VA awards $89M contract for document storage to Document Storage Systems, Inc

Contract Overview

Contract Amount: $88,990,102 ($89.0M)

Contractor: Document Storage Systems, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-02-08

End Date: 2025-05-31

Contract Duration: 843 days

Daily Burn Rate: $105.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HCBA VIRR CONTRACT

Place of Performance

Location: NORTH PALM BEACH, PALM BEACH County, FLORIDA, 33408

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $89.0 million to DOCUMENT STORAGE SYSTEMS, INC. for work described as: HCBA VIRR CONTRACT Key points: 1. The contract is for document storage services, a critical but often overlooked area of government operations. 2. The awardee, Document Storage Systems, Inc., is a known entity in this space. 3. The contract's duration and firm-fixed-price nature suggest a predictable cost structure. 4. The lack of competition raises questions about potential overpayment and missed opportunities for innovation.

Value Assessment

Rating: fair

The contract value of $89M over approximately 2.5 years is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to market rates for similar large-scale document storage solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, potentially limiting price discovery and the government's ability to secure the best value.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution available for document storage services.

Public Impact

Veterans' sensitive health and administrative data are entrusted to this contract, highlighting the importance of secure and reliable document management. The significant financial commitment raises questions about the long-term necessity and efficiency of this specific storage solution. Future contract actions will need scrutiny to ensure fair pricing and adequate performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to sole-source award
Long contract duration without performance reviews

Positive Signals

Firm-fixed-price contract provides cost certainty
Established vendor potentially ensures continuity of service

Sector Analysis

The IT services sector, particularly data management and storage, is highly competitive. Government spending in this area often involves significant investments, making competitive bidding crucial for cost efficiency.

Small Business Impact

This contract was not awarded to a small business. There is no indication that small business participation was considered or mandated in this sole-source procurement.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the VA is receiving fair value and that the vendor is meeting all contractual obligations. Transparency in future procurements is essential.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment due to lack of competition.
Long contract duration may not reflect evolving technology.
No small business participation noted.
Transparency concerns regarding procurement justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $89.0 million to DOCUMENT STORAGE SYSTEMS, INC.. HCBA VIRR CONTRACT

Who is the contractor on this award?

The obligated recipient is DOCUMENT STORAGE SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $89.0 million.

What is the period of performance?

Start: 2023-02-08. End: 2025-05-31.

What is the justification for awarding this contract sole-source, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without further details, it's unclear why Document Storage Systems, Inc. was the only viable option. A thorough review should confirm if competitive options were genuinely absent or if the procurement process favored a single vendor, potentially at the expense of taxpayer savings.

How does the per-unit cost of this contract compare to industry benchmarks for similar document storage services?

Assessing the per-unit cost is challenging without specific metrics on storage volume, retrieval frequency, and security levels. However, given the $89M value and the lack of competition, there's a risk that the pricing may exceed market rates. Benchmarking against similar government or commercial contracts, adjusted for scope and service level agreements, is necessary to determine value.

What are the performance metrics and service level agreements (SLAs) in place to ensure the effectiveness and security of the document storage?

Effective oversight requires clearly defined performance metrics and SLAs. These should cover aspects like data integrity, accessibility, retrieval times, security protocols, and disaster recovery. Regular performance reviews are crucial to ensure the vendor meets these standards and that the contract remains beneficial to the VA and taxpayers throughout its duration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10B23R0010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12575 US HIGHWAY 1, JUNO BEACH, FL, 33408

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

Financial Breakdown

Contract Ceiling: $89,066,522

Exercised Options: $88,990,102

Current Obligation: $88,990,102

Actual Outlays: $65,291,254

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline