Patent printing contract awarded to Reed Technology and Information Services LLC for over $80 million

Contract Overview

Contract Amount: $80,241,601 ($80.2M)

Contractor: Reed Technology and Information Services LLC

Awarding Agency: Department of Commerce

Start Date: 2017-02-01

End Date: 2018-01-31

Contract Duration: 364 days

Daily Burn Rate: $220.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF PADACAP CONTRACT (RTIS) DOC50PAPT1500003 PATENT PRINTING

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $80.2 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: IGF::OT::IGF PADACAP CONTRACT (RTIS) DOC50PAPT1500003 PATENT PRINTING Key points: 1. Contract value exceeds $80 million, indicating significant investment in patent printing services. 2. Awarded on a firm-fixed-price basis, which shifts cost risk to the contractor. 3. The contract duration of 364 days suggests a need for ongoing, consistent service delivery. 4. The North American Industry Classification System (NAICS) code 511199 points to a specialized publishing service. 5. The contract was not competed, raising questions about potential cost efficiencies and market engagement. 6. The service area is Virginia, indicating a localized operational focus for this contract.

Value Assessment

Rating: questionable

The contract's total value of over $80 million for patent printing services is substantial. Without comparable contract data for similar patent printing services, it is difficult to benchmark the value for money. The firm-fixed-price structure is generally favorable for the government in managing cost overruns, but the lack of competition makes it challenging to assess if the pricing is competitive or represents fair market value. Further analysis would require understanding the specific deliverables and comparing them to industry standards and pricing for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach typically occurs when only one vendor can provide the required service, or for specific strategic reasons. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and service. It also suggests that the U.S. Patent and Trademark Office may have had a pre-existing relationship or specific requirements that led to this non-competitive award.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also reduces transparency in the procurement process.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from this contract by ensuring the printing and distribution of patent information. This contract supports the USPTO's mission to promote innovation and economic growth by managing the patent system. The services delivered are crucial for making patent information accessible to the public, researchers, and businesses. The geographic impact is primarily within Virginia, where the contractor, Reed Technology and Information Services LLC, is located and likely operates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing and reduced incentive for innovation.
Sole-source awards can indicate potential barriers to entry for other qualified firms.
The significant contract value warrants scrutiny to ensure efficiency and effectiveness.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Specialized nature of the service (patent printing) may justify a specific vendor's expertise.
Contract supports a critical government function of the USPTO.

Sector Analysis

The contract falls within the publishing and information services sector, specifically related to specialized printing for intellectual property. The NAICS code 511199, 'All Other Publishers,' indicates a niche market. The overall market for specialized government printing and information management services is significant, though often characterized by long-term relationships and specific technical requirements. Benchmarking this contract's value would require comparing it to other government contracts for similar patent-related information services or large-scale specialized printing operations.

Small Business Impact

This contract was awarded to Reed Technology and Information Services LLC and does not appear to have a small business set-aside component (sb: false). There is no explicit information provided regarding subcontracting plans for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific contract, potentially impacting the small business ecosystem if this service could have been provided by a smaller, specialized firm.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce and the U.S. Patent and Trademark Office's internal procurement and program management offices. As a sole-source award, it may receive heightened scrutiny. Transparency is limited due to the non-competitive nature. There is no specific mention of an Inspector General's jurisdiction for this particular contract, but the Office of Inspector General for the Department of Commerce generally oversees departmental operations.

Related Government Programs

Patent and Trademark Office Operations
Government Printing Services
Information Management Services
Intellectual Property Support Services

Risk Flags

Sole-source award
Lack of competition
Significant contract value

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $80.2 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. IGF::OT::IGF PADACAP CONTRACT (RTIS) DOC50PAPT1500003 PATENT PRINTING

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 $80.2 million.

What is the period of performance?

Start: 2017-02-01. End: 2018-01-31.

What is the track record of Reed Technology and Information Services LLC with government contracts, particularly with the USPTO?

Information regarding the specific track record of Reed Technology and Information Services LLC with government contracts, especially with the U.S. Patent and Trademark Office (USPTO), is not detailed in the provided data. However, the award of an $80 million contract suggests a level of capability and potentially a prior relationship or demonstrated expertise. To fully assess their track record, a review of past performance evaluations, contract history, and any documented issues or successes would be necessary. This would include examining their performance on previous USPTO contracts or similar large-scale information service contracts to understand their reliability, quality of service, and adherence to contract terms.

How does the pricing of this contract compare to similar patent printing services in the market?

The provided data does not include specific pricing details beyond the total contract value of $80,241,601.28. Therefore, a direct comparison of the pricing structure or per-unit costs to similar patent printing services in the market is not feasible. The contract is firm-fixed-price, which sets the total cost, but without knowing the volume of services or specific deliverables, benchmarking is impossible. A comprehensive market analysis, including obtaining quotes from other potential vendors or reviewing publicly available pricing for comparable services, would be required to assess if this contract represents competitive pricing.

What are the primary risks associated with this sole-source contract for patent printing?

The primary risks associated with this sole-source contract stem from its non-competitive nature. Firstly, there is a risk of paying a premium price, as the absence of competition removes the downward pressure on costs that multiple bids would typically create. Secondly, there's a potential for complacency from the contractor, as they face no immediate threat from competitors for future work, which could impact service quality or innovation. Thirdly, the lack of competition limits the government's ability to explore alternative solutions or technologies that other vendors might offer. Finally, there's an inherent risk in relying on a single source for a critical function, such as patent printing, which could lead to disruptions if the contractor faces unforeseen issues.

How effective is the USPTO in managing its contracts, particularly large sole-source awards like this one?

The provided data does not offer insights into the overall effectiveness of the USPTO in managing its contracts, especially large sole-source awards. Effectiveness would typically be measured by factors such as on-time delivery, quality of services, adherence to budget, and contractor performance. While this contract's value and sole-source nature suggest a significant undertaking, assessing USPTO's management effectiveness would require reviewing their contract administration processes, performance metrics, and any oversight reports or audits related to their contracting activities. Without such information, it's difficult to gauge their proficiency in managing this specific type of award.

What has been the historical spending pattern for patent printing services by the USPTO?

The provided data only pertains to a single contract awarded in 2017 with a value of $80,241,601.28. It does not offer any historical spending patterns for patent printing services by the USPTO. To understand historical spending, one would need access to procurement data covering multiple fiscal years, identifying all contracts related to patent printing, their values, durations, and award types. This would allow for an analysis of trends, fluctuations in spending, and whether this $80 million contract represents a typical, increased, or decreased level of investment in these services over time.

What specific services are included under the 'PATENT PRINTING' designation for this contract?

The contract is identified as 'PATENT PRINTING (RTIS) DOC50PAPT1500003'. While the exact scope of services is not detailed in the summary data, 'patent printing' typically encompasses the reproduction and distribution of patent documents. This could include printing physical copies of patents, generating digital versions (e.g., PDFs), managing the printing workflow, ensuring quality control of printed materials, and potentially handling distribution logistics. Given the substantial value and the contractor's name (Reed Technology and Information Services), the services might extend beyond simple printing to include data management, archival, and specialized formatting required by the USPTO for its official records and public dissemination.

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

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: $80,241,601

Exercised Options: $80,241,601

Current Obligation: $80,241,601

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1500003

IDV Type: IDC

Timeline