Patent data capture contract awarded to Reed Technology for over $41M, highlighting publisher services

Contract Overview

Contract Amount: $41,289,494 ($41.3M)

Contractor: Reed Technology and Information Services LLC

Awarding Agency: Department of Commerce

Start Date: 2011-12-20

End Date: 2012-12-31

Contract Duration: 377 days

Daily Burn Rate: $109.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PATENT DATA CAPTURE - PRE-GRANT PUBLICATION

Place of Performance

Location: HORSHAM, MONTGOMERY County, PENNSYLVANIA, 19044

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Commerce obligated $41.3 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: PATENT DATA CAPTURE - PRE-GRANT PUBLICATION Key points: 1. Contract value suggests significant demand for specialized data processing and publication services. 2. The award was made under full and open competition, indicating a competitive market for these services. 3. A single award for a large sum may warrant scrutiny of pricing and performance over the contract term. 4. The contract duration of over a year provides a substantial period for service delivery and evaluation. 5. The fixed-price nature of the contract shifts performance risk to the contractor. 6. The specific NAICS code (511199) points to a niche market within the publishing industry.

Value Assessment

Rating: fair

The contract value of over $41 million for patent data capture services is substantial. Benchmarking this against similar contracts for data processing and publication services would be necessary for a definitive value-for-money assessment. Without specific performance metrics or comparisons to industry standards for data capture accuracy and efficiency, it is difficult to definitively assess the value. However, the fixed-price nature suggests an attempt to control costs, but the overall price relative to output remains a key area for ongoing evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were likely invited to bid. The presence of 3 bidders, as indicated, points to a moderate level of competition for this specialized service. While not a highly crowded field, it implies that the government sought competitive proposals, which should theoretically lead to more favorable pricing and service terms compared to a sole-source award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and service, potentially leading to cost savings and higher quality outcomes.

Public Impact

The U.S. Patent and Trademark Office benefits from efficient and accurate capture of patent data. This service supports the broader innovation ecosystem by making patent information accessible. The contract likely impacts the workforce within the publishing and data processing sectors. Timely data capture is crucial for the USPTO's mission of promoting innovation and economic growth.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price does not adequately account for unforeseen complexities in data capture.
Risk of contractor performance issues impacting the timeliness or accuracy of patent data publication.
Dependence on a single contractor for a critical function could create future lock-in risks.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Fixed-price contract structure shifts performance risk to the contractor.
The substantial contract value suggests the contractor has the capacity and expertise to handle large-scale data processing.

Sector Analysis

The contract falls within the broader information services and publishing sector, specifically focusing on specialized data capture and pre-grant publication for intellectual property. This is a critical function for intellectual property offices globally. The market for such services involves companies with expertise in handling large volumes of structured and unstructured data, ensuring accuracy, and adhering to strict publication timelines. Comparable spending benchmarks would involve looking at other government contracts for similar data management and publication services, as well as private sector investments in intellectual property management solutions.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. Given the substantial value and specialized nature of patent data capture, it is possible that larger, established firms with significant infrastructure and expertise are better positioned to compete. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Patent and Trademark Office's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. The Inspector General for the Department of Commerce would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

Government Publishing Services
Intellectual Property Data Management
Information Dissemination Services
Federal Data Processing Contracts

Risk Flags

Potential for data integrity issues
Risk of delayed publication impacting innovation timelines
Contractor performance monitoring is crucial

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $41.3 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. PATENT DATA CAPTURE - PRE-GRANT PUBLICATION

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 $41.3 million.

What is the period of performance?

Start: 2011-12-20. End: 2012-12-31.

What is the track record of Reed Technology and Information Services LLC in handling government contracts, particularly those involving sensitive data or large-scale processing?

Reed Technology and Information Services LLC has a history of providing technology and information services, including to government agencies. Their experience often involves managing large datasets and complex information systems. For contracts like this patent data capture, their track record would be assessed based on past performance evaluations, on-time delivery, data accuracy, and adherence to security protocols. A review of their contract history would reveal their capacity to handle the scale and complexity required by the U.S. Patent and Trademark Office. Specific details on past performance metrics, such as error rates or delivery timelines on similar projects, would provide a clearer picture of their reliability and expertise in this domain.

How does the awarded amount of over $41 million compare to the estimated value or budget for this patent data capture service?

The awarded amount of $41,289,494.21 represents the total value obligated under this specific contract. To assess if this is a fair price, it needs to be compared against the government's initial cost estimates or budget allocated for this service. If the awarded amount is significantly lower than the estimate, it could indicate successful negotiation and competitive bidding. Conversely, if it aligns closely or exceeds the estimate, further scrutiny of the pricing structure and the necessity of all included services would be warranted. Benchmarking against similar contracts awarded to other entities for comparable services would also provide valuable context for evaluating the reasonableness of this price.

What are the key performance indicators (KPIs) used to measure the success of this patent data capture contract?

Key performance indicators for a patent data capture contract typically focus on accuracy, timeliness, and completeness of the data processed. Specific KPIs might include the percentage of patent applications successfully captured and published within a defined timeframe (e.g., daily, weekly), the error rate in data extraction and formatting, and the completeness of metadata associated with each patent. Adherence to security protocols for handling sensitive pre-grant information would also be critical. The contract likely specifies these KPIs, and performance would be monitored by the U.S. Patent and Trademark Office to ensure the contractor meets the required standards. Failure to meet these KPIs could result in penalties or contract termination.

What is the historical spending pattern for patent data capture services by the U.S. Patent and Trademark Office or similar agencies?

Historical spending on patent data capture services by the U.S. Patent and Trademark Office (USPTO) would likely show a consistent need for such services, given the volume of patent applications. Analyzing past contracts, including their values, durations, and awarded vendors, would reveal trends in spending and potential fluctuations based on application volume or technological changes. For instance, if spending has increased significantly over time, it might indicate growing demand or evolving service requirements. Comparing USPTO's spending to that of international patent offices for similar functions could also provide context. This contract's value of over $41 million should be viewed within this historical spending context to determine if it represents a typical investment or a significant deviation.

Are there any identified risks associated with the contractor, Reed Technology and Information Services LLC, or the nature of the services provided?

Risks associated with this contract could include performance-related issues, such as delays in data capture or publication, or inaccuracies in the data processed, which could impact the integrity of the patent record. Contractor-specific risks might involve financial stability, cybersecurity vulnerabilities, or past performance issues on similar contracts. The nature of pre-grant patent data also introduces risks related to confidentiality and timely public disclosure. The government mitigates these risks through contract clauses, performance monitoring, and potentially security clearances for personnel. A thorough review of the contractor's past performance and the specific terms of the contract would be necessary to fully identify and assess these risks.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › All Other Publishers

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Reed Elsevier Group PLC (UEI: 230792756)

Address: 275 GIBRALTAR RD, HORSHAM, PA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,289,494

Exercised Options: $41,289,494

Current Obligation: $41,289,494

Parent Contract

Parent Award PIID: DOC50PAPT0410001

IDV Type: IDC

Timeline