Commerce Department awards $11.3M for patent search services, with 3 bidders competing

Contract Overview

Contract Amount: $11,340,400 ($11.3M)

Contractor: CPA Global (landon IP) Inc

Awarding Agency: Department of Commerce

Start Date: 2025-02-02

End Date: 2026-02-01

Contract Duration: 364 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PATENT COOPERATION TREATY (PCT) INTERNATIONAL SEARCH AND OPINION (PISO) SERVICES - BASE YEAR TASK ORDER AWARD

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48108

State: Michigan Government Spending

Plain-Language Summary

Department of Commerce obligated $11.3 million to CPA GLOBAL (LANDON IP) INC for work described as: PATENT COOPERATION TREATY (PCT) INTERNATIONAL SEARCH AND OPINION (PISO) SERVICES - BASE YEAR TASK ORDER AWARD Key points: 1. Value for money appears reasonable given the specialized nature of patent search services. 2. Competition dynamics show a healthy level of interest with three bidders. 3. Risk indicators are low due to a firm-fixed-price contract type. 4. Performance context is for essential patent examination support. 5. Sector positioning is within professional, scientific, and technical services.

Value Assessment

Rating: good

The contract value of $11.34 million for a one-year base period for Patent Cooperation Treaty (PCT) International Search and Opinion (PISO) services is within a reasonable range for specialized intellectual property support. Benchmarking against similar contracts for patent search and analysis services indicates that this pricing is competitive. The firm-fixed-price structure further supports value by shifting risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a robust bidding process. Three bidders participated, suggesting sufficient market interest and a degree of competition. The presence of multiple bidders generally leads to better price discovery and ensures that the government receives competitive offers for the required services.

Taxpayer Impact: The competitive nature of this award benefits taxpayers by likely driving down costs and ensuring the government secures high-quality services at a fair market price.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from efficient and accurate international patent search and opinion services. Inventors and businesses seeking patent protection globally benefit from timely processing of their applications. The contract supports the USPTO's mission to promote innovation and economic growth. The services are crucial for maintaining the integrity and efficiency of the U.S. patent system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance variability, though mitigated by firm-fixed-price.
Dependence on contractor expertise for critical patent examination support.

Positive Signals

Firm-fixed-price contract type reduces cost uncertainty for the government.
Award to an established entity (CPA Global) suggests a degree of reliability.
Competitive bidding process likely ensures quality and efficiency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on intellectual property support. The market for patent search and analysis is specialized, with a few key players dominating. The USPTO is a significant consumer of such services, and this contract represents a portion of their operational budget dedicated to international patent examination processes.

Small Business Impact

The data indicates this contract was not set aside for small businesses. CPA Global (Landon IP) is a large entity, suggesting that subcontracting opportunities for small businesses are unlikely unless specifically mandated or pursued by the prime contractor. The primary focus appears to be on securing specialized expertise from established providers.

Oversight & Accountability

Oversight will be managed by the U.S. Patent and Trademark Office (USPTO) through contract administration. The firm-fixed-price nature of the contract provides a clear financial framework. Transparency is maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud or misconduct.

Related Government Programs

Patent Examination Services
Intellectual Property Support
International Patent Cooperation Treaty Services

Risk Flags

Contract performance risk
Timeliness of service delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $11.3 million to CPA GLOBAL (LANDON IP) INC. PATENT COOPERATION TREATY (PCT) INTERNATIONAL SEARCH AND OPINION (PISO) SERVICES - BASE YEAR TASK ORDER AWARD

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 $11.3 million.

What is the period of performance?

Start: 2025-02-02. End: 2026-02-01.

What is the historical spending trend for PCT International Search and Opinion (PISO) services by the USPTO?

Historical spending data for PCT International Search and Opinion (PISO) services by the USPTO reveals a consistent need for these specialized services. While specific year-over-year figures for this exact task order are not provided in the current data, the USPTO has historically allocated significant resources to support its patent examination functions, including international searches. The annual budget for the USPTO fluctuates based on filing fees and appropriations, but the demand for efficient patent processing, especially for international applications under the PCT, remains a constant. This $11.34 million award for the base year suggests a sustained level of investment in this area, aligning with previous patterns of outsourcing or contracting for these critical support functions to ensure timely and thorough examination of patent applications.

How does the number of bidders (3) compare to similar USPTO procurements for specialized technical services?

A competition level with three bidders for specialized technical services like PCT International Search and Opinion (PISO) is generally considered healthy for a niche market. For procurements of this nature, which require specific expertise and certifications, the number of capable bidders can be limited. While more bidders might indicate broader market interest, three participants suggest that the solicitation was adequately advertised and that there are sufficient qualified vendors. In some highly specialized areas, fewer bidders might be expected, while in broader technical service categories, more might participate. The key takeaway is that the USPTO achieved a competitive outcome, avoiding a sole-source or limited-source situation, which is positive for price discovery and value.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this contract revolve around potential performance issues from the contractor, CPA Global (Landon IP), and the criticality of the services to the patent examination process. If the contractor fails to deliver timely or accurate search and opinion reports, it could delay patent grants and impact innovation. However, these risks are significantly mitigated by the contract's 'Firm Fixed Price' (FFP) type. FFP contracts place the responsibility for cost overruns on the contractor, incentivizing them to manage resources efficiently and deliver quality work to avoid penalties or contract termination. Furthermore, the award was made under 'Full and Open Competition,' suggesting that the USPTO selected a vendor with a demonstrated capability and track record, further reducing performance risk.

What is the significance of the 'Delivery Order' award type for this contract?

The 'Delivery Order' award type signifies that this contract is likely a task order issued under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the USPTO has established a framework agreement with one or more vendors for these services, and this specific award represents a defined order for a particular quantity of work with a set price and delivery schedule. The benefit of using delivery orders under a broader contract is flexibility and efficiency. It allows the agency to procure services as needed, often with pre-negotiated terms and pricing, streamlining the acquisition process compared to issuing a new, standalone contract for each requirement. This approach can lead to faster delivery times and potentially better pricing due to the established relationship.

How does the geographic location of the contractor (Michigan) impact the delivery of these national/international services?

The geographic location of the contractor, CPA Global (Landon IP) Inc., being based in Michigan, has minimal direct impact on the delivery of Patent Cooperation Treaty (PCT) International Search and Opinion (PISO) services. These services are inherently knowledge-based and are typically delivered electronically and remotely. The USPTO operates nationally and internationally, and patent examination processes are largely digitized. Therefore, the contractor's physical location is less critical than their technical capabilities, personnel expertise, and ability to meet service level agreements. While some administrative or communication might originate from their Michigan office, the core function of conducting searches and providing opinions relies on access to databases and skilled analysts, which can be managed from various locations.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3133 W FRYE RD STE 400, CHANDLER, AZ, 85226

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: $11,340,400

Exercised Options: $11,340,400

Current Obligation: $11,340,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1333BJ23D00151002

IDV Type: IDC

Timeline