Commerce Department's Patent Classification Services Contract Awarded to CPA Global for Over $10.8 Million

Contract Overview

Contract Amount: $10,844,928 ($10.8M)

Contractor: CPA Global (landon IP) Inc

Awarding Agency: Department of Commerce

Start Date: 2023-03-01

End Date: 2025-02-28

Contract Duration: 730 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FULL CLASSIFICATION SERVICES, INITIAL CLASSIFICATION OF PATENT APPLICATIONS SERVICES

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48108

State: Michigan Government Spending

Plain-Language Summary

Department of Commerce obligated $10.8 million to CPA GLOBAL (LANDON IP) INC for work described as: FULL CLASSIFICATION SERVICES, INITIAL CLASSIFICATION OF PATENT APPLICATIONS SERVICES Key points: 1. Contract aims to ensure efficient and accurate classification of patent applications. 2. Value-for-money assessment pending further performance data and benchmarking. 3. Competition dynamics suggest a potentially competitive bidding process for this service. 4. Risk indicators are moderate, with performance dependent on contractor's expertise. 5. Sector positioning places this contract within the professional, scientific, and technical services industry. 6. Performance context relies on timely and accurate classification to support the patent examination process.

Value Assessment

Rating: fair

The contract value of $10.8 million over two years for patent classification services appears within a reasonable range for specialized professional services. However, a definitive value-for-money assessment requires benchmarking against similar contracts for patent classification or related intellectual property services, considering the specific scope and complexity. Without direct comparisons or detailed cost breakdowns, it's difficult to ascertain if the pricing is optimal or if there are opportunities for cost savings through alternative approaches or more competitive bidding in the future.

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 evaluated. The presence of two bids suggests a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, as contractors vie to win the award.

Public Impact

Benefits the U.S. Patent and Trademark Office (USPTO) by ensuring efficient processing of patent applications. Supports innovation by facilitating the examination and granting of patents. Impacts inventors and businesses seeking patent protection for their intellectual property. Workforce implications may include reliance on specialized skills for classification, potentially sourced from the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for a critical function.
Ensuring consistent quality and accuracy in classification across all applications.
Monitoring contractor performance to ensure adherence to timelines and standards.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Fixed-price contract type can provide cost certainty for the government.
Contract duration allows for stability in service delivery.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on intellectual property support. The market for patent classification and related services is driven by the volume of patent applications filed globally and the need for expert analysis. Comparable spending benchmarks would typically be found within government agencies responsible for intellectual property, such as the USPTO or international patent offices, and private sector firms specializing in IP management.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight of this contract would typically reside with the U.S. Patent and Trademark Office, likely through a contracting officer's representative (COR). Accountability measures would be tied to the performance standards outlined in the contract, including accuracy, timeliness, and adherence to classification guidelines. Transparency is generally maintained through contract award databases, though specific performance metrics might not be publicly disclosed.

Related Government Programs

Patent Examination Services
Intellectual Property Management
Government Professional Services
Technical Documentation Services

Risk Flags

Performance Risk
Quality Control
Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $10.8 million to CPA GLOBAL (LANDON IP) INC. FULL CLASSIFICATION SERVICES, INITIAL CLASSIFICATION OF PATENT APPLICATIONS SERVICES

Who is the contractor on this award?

The obligated recipient is CPA GLOBAL (LANDON IP) 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 $10.8 million.

What is the period of performance?

Start: 2023-03-01. End: 2025-02-28.

What is the historical spending pattern for patent classification services at the USPTO?

Historical spending on patent classification services by the USPTO would reveal trends in outsourcing this function, the average contract values, and the types of contractors utilized. Analyzing past contracts can help determine if this $10.8 million award represents an increase or decrease in spending, and whether the USPTO has consistently used full and open competition for these services. Understanding historical patterns is crucial for assessing the long-term financial commitment and identifying potential efficiencies or cost-saving opportunities based on past performance and market dynamics.

How does the pricing of this contract compare to industry benchmarks for similar classification services?

Benchmarking the pricing of this $10.8 million contract against industry standards for patent classification services is essential for evaluating value for money. This involves comparing the per-application or per-hour rates with those charged by other specialized firms or government agencies performing similar tasks. Factors such as the complexity of the technology being classified, the required expertise of the personnel, and the volume of work can influence pricing. A favorable comparison would indicate competitive pricing, while significantly higher rates might warrant further investigation into the necessity of the cost drivers or the effectiveness of the competition.

What are the specific performance metrics and quality assurance measures in place for CPA Global (Landon IP) Inc. under this contract?

The contract likely includes specific performance metrics related to the accuracy, timeliness, and completeness of patent application classifications. Quality assurance measures would detail how the USPTO will monitor and evaluate CPA Global's performance, potentially including review processes, error rate thresholds, and corrective action procedures. Understanding these metrics and measures is critical for assessing the contractor's accountability and the likelihood of achieving the contract's objectives. The absence of publicly available detailed performance data makes a thorough assessment challenging.

What is the track record of CPA Global (Landon IP) Inc. in performing similar government contracts?

CPA Global (Landon IP) Inc.'s track record in performing similar government contracts, particularly those involving intellectual property services or technical classification, is a key indicator of their capability and reliability. Past performance evaluations, contract completion history, and any instances of disputes or contract terminations would provide valuable insights. A history of successful contract execution suggests a lower risk for this current award, while past issues might raise concerns about potential performance problems or delays. Information from federal procurement databases can offer some insight into their past performance.

What is the potential impact of this contract on the overall efficiency of the patent application process?

The primary impact of this contract on the patent application process is expected to be enhanced efficiency and accuracy in classification. By outsourcing this specialized task to CPA Global, the USPTO aims to streamline its workflow, reduce backlogs, and ensure that patent applications are correctly categorized. This, in turn, can lead to faster examination times and quicker decisions for inventors and businesses. The effectiveness of this impact hinges on the contractor's ability to meet performance standards and the seamless integration of their services into the USPTO's existing systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2318 MILL RD, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,715,095

Exercised Options: $12,715,095

Current Obligation: $10,844,928

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1700013

IDV Type: IDC

Timeline