Commerce awards $9450 contract for document capture software to ALVAREZ LLC

Contract Overview

Contract Amount: $9,450 ($9.4K)

Contractor: Alvarez LLC

Awarding Agency: Department of Commerce

Start Date: 2026-05-01

End Date: 2027-04-30

Contract Duration: 364 days

Daily Burn Rate: $26/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RICOH PAPERSTREAM CAPTURE PRO

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $9,450 to ALVAREZ LLC for work described as: RICOH PAPERSTREAM CAPTURE PRO Key points: 1. Contract value is minimal, suggesting a small-scale or specialized need. 2. Competition was full and open after exclusion of sources, indicating a deliberate procurement process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of one year aligns with typical software licensing or service periods. 5. The award falls under 'Other Computer Related Services,' a broad category. 6. Small business participation is not explicitly indicated, requiring further review.

Value Assessment

Rating: fair

The contract value of $9,450 is very low, making direct comparison to larger IT service contracts difficult. Given the small scale, it's challenging to benchmark pricing without more detail on the specific software and services provided. The fixed-price nature is a positive indicator for cost control on this particular award. However, without knowing the scope of 'RICOH PAPERSTREAM CAPTURE PRO' and the associated support, a definitive value-for-money assessment is limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was intended to be broad, specific sources may have been initially excluded for a defined reason before the full competition was opened. The presence of two bids indicates some level of competition, but the exact number of proposals received and the rationale for excluding sources would provide more clarity on the competitive landscape.

Taxpayer Impact: A full and open competition, even with initial exclusions, generally promotes price discovery and ensures taxpayers receive competitive pricing. The low value of this contract means the direct financial impact of competition is likely minimal but still adheres to best practices.

Public Impact

The U.S. Patent and Trademark Office (USPTO) is the primary beneficiary, likely improving its document management and processing capabilities. The contract delivers software and potentially related services for digital document capture. The geographic impact is centered within the USPTO's operations, likely in Virginia. Workforce implications are minimal, likely affecting a small number of USPTO personnel who will use the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detail on specific software features and support levels limits assessment of long-term value.
The 'exclusion of sources' clause warrants further investigation into its justification and impact on competition.
No explicit mention of small business subcontracting goals.

Positive Signals

Fixed-price contract type helps control costs.
Awarded under full and open competition, suggesting adherence to procurement regulations.
Contract duration is clearly defined, providing a predictable service period.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services.' The market for document capture and management software is competitive, with numerous vendors offering solutions ranging from basic scanning to advanced AI-driven data extraction. The value of this specific contract is very small relative to the overall market size for enterprise content management solutions, suggesting it addresses a niche requirement or a pilot program within the USPTO.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no specific mention of subcontracting requirements. Given the small contract value, it is unlikely to have significant subcontracting implications. Further review of the solicitation documents would be needed to confirm if any small business considerations were part of the evaluation or if larger prime contractors were involved in a way that might impact small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Patent and Trademark Office (USPTO) contracting officers and program managers. As a delivery order under a larger contract vehicle (implied by 'AW: DELIVERY ORDER'), oversight might also be influenced by the parent contract's structure. Transparency is facilitated by public contract databases, but detailed performance metrics and specific oversight activities are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal IT Services Contracts
Document Management Systems
Software Licensing and Support
Patent and Trademark Office Operations

Risk Flags

Limited competition data available.
Justification for 'exclusion of sources' not provided.
Small contract value limits comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $9,450 to ALVAREZ LLC. RICOH PAPERSTREAM CAPTURE PRO

Who is the contractor on this award?

The obligated recipient is ALVAREZ LLC.

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 $9,450.

What is the period of performance?

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

What specific functionalities does RICOH PAPERSTREAM CAPTURE PRO offer, and how do they align with USPTO's operational needs?

RICOH PAPERSTREAM CAPTURE PRO is a software solution designed to streamline document scanning, indexing, and data extraction processes. Its functionalities typically include optical character recognition (OCR), barcode recognition, intelligent data capture, and integration with enterprise content management (ECM) systems. For the USPTO, this software likely aids in digitizing incoming mail, patent applications, trademark filings, and other critical documents, improving searchability, reducing manual data entry, and enhancing workflow efficiency. The specific alignment would depend on the USPTO's internal processes for handling these documents and the desired level of automation.

How does the $9,450 contract value compare to typical spending on similar document management software by federal agencies?

A $9,450 contract value is exceptionally low for federal IT procurements, especially for enterprise-level software solutions. Typical federal spending on document management and capture software can range from tens of thousands to millions of dollars annually, depending on the agency's size, scope of operations, and the sophistication of the chosen solution. This low value suggests the contract might be for a limited number of licenses, a specific departmental need, a short-term trial, or a component of a larger, unbundled procurement. It is not representative of major enterprise software investments.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The primary risk associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' lies in the potential for reduced competition if the initial exclusion was not well-justified or if it deterred potential bidders. While the 'after exclusion' clause implies that the competition was eventually opened broadly, the initial exclusion could limit the pool of qualified offerors. Risks include potentially higher prices than if all capable sources had participated from the outset, or a less optimal solution if the excluded sources offered superior capabilities. Transparency regarding the reasons for exclusion is crucial for assessing this risk.

What is the track record of ALVAREZ LLC in providing IT services to the federal government?

Information regarding ALVAREZ LLC's specific track record in providing IT services to the federal government is not detailed in the provided data. To assess their performance, one would need to examine past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. Given this is a small contract, it might represent a new or limited engagement. A deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary to build a comprehensive profile of the contractor's history and capabilities.

How does the fixed-price contract type mitigate risks for the USPTO in this specific award?

A Firm Fixed Price (FFP) contract type, as indicated by 'PT: FIRM FIXED PRICE', is generally advantageous for the government as it shifts the risk of cost overruns to the contractor. For this $9,450 contract, the USPTO knows the exact cost upfront. This eliminates the risk of unexpected price increases due to labor rate changes, material costs, or unforeseen technical challenges that the contractor might encounter. The contractor is obligated to deliver the specified goods or services for the agreed-upon price, providing cost certainty for the agency on this particular procurement.

What are the implications of the contract being awarded under NAICS code 541519 (Other Computer Related Services)?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category encompassing a wide range of IT services not specified elsewhere. This includes services like computer facilities management, IT support, disaster recovery services, and software installation/troubleshooting. Awarding the contract under this code suggests that the specific services provided by ALVAREZ LLC, related to RICOH PAPERSTREAM CAPTURE PRO, fall into this general classification. It implies the contract is not for custom software development (541511) or custom computer programming services (541512), but rather for support, integration, or related IT functions.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1333BJ26Q00280025

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 FORT EVANS RD NE STE 335, LEESBURG, VA, 20176

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $48,102

Exercised Options: $9,450

Current Obligation: $9,450

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD19B

IDV Type: GWAC

Timeline