Commerce Dept. awards $72.6M for Front End Processing to Reed Technology and Information Services LLC

Contract Overview

Contract Amount: $72,637,843 ($72.6M)

Contractor: Reed Technology and Information Services LLC

Awarding Agency: Department of Commerce

Start Date: 2008-04-08

End Date: 2010-12-31

Contract Duration: 997 days

Daily Burn Rate: $72.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FRONT END PROCESSING

Place of Performance

Location: HORSHAM, MONTGOMERY County, PENNSYLVANIA, 19044

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Commerce obligated $72.6 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: FRONT END PROCESSING Key points: 1. Contract awarded to a single vendor, Reed Technology and Information Services LLC. 2. The contract value is $72.6 million over approximately 3 years. 3. The NAICS code 511199 suggests a broad category of 'All Other Publishers'. 4. The contract was awarded using Full and Open Competition. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The contract value of $72.6 million for 'Front End Processing' is substantial. Without specific details on the services provided, it's difficult to benchmark against similar contracts. The fixed-price nature suggests a defined scope, but the overall value warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value. The specific pricing outcomes are not detailed here.

Taxpayer Impact: Taxpayer funds are utilized for this contract. The 'Full and Open Competition' method aims to ensure efficient use of these funds by fostering competitive bidding.

Public Impact

Public access to patent and trademark information may be facilitated by this contract. The contract supports the operational functions of the U.S. Patent and Trademark Office. Efficiency in processing applications could impact businesses and innovators relying on the USPTO.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details for 'Front End Processing'.
NAICS code 511199 is very broad.
Vendor concentration risk if Reed Technology is the sole provider for critical functions.

Positive Signals

Awarded via Full and Open Competition.
Firm Fixed Price contract type can control costs.
Long-term contract may indicate stable, ongoing need.

Sector Analysis

The U.S. Patent and Trademark Office operates within the administrative and information services sector. Spending benchmarks for 'Front End Processing' are highly dependent on the specific nature of the services, which are not detailed here. The value suggests a significant operational support role.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The contract was awarded by the Department of Commerce to the U.S. Patent and Trademark Office. Standard government oversight processes would apply to ensure contract performance and financial accountability.

Related Government Programs

All Other Publishers
Department of Commerce Contracting
U.S. Patent and Trademark Office Programs

Risk Flags

Broad NAICS code may obscure the true nature of services.
Lack of specific service details hinders value assessment.
Potential for vendor lock-in given contract size and duration.
Vendor concentration risk if Reed Technology is critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $72.6 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. FRONT END PROCESSING

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 $72.6 million.

What is the period of performance?

Start: 2008-04-08. End: 2010-12-31.

What specific 'Front End Processing' services are covered under this contract, and how do they align with the broad NAICS code 511199?

The specific services are not detailed in the provided data. 'Front End Processing' could encompass a wide range of activities, from data entry and validation to initial review stages of patent and trademark applications. The NAICS code 511199, 'All Other Publishers,' is exceptionally broad and typically includes entities primarily engaged in publishing books, newspapers, magazines, or other materials, which may not directly reflect the core IT or administrative processing functions expected for the USPTO. Clarification on the service scope is crucial for accurate assessment.

Given the 'Full and Open Competition' award, what was the competitive landscape, and how did it influence the final price?

While 'Full and Open Competition' suggests multiple bids were solicited, the provided data does not detail the number of bidders or the pricing strategies employed. The impact on the final price is therefore unknown. A competitive process ideally drives down costs, but without knowing the bid amounts or the government's cost estimates, it's impossible to definitively state the price discovery effectiveness.

What is the long-term strategic value of this $72.6 million contract for the USPTO's mission, and are there potential risks associated with vendor lock-in?

The strategic value lies in ensuring the efficient processing of patent and trademark applications, which is core to the USPTO's mission of promoting innovation and protecting intellectual property. However, a contract of this magnitude, potentially covering critical functions, carries a risk of vendor lock-in if Reed Technology becomes indispensable. This could limit future flexibility and potentially increase costs in subsequent contract renewals if competition is not actively maintained.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › All Other Publishers

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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: $72,637,843

Exercised Options: $72,637,843

Current Obligation: $72,637,843

Parent Contract

Parent Award PIID: DOC50PAPT0410001

IDV Type: IDC

Timeline