Commerce Department awards $137.5M contract for patent and trademark services, with 8 bidders

Contract Overview

Contract Amount: $137,536,646 ($137.5M)

Contractor: CPA Global (landon IP) Inc

Awarding Agency: Department of Commerce

Start Date: 2012-01-03

End Date: 2025-02-01

Contract Duration: 4,778 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PCT

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48108

State: Michigan Government Spending

Plain-Language Summary

Department of Commerce obligated $137.5 million to CPA GLOBAL (LANDON IP) INC for work described as: PCT Key points: 1. Contract value of $137.5 million over its period of performance suggests significant service needs. 2. Full and open competition with 8 bidders indicates a healthy market response. 3. The contract's duration of nearly 10 years presents long-term performance monitoring requirements. 4. Fixed-price contract type aims to control costs, but requires careful scope management. 5. The services provided fall under 'All Other Professional, Scientific, and Technical Services,' a broad category. 6. Contract awarded to CPA GLOBAL (LANDON IP) INC, a single entity for service delivery. 7. The contract is not set aside for small businesses, indicating larger prime contractor involvement.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging without specific service details. However, the $137.5 million total award over approximately 10 years averages to about $13.75 million annually. This figure needs to be compared against the USPTO's overall budget and the scale of its patent and trademark operations. The fixed-price nature suggests an expectation of predictable costs, but the long duration could introduce risks if market conditions or service requirements change significantly. Without specific per-unit metrics, a precise value-for-money assessment is difficult, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bidders participating. This level of competition is generally considered robust and suggests that multiple firms were capable of meeting the government's requirements. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The agency's decision to use full and open competition indicates a belief that the market could adequately support the requirement without restrictions.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive offers for essential patent and trademark services.

Public Impact

The U.S. Patent and Trademark Office (USPTO) is the primary beneficiary, receiving essential services to support its mission. Services delivered likely include intellectual property management, patent prosecution support, trademark registration assistance, and related legal or administrative functions. The geographic impact is national, supporting the USPTO's operations which serve inventors and businesses across the United States. Workforce implications may include support roles within the USPTO or the contractor's organization, potentially involving legal professionals, paralegals, and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 10 years) could lead to vendor lock-in or reduced flexibility if needs evolve.
Fixed-price contract type may incentivize cost-cutting that could impact service quality if not closely monitored.
Reliance on a single prime contractor (CPA GLOBAL) for a large sum could pose risks if performance falters.
Broad service category ('All Other Professional, Scientific, and Technical Services') might obscure specific performance metrics and oversight challenges.
Lack of small business set-aside means limited direct opportunities for smaller firms within this specific award.

Positive Signals

Full and open competition with 8 bidders suggests a competitive environment that should yield good value.
Fixed-price contract type provides cost certainty for the government, assuming scope is well-defined.
The contract award to a known entity (CPA GLOBAL) may indicate a track record of successful service delivery.
The significant contract value suggests the services are critical to the USPTO's core mission.
Long-term nature allows for stable service provision and potential for building strong working relationships.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to intellectual property management. The market for these services is substantial, driven by the continuous need for patent and trademark processing by government agencies and private entities. Comparable spending benchmarks would involve analyzing other large government contracts for similar legal, administrative, and technical support services provided to agencies like the USPTO, Department of Justice, or other regulatory bodies. The size of this award indicates it represents a significant portion of the USPTO's external support needs in this area.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This means the competition was open to all responsible sources, including large businesses. While there are no direct subcontracting requirements specified here, large prime contractors often utilize small businesses for specialized support. However, the absence of a formal set-aside limits guaranteed opportunities for small businesses within this specific contract vehicle. The impact on the small business ecosystem is neutral to slightly negative in terms of direct award participation, but potential indirect opportunities may exist.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the U.S. Patent and Trademark Office (USPTO). Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. The fixed-price nature requires careful management of the contract's scope and deliverables to ensure the contractor meets all requirements. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

USPTO Operations Support
Intellectual Property Services
Government Legal Support Services
Professional and Technical Services
Patent Examination Support
Trademark Registration Services

Risk Flags

Long contract duration
Fixed-price contract risk
Broad service category definition
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $137.5 million to CPA GLOBAL (LANDON IP) INC. PCT

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 $137.5 million.

What is the period of performance?

Start: 2012-01-03. End: 2025-02-01.

What is the specific breakdown of services provided under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' While the specific breakdown is not detailed in the provided data, this category typically encompasses a wide range of specialized services. For the USPTO, these services likely relate to supporting the examination, processing, and management of patent and trademark applications. This could include tasks such as prior art searches, legal research, document preparation and review, administrative support for application filings, and potentially specialized technical analysis related to patentability or trademark distinctiveness. The long duration and significant value suggest these are core, ongoing support functions rather than project-specific tasks.

How does the $137.5 million award compare to historical spending on similar services by the USPTO?

To accurately compare, historical spending data for USPTO's support services under similar NAICS codes or service descriptions would be needed. However, the $137.5 million over nearly 10 years ($13.75M annually) suggests a substantial and consistent investment in external support. This figure should be evaluated against the USPTO's overall budget and the growth trends in patent and trademark filings. If filings have increased, higher spending on support services would be expected. A detailed analysis would require accessing historical contract databases (like FPDS) to identify comparable contracts awarded by the USPTO or other agencies for similar intellectual property support functions over the past decade.

What are the key performance indicators (KPIs) used to evaluate CPA GLOBAL (LANDON IP) INC's performance?

Specific Key Performance Indicators (KPIs) are not detailed in the provided summary data. However, for a contract of this nature supporting patent and trademark operations, typical KPIs would likely focus on timeliness, accuracy, and efficiency. Examples could include: average time to complete a prior art search, accuracy rate of document filings, adherence to USPTO procedural guidelines, contractor responsiveness to inquiries, and overall quality of work product. The contracting officer's representative (COR) would be responsible for monitoring these KPIs and ensuring the contractor meets the performance standards outlined in the contract's Performance Work Statement (PWS).

What is the risk associated with the long contract duration of nearly 10 years?

The primary risk associated with a nearly 10-year contract duration is the potential for evolving government needs and technological advancements to outpace the contract's scope or pricing structure. This can lead to inefficiencies or the need for costly modifications. It also increases the risk of vendor lock-in, where the government becomes heavily reliant on a single provider, potentially diminishing leverage in future negotiations. Furthermore, market conditions and the competitive landscape can change significantly over such a long period. Mitigating these risks requires robust contract management, including regular reviews, clear modification clauses, and potentially incorporating mechanisms for periodic re-evaluation of services and pricing.

Given the 'full and open competition' and 8 bidders, what does this imply about the pricing competitiveness?

The fact that this contract was awarded under 'full and open competition' with eight bidders is a strong indicator of a competitive market for these services. A higher number of bidders generally leads to more aggressive pricing as companies vie for the award. This suggests that the government likely received competitive offers and that the final negotiated price is reasonably aligned with market rates. The fixed-price contract type further supports this, as it locks in the price, making it less susceptible to cost overruns unless the scope changes. Taxpayers benefit from this competitive pressure, which helps ensure that public funds are used efficiently.

What is the potential impact on innovation within the intellectual property services sector due to this large, long-term contract?

Large, long-term contracts like this can have a dual impact on innovation. On one hand, they provide a stable revenue stream for the incumbent contractor (CPA GLOBAL), potentially allowing them to invest in developing new technologies or service improvements to better serve the USPTO. This stability can foster deep expertise. On the other hand, such a significant award might create a barrier to entry for smaller, innovative firms seeking to compete for government contracts in this space, potentially stifling broader market innovation. The USPTO's approach to competition and contract management will influence whether this contract ultimately encourages or hinders sector-wide innovation.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clarivate PLC

Address: 1725 JAMIESON AVE, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $203,859,000

Exercised Options: $137,536,646

Current Obligation: $137,536,646

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline