Commerce Department's $59.4M patent data contract awarded to Reed Technology, highlighting publisher services

Contract Overview

Contract Amount: $59,386,629 ($59.4M)

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: $157.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PATENT DATA CAPTURE: PATENT PRINTING DATABASE

Place of Performance

Location: HORSHAM, MONTGOMERY County, PENNSYLVANIA, 19044

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Commerce obligated $59.4 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: PATENT DATA CAPTURE: PATENT PRINTING DATABASE Key points: 1. Contract value appears reasonable for specialized data capture and printing services. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of over a year indicates a need for sustained service. 4. Fixed-price contract type shifts risk to the contractor. 5. The award to a single entity suggests specialization in this niche market. 6. Geographic location of the contractor in Pennsylvania may influence local economic impact.

Value Assessment

Rating: good

The contract value of approximately $59.4 million for patent data capture and printing services over roughly one year appears to be within a reasonable range for specialized information services. Benchmarking against similar contracts for large-scale data processing and printing is challenging without more specific service details. However, the fixed-price nature of the contract suggests that the government sought to control costs upfront, with the contractor bearing the risk of cost overruns. The award to Reed Technology and Information Services LLC, a known entity in this space, implies a level of established capability that could contribute to value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of 3 bids suggests a moderate level of competition for this specialized service. While not an extremely high number of bidders, it is sufficient to provide a basis for price discovery and ensure that the selected contractor offers competitive terms. The agency's decision to pursue full and open competition is generally a positive sign for achieving fair market pricing.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a process designed to solicit the best possible price and service from a wide range of potential providers.

Public Impact

The primary beneficiaries are the U.S. Patent and Trademark Office (USPTO) and the public, who rely on accurate and accessible patent data. Services delivered include the capture, printing, and likely management of patent data, crucial for intellectual property records. The geographic impact is national, supporting the USPTO's mission across the United States. Workforce implications may include employment opportunities at Reed Technology and Information Services LLC, particularly in Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized systems are used.
Dependence on a single contractor for critical data processing.
Risk of service disruption if the contractor faces financial or operational issues.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Fixed-price contract type limits cost uncertainty for the government.
Contractor has a history of providing similar services, implying expertise.

Sector Analysis

This contract falls within the information services and publishing sector, specifically focusing on data capture, processing, and printing for a government agency. The market for such services is characterized by specialized firms capable of handling large volumes of sensitive data and meeting strict government requirements. Comparable spending benchmarks would typically be found within government contracts for records management, document digitization, and specialized printing services, often awarded to firms with established expertise in handling official documentation.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. The contract was awarded to Reed Technology and Information Services LLC, which may or may not be a small business. Further investigation would be needed to determine if small businesses were involved as subcontractors or if the contract's value and nature precluded significant small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Patent and Trademark Office (USPTO) within the Department of Commerce. Accountability measures would be embedded in the contract's terms and conditions, including performance standards, delivery schedules, and quality control. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and oversight reports may not be publicly available. Inspector General jurisdiction would typically fall under the Department of Commerce's Office of Inspector General.

Related Government Programs

USPTO Patent Application Processing
Government Printing Services
Information Management Services
Federal Records Management

Risk Flags

Contract awarded to a single entity.
Moderate number of bids received.
Potential for data security risks.
Dependence on contractor's operational stability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $59.4 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC. PATENT DATA CAPTURE: PATENT PRINTING DATABASE

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 $59.4 million.

What is the period of performance?

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

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

Reed Technology and Information Services LLC has a history of performing contracts related to patent and trademark data management and processing for government agencies, including the USPTO. Their experience in this niche area suggests a familiarity with the specific requirements and technical demands of handling sensitive intellectual property data. Analyzing their past performance on similar contracts, including any documented successes or challenges, would provide further insight into their reliability and capability. Government contract databases and past performance reviews, if available, would be key resources for a comprehensive assessment of their track record.

How does the $59.4 million contract value compare to similar USPTO data processing contracts?

Direct comparison of the $59.4 million contract value to similar USPTO data processing contracts requires access to historical data on contracts with comparable scope, duration, and service complexity. The provided data indicates a contract duration of approximately one year. If similar contracts for patent data capture, printing, and database management over a similar period exist, a comparison could be made. Factors such as the volume of data processed, the specific technologies employed, and the level of service required would influence the cost. Without more granular data on comparable procurements, it is difficult to definitively benchmark this contract's value.

What are the primary risks associated with this contract for the USPTO?

The primary risks associated with this contract for the USPTO include potential disruptions in patent data capture and printing, which could impact the timely dissemination of patent information and the integrity of the patent record. There is also a risk related to data security and confidentiality, given the sensitive nature of patent applications. Furthermore, over-reliance on a single contractor for critical functions could lead to vendor lock-in or challenges in transitioning services if the contract is not renewed or is terminated. Ensuring robust performance standards and contingency plans within the contract is crucial to mitigate these risks.

How effective is the full and open competition process in ensuring value for money in this specific contract?

The full and open competition process is designed to foster a competitive environment, theoretically leading to better value for money by encouraging multiple bidders to offer their best pricing and technical solutions. In this case, with 3 bids received, the competition level suggests a moderate degree of market interest. The effectiveness in ensuring value for money would depend on the thoroughness of the evaluation process, the clarity of the solicitation requirements, and the ultimate price and performance offered by the winning contractor, Reed Technology and Information Services LLC. A detailed review of the bid evaluation and award decision would be necessary to fully assess the value achieved.

What are the historical spending patterns for patent data capture and printing services by the USPTO?

Analyzing historical spending patterns for patent data capture and printing services by the USPTO would involve examining contract awards over several fiscal years. This would reveal trends in contract values, the number and types of contractors utilized, and the evolution of service requirements. Understanding these patterns can help identify whether spending has been consistent, increasing, or decreasing, and whether the USPTO has historically relied on a few key vendors or diversified its contracting. Such analysis could also highlight any significant shifts in technology or service delivery models that have influenced costs over time.

What are the implications of the fixed-price contract type on contractor performance and government oversight?

A fixed-price contract type, like the one awarded to Reed Technology and Information Services LLC, shifts the primary risk of cost overruns to the contractor. This incentivizes the contractor to manage costs efficiently and deliver the specified services within the agreed-upon budget. For the government, it provides cost certainty. However, it can also place a greater emphasis on clearly defining the scope of work and performance standards in the contract to prevent disputes or scope creep. Government oversight would focus on ensuring that the contractor meets all performance requirements and quality standards, rather than managing cost adjustments.

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: $59,386,629

Exercised Options: $59,386,629

Current Obligation: $59,386,629

Parent Contract

Parent Award PIID: DOC50PAPT0410001

IDV Type: IDC

Timeline