Commerce Department's $67.6M patent data capture contract awarded to Reed Technology and Information Services LLC

Contract Overview

Contract Amount: $67,654,697 ($67.7M)

Contractor: Reed Technology and Information Services LLC

Awarding Agency: Department of Commerce

Start Date: 2003-05-15

End Date: 2014-11-17

Contract Duration: 4,204 days

Daily Burn Rate: $16.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PATENT DATA CAPTURE

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19170

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Commerce obligated $67.7 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: PATENT DATA CAPTURE Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long contract duration of over 14 years suggests potential for cost overruns. 3. Fixed-price contract type may offer some cost certainty, but scope creep is a risk. 4. Lack of competition raises concerns about achieving optimal value for taxpayer dollars. 5. Performance period ended in 2014, indicating this is historical data. 6. The contract's primary function was data capture for patents.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its historical nature and sole-source award. Without competitive bids, it's difficult to ascertain if the pricing was optimal. The fixed-price structure provides some cost control, but the extended duration and lack of competition suggest potential for less than ideal value realization for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach bypasses the standard procurement process designed to solicit multiple bids and ensure the best possible price and value. The absence of competition limits the government's ability to leverage market forces for cost savings.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding processes.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefited from the data capture services. Enabled the digitization and management of patent information. Services were likely performed in Pennsylvania, where the contractor is located. Supported the USPTO's mission to promote innovation and economic growth.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential for cost savings.
Long contract duration increases risk of cost escalation and vendor lock-in.
Lack of competition may have resulted in a higher price than a competed contract.

Positive Signals

Fixed-price contract type provides some cost predictability.
Contract supported a critical government function (patent data management).

Sector Analysis

This contract falls within the professional services sector, specifically focusing on data processing and information management for a government agency. The market for such services is competitive, but government contracts, especially those with specialized requirements or historical relationships, can sometimes be awarded non-competitively. The total value of $67.6 million over its lifespan is significant for a single contract of this nature.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award to a specific firm, it is unlikely that small businesses were intentionally included in the procurement process.

Oversight & Accountability

Oversight mechanisms for this contract would have been managed by the U.S. Patent and Trademark Office. As a fixed-price contract, performance monitoring would focus on delivery and quality of data capture services. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Patent Application Processing
Intellectual Property Management Systems
Government Data Digitization Services

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $67.7 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. PATENT DATA CAPTURE

Who is the contractor on this award?

The obligated recipient is REED TECHNOLOGY AND INFORMATION SERVICES 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 $67.7 million.

What is the period of performance?

Start: 2003-05-15. End: 2014-11-17.

What was the primary purpose of this contract?

The primary purpose of this contract was for patent data capture. This involved the process of converting patent information into a digital format, likely for storage, retrieval, and analysis by the U.S. Patent and Trademark Office (USPTO). Such services are crucial for maintaining an efficient and accessible patent database, which supports the USPTO's mission of promoting innovation and economic growth.

Why was this contract awarded on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. Specific justifications for sole-source awards typically include situations where only one responsible source can provide the required supplies or services, such as when a unique capability or proprietary technology is involved, or in cases of urgent and compelling need. Without further documentation from the agency, the exact reason for this sole-source determination remains unspecified.

How does the contract duration impact its value?

The contract had a duration of 4204 days, which is approximately 11.5 years. Long contract durations, especially for services like data capture, can present both opportunities and risks. On one hand, it allows for continuity and deep expertise development. However, it also increases the potential for cost overruns if not managed tightly, and can lead to vendor lock-in, potentially preventing the government from accessing more innovative or cost-effective solutions that may emerge over time.

What is the significance of the 'FIRM FIXED PRICE' contract type?

A Firm Fixed Price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. This shifts the risk of cost overruns from the government to the contractor. For the government, FFP contracts offer the most price certainty. However, to be effective, the scope of work must be clearly defined to avoid disputes or change orders, which could negate the price certainty.

What does the lack of competition imply for the taxpayer?

The lack of competition, indicated by the sole-source award, generally implies that taxpayers may have paid more than they would have in a competitive environment. Competitive bidding forces contractors to offer their best prices to win the contract. When competition is absent, the government loses this leverage, potentially leading to higher overall spending for the same or similar services.

Can this contract's performance be benchmarked against similar contracts?

Benchmarking this contract's performance is difficult due to its sole-source nature and historical context (ended in 2014). Without comparable competitively awarded contracts for patent data capture during the same period, it's hard to establish a clear market rate or assess if Reed Technology and Information Services LLC provided optimal value. The lack of competitive bids prevents a direct comparison of pricing and service offerings.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Reed Elsevier Group PLC (UEI: 230792756)

Address: 275 GIBRALTAR RD, HORSHAM, PA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $173,070,022

Exercised Options: $173,070,022

Current Obligation: $67,654,697

Parent Contract

Parent Award PIID: 50PAPT800007

IDV Type: IDC

Timeline