Commerce Dept. Pays $36.8M for Proprietary Database Access for Patent Examiners

Contract Overview

Contract Amount: $36,844,545 ($36.8M)

Contractor: American Chemical Society

Awarding Agency: Department of Commerce

Start Date: 2007-12-01

End Date: 2010-09-30

Contract Duration: 1,034 days

Daily Burn Rate: $35.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ACCESS TO CONTRACTOR'S PROPRIETARY COMMERCIAL DATABASE FOR USE BY PATENT EXAMINERS IN SEARCHING PRIOR ART.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22313

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $36.8 million to AMERICAN CHEMICAL SOCIETY for work described as: ACCESS TO CONTRACTOR'S PROPRIETARY COMMERCIAL DATABASE FOR USE BY PATENT EXAMINERS IN SEARCHING PRIOR ART. Key points: 1. The contract awarded to American Chemical Society for database access represents a significant investment in prior art searching capabilities. 2. The lack of competition raises concerns about potential overpayment and limited market exploration. 3. The use of a proprietary database suggests a reliance on a single vendor, potentially limiting future flexibility and innovation. 4. The IT sector, specifically software publishers, is the relevant industry for this type of data access.

Value Assessment

Rating: questionable

The contract's value of $36.8 million for database access is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar services or determine if the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition for this substantial contract raises concerns about the efficient use of taxpayer funds.

Public Impact

Patent examiners will have access to a specialized commercial database for prior art searches, potentially improving the quality and speed of patent reviews. The reliance on a single contractor for this critical data could create a dependency that is difficult to break. Small businesses in the software publishing sector may be excluded from opportunities to provide similar or alternative data solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Vendor lock-in risk

Positive Signals

Access to critical prior art data
Supports patent examination process

Sector Analysis

This contract falls within the IT sector, specifically software publishing, related to data access and management. Benchmarking spending in this area is challenging without competitive data, but significant investments are common for specialized databases.

Small Business Impact

The sole-source nature of this award likely excluded small businesses from competing. Opportunities for small businesses in providing data solutions or alternative search tools may have been missed.

Oversight & Accountability

The lack of competition warrants further oversight to ensure the pricing is reasonable and the service continues to meet the needs of the U.S. Patent and Trademark Office effectively.

Related Government Programs

Software Publishers
Department of Commerce Contracting
U.S. Patent and Trademark Office Programs

Risk Flags

Sole-source award
Lack of price competition
Potential for cost overruns
Vendor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $36.8 million to AMERICAN CHEMICAL SOCIETY. ACCESS TO CONTRACTOR'S PROPRIETARY COMMERCIAL DATABASE FOR USE BY PATENT EXAMINERS IN SEARCHING PRIOR ART.

Who is the contractor on this award?

The obligated recipient is AMERICAN CHEMICAL SOCIETY.

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 $36.8 million.

What is the period of performance?

Start: 2007-12-01. End: 2010-09-30.

What is the justification for not competing this contract, and what steps were taken to ensure fair pricing?

The justification for not competing this contract is not provided in the data. Without a competitive process, it is difficult to ascertain the steps taken to ensure fair pricing. Typically, sole-source procurements require detailed justification and price analysis to demonstrate reasonableness.

What is the long-term risk associated with relying on a single proprietary database for prior art searches?

The long-term risk includes potential price increases by the sole vendor, lack of innovation if the vendor does not update their database, and difficulty in switching to alternative or more cost-effective solutions in the future. This vendor lock-in can limit the government's negotiating power.

How does access to this specific proprietary database enhance the effectiveness of patent examiners compared to publicly available resources?

Proprietary databases often contain more comprehensive, curated, and specialized data than publicly available resources, including older or niche publications. This can significantly improve the thoroughness and efficiency of prior art searches, leading to more accurate patentability decisions and potentially reducing examination backlogs.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2540 OLENTANGY RIVER RD, COLUMBUS, OH, 90

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,145,279

Exercised Options: $38,145,279

Current Obligation: $36,844,545

Timeline