Commerce awards $4.79M for patent search services, extending contract for another year

Contract Overview

Contract Amount: $4,793,075 ($4.8M)

Contractor: Cardinal Intellectual Property Inc.

Awarding Agency: Department of Commerce

Start Date: 2026-02-02

End Date: 2027-02-01

Contract Duration: 364 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PATENT COOPERATION TREATY INTERNATIONAL SEARCH AND OPINION SERVICES - OPTION YEAR ONE TASK ORDER AWARD

Place of Performance

Location: EVANSTON, COOK County, ILLINOIS, 60201

State: Illinois Government Spending

Plain-Language Summary

Department of Commerce obligated $4.8 million to CARDINAL INTELLECTUAL PROPERTY INC. for work described as: PATENT COOPERATION TREATY INTERNATIONAL SEARCH AND OPINION SERVICES - OPTION YEAR ONE TASK ORDER AWARD Key points: 1. Contract value represents a significant investment in intellectual property protection services. 2. Competition dynamics suggest a robust market for specialized patent examination support. 3. Performance risk appears moderate given the nature of the services and contract type. 4. This award continues a pattern of federal support for patent examination processes. 5. The contract positions the USPTO to leverage external expertise for its core mission.

Value Assessment

Rating: good

The contract value of $4.79 million for one year of patent search and opinion services appears reasonable when benchmarked against similar professional services contracts. While specific per-unit cost data is not provided, the firm-fixed-price structure suggests predictable costs for the government. The duration of the task order (364 days) is standard for this type of service, and the award amount is within expected ranges for specialized intellectual property support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely considered. The presence of three bidders suggests a competitive environment for these specialized services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Benefits innovators and businesses by supporting the efficient processing of patent applications. Delivers essential patent search and opinion services to the U.S. Patent and Trademark Office. Services are primarily delivered remotely, with potential impact on intellectual property professionals nationwide. Supports a specialized workforce in the field of intellectual property analysis and research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if additional services are required beyond the defined task order.
Reliance on a single contractor for a critical function could pose a risk if performance falters.
Ensuring consistent quality across all search and opinion reports is crucial.

Positive Signals

Awarded under full and open competition, indicating a healthy market and competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor has a track record of delivering services, suggesting operational capability.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically related to intellectual property support. The market for patent search and analysis services is driven by the demand from patent offices and private entities seeking to protect their innovations. Comparable spending benchmarks would involve analyzing other USPTO contracts for similar services and the overall federal spending on intellectual property-related support functions.

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, the direct impact on small businesses through this specific award is likely limited, unless the prime contractor engages in subcontracting with small businesses. Further analysis would be needed to determine subcontracting plans and their potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Patent and Trademark Office contracting officer and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Patent Examination Services
Intellectual Property Support
Professional and Technical Services
Federal Contract Awards

Risk Flags

Contract performance risk
Data security and confidentiality
Vendor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $4.8 million to CARDINAL INTELLECTUAL PROPERTY INC.. PATENT COOPERATION TREATY INTERNATIONAL SEARCH AND OPINION SERVICES - OPTION YEAR ONE TASK ORDER AWARD

Who is the contractor on this award?

The obligated recipient is CARDINAL INTELLECTUAL PROPERTY 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 $4.8 million.

What is the period of performance?

Start: 2026-02-02. End: 2027-02-01.

What is the historical spending trend for patent cooperation treaty international search and opinion services by the USPTO?

Analyzing historical spending for PCT international search and opinion services by the USPTO requires access to detailed historical contract data. Typically, such services are awarded through task orders against larger indefinite-delivery/indefinite-quantity (IDIQ) contracts or through competitive procurements. Trends can be influenced by legislative changes, increases in patent application volume, and shifts in USPTO operational strategies. Without specific historical data for this exact service category, it's difficult to provide precise figures. However, federal agencies often aim for stable or increasing budgets for core functions like patent examination, suggesting a potentially consistent or growing expenditure in this area over time, barring significant policy shifts or budget constraints.

How does the per-unit cost of these patent search services compare to industry benchmarks?

Determining the precise per-unit cost for these patent search services is challenging without detailed breakdowns of the contract's deliverables (e.g., cost per search report, cost per opinion). The provided data indicates a total award of $4,793,075 for a 364-day period. If we assume a certain number of reports or opinions are delivered, we could derive an average cost. However, industry benchmarks for such specialized services vary significantly based on complexity, jurisdiction, and the specific expertise required. Generally, patent search and analysis are high-value services. Comparing this contract's implied per-unit cost to market rates would require detailed analysis of similar contracts awarded by the USPTO or other patent offices, as well as private sector pricing for comparable services.

What is the track record of Cardinal Intellectual Property Inc. in performing similar federal contracts?

Cardinal Intellectual Property Inc. has been awarded this task order for Patent Cooperation Treaty International Search and Opinion Services. To assess their track record, one would need to examine their past performance on federal contracts, particularly those with the U.S. Patent and Trademark Office (USPTO) or other agencies requiring similar intellectual property services. Key indicators include on-time delivery, quality of work, adherence to budget (though this is a firm-fixed-price contract), and any past performance reviews or disputes. A review of federal procurement databases like SAM.gov or FPDS would provide insights into their contract history, including award values, agencies served, and contract types. A positive performance history on similar contracts would reduce perceived risk for this current award.

What are the potential risks associated with relying on external contractors for patent search and opinion services?

Relying on external contractors for patent search and opinion services presents several potential risks. Firstly, there's the risk of inconsistent quality; ensuring that every search and opinion meets the high standards required by the USPTO can be challenging when outsourced. Secondly, data security and confidentiality are paramount, as contractors handle sensitive intellectual property information. A breach could have severe consequences. Thirdly, there's the risk of vendor lock-in or over-reliance, where the USPTO becomes too dependent on the contractor, potentially reducing internal expertise or bargaining power over time. Finally, managing the contract effectively, including monitoring performance and ensuring compliance, requires dedicated government resources and expertise.

How does this contract contribute to the overall efficiency and effectiveness of the USPTO's patent examination process?

This contract directly contributes to the efficiency and effectiveness of the USPTO's patent examination process by augmenting the agency's capacity to conduct International Search Authority (ISA) and International Preliminary Examining Authority (IPEA) functions under the Patent Cooperation Treaty (PCT). By outsourcing a portion of these critical search and opinion services, the USPTO can potentially reduce backlogs, shorten processing times for international patent applications, and allow its in-house examiners to focus on more complex or domestic examination tasks. This external support helps the USPTO meet its service level agreements and maintain its role as a key international patent authority, ultimately benefiting inventors seeking global patent protection.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1603 ORRINGTON AVE, EVANSTON, IL, 60201

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

Financial Breakdown

Contract Ceiling: $13,931,575

Exercised Options: $13,931,575

Current Obligation: $4,793,075

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1333BJ23D00151001

IDV Type: IDC

Timeline