Commerce's USPTO Spends $20M on Trademark Services Contract with K4 Solutions, Inc
Contract Overview
Contract Amount: $20,069,844 ($20.1M)
Contractor: K4 Solutions, Inc
Awarding Agency: Department of Commerce
Start Date: 2006-09-07
End Date: 2012-03-31
Contract Duration: 2,032 days
Daily Burn Rate: $9.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TRADEMARK SERVICES CONTRACT..........MAIL AND FEE PROCESSING, SCANNING APPLICATIONS, DOCUMENTS AND REGISTERED FILES AND PROOFREADING APPLICATION DATA
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22313
State: Virginia Government Spending
Plain-Language Summary
Department of Commerce obligated $20.1 million to K4 SOLUTIONS, INC for work described as: TRADEMARK SERVICES CONTRACT..........MAIL AND FEE PROCESSING, SCANNING APPLICATIONS, DOCUMENTS AND REGISTERED FILES AND PROOFREADING APPLICATION DATA Key points: 1. Contract awarded to K4 Solutions, Inc. for trademark services including mail processing, scanning, and data proofreading. 2. The contract value is $20,069,843.94, spanning from September 2006 to March 2012. 3. Competition was full and open after exclusion of sources, suggesting a competitive process. 4. The sector is Business Support Services, with a NAICS code of 561499.
Value Assessment
Rating: good
The contract value of approximately $20 million over roughly 5.5 years appears reasonable for comprehensive trademark processing services. Benchmarking against similar large-scale document processing and business support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while competition was sought, certain sources were excluded, potentially impacting the breadth of price discovery.
Taxpayer Impact: The $20 million expenditure represents taxpayer investment in the efficient processing of trademark applications, aiming to support intellectual property rights and business innovation.
Public Impact
Ensures timely processing of trademark applications, crucial for businesses seeking brand protection. Supports the U.S. Patent and Trademark Office's mission to facilitate innovation and commerce. The contract's duration and scope suggest a significant operational reliance on K4 Solutions, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to long-term contract and specialized services.
- Risk associated with data accuracy and proofreading effectiveness impacting trademark registration.
Positive Signals
- Full and open competition, even with exclusions, suggests an effort to secure competitive pricing.
- Firm Fixed Price contract type provides cost certainty for the government.
Sector Analysis
This contract falls within the Business Support Services sector, specifically related to document processing and administrative functions for intellectual property. Spending benchmarks in this area are highly variable based on volume and complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of Commerce for the U.S. Patent and Trademark Office. Oversight would typically involve contract officers and program managers ensuring performance and compliance.
Related Government Programs
- All Other Business Support Services
- Department of Commerce Contracting
- U.S. Patent and Trademark Office Programs
Risk Flags
- Long contract duration (over 5 years) may lead to vendor lock-in.
- Exclusion of sources could limit competitive pricing and innovation.
- Reliance on a single vendor for critical processing functions poses a risk.
- Effectiveness of 'proofreading application data' needs clear performance metrics.
Tags
all-other-business-support-services, department-of-commerce, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $20.1 million to K4 SOLUTIONS, INC. TRADEMARK SERVICES CONTRACT..........MAIL AND FEE PROCESSING, SCANNING APPLICATIONS, DOCUMENTS AND REGISTERED FILES AND PROOFREADING APPLICATION DATA
Who is the contractor on this award?
The obligated recipient is K4 SOLUTIONS, INC.
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 $20.1 million.
What is the period of performance?
Start: 2006-09-07. End: 2012-03-31.
What was the rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' award?
The rationale for excluding specific sources in a 'Full and Open Competition After Exclusion of Sources' award typically relates to factors such as past performance, technical capabilities, or specific security requirements. Agencies may exclude sources if they have previously failed to meet contractual obligations or lack the specialized expertise needed for the service. This ensures that only qualified and capable vendors participate, potentially leading to better outcomes despite a narrower initial pool.
How does the per-unit cost of scanning and proofreading compare to industry standards for this contract?
Without specific per-unit cost breakdowns for scanning and proofreading within the provided data, a direct comparison to industry standards is not possible. The total contract value of $20 million over approximately 5.5 years for comprehensive trademark services suggests a significant volume of work. A detailed cost analysis would be required, examining the number of documents processed and the complexity of proofreading, to benchmark against industry averages for similar services.
What is the potential impact on USPTO operations if K4 Solutions, Inc. fails to meet performance expectations?
Failure by K4 Solutions, Inc. to meet performance expectations could significantly disrupt USPTO operations. This includes potential delays in trademark application processing, which could harm businesses relying on timely registration. It might also lead to increased workload for USPTO staff if they need to re-perform or correct scanned data and proofreading, impacting overall efficiency and potentially requiring emergency contract actions.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 12
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7702 LEESBURG PIKE TOWER STE 420, FALLS CHURCH, VA, 08
Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $32,663,722
Exercised Options: $20,069,844
Current Obligation: $20,069,844
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-07
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2014-03-09
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