Commerce Department's USPTO awards $26.2M for patent docketing and correspondence systems

Contract Overview

Contract Amount: $26,238,804 ($26.2M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Commerce

Start Date: 2017-03-31

End Date: 2019-10-31

Contract Duration: 944 days

Daily Burn Rate: $27.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::OT::IGF PATENTS END TO END (PE2E) DOCKET AND APPLICATION VIEWER (DAV)&PE2E OFFICIAL CORRESPONDENCE (OC)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $26.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF PATENTS END TO END (PE2E) DOCKET AND APPLICATION VIEWER (DAV)&PE2E OFFICIAL CORRESPONDENCE (OC) Key points: 1. Value for money appears fair, with a total contract value of $26.2M over 944 days. 2. The contract was awarded through full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a contract duration of nearly 2.5 years. 4. Performance context is within IT services, specifically computer systems design. 5. Sector positioning is within the government's IT procurement landscape, focusing on intellectual property management.

Value Assessment

Rating: fair

The total award of $26.2M over approximately 2.5 years for IT systems development and maintenance suggests a moderate investment. Benchmarking against similar government IT contracts for docketing and case management systems would provide a clearer picture of value. The pricing structure, based on labor hours, can be variable and depends heavily on the efficiency of the contractor and the accuracy of the initial labor estimates. Without specific per-unit metrics or detailed cost breakdowns, a definitive value assessment is challenging.

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 a bid. The presence of 3 bidders suggests a reasonable level of competition for this specific requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and innovative solutions, driving down costs and improving service quality.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from improved systems for managing patent dockets and correspondence. Services delivered include the development and maintenance of IT systems for patent application processing. The geographic impact is primarily within the USPTO's operations, supporting its mission nationwide. Workforce implications include IT professionals involved in system development, maintenance, and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contracts can lead to cost overruns if not managed tightly.
Dependence on a single contractor for critical IT infrastructure carries inherent risks.
The specific performance metrics and quality assurance measures are not detailed here.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract supports a critical government function (patent processing).
The contractor, Science Applications International Corporation (SAIC), is a large, established entity with significant government contracting experience.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on custom computer systems design and integration. The market for government IT services is substantial, with agencies continually seeking to modernize their infrastructure and improve operational efficiency. Comparable spending benchmarks would involve looking at other federal contracts for similar case management, docketing, or intellectual property management systems across various agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means the primary contract value likely did not directly benefit the small business ecosystem through set-asides. However, the prime contractor may engage small businesses as subcontractors, though this is not specified.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the U.S. Patent and Trademark Office. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USPTO IT Modernization Efforts
Federal Patent and Trademark Systems
Government IT Infrastructure Contracts
Computer Systems Design Services

Risk Flags

Potential for cost overruns due to labor hour contract type.
Risk of schedule delays impacting patent processing timelines.
Dependency on contractor for critical IT systems.
Integration challenges with existing USPTO infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $26.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF PATENTS END TO END (PE2E) DOCKET AND APPLICATION VIEWER (DAV)&PE2E OFFICIAL CORRESPONDENCE (OC)

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 $26.2 million.

What is the period of performance?

Start: 2017-03-31. End: 2019-10-31.

What is the track record of Science Applications International Corporation (SAIC) with the USPTO and similar federal agencies?

Science Applications International Corporation (SAIC) is a large, well-established government contractor with extensive experience across various federal agencies, including the Department of Commerce and the U.S. Patent and Trademark Office (USPTO). SAIC has a history of providing IT services, systems engineering, and technical support. Their track record with the USPTO likely includes previous contracts related to IT infrastructure, software development, and data management. Analyzing their past performance on similar contracts, particularly those involving complex docketing or case management systems, would reveal their ability to deliver on time, within budget, and to the required quality standards. Past performance reviews and any documented issues or successes on prior USPTO contracts would be crucial for a comprehensive assessment.

How does the $26.2M contract value compare to other USPTO IT procurements?

The $26.2 million contract value for the PE2E DAV & OC systems represents a significant investment by the USPTO in its intellectual property management infrastructure. To benchmark this value, one would compare it to other IT procurements by the USPTO and similar agencies (e.g., other intellectual property offices or agencies managing large databases and complex workflows). Factors such as contract duration (944 days), scope of work (docketing, correspondence, viewer systems), and the specific technologies employed are critical for a fair comparison. If similar systems were procured for substantially less or more, it would indicate whether this contract represents good or questionable value. The labor hour pricing model also adds a layer of complexity to direct value comparisons, as actual costs can fluctuate.

What are the primary risks associated with this contract for the USPTO?

The primary risks associated with this contract include potential cost overruns due to the labor hour pricing model, especially if project scope expands or inefficiencies arise. There's also a risk of schedule delays impacting the USPTO's ability to efficiently process patents and correspondence. Technical risks involve the successful integration of new systems with existing infrastructure and ensuring the security and reliability of the patent data. Furthermore, vendor lock-in could become a concern if the systems are highly proprietary or difficult to transition away from. Dependence on SAIC for critical operational systems also poses a risk if the contractor faces financial instability or performance issues.

How effective are IT systems like PE2E DAV & OC in improving patent processing efficiency?

IT systems like the Patent End to End (PE2E) Docket and Application Viewer (DAV) and Official Correspondence (OC) are designed to significantly enhance the efficiency of patent processing. By automating workflows, providing centralized access to application data, and streamlining communication, these systems can reduce manual effort, minimize errors, and speed up examination times. Effective implementation leads to faster patent grants, which benefits inventors and businesses by providing timely intellectual property protection. The success of such systems is measured by metrics like reduced processing times, improved data accuracy, increased examiner productivity, and enhanced user satisfaction among both internal staff and external applicants. The specific effectiveness of this particular system would depend on its design, implementation, and ongoing maintenance.

What has been the historical spending trend for similar IT services at the USPTO?

Historical spending trends for similar IT services at the USPTO likely show a consistent and significant investment in modernizing its technological infrastructure. Agencies like the USPTO, responsible for managing vast amounts of data and complex legal processes, rely heavily on IT to maintain operations and improve services. Spending in areas such as case management systems, data analytics, cybersecurity, and digital workflow automation has generally increased across federal agencies over the past decade. Analyzing the USPTO's specific IT budget and contract awards over several years would reveal patterns in spending on system development, maintenance, and support, indicating whether this $26.2M contract aligns with or deviates from historical investment levels for comparable services.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1710 SAIC DR, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $26,238,804

Exercised Options: $26,238,804

Current Obligation: $26,238,804

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $13,466,236

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOC50PAPT1600021

IDV Type: IDC

Timeline