USPTO IT Sourcing Model

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file time: 2008-02-16

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Lawrence Cogut, Director

Office of Acquisition Management 

USPTO  IT Sourcing Model

 
 
 

PRE-1984  LITTLE TO NO OUTSOURCING 

  Only outsourcing was for microfilming   Most IT work done in house   Outsource services to manufactures  

1984-1986  USPTO AWARDS APS CONTRACT TO PRC 

18 year contract based on a one-stop shop for developing a paperless Patent Office Few formal deliverables.  Scope interpreted to include all the contract services received today PRC primarily tasked to scan back-file and store on optical media for search and retrieval from dual-screen workstations  
 
GAO and OIG issued report criticizing the USPTO and the APS contract

          As a result:  

PRC contract is downsized MITRE awarded contract for architecture and engineering services MacDonald Douglas awarded contract for IV&V   
 

Chronology

 
 
 

1987-1994  EMPHASIS ON INCREASED DEMANDS OF AUTOMATION AND MORE RIGID PROCUREMENT PROCESS 

Proliferation of small business contracts (over 60 for system development, 20 for operations, 300 models of PCs, dozens of different brands of servers)  
 

1994   ALIGN CONTRACT SUPPORT TO OCIO ORGANIZATION, SKILLS AND STANDARDS 

SDM for programming services SETA for architecture and engineering ITPA for product assurance services FM/EUS for operation and maintenance Desktop Computers for workstation support  
 
Office of Acquisition Management (OAM) created to consolidate skill-based contracts based on like types of work/products.  OAM created a sourcing model that included the following types of consolidated contracts:  

Chronology (cont.)

 
 
 

1996-1998  NEW LEGISLATION AND PROCUREMENT REGULATIONS CHANGE THE CONTRACT AWARD STRATEGY 

Implements hardware standards (e.g., HP for servers, FORE ATM for networks, EMC for storage) Requires three quotes for hardware and procurement is based on best value Awards consolidated contracts      

1999-2000  INTERNET PURCHASING APPLICATION (IPA) ESTABLISHED 

Allows pre-approved vendors to submit on-line quotes.  Reduces lead time for hardware and helps vendors to be more competitive  
 

200100003 CHANGE IN SOURCING MODEL 

Unbundling of architecture from SETA into a separate contract Dual award of SETA-3 that reduced risk of a single source and allowed small business participation  

Chronology (cont.)

 
 
 

Summary 

PRE-1994 GRAND DESIGN AND MULTIPLE SMALLER SOURCES 

Agency00 most critical application in one integrated source Institutionalized management processes Progressively weaker life cycle control Progressively weaker cost control and incentives Progressively weaker innovation  

Result:  PROGRESSIVELY WEAKER PERFORMANCE  

Proliferation of smaller specialized contracts Excessive attention to contract management Excessive attention to budget management  

Result:  PROGRESSIVELY WEAKER PERFORMANCE 

 
 
 

Summary (cont.) 

POST-1994  CONSOLIDATED MANAGEABLE SOURCES 

Grand design functions migrated to three skills-based sources with shorter terms Specialized contracts migrated to those three and two other sources  
 

Result:  IMPROVED LIFE CYCLE AND BUDGET CONTROL 

Result:  IMPROVED INTEGRATION OF SMALL BUSINESS SOURCES 

Result:  IMPROVED PERFORMANCE 

Result:  MORE MANAGEMENT ATTENTION TO SOURCING CONFLICTS OF INTEREST

 
 
 

SDM Services Contract 

IT Systems Development and Maintenance resources to develop, modify, and maintain automated information systems  
Two SDM contracts issued in April 1997 to:  Computer Sciences Corporation (CSC) and Lockheed Martin Services Group.  
Contracts period ends April 2005  
Current contracts are cost-reimbursement plus award fee.  In addition to the award fee, additional performance-based provisions have been added.  
An RFP expected to be issued by August 2004  
 
 

ITPA Services Contract 

IT Product Assurance activities in support of the design, development and implementation of new automated systems, enhancement of existing systems, and designing and implementing changes to the infrastructure Independent testing and assessment, quality assurance, configuration management, and requirements management Contract period is January 1, 1999 00June 30, 2004  Current contractor is Galaxy Scientific Corporation An RFP for new contract expected to be issued by November 2003 Expect a performance-based contract  
 
 

IT Sourcing Model Assessment 

Review current IT sourcing models with initial emphasis on the Systems Development and Maintenance contracts  
Determine how appropriate is the current contractor alignment for the accomplishment of the strategic goals and objectives

 

Determine any more efficient and effective ways for the timely acquisition of the appropriate world-class contractors

 

Determine methodologies to reduce cost, increase the speed of implementation, reduce risk and improve cost/schedule control.  This includes soliciting for contractor proposed performance metrics.  
 
 
   Strategic Management of Human Capital   Competitive Sourcing   Improved Financial Performance   Expanded Electronic Government   Budget and Performance Integration  
 

Key Government-Wide Initiatives 

The President00 Management Agenda

 
 
 

IT Strategic Goals 

E-Gov

    Enable USPTO to implement electronic government to reduce paper handling and enhance business processes

Carlyle

    Support the seamless relocation of the USPTO from Crystal City to the Carlyle area of Alexandria

World-Class Operations

    Provide and support robust highly responsive operations for the customers

Enterprise Architecture

    Implement the enterprise architecture for IT efficiency, effectiveness, and quality

Continuous Improvement

    Assure IT performance by persistent feedback and quality improvement

   download USPTO IT Sourcing Model