and adhering to strict protocols to protect USPTO systems and data.

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: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $73,748,760

Exercised Options: $73,748,760

Current Obligation: $73,748,760

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $65,969,361

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1333BJ21D00280004

IDV Type: IDC

Timeline