Commerce's USPTO Spends $916K on Cisco Maintenance via BPA Call, Limited Competition

Contract Overview

Contract Amount: $916,761 ($916.8K)

Contractor: Disys Solutions, Inc.

Awarding Agency: Department of Commerce

Start Date: 2026-05-01

End Date: 2027-04-30

Contract Duration: 364 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO SMARTNET MAINTENANCE AND SUPPORT

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $916,761.35 to DISYS SOLUTIONS, INC. for work described as: CISCO SMARTNET MAINTENANCE AND SUPPORT Key points: 1. High spending on IT maintenance for critical patent office systems. 2. Limited competition raises questions about price discovery and value. 3. Potential risk associated with single vendor reliance for essential support. 4. Sector context: IT services are crucial for government operations.

Value Assessment

Rating: fair

The $916,761.35 award for Cisco SmartNet maintenance appears high given the 364-day duration. Benchmarking against similar IT maintenance contracts is difficult without more specific service levels, but the lack of competition suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under SAP and was awarded via a BPA Call. The limited competition, stemming from the use of a BPA, likely restricted price discovery and may have led to a higher price than a fully competitive process would yield.

Taxpayer Impact: Taxpayers may be overpaying for essential IT maintenance due to the lack of robust competition, potentially diverting funds from other critical government needs.

Public Impact

Ensures continued operation of the U.S. Patent and Trademark Office's IT infrastructure. Supports the intellectual property system, vital for innovation and economic growth. Potential for cost savings if competition were more robust in future procurements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector, particularly maintenance and support for complex systems like those used by the USPTO, is a significant area of government spending. Benchmarks for similar contracts vary widely based on vendor, service level, and duration.

Small Business Impact

This award does not appear to involve small businesses, as it was issued under a BPA Call to DISYS SOLUTIONS, INC. Future procurements should explore opportunities for small business participation in IT maintenance.

Oversight & Accountability

The use of a BPA Call suggests some level of pre-competition or established framework, but the lack of further competition on this specific call warrants oversight to ensure fair pricing and value.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, department-of-commerce, va, bpa-call, 100k-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $916,761.35 to DISYS SOLUTIONS, INC.. CISCO SMARTNET MAINTENANCE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is DISYS SOLUTIONS, 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 $916,761.35.

What is the period of performance?

Start: 2026-05-01. End: 2027-04-30.

What is the specific value proposition of Cisco SmartNet maintenance compared to alternative support solutions or internal support capabilities for the USPTO?

The value proposition of Cisco SmartNet typically lies in guaranteed response times, access to firmware updates, and direct technical support from the manufacturer. For the USPTO, this ensures the stability and security of their network infrastructure, which is critical for patent processing. However, without a competitive bid process, it's difficult to ascertain if this specific contract offers optimal value compared to potential alternatives or if the pricing reflects market competition.

What are the primary risks associated with relying on a single vendor for critical IT maintenance, especially when competition is limited?

The primary risks include potential price gouging, reduced service quality due to lack of competitive pressure, and vendor lock-in, making it difficult and costly to switch providers. If the vendor experiences financial difficulties or changes its support strategy, the USPTO's operations could be severely disrupted. Limited competition also hinders innovation by not encouraging alternative solutions.

How effective is the current procurement method (BPA Call, limited competition) in ensuring the USPTO receives cost-effective IT maintenance services?

The effectiveness is questionable. While using a BPA can streamline procurement, awarding a call with limited competition raises concerns about cost-effectiveness. The absence of a robust bidding process means the USPTO may not be achieving the best possible pricing. Future strategies should focus on maximizing competition within BPA calls or exploring fully competitive solicitations for such essential services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1333BJ26Q00000017

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dexian, LLC

Address: 44670 CAPE CT STE 100, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,583,807

Exercised Options: $916,761

Current Obligation: $916,761

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L521A13ES0040

IDV Type: BPA

Timeline

Start Date: 2026-05-01

Current End Date: 2027-04-30

Potential End Date: 2031-04-30 00:00:00

Last Modified: 2026-04-08

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