Commerce awards $11.3M for patent classification services to CPA Global, extending contract through 2027

Contract Overview

Contract Amount: $11,320,000 ($11.3M)

Contractor: CPA Global (landon IP) Inc

Awarding Agency: Department of Commerce

Start Date: 2025-03-01

End Date: 2027-02-28

Contract Duration: 729 days

Daily Burn Rate: $15.5K/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 - OPTION YEAR FOUR 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: FULL CLASSIFICATION SERVICES - INITIAL CLASSIFICATION OF PATENT APPLICATIONS SERVICES - OPTION YEAR FOUR TASK ORDER AWARD Key points: 1. Contract value represents a significant investment in intellectual property processing. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The contract duration of 729 days indicates a need for sustained service delivery. 5. This award falls within the 'All Other Professional, Scientific, and Technical Services' NAICS code. 6. The award is a Delivery Order, suggesting it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $11.3 million over approximately two years for patent classification services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for intellectual property support services would provide a more precise value-for-money assessment. The fixed-price nature of the contract helps mitigate cost overrun risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality. The USPTO's commitment to full and open competition suggests a robust market for these specialized services.

Taxpayer Impact: Taxpayers benefit from a competitive process that is intended to secure the best value for the government's investment in patent examination support.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from efficient and accurate classification of patent applications. This service supports the USPTO's mission to promote innovation and economic growth by protecting intellectual property. The contract ensures timely processing of patent applications, which can reduce backlogs and speed up the issuance of patents. The geographic impact is national, supporting the USPTO's operations regardless of its physical location. Workforce implications are indirect, as this contract outsources a specific function rather than directly employing federal staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this is a critical function and few alternatives exist.
Dependence on a single contractor for a core operational service could pose a risk.
Ensuring consistent quality and adherence to classification standards over the contract term is crucial.

Positive Signals

Awarded under full and open competition, suggesting a healthy market and potential for competitive pricing.
Fixed-price contract type provides cost certainty for the government.
The contract is a delivery order, implying it is part of a potentially larger, established framework.

Sector Analysis

The intellectual property services sector is vital for national innovation ecosystems. The U.S. Patent and Trademark Office (USPTO) relies on efficient classification to manage its vast workload. Spending in this area is directly tied to the volume of patent applications received. Comparable spending benchmarks would involve analyzing other government agencies or large private entities that manage extensive patent portfolios or require similar technical classification expertise.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). CPA Global (Landon IP Inc.) is likely a large business. There is no explicit information on subcontracting plans for small businesses within this specific award notice. Further review of the contract details would be needed to assess any potential subcontracting opportunities or requirements.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Patent and Trademark Office (USPTO) contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and quality requirements. Transparency is facilitated through contract award notices published on federal procurement data systems. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Patent Examination Services
Intellectual Property Support
Professional, Scientific, and Technical Services
Government Contract Services

Risk Flags

Potential for vendor lock-in
Dependence on contractor performance for core function
Need for ongoing quality assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $11.3 million to CPA GLOBAL (LANDON IP) INC. FULL CLASSIFICATION SERVICES - INITIAL CLASSIFICATION OF PATENT APPLICATIONS SERVICES - OPTION YEAR FOUR 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: 2025-03-01. End: 2027-02-28.

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

Analyzing historical spending on patent classification services at the USPTO is crucial for understanding trends and justifying current expenditures. While this specific award is for $11.3 million, a comprehensive review would involve examining previous contract awards for similar services over the past 5-10 years. This would reveal whether spending has increased, decreased, or remained stable, potentially correlating with application volumes or changes in classification methodologies. It would also highlight the incumbent contractors and the competitive landscape over time. Understanding these patterns helps in assessing whether the current award represents a fair market price and whether the USPTO's investment in this area is consistent with its operational needs and budget allocations. Without access to historical contract data, it is difficult to provide a precise spending trend.

How does the per-unit cost of patent classification compare to industry benchmarks?

Determining the per-unit cost of patent classification requires defining a 'unit' (e.g., per application, per patent, per hour of examiner time) and obtaining detailed cost breakdowns from the contractor, which are often not publicly disclosed. If a 'per application' cost could be extracted or estimated, it could be benchmarked against industry standards or internal USPTO cost models. Factors influencing this cost include the complexity of the technology, the examiner's experience, and the efficiency of the classification system. Given that this is a fixed-price contract, the government is paying a set amount for the service, and the contractor assumes the risk of cost overruns. A comparison would ideally involve analyzing the contractor's proposed labor rates, overhead, and profit margins against similar service providers in the intellectual property support market. However, such granular data is typically proprietary and not readily available in public award notices.

What is CPA Global (Landon IP Inc.)'s track record with the USPTO and other federal agencies?

CPA Global (Landon IP Inc.) has a significant history of providing intellectual property services, including patent and trademark support, to various entities. Their track record with the USPTO is likely extensive, given their role in patent classification. Assessing their performance would involve reviewing past contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), if publicly accessible. Positive performance indicators would include timely delivery, high-quality work, and responsiveness to government needs. Conversely, any past performance issues, such as missed deadlines, quality deficiencies, or disputes, would be a concern. Their experience with other federal agencies in similar technical or professional services would also provide context for their capabilities and reliability in managing government contracts.

What are the key performance indicators (KPIs) for this patent classification contract?

Key Performance Indicators (KPIs) for a patent classification services contract are essential for ensuring the USPTO receives high-quality and timely support. While not detailed in the award notice, typical KPIs would likely include metrics related to accuracy (e.g., percentage of applications correctly classified), timeliness (e.g., average time to classify an application from receipt), and completeness (e.g., ensuring all required classification fields are populated). Other potential KPIs could involve adherence to specific classification schemes (e.g., Cooperative Patent Classification - CPC), responsiveness to queries from USPTO examiners, and overall contractor efficiency. The contract likely specifies acceptable performance thresholds, and failure to meet these could result in penalties or termination. Regular performance reviews would assess the contractor's adherence to these KPIs.

What is the risk associated with relying on a single contractor for this critical function?

The primary risk associated with relying on a single contractor, even one selected through full and open competition, is potential vendor lock-in and reduced leverage. If CPA Global (Landon IP Inc.) becomes indispensable for patent classification, the USPTO may face challenges negotiating future contracts or finding suitable alternatives if performance declines or prices increase significantly. This risk is somewhat mitigated by the contract's fixed-price nature and the potential for future re-competition. However, the USPTO must maintain robust oversight to ensure consistent performance and proactively monitor the market for alternative providers or in-house capabilities. The duration of the contract (729 days) also presents a medium-term dependency that requires careful management.

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: $11,320,000

Exercised Options: $11,320,000

Current Obligation: $11,320,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1700013

IDV Type: IDC

Timeline