Commerce's Patent Office Spends $27.7M on Printing Services, Awarded Sole-Source
Contract Overview
Contract Amount: $78,642,505 ($78.6M)
Contractor: Reed Technology and Information Services LLC
Awarding Agency: Department of Commerce
Start Date: 2015-02-01
End Date: 2016-01-31
Contract Duration: 364 days
Daily Burn Rate: $216.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PADACAP CONTRACT (RTIS) DOC50PAPT1500003 - D24151 PATENT PRINTING, DEL. ORDR #TBD, POP: 2/01/15 - 5/31/15, BUDGET RECORD NUMBER #P316. AVERAGE WKLY BURN RATE: $1,632,002.41 @ 17 WKS. TOTAL NEED FOR FEB 2015 - MAY 2015 $27,744,041.00.
Place of Performance
Location: HORSHAM, MONTGOMERY County, PENNSYLVANIA, 19044
Plain-Language Summary
Department of Commerce obligated $78.6 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: PADACAP CONTRACT (RTIS) DOC50PAPT1500003 - D24151 PATENT PRINTING, DEL. ORDR #TBD, POP: 2/01/15 - 5/31/15, BUDGET RECORD NUMBER #P316. AVERAGE WKLY BURN RATE: $1,632,002.41 @ 17 WKS. TOTAL NEED FOR FEB 2015 - MAY 2015 $27,744,041.00. Key points: 1. The U.S. Patent and Trademark Office (USPTO) is spending $27.7 million on patent printing services. 2. The contract was awarded to Reed Technology and Information Services LLC. 3. This contract was not competed, raising potential concerns about price discovery. 4. The sector is primarily publishing and information services. 5. The contract duration is 364 days, with a significant weekly burn rate.
Value Assessment
Rating: questionable
The total need of $27.7 million for a 12-month period (Feb 2015 - Jan 2016) suggests a high cost. Without competitive bidding, it's difficult to benchmark against similar contracts for patent printing services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a $27.7 million contract could lead to inefficient use of taxpayer funds.
Public Impact
Taxpayers may be overpaying for patent printing services due to the absence of competition. The USPTO's reliance on a single vendor for this essential service could pose a risk if the vendor fails to perform. The significant expenditure highlights the importance of robust oversight for sole-source contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- High weekly burn rate
Positive Signals
- Essential service for patent operations
Sector Analysis
The contract falls within the 'All Other Publishers' NAICS code (511199), indicating services related to printing and publishing. The spending of $27.7 million for patent printing services is substantial and warrants scrutiny, especially given the sole-source nature.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded sole-source to a specific large provider.
Oversight & Accountability
The sole-source nature of this contract necessitates strong oversight from the Department of Commerce to ensure fair pricing and adequate performance from Reed Technology and Information Services LLC.
Related Government Programs
- All Other Publishers
- Department of Commerce Contracting
- U.S. Patent and Trademark Office Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for overpayment due to lack of competition.
- High expenditure for a single vendor.
- Limited vendor options for essential service.
Tags
all-other-publishers, department-of-commerce, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $78.6 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. PADACAP CONTRACT (RTIS) DOC50PAPT1500003 - D24151 PATENT PRINTING, DEL. ORDR #TBD, POP: 2/01/15 - 5/31/15, BUDGET RECORD NUMBER #P316. AVERAGE WKLY BURN RATE: $1,632,002.41 @ 17 WKS. TOTAL NEED FOR FEB 2015 - MAY 2015 $27,744,041.00.
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 $78.6 million.
What is the period of performance?
Start: 2015-02-01. End: 2016-01-31.
What is the justification for awarding this patent printing contract as sole-source?
The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as urgency, unique capabilities of the vendor, or lack of market competition. Further investigation into the contract file would be required to ascertain the specific reasons.
What is the potential cost savings if this contract were competed?
Without a competitive bidding process, it is impossible to determine the exact potential cost savings. However, sole-source contracts often carry a premium compared to competitively awarded ones. A conservative estimate might suggest savings of 10-20%, but this could vary significantly based on market conditions and the specific services required.
What are the risks associated with a sole-source contract for patent printing?
The primary risks include inflated pricing due to lack of competition, potential for vendor complacency leading to lower service quality, and a lack of flexibility if the USPTO's needs change. There's also a risk of vendor lock-in, making it difficult to switch providers even if a better option emerges.
Industry Classification
NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › All Other Publishers
Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Reed Elsevier Group PLC (UEI: 230792756)
Address: 7 WALNUT GROVE DR, HORSHAM, PA, 19044
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $78,642,505
Exercised Options: $78,642,505
Current Obligation: $78,642,505
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DOC50PAPT1500003
IDV Type: IDC
Timeline
Start Date: 2015-02-01
Current End Date: 2016-01-31
Potential End Date: 2016-01-31 00:00:00
Last Modified: 2018-04-10
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