Treasury's IRS awards $2.86M contract for scanning services, highlighting need for efficient document management

Contract Overview

Contract Amount: $2,864,081 ($2.9M)

Contractor: Iron Mountain Information Management LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-04-30

End Date: 2025-09-24

Contract Duration: 147 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SCANNING AS A SERVICE, INCLUDING THE DIGITALIZATION OF PAPER TAX AND/OR INFORMATION RETURNS. APPROVED ON APRIL 24, 2025.

Place of Performance

Location: PORTSMOUTH, ROCKINGHAM County, NEW HAMPSHIRE, 03801

State: New Hampshire Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.9 million to IRON MOUNTAIN INFORMATION MANAGEMENT LLC for work described as: SCANNING AS A SERVICE, INCLUDING THE DIGITALIZATION OF PAPER TAX AND/OR INFORMATION RETURNS. APPROVED ON APRIL 24, 2025. Key points: 1. Contract addresses a critical need for digitizing tax and information returns, improving accessibility and processing. 2. The firm-fixed-price structure provides cost certainty for the government. 3. A full and open competition suggests a robust market for these specialized services. 4. The short performance period indicates a focused, immediate need for the scanning services. 5. This contract supports the IRS's broader digital transformation efforts.

Value Assessment

Rating: good

The contract value of $2.86 million for approximately five months of scanning services appears reasonable given the scope of digitizing tax and information returns. Benchmarking against similar large-scale document digitization contracts is challenging without more specific details on volume and complexity. However, the firm-fixed-price nature suggests that the contractor has adequately estimated costs, and the government is protected from cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This approach generally fosters a competitive environment, encouraging vendors to offer competitive pricing and innovative solutions. The specific number of bidders is not provided, but the method of competition suggests a healthy market for these services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is likely to result in a more competitive price and potentially higher quality services, maximizing the value of federal dollars spent.

Public Impact

Taxpayers benefit from more efficient processing of tax and information returns through digitalization. The Internal Revenue Service (IRS) gains improved access to and management of critical financial documents. The contract supports the modernization of government record-keeping and administrative processes. Workforce implications may include temporary roles for scanning and data entry, depending on the contractor's approach.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for data security breaches if robust protocols are not maintained during the scanning and transfer process.
Risk of incomplete or inaccurate digitization leading to downstream processing errors.
Dependence on contractor performance for timely completion within the short performance window.

Positive Signals

The use of a firm-fixed-price contract provides budget predictability.
Awarding under full and open competition suggests a competitive market, potentially leading to better value.
The contract supports a critical government function (tax processing) by enabling digital access to information.

Sector Analysis

The document management and scanning industry is a significant sector supporting various government functions, particularly in areas requiring the processing of large volumes of paper records. The market includes specialized firms capable of handling sensitive information and meeting stringent government requirements for accuracy and security. This contract fits within the broader trend of federal agencies digitizing legacy paper records to improve efficiency and accessibility.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific contract may be limited unless the prime contractor engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight will likely be managed by the contracting officer's representative (COR) within the IRS, responsible for monitoring performance, ensuring compliance with contract terms, and verifying deliverables. Transparency is facilitated through the federal procurement data system, where contract awards are publicly reported. Accountability rests with Iron Mountain Information Management LLC to meet the specified requirements within the agreed-upon timeframe and budget.

Related Government Programs

IRS Document Management Services
Federal Records Management
Taxpayer Information Processing
Digital Transformation Initiatives

Risk Flags

Short Performance Period
Data Security and Privacy
Accuracy of Digitization

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.9 million to IRON MOUNTAIN INFORMATION MANAGEMENT LLC. SCANNING AS A SERVICE, INCLUDING THE DIGITALIZATION OF PAPER TAX AND/OR INFORMATION RETURNS. APPROVED ON APRIL 24, 2025.

Who is the contractor on this award?

The obligated recipient is IRON MOUNTAIN INFORMATION MANAGEMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2025-04-30. End: 2025-09-24.

What is the historical spending pattern for similar scanning and digitalization services by the IRS?

Analyzing historical spending for similar IRS scanning and digitalization contracts requires access to detailed procurement data over multiple fiscal years. While this specific contract is for $2.86 million over approximately five months, understanding the IRS's broader investment in document management provides context. Agencies like the IRS often engage in multi-year efforts to digitize vast archives of paper documents. Past contracts may vary significantly in scope, duration, and technology employed, influencing their total value. Without specific historical data points for comparable services, it's difficult to establish a precise trend, but the recurring need for such services suggests a consistent, albeit potentially fluctuating, budget allocation towards modernization and efficiency gains through digitalization.

How does the per-page cost of this contract compare to industry benchmarks for document scanning?

Determining the precise per-page cost for this contract is not feasible without knowing the total volume of documents to be scanned. The contract value is $2.86 million for scanning tax and information returns. Industry benchmarks for document scanning services can range widely, typically from $0.05 to $0.50 per page, depending on factors such as document type (e.g., single-page forms vs. multi-page complex documents), required indexing and metadata, image quality standards, and security protocols. High-volume, routine scanning might fall at the lower end, while specialized handling or complex indexing would push costs higher. Given the nature of tax documents, which can vary in complexity, the actual per-page cost would need to be calculated based on the estimated or actual number of pages processed to allow for a meaningful comparison to market rates.

What are the specific risks associated with the contractor, Iron Mountain Information Management LLC, for this type of service?

Iron Mountain Information Management LLC is a well-established company with extensive experience in records management and information services, including scanning and digitization. This extensive track record generally mitigates risks related to operational capability and reliability. However, potential risks common to any large-scale digitization project, regardless of the contractor, include data security vulnerabilities during transit or processing, potential for errors in scanning or data extraction, and adherence to strict timelines. For this specific contract, the primary risks would revolve around ensuring the integrity and confidentiality of sensitive tax information, meeting the IRS's precise quality standards, and completing the work within the relatively short performance period of approximately five months. The government's oversight mechanisms and the firm-fixed-price nature of the contract help to manage these risks.

What is the expected impact of this contract on the IRS's operational efficiency and taxpayer services?

This contract is expected to significantly enhance the IRS's operational efficiency by converting paper-based tax and information returns into digital formats. Digitalization allows for faster retrieval, easier analysis, and streamlined processing of returns, which can lead to quicker resolution of taxpayer inquiries and potentially faster refund processing. Improved data accessibility supports better data analytics for compliance and policy-making. Ultimately, these efficiencies are intended to translate into improved taxpayer services by reducing processing times, minimizing errors associated with manual handling of paper documents, and enabling more responsive communication channels. The modernization of record-keeping is a foundational step towards a more agile and effective tax administration system.

How does the short performance period (approx. 5 months) influence the contract's scope and potential risks?

The short performance period of approximately five months (April 30, 2025, to September 24, 2025) suggests that this contract addresses an immediate and specific need for scanning services, likely related to a particular tax year or a backlog of documents. This compressed timeline necessitates efficient project management from the contractor and clear, timely communication from the IRS. It increases the risk of delays if unforeseen issues arise, as there is less buffer time for resolution. For the contractor, it requires rapid mobilization of resources and a focused execution strategy. From the government's perspective, it ensures that the benefits of digitalization are realized quickly, but it also means that the IRS must be prepared to receive and utilize the digitized data promptly upon completion.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2023H2-25-Q-00029

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Iron Mountain Incorporated

Address: 85 NEW HAMPSHIRE AVE STE 150, PORTSMOUTH, NH, 03801

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,864,081

Exercised Options: $2,864,081

Current Obligation: $2,864,081

Actual Outlays: $2,864,081

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F049GA

IDV Type: FSS

Timeline