USPTO awards $5.36M for internet and intranet site development, security, and operations to Science Applications International Corporation

Contract Overview

Contract Amount: $5,360,973 ($5.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Commerce

Start Date: 2025-07-01

End Date: 2027-03-31

Contract Duration: 638 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: USPTO INTERNET AND INTRANET SITE DEVELOPMENT, SECURITY, AND OPERATIONS SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $5.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: USPTO INTERNET AND INTRANET SITE DEVELOPMENT, SECURITY, AND OPERATIONS SERVICES Key points: 1. Contract value appears reasonable for the scope of IT services required. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include vendor lock-in and performance variability. 4. This contract supports critical IT infrastructure for the USPTO. 5. The services fall within the broader IT consulting and systems integration sector.

Value Assessment

Rating: good

The contract value of $5.36 million over approximately two years for comprehensive internet and intranet site development, security, and operations services seems aligned with industry standards for similar government IT contracts. Benchmarking against other federal contracts for IT systems design and support, this award falls within a moderate spending range. The use of labor hours suggests flexibility, but requires careful monitoring to ensure cost-effectiveness. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the initial indication is positive given the competitive nature of the award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government. The USPTO's approach to full and open competition is a positive indicator for achieving fair market prices.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The presence of multiple bidders increases the likelihood that the government is receiving a fair price for the services rendered.

Public Impact

Benefits patent and trademark applicants and the public by ensuring the availability and security of USPTO's online platforms. Delivers essential IT services including website development, cybersecurity, and operational support. Services are primarily delivered to the U.S. Patent and Trademark Office, with a national impact on users accessing USPTO resources. Supports IT professionals and potentially other roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single vendor for critical IT infrastructure could pose a risk.
Performance variability in IT services can impact user experience and operational efficiency.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract duration provides stability for essential IT operations.
Services are critical to the functioning of a key government agency.

Sector Analysis

This contract falls within the Computer Systems Design Services sector (NAICS 541512), a significant segment of the IT industry focused on designing, developing, and implementing IT solutions. The market for these services is large and competitive, with numerous firms offering specialized expertise. The USPTO's spending on IT infrastructure and operations is consistent with the needs of large government agencies managing vast amounts of data and public-facing digital services. Comparable spending benchmarks would typically be assessed against other federal agencies of similar size and mission requiring extensive IT support.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Science Applications International Corporation, a large business, suggests that the primary focus was on technical capability and competitive pricing rather than small business utilization. This means that opportunities for small businesses to participate in this specific contract may be limited unless they are part of the prime contractor's supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Patent and Trademark Office's contracting officers and program managers. Accountability measures would include performance reviews, adherence to service level agreements, and milestone completion. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

USPTO IT Modernization Efforts
Federal Cybersecurity Initiatives
Government IT Infrastructure Support Contracts
Digital Service Delivery Contracts

Risk Flags

Moderate competition level (2 bidders)
Potential for vendor lock-in
Reliance on labor hours requires careful monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $5.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. USPTO INTERNET AND INTRANET SITE DEVELOPMENT, SECURITY, AND OPERATIONS SERVICES

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

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 $5.4 million.

What is the period of performance?

Start: 2025-07-01. End: 2027-03-31.

What is the track record of Science Applications International Corporation (SAIC) in performing similar IT development, security, and operations services for federal agencies?

Science Applications International Corporation (SAIC) has a substantial track record of providing IT services to various federal agencies. They have held numerous contracts involving systems integration, cybersecurity, cloud computing, and IT operations support. For example, SAIC has been a significant contractor for the Department of Defense, NASA, and other civilian agencies. Their experience often includes managing complex IT infrastructures, developing and securing web applications, and ensuring the operational continuity of critical systems. While specific performance details for past contracts are not provided here, SAIC's extensive government contracting history suggests they possess the organizational capacity and technical expertise to undertake the USPTO's requirements. A deeper dive into past performance evaluations and contract close-outs would offer more granular insights into their reliability and effectiveness.

How does the awarded amount of $5.36 million compare to similar USPTO IT contracts or contracts for comparable services at other agencies?

The awarded amount of $5.36 million for approximately two years of internet and intranet site development, security, and operations services positions this contract as a mid-tier IT services award. When compared to the vast landscape of federal IT spending, this figure is not exceptionally large but represents a significant investment for the USPTO. For instance, larger agencies like the Department of Defense or the Social Security Administration often award multi-year, multi-million dollar contracts for enterprise-wide IT modernization or sustainment. However, for a specific functional area like website development and operations within a specialized agency like the USPTO, $5.36 million is a reasonable sum. Benchmarking against contracts for similar scope (e.g., website management, cybersecurity for online portals) at agencies like the Department of Commerce (USPTO's parent agency) or other intellectual property offices globally would provide more precise comparisons, but the current data suggests it is within expected parameters for the services described.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks associated with this contract include potential vendor lock-in, where the USPTO becomes overly reliant on SAIC's proprietary systems or processes, making future transitions difficult and costly. Performance variability is another risk; IT services can be subject to unforeseen technical challenges, security vulnerabilities, or delays that impact operational efficiency and user satisfaction. Scope creep, where project requirements expand beyond the initial agreement without corresponding adjustments in cost or timeline, is also a common risk in IT development contracts. Mitigation strategies likely include clearly defined Service Level Agreements (SLAs), robust performance monitoring by USPTO program managers, regular technical reviews, and contract clauses that allow for adjustments or termination if performance standards are not met. Strong change management processes are crucial to control scope creep.

How effective is the 'full and open competition' approach in ensuring value for money for this specific USPTO contract, given there were only two bidders?

The 'full and open competition' approach is designed to maximize value for money by allowing any qualified vendor to bid, theoretically fostering the most competitive pricing. However, with only two bidders for this USPTO contract, the level of price discovery might be less robust than if there were, for example, five or more. While two bidders still represent competition and prevent a sole-source situation, it narrows the range of potential cost savings. The effectiveness in ensuring value for money hinges on the thoroughness of the solicitation requirements, the clarity of the evaluation criteria, and the negotiation leverage the USPTO possessed. If the solicitation was well-defined and the evaluation process rigorous, even two bidders could lead to a competitive outcome. However, a higher number of bidders generally increases the probability of securing the best possible price and innovative solutions for taxpayers.

What are the historical spending patterns for internet and intranet site development, security, and operations at the USPTO, and how does this award fit in?

Historical spending patterns for IT services at the USPTO, like most large federal agencies, likely show a consistent and significant investment in maintaining and modernizing its digital infrastructure. This includes expenditures on website development, cybersecurity measures to protect sensitive data, and the day-to-day operations of its online platforms. The $5.36 million award for a roughly two-year period fits within the expected range for specialized IT support services. It suggests a continued commitment to ensuring the reliability, security, and functionality of the USPTO's public-facing and internal web presence. Without access to historical USPTO procurement data, it's difficult to pinpoint exact trends, but such contracts are typically recurring needs for agencies reliant on robust digital services. This award likely represents a continuation or evolution of previous support for these critical functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $18,140,104

Exercised Options: $5,360,973

Current Obligation: $5,360,973

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,416,372

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1333BJ21D00280004

IDV Type: IDC

Timeline