Commerce Department Spends $54.7M on Patent Data Capture Services with Reed Technology

Contract Overview

Contract Amount: $54,740,018 ($54.7M)

Contractor: Reed Technology and Information Services LLC

Awarding Agency: Department of Commerce

Start Date: 2013-11-20

End Date: 2014-11-30

Contract Duration: 375 days

Daily Burn Rate: $146.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PATENT DATA CAPTURE PRE-GRANT PUBLICATION

Place of Performance

Location: HORSHAM, MONTGOMERY County, PENNSYLVANIA, 19044, UNITED STATES OF AMERICA

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Commerce obligated $54.7 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: PATENT DATA CAPTURE PRE-GRANT PUBLICATION Key points: 1. Contract awarded to Reed Technology and Information Services LLC for patent data capture. 2. Full and open competition was utilized for this contract. 3. The contract duration was 375 days. 4. The total award amount was $54,740,018.34. 5. The NAICS code is 511199, indicating 'All Other Publishers'.

Value Assessment

Rating: fair

The contract value of $54.7M for a 375-day period suggests a significant investment. Without specific deliverables or comparable contracts for similar data capture services, assessing the value is challenging. The firm fixed-price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific pricing mechanisms and the number of bids received are not detailed, making it difficult to fully assess price discovery.

Taxpayer Impact: Taxpayers funded the $54.7M expenditure for patent data capture services. The effectiveness of this spending in improving patent processing and accessibility will determine the ultimate taxpayer value.

Public Impact

Ensures timely publication of patent applications, crucial for intellectual property rights. Supports the U.S. Patent and Trademark Office's mission to promote innovation. Provides data that can be used by researchers, businesses, and the public. The efficiency of this service impacts the speed of patent examination.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of detailed performance metrics.
  • Potential for cost overruns if scope changes.
  • Dependence on a single vendor for a critical function.

Positive Signals

  • Firm fixed-price contract provides cost predictability.
  • Full and open competition suggests potential for competitive pricing.
  • Supports a core government function related to innovation.

Sector Analysis

The IT and publishing sector is characterized by rapid technological advancements and the need for efficient data management. Spending benchmarks for similar data capture services are highly variable based on data volume, complexity, and required processing speed.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific information provided regarding the participation or subcontracting opportunities for small businesses in this particular award.

Oversight & Accountability

Oversight would typically involve monitoring contract performance against deliverables and ensuring compliance with terms. The effectiveness of oversight is dependent on the agency's internal processes and the clarity of the contract's performance standards.

Related Government Programs

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

Risk Flags

  • High contract value.
  • Potential for vendor lock-in.
  • Lack of detailed performance metrics.
  • Data integrity and accuracy concerns.
  • Long-term sustainability of the service.

Tags

all-other-publishers, department-of-commerce, pa, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $54.7 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. PATENT DATA CAPTURE 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 $54.7 million.

What is the period of performance?

Start: 2013-11-20. End: 2014-11-30.

What specific data capture processes were included in this contract, and how do they align with current USPTO needs?

The contract focused on 'PATENT DATA CAPTURE PRE-GRANT PUBLICATION'. This likely involved digitizing, indexing, and preparing patent application data for public release prior to examination. The alignment with current needs would depend on the USPTO's evolving technological infrastructure and data management strategies, which may have shifted since 2013-2014.

How did the firm fixed-price structure impact the vendor's incentive to optimize costs and efficiency for the government?

A firm fixed-price contract incentivizes the contractor to control costs and operate efficiently to maximize profit. However, it can also lead to the vendor cutting corners on quality or service if not adequately monitored. For this contract, the government's primary risk would be ensuring the quality and completeness of the captured data within the fixed price.

What was the competitive landscape for this type of service at the time of award, and did full and open competition yield a demonstrably fair price?

The competitive landscape for specialized patent data capture services can be limited to a few key players with the necessary expertise and infrastructure. While 'full and open competition' suggests multiple bids were solicited, without knowing the number of bidders or their proposed prices, it's difficult to definitively state if the price was demonstrably fair. The $54.7M award suggests a significant market for these services.

Industry Classification

NAICS: InformationNewspaper, Periodical, Book, and Directory PublishersAll Other Publishers

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $54,740,018

Exercised Options: $54,740,018

Current Obligation: $54,740,018

Parent Contract

Parent Award PIID: DOC50PAPT0410001

IDV Type: IDC

Timeline

Start Date: 2013-11-20

Current End Date: 2014-11-30

Potential End Date: 2015-01-31 00:00:00

Last Modified: 2015-07-15

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