Commerce Dept. Awards $51.3M Contract to Reed Technology for Patent Office Services

Contract Overview

Contract Amount: $51,347,853 ($51.3M)

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: $141.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ADACAP CONTRACT (RTIS): DOC50PAPT1500003 PGPUB

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $51.3 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: IGF::OT::IGF ADACAP CONTRACT (RTIS): DOC50PAPT1500003 PGPUB Key points: 1. Contract awarded to Reed Technology and Information Services LLC for $51.3M. 2. Services provided to the U.S. Patent and Trademark Office. 3. Contract type is Firm Fixed Price, Delivery Order. 4. The contract was not competed, raising potential value concerns. 5. The North American Industry Classification System (NAICS) code is 511199.

Value Assessment

Rating: questionable

The contract value of $51.3M for a 364-day period appears high for the NAICS code 511199 (All Other Publishers). Benchmarking against similar contracts for IT services or publishing support is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have prevented price discovery and potentially led to a higher price than if multiple vendors had bid.

Taxpayer Impact: The absence of competition raises concerns about whether taxpayers received the best possible value for the $51.3M spent.

Public Impact

Patent and Trademark Office operations may be impacted by the services provided. Taxpayer funds are being utilized for this contract. The specific services rendered are not detailed, limiting public understanding of the contract's purpose. The lack of competition could set a precedent for future non-competitive awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value for duration
Unclear service details

Positive Signals

Firm Fixed Price contract type
Specific agency and office identified

Sector Analysis

The IT and publishing services sector can vary widely in cost. Without specific details on the services provided under NAICS 511199, it's hard to benchmark against typical spending. However, a $51.3M award for a one-year contract warrants scrutiny.

Small Business Impact

The data indicates this contract was not competed and does not specify any set-asides for small businesses. Therefore, it is unlikely that small businesses were significantly involved in this award.

Oversight & Accountability

The 'not competed' status suggests potential oversight gaps. Further review is needed to understand the justification for not seeking competitive bids and to ensure accountability for the funds expended.

Related Government Programs

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

Risk Flags

Lack of competition
High value for duration
Unclear service details
Potential for overpayment

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $51.3 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. IGF::OT::IGF ADACAP CONTRACT (RTIS): DOC50PAPT1500003 PGPUB

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 $51.3 million.

What is the period of performance?

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

What specific services were provided under this $51.3M contract to justify the cost and the lack of competition?

The provided data lacks specific details on the services rendered under contract DOC50PAPT1500003. The NAICS code 511199, 'All Other Publishers,' is broad. Understanding the exact nature of the work, such as data digitization, content management, or specialized IT support for the Patent and Trademark Office, is crucial for assessing value and justifying the non-competitive award.

What was the justification for awarding this contract on a sole-source basis, and what risks does this pose to future procurement processes?

The justification for a sole-source award is not provided in the data. Awarding a $51.3M contract without competition poses risks of inflated pricing, reduced innovation, and a lack of transparency. It may also signal a potential weakness in the agency's procurement planning or a reliance on a single vendor, which could hinder future competitive opportunities and potentially lead to higher costs for taxpayers.

How effectively did this contract support the U.S. Patent and Trademark Office's mission, and was the $51.3M expenditure an efficient use of resources?

Without detailed service descriptions, it's impossible to definitively assess the effectiveness of this contract in supporting the U.S. Patent and Trademark Office's mission. The significant expenditure of $51.3M for a one-year term, coupled with the lack of competition, raises questions about efficiency. A competitive process would typically ensure better price discovery and potentially more innovative solutions, leading to a more efficient use of taxpayer funds.

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: $51,347,853

Exercised Options: $51,347,853

Current Obligation: $51,347,853

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1500003

IDV Type: IDC

Timeline