USPTO Must Improve Acquisition Planning to Ensure Efficient and Competitive Procurements

Submitting OIG:

Report Description:

The objective of our audit was to determine whether USPTO’s processes and activities for acquisition planning are effective and consistent with established practices, procedures, and regulations. Overall, we found that USPTO’s processes and activities for acquisition planning were ineffective and not consistent with established regulations, policies, and procedures. Specifically, we found the following: I. USPTO’s policies and procedures did not provide sufficient guidance on the use of its Patent and Trademark Office Acquisition Guidelines acquisition procedures. II. USPTO did not retain key documents, and documents developed during acquisition planning were insufficient and not supported. III. USPTO did not adhere to federal regulations relating to the Small Business Administration’s (SBA’s) Business Development program (the 8(a) Program).

Short / Alternative Report Title:

Date Issued:

Thursday, December 21, 2023

Agency Reviewed / Investigated:

Department of Commerce

Submitting OIG-Specific Report Number:

OIG-24-008-A

Component, if applicable:

U.S. Patent and Trademark Office

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
OIG-24-008.pdf	1.57 MB

Additional Details Link:

https://www.oig.doc.gov/Pages/USPTO-Must-Improve-Acquisition-Planning-to-Ensure-…

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	Yes
1. We recommend that the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office direct the Director of the Office of the Procurement to create a comprehensive framework for acquisition planning by updating the PTAG, PTAG Desktop Guide, PTAM, and other supplemental documents to clearly define the proper use of its PTAG acquisition procedures.
2	Open	Yes
2. We recommend that the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office direct the Director of the Office of the Procurement to create and publish, with support from USPTO executives, a comprehensive and clear acquisition planning process including formalizing and updating acquisition planning policies and procedures.
3	Open	Yes
3. We recommend that the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office direct the Director of the Office of the Procurement to develop policies and procedures to ensure (1) appropriate acquisition planning documents, such as the market research, acquisition planning, and sole-source or other justifications, are retained in the contract file and (2) current reviews and approvals for acquisition planning are properly documented and enforced.
4	Open	Yes
4. We recommend that the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office direct the Director of the Office of the Procurement to provide and require initial and ongoing training for business unit staff and other personnel on agency-specific acquisition planning processes, requirements, and roles and responsibilities.
5	Open	Yes
5. We recommend that the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office direct the Director of the Office of the Procurement to develop policies and procedures to provide oversight of 8(a) Program acquisitions to ensure those acquisitions comply with federal regulations to miigate the risk of questioned costs, identified at about $38 million in obligated amounts.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Yes

1. We recommend that the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office direct the Director of the Office of the Procurement to create a comprehensive framework for acquisition planning by updating the PTAG, PTAG Desktop Guide, PTAM, and other supplemental documents to clearly define the proper use of its PTAG acquisition procedures.

Open

Yes

2. We recommend that the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office direct the Director of the Office of the Procurement to create and publish, with support from USPTO executives, a comprehensive and clear acquisition planning process including formalizing and updating acquisition planning policies and procedures.

Open

Yes