REED TECHNOLOGY AND INFORMATION SERVICES LLC awarded $74.1M contract for publishing services by U.S. Patent and Trademark Office

Contract Overview

Contract Amount: $74,111,551 ($74.1M)

Contractor: Reed Technology and Information Services LLC

Awarding Agency: Department of Commerce

Start Date: 2008-04-30

End Date: 2010-12-31

Contract Duration: 975 days

Daily Burn Rate: $76.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRE-GRANT PUBLICATION

Place of Performance

Location: HORSHAM, MONTGOMERY County, PENNSYLVANIA, 19044

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Commerce obligated $74.1 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: PRE-GRANT PUBLICATION Key points: 1. Contract value of $74.1M over approximately 3 years suggests a significant investment in publishing operations. 2. Full and open competition indicates a potentially competitive bidding process, which can drive better pricing. 3. Fixed-price contract type may offer cost certainty for the government, shifting performance risk to the contractor. 4. The contract's duration of 975 days (approx. 2.7 years) aligns with typical publishing service cycles. 5. The North American Industry Classification System (NAICS) code 511199 (All Other Publishers) places this contract within a broad publishing services sector. 6. The award to REED TECHNOLOGY AND INFORMATION SERVICES LLC, a single entity, highlights the concentration of specialized service providers in this niche.

Value Assessment

Rating: good

The contract value of $74.1 million over roughly 2.7 years averages to approximately $27.4 million per year. Benchmarking this against similar large-scale publishing contracts is challenging without more specific service details. However, the fixed-price nature suggests the government sought cost predictability. The absence of a specific base year and the presence of delivery orders imply flexibility in tasking and potential for adjustments, which could impact the overall value realization.

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 eligible to bid. This process typically involves a solicitation where interested parties can submit proposals. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive environment was intended, which is generally favorable for price discovery and achieving market-based rates.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of vendors to compete, potentially leading to lower prices and better quality services through market forces.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from this contract by ensuring the efficient and timely publication of patents and other intellectual property information. This service supports the USPTO's mission to promote innovation and economic growth by making information publicly accessible. The contract likely impacts the publishing and information services industry, potentially creating or sustaining jobs within that sector. The geographic impact is primarily national, as the USPTO serves applicants and the public across the United States, though the contractor's physical location may be elsewhere.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if REED TECHNOLOGY AND INFORMATION SERVICES LLC becomes the sole provider for critical publishing functions over an extended period.
Risk of scope creep if delivery orders expand beyond the initial intent without adequate price adjustments.
Dependence on a single contractor for a core function like publishing could create vulnerabilities if the contractor faces financial or operational difficulties.

Positive Signals

The use of full and open competition suggests a deliberate effort to avoid sole-source dependency and ensure market-driven pricing.
A fixed-price contract structure incentivizes the contractor to manage costs efficiently, potentially leading to better value.
The contract's duration, while substantial, is managed through delivery orders, allowing for phased execution and potential re-evaluation of needs.

Sector Analysis

This contract falls within the broader information services and publishing sector, specifically related to government publishing needs. The market for specialized government publishing services can be concentrated, with a few key players handling large-scale contracts. The $74.1 million award is substantial, indicating a significant operational requirement for the USPTO. Comparable spending benchmarks would depend on the exact nature of the publishing services, such as data management, printing, and digital dissemination.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. This suggests that the primary focus was on full and open competition to secure the best value. There is no explicit information on subcontracting plans for small businesses, which means the impact on the small business ecosystem is likely indirect, depending on whether the prime contractor utilizes small businesses for any part of the service delivery.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Patent and Trademark Office's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Government Publishing Services
Federal Contract Information Dissemination
Intellectual Property Management Systems
Public Access to Government Data

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Risk of service quality degradation if contractor prioritizes profit over performance.
Dependence on a single contractor for critical publishing functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $74.1 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. PRE-GRANT PUBLICATION

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 $74.1 million.

What is the period of performance?

Start: 2008-04-30. End: 2010-12-31.

What is the track record of REED TECHNOLOGY AND INFORMATION SERVICES LLC with federal contracts, particularly with the USPTO?

REED TECHNOLOGY AND INFORMATION SERVICES LLC has a history of federal contracting. While the provided data focuses on a single award, a deeper analysis would involve examining their complete contract portfolio across various agencies. This includes reviewing past performance evaluations, any contract disputes or terminations, and their success rate in winning competitive bids. Understanding their experience specifically with the USPTO would reveal their familiarity with the agency's unique requirements and operational environment. A consistent record of successful contract performance and positive past performance reviews would indicate reliability and capability for this publishing services contract.

How does the $74.1 million contract value compare to similar publishing services contracts awarded by the USPTO or other federal agencies?

Benchmarking the $74.1 million contract value requires comparing it to contracts for similar publishing and information dissemination services. The USPTO's core function involves managing vast amounts of patent and trademark data, necessitating significant publishing capabilities. If this contract covers digital publication, data archiving, and public access portals, its value should be assessed against other large IT and information management contracts. Without specific details on the scope of services (e.g., volume of documents, types of publications, digital vs. print), direct comparison is difficult. However, for a contract spanning nearly three years and covering a critical agency function, $74.1 million suggests a substantial, high-volume operation.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for publishing services, KPIs might include metrics such as document processing turnaround time, accuracy rates in data entry and publication, uptime for digital platforms, and adherence to publication schedules. SLAs would define the acceptable performance thresholds for these KPIs and outline remedies or penalties for non-compliance. The fixed-price nature of the contract suggests that the contractor is incentivized to meet these performance standards to ensure profitability, while the government relies on these metrics to ensure the effective delivery of publishing services.

What is the historical spending pattern for publishing services at the U.S. Patent and Trademark Office?

Historical spending patterns for publishing services at the USPTO would reveal trends in contract values, types of services procured, and contractor relationships over time. Analyzing past contracts, including their durations, values, and competitive nature, can provide context for the current $74.1 million award. For instance, if previous contracts for similar services were significantly smaller or awarded through different procurement methods (e.g., sole-source), it might indicate an expansion of services or a shift towards more competitive sourcing. Understanding this history helps assess whether the current spending level is consistent with the agency's evolving needs and budget allocations for publishing operations.

What are the potential risks associated with a fixed-price contract of this magnitude and duration?

A fixed-price contract of $74.1 million over nearly three years carries inherent risks. For the government, the primary risk is that the contractor may cut corners on quality or service to maximize profit if the fixed price proves too low or if oversight is insufficient. Conversely, if the price was set too high, the government may overpay for the services. For the contractor, the risk lies in underestimating costs, leading to reduced profitability or even losses, especially if unforeseen issues arise (e.g., changes in technology, increased labor costs, scope creep not adequately addressed). Effective contract management, clear performance metrics, and robust oversight are crucial to mitigate these risks.

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, 19044

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $74,111,551

Exercised Options: $74,111,551

Current Obligation: $74,111,551

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DOC50PAPT0410001

IDV Type: IDC

Timeline