Commerce Awards $26.3M Patent Printing Contract to Reed Technology and Information Services LLC

Contract Overview

Contract Amount: $80,721,789 ($80.7M)

Contractor: Reed Technology and Information Services LLC

Awarding Agency: Department of Commerce

Start Date: 2016-01-22

End Date: 2017-01-31

Contract Duration: 375 days

Daily Burn Rate: $215.3K/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: 02/01/16 - 05/23/16, BUDGET RECORD NUMBER #P915. AVERAGE WKLY BURN RATE: $1,644,908.00 @ 16 WKS. TOTAL NEED FOR FEB 2016 - MAY 23, 2016 $26,318,528.00.

Place of Performance

Location: HORSHAM, MONTGOMERY County, PENNSYLVANIA, 19044

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Commerce obligated $80.7 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: PADACAP CONTRACT (RTIS) DOC50PAPT1500003 - D24151 PATENT PRINTING, DEL. ORDR #TBD, POP: 02/01/16 - 05/23/16, BUDGET RECORD NUMBER #P915. AVERAGE WKLY BURN RATE: $1,644,908.00 @ 16 WKS. TOTAL NEED FOR FEB 2016 - MAY 23, 2016 $26,318,528.00. Key points: 1. Contract awarded for patent printing services to Reed Technology and Information Services LLC. 2. The total value of the contract is $26,318,528.00 for a period of 16 weeks. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is primarily publishing and information services, with a specific focus on patents.

Value Assessment

Rating: questionable

The contract's pricing is based on an average weekly burn rate of $1,644,908.00. Without competitive bidding, it's difficult to assess if this rate represents fair market value compared to similar 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 as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition suggests potential overpayment, impacting taxpayer funds negatively.

Public Impact

Taxpayers may be paying more than necessary due to the absence of competitive bidding. The U.S. Patent and Trademark Office relies on this service for critical operations. The contract duration and value indicate a significant expenditure for a specialized service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Limited transparency in pricing

Positive Signals

Clear contract value and duration
Identified vendor for a specific service

Sector Analysis

This contract falls within the publishing and information services sector, specifically related to intellectual property management. Benchmarks for similar patent printing services are difficult to ascertain without competitive data.

Small Business Impact

The data does not indicate whether small businesses were involved in subcontracting opportunities for this contract.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the government obtained fair value and that the sole-source justification was appropriate.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency in cost justification
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $80.7 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. PADACAP CONTRACT (RTIS) DOC50PAPT1500003 - D24151 PATENT PRINTING, DEL. ORDR #TBD, POP: 02/01/16 - 05/23/16, BUDGET RECORD NUMBER #P915. AVERAGE WKLY BURN RATE: $1,644,908.00 @ 16 WKS. TOTAL NEED FOR FEB 2016 - MAY 23, 2016 $26,318,528.00.

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 $80.7 million.

What is the period of performance?

Start: 2016-01-22. End: 2017-01-31.

What was the justification for not competing this contract, and was a market research report conducted to ensure fair pricing?

The provided data states the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to determine the specific justification (e.g., sole-source necessity, urgency) and whether market research was performed to validate the pricing and ensure it aligns with fair market value for patent printing services.

How does the average weekly burn rate of $1,644,908.00 compare to industry standards for patent printing services?

Without access to competitive bids or industry-specific cost data for patent printing, it is challenging to benchmark the $1,644,908.00 weekly burn rate. A comparison would require analyzing similar contracts, consulting industry cost models, or reviewing the vendor's cost breakdown if available.

What is the potential financial impact on taxpayers due to the lack of competition for this contract?

The lack of competition inherently removes the downward price pressure that competitive bidding provides. This increases the risk that the government may have overpaid. Quantifying the exact financial impact would necessitate a cost analysis comparing the awarded price to what might have been achieved through a competitive process.

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: Lexisnexis Special Services Inc (UEI: 210244596)

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: $80,721,789

Exercised Options: $80,721,789

Current Obligation: $80,721,789

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1500003

IDV Type: IDC

Timeline