Patent data capture contract awarded to Reed Technology for over $44.9M, highlighting publisher services

Contract Overview

Contract Amount: $44,951,788 ($45.0M)

Contractor: Reed Technology and Information Services LLC

Awarding Agency: Department of Commerce

Start Date: 2012-12-30

End Date: 2013-12-31

Contract Duration: 366 days

Daily Burn Rate: $122.8K/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 $45.0 million to REED TECHNOLOGY AND INFORMATION SERVICES LLC for work described as: PATENT DATA CAPTURE - PRE-GRANT PUBLICATION Key points: 1. The contract value of $44.9M for patent data capture services represents a significant investment in intellectual property management. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness in data processing services. 3. Performance indicators for data capture and publication are key risk indicators for the USPTO. 4. This contract falls within the broader context of intellectual property services and publisher support. 5. The award to Reed Technology positions them as a key player in the patent data services sector.

Value Assessment

Rating: good

The contract value of $44.9M for a one-year duration suggests a substantial per-diem cost. Benchmarking against similar large-scale data processing contracts would be necessary for a definitive value assessment. However, the fixed-price nature of the contract provides cost certainty for the government, mitigating some financial risk.

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 likely participated. This level of competition is generally favorable for price discovery and can lead to more competitive pricing. The presence of 3 bidders suggests a reasonably competitive market for these specialized services.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by driving down costs through competitive bidding.

Public Impact

The primary beneficiaries are the U.S. Patent and Trademark Office (USPTO) and the broader innovation ecosystem that relies on timely access to patent data. Services delivered include the capture and processing of patent data, crucial for maintaining the integrity and accessibility of intellectual property records. The geographic impact is national, supporting the USPTO's mission across the United States. Workforce implications may include specialized roles in data processing, quality control, and information management within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for data integrity issues if quality control is not rigorously maintained.
Dependence on a single contractor for critical patent data processing could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract provides cost predictability for the government.
Contract duration of one year allows for periodic reassessment of performance and market conditions.

Sector Analysis

This contract operates within the broader information services and publishing sector, specifically focusing on intellectual property data management. The market for patent data services is driven by government agencies like the USPTO and private entities requiring access to and processing of patent information. Comparable spending benchmarks would involve analyzing other large government contracts for data processing, digitization, and archival services.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. The nature of large-scale data processing and capture services often requires significant resources and specialized expertise, which may favor larger established firms. Subcontracting opportunities for small businesses could exist, but are not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Department of Commerce and the USPTO. Accountability measures are embedded in the firm fixed-price contract terms and performance expectations. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not be publicly disclosed.

Related Government Programs

USPTO IT Modernization Efforts
Government Publishing Services
Intellectual Property Data Management Systems

Risk Flags

Potential for data integrity issues
Contractor performance risk
Dependence on single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $45.0 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 $45.0 million.

What is the period of performance?

Start: 2012-12-30. End: 2013-12-31.

What is the historical spending pattern for patent data capture services by the USPTO?

Analyzing historical spending on patent data capture services by the USPTO would require access to multi-year budget and contract award data. This specific contract, valued at over $44.9 million for one year, suggests a significant annual investment in this area. Without historical data, it's difficult to determine if this represents an increase, decrease, or stable spending trend. However, the consistent need for patent data processing implies a recurring requirement, likely funded through the USPTO's operational budget, which is appropriated by Congress. Trends in patent filings and the complexity of data formats can influence spending levels over time.

How does the cost of this contract compare to similar data processing contracts awarded by other federal agencies?

Direct cost comparison is challenging without knowing the specific scope, deliverables, and service level agreements of other data processing contracts. However, the $44.9 million price tag for a one-year contract for patent data capture indicates a substantial investment. To benchmark effectively, one would need to identify contracts with similar data volumes, complexity, security requirements, and service durations across agencies like the National Archives and Records Administration (NARA) or the Library of Congress, which also handle large volumes of information. Factors such as the degree of automation, required human review, and data validation processes significantly impact per-unit costs.

What are the key performance indicators (KPIs) for Reed Technology and Information Services LLC under this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for patent data capture contracts would likely include accuracy rates (e.g., percentage of data captured without errors), timeliness of data processing (e.g., turnaround time from receipt to publication), completeness of data sets, and adherence to USPTO data standards. The government would monitor these KPIs to ensure the contractor is meeting contractual obligations. Failure to meet critical KPIs could result in penalties, reduced payment, or contract termination, underscoring the importance of robust performance management by the USPTO.

What is Reed Technology and Information Services LLC's track record with government contracts, particularly in data processing?

Reed Technology and Information Services LLC has a history of providing information services, including patent data services, to government entities. Their involvement in a contract of this magnitude suggests a proven capability and experience in handling large-scale data processing and management. A deeper analysis would involve reviewing their past performance evaluations on federal contracts, any past performance issues or commendations, and their experience with the specific technologies and workflows required by the USPTO. Their ability to secure and perform on such a significant contract implies a satisfactory track record with federal agencies.

What are the potential risks associated with relying on a single contractor for patent data capture?

The primary risks associated with relying on a single contractor for patent data capture include potential disruptions to service if the contractor experiences financial difficulties, operational failures, or decides to exit the market. There's also a risk of reduced innovation or complacency if competition is not a continuous factor. Furthermore, a sole reliance can create a power imbalance, potentially leading to less favorable terms in future contract renewals. Mitigating these risks often involves strong contract management, clear performance expectations, contingency planning, and potentially developing in-house capabilities or fostering a more diverse contractor base over the long term.

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: $44,951,788

Exercised Options: $44,951,788

Current Obligation: $44,951,788

Parent Contract

Parent Award PIID: DOC50PAPT0410001

IDV Type: IDC

Timeline