Commerce Department's $108.5M contract for publishing services awarded to REED TECHNOLOGY AND INFORMATION SERVICES LLC

Contract Overview

Contract Amount: $108,512,716 ($108.5M)

Contractor: Reed Technology and Information Services LLC

Awarding Agency: Department of Commerce

Start Date: 2008-05-07

End Date: 2010-12-31

Contract Duration: 968 days

Daily Burn Rate: $112.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IDC/FDC/FMF

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22313

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $108.5 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: IDC/FDC/FMF Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 968 days indicates a significant, long-term need for these services. 3. The fixed-price contract type aims to control costs and provide predictability. 4. Awarded to a single contractor, REED TECHNOLOGY AND INFORMATION SERVICES LLC, highlighting their specialized capabilities. 5. The North American Industry Classification System (NAICS) code 511199 suggests services related to publishing, excluding newspapers, magazines, and books. 6. The contract was awarded under the "VA" (likely Vendor Assistance or similar) category, which may imply specific program objectives. 7. The contract was awarded in Virginia, a common hub for federal contracting activities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total award amount of $108.5 million over approximately 2.6 years suggests a substantial investment in publishing services. The firm fixed-price structure indicates an expectation of cost control, but the overall value for money depends heavily on the quality and efficiency of the services delivered by REED TECHNOLOGY AND INFORMATION SERVICES LLC. Without further details on the scope of work and deliverables, a definitive assessment of value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning that all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and solutions to secure the award. The fact that it was competed openly suggests that the U.S. Patent and Trademark Office sought to leverage market competition to obtain the most advantageous terms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that the government receives services at a competitive rate and avoids potential overpayment associated with less competitive procurement methods.

Public Impact

The primary beneficiaries are likely the U.S. Patent and Trademark Office (USPTO) and its stakeholders, who rely on efficient publishing services for patent and trademark information. Services delivered include the publication of official documents, potentially including patent applications, granted patents, and trademark registrations. The geographic impact is national, as the USPTO serves the entire United States. Workforce implications are primarily for the contractor, REED TECHNOLOGY AND INFORMATION SERVICES LLC, who will utilize their staff to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if switching costs are high after contract completion.
Dependence on a single contractor for critical publishing functions could pose a risk if performance falters.
The fixed-price nature might incentivize cost-cutting that could impact service quality if not closely monitored.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable, ongoing need and potentially a proven contractor relationship.

Sector Analysis

The publishing industry, particularly for specialized government functions like those of the USPTO, is a niche but critical sector. This contract falls under the broader information services and publishing category (NAICS 511199). The market for government publishing services is often characterized by a mix of large, established players and specialized firms capable of handling complex regulatory and informational requirements. Comparable spending benchmarks would depend on the specific nature of the publications and the volume, but government contracts for such services can range from millions to hundreds of millions of dollars.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The award to REED TECHNOLOGY AND INFORMATION SERVICES LLC, a specific company, does not inherently preclude subcontracting opportunities for small businesses. However, without explicit set-aside provisions or subcontracting goals, the direct impact on the small business ecosystem is uncertain and would depend on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Patent and Trademark Office's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is generally facilitated through contract award databases, but detailed performance reports and specific oversight mechanisms are typically internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Government Printing Office (GPO) services
Information Dissemination Services
Intellectual Property Management Systems
Federal Procurement Data System (FPDS)

Risk Flags

Potential for performance issues if contractor underestimates costs on fixed-price contract.
Lack of specific performance metrics makes value assessment difficult.
Dependence on a single vendor for critical publishing functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $108.5 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. IDC/FDC/FMF

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 $108.5 million.

What is the period of performance?

Start: 2008-05-07. End: 2010-12-31.

What specific types of publications are covered under this contract?

The provided data indicates the contract falls under NAICS code 511199, 'All Other Publishers.' This suggests services beyond traditional newspaper, magazine, or book publishing. For the U.S. Patent and Trademark Office (USPTO), this likely encompasses the publication of patent applications, granted patents, trademark registrations, official gazettes, and potentially other legal and administrative documents related to intellectual property. The exact scope would be detailed in the contract's statement of work, outlining specific formats, delivery methods, and publication schedules required by the USPTO to disseminate critical information to the public and stakeholders.

How does the $108.5 million award compare to historical spending on similar publishing services by the USPTO?

Without access to historical USPTO spending data specifically for publishing services under NAICS 511199 or comparable codes, a direct comparison is difficult. However, the $108.5 million awarded to REED TECHNOLOGY AND INFORMATION SERVICES LLC over a period of approximately 2.6 years (from May 2008 to December 2010) represents a significant investment. This figure averages roughly $41.7 million per year. To assess if this is high or low, one would need to analyze trends in USPTO's publishing needs, the evolution of publishing technologies, and the pricing of similar contracts awarded before or after this period. Factors like the volume of patents and trademarks processed, and the required publication formats, would heavily influence spending levels.

What is the track record of REED TECHNOLOGY AND INFORMATION SERVICES LLC in fulfilling federal contracts, particularly for publishing?

REED TECHNOLOGY AND INFORMATION SERVICES LLC has a history of federal contracting, as evidenced by this award. To assess their track record thoroughly, one would need to examine their performance history across all federal contracts, not just this specific one. Key indicators include past performance evaluations, any contract disputes or terminations, and the types and values of previous contracts they have held. Information from sources like the Federal Procurement Data System (FPDS) or agency-specific performance management systems would be crucial. A positive track record would involve consistent delivery of services meeting quality standards, on-time performance, and adherence to budget, especially in complex publishing or information management roles.

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

Firm fixed-price (FFP) contracts aim to provide cost certainty, but they carry inherent risks, especially for large, long-duration agreements like this $108.5 million contract. For the government, the primary risk is that the contractor might cut corners on quality or service to maximize profit if the initial price was set too high or if unforeseen issues arise. Conversely, if the contractor underestimated costs, they might struggle to deliver, potentially leading to performance issues or requests for modification. For the contractor, the risk lies in accurately estimating all costs over the contract's lifespan (968 days). Unexpected increases in labor, materials, or operational expenses could significantly erode profit margins. Effective oversight is crucial to mitigate these risks by ensuring performance standards are met despite the fixed-price structure.

How does the 'All Other Publishers' NAICS code (511199) reflect the specific services procured by the USPTO?

The NAICS code 511199, 'All Other Publishers,' is a broad category used when a business's primary activity doesn't fit into more specific publishing classifications like newspapers (511110), periodicals (511120), or book publishers (511130). For the U.S. Patent and Trademark Office (USPTO), this code is appropriate because their publishing needs are highly specialized and distinct from commercial publishing. They are primarily concerned with the official dissemination of legal documents related to intellectual property – patents and trademarks. This includes formatting, printing, and distributing patent applications, granted patents, official gazettes, and trademark registers, often in specific digital and physical formats required by law and for public record-keeping, rather than for commercial sale or general readership.

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: $108,512,716

Exercised Options: $108,512,716

Current Obligation: $108,512,716

Parent Contract

Parent Award PIID: DOC50PAPT0410001

IDV Type: IDC

Timeline