Commerce Department's $11.1M Patent Office contract for document services awarded to Chugach Systems Integration

Contract Overview

Contract Amount: $11,125,795 ($11.1M)

Contractor: Chugach Systems Integration, LLC

Awarding Agency: Department of Commerce

Start Date: 2003-12-11

End Date: 2009-06-03

Contract Duration: 2,001 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMINISRTATIVE MOD.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $11.1 million to CHUGACH SYSTEMS INTEGRATION, LLC for work described as: ADMINISRTATIVE MOD. Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 2001 days (approx. 5.5 years) provides long-term service. 4. The contract falls under administrative modification, suggesting changes to an existing agreement. 5. Services provided are document preparation, a core administrative function. 6. Awarded to a single contractor, Chugach Systems Integration, LLC.

Value Assessment

Rating: fair

The contract's value of $11.1 million over approximately 5.5 years for document preparation services appears reasonable for a government contract of this nature. Without specific benchmarks for document preparation services at the USPTO or comparable agencies, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests that the government aimed to control costs upfront. Further analysis would require comparing the per-unit cost of documents prepared or the labor hours billed against industry standards or similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding environment, which typically leads to better price discovery and potentially lower costs for the government. The number of bidders is not specified, but the 'full and open' designation implies that multiple entities likely vied for this contract.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down prices and ensuring that the government receives services at a fair market rate.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from efficient document preparation services. Businesses and inventors relying on the USPTO receive timely processing of their patent and trademark applications. The contract supports administrative functions within the federal government. The geographic impact is primarily within the USPTO's operational sphere, likely supporting its Virginia facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if contract renewal is not competitively bid.
Reliance on a single vendor for critical administrative functions could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Long contract duration offers stability in service provision.
Awarded through full and open competition, suggesting a competitive market was leveraged.

Sector Analysis

This contract falls within the administrative and support services sector, specifically focusing on document preparation. The market for such services within the federal government is substantial, encompassing a wide range of tasks from transcription to document management. The USPTO, as a large agency, requires significant support for its patent and trademark processing, making this contract a key component of its operational efficiency. Comparable spending benchmarks would involve looking at other agencies' contracts for similar document management and preparation services.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It was awarded under full and open competition. Therefore, the direct impact on small businesses through set-asides is likely minimal, though larger prime contractors may engage small businesses for subcontracting opportunities, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's Inspector General and the U.S. Patent and Trademark Office's internal management. As a firm-fixed-price contract, oversight would focus on ensuring the contractor meets the defined scope of work and service level agreements. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

USPTO Patent Application Services
Federal Document Management Contracts
Administrative Support Services Contracts

Risk Flags

Contract awarded in 2003, may not reflect current market conditions or technology.
Limited information on specific performance metrics and outcomes.
No details on the number of bidders, making full assessment of competition difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $11.1 million to CHUGACH SYSTEMS INTEGRATION, LLC. ADMINISRTATIVE MOD.

Who is the contractor on this award?

The obligated recipient is CHUGACH SYSTEMS INTEGRATION, 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 $11.1 million.

What is the period of performance?

Start: 2003-12-11. End: 2009-06-03.

What is the track record of Chugach Systems Integration, LLC with federal contracts, particularly in document preparation services?

Chugach Systems Integration, LLC has a history of federal contracting. While specific details on their performance for this particular $11.1 million contract with the USPTO for document preparation services (awarded in 2003) are not fully detailed in the provided summary, their ability to secure and fulfill such a contract suggests a level of capability. Further investigation into their contract history, including past performance reviews, any disputes, or awards, would be necessary for a comprehensive assessment. Their longevity in the federal contracting space indicates experience, but the quality and efficiency of their services would need to be evaluated against specific performance metrics and user feedback.

How does the value of this contract compare to similar document preparation services contracts within the federal government?

Comparing the $11.1 million value of this contract to similar federal document preparation services requires access to a broader dataset of government contracts. This contract, awarded in 2003 and spanning approximately 5.5 years, represents a significant investment in administrative support. Without specific per-document costs or labor rates, it's difficult to benchmark precisely. However, contracts for document management, transcription, and administrative support can range widely based on volume, complexity, and security requirements. Given the USPTO's specific needs, this value might be considered within a reasonable range for a large-scale, long-term service agreement, assuming competitive bidding yielded fair pricing.

What are the primary risks associated with this contract for the USPTO?

The primary risks associated with this contract include potential performance issues if Chugach Systems Integration, LLC fails to meet the required service levels for document preparation, leading to delays in USPTO operations. There's also a risk of cost overruns if the firm-fixed-price contract has poorly defined scope or if unforeseen complexities arise, although this is mitigated by the pricing structure. Vendor lock-in is another concern, especially if competition for subsequent contracts is limited. Ensuring data security and confidentiality of sensitive patent and trademark information handled by the contractor is also a critical risk area that requires robust oversight and adherence to federal data protection regulations.

How effective has this contract been in ensuring the timely and accurate preparation of documents for the USPTO?

The effectiveness of this contract in ensuring timely and accurate document preparation for the USPTO cannot be fully determined from the provided data alone. The contract's award date (2003) and duration (ending 2009) indicate it has concluded. To assess its effectiveness, one would need to examine performance metrics, user satisfaction surveys from USPTO staff, and any reports from oversight bodies or the Inspector General during the contract period. Factors like on-time delivery rates, error rates in document preparation, and the overall impact on the efficiency of patent and trademark processing would be key indicators of its success.

What were the historical spending patterns for document preparation services at the USPTO before and after this contract?

Historical spending patterns for document preparation services at the USPTO before and after this specific $11.1 million contract (2003-2009) are not detailed in the provided summary. To analyze this, one would need to access historical USPTO budget data and contract databases. Understanding prior spending would help contextualize the $11.1 million award – was it an increase or decrease in spending? Examining post-contract spending would reveal trends in how the USPTO has managed these services subsequently, whether through continued contracts with Chugach Systems Integration, LLC, or by shifting to different vendors or internal operations. This analysis is crucial for understanding long-term resource allocation and efficiency.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Document Preparation Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 560 E 34TH AVE STE 300, ANCHORAGE, AK, 00

Business Categories: Category Business, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,125,795

Exercised Options: $11,125,795

Current Obligation: $11,125,795

Parent Contract

Parent Award PIID: 50PAPT101022

IDV Type: IDC

Timeline