VA awards $36.8M for HICBA VIRR Software Solution to Document Storage Systems, Inc

Contract Overview

Contract Amount: $36,811,518 ($36.8M)

Contractor: Document Storage Systems, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-01

End Date: 2026-04-30

Contract Duration: 333 days

Daily Burn Rate: $110.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HICBA VIRR SOFTWARE SOLUTION

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36.8 million to DOCUMENT STORAGE SYSTEMS, INC. for work described as: HICBA VIRR SOFTWARE SOLUTION Key points: 1. Contract value represents a significant investment in IT infrastructure for the VA. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The duration of the contract is approximately 1.5 years, indicating a need for ongoing support or development. 5. The awardee, Document Storage Systems, Inc., has secured a substantial contract, highlighting their role in providing IT solutions to federal agencies. 6. The contract is for computer systems design services, a critical area for modernizing government operations.

Value Assessment

Rating: good

The contract value of $36.8 million for a software solution appears reasonable given the scope of computer systems design services. Benchmarking against similar large-scale IT contracts within the Department of Veterans Affairs (VA) would provide further context. The firm fixed-price nature of the contract suggests that the pricing was determined upfront and is intended to remain stable, which is generally favorable for value. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process offers some assurance.

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 bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The VA's decision to use full and open competition is a positive indicator for taxpayer value.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government explores a range of solutions. This approach helps prevent inflated costs that can occur with less competitive procurement methods.

Public Impact

Veterans will benefit from improved IT systems and potentially more efficient services delivered through the HICBA VIRR software. The contract supports the delivery of computer systems design services, crucial for modernizing federal IT infrastructure. The geographic impact is primarily within the Department of Veterans Affairs' operational footprint, likely supporting national or regional IT initiatives. The contract has implications for the IT workforce, potentially creating or sustaining jobs in software development, systems design, and related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical software solutions could pose a risk if performance issues arise.
Ensuring adequate technical expertise within the VA to oversee the complex systems design services.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Firm fixed-price contract type helps to control costs and provides budget predictability.
The contract duration allows for sustained development and implementation of the software solution.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. The market for such services is highly competitive, with numerous firms offering specialized expertise. The VA's spending on IT solutions is substantial, reflecting the ongoing need to modernize legacy systems and implement new technologies to improve service delivery. Comparable spending benchmarks would involve analyzing other large IT system design contracts awarded by federal agencies, particularly those focused on healthcare or large-scale data management.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Document Storage Systems, Inc., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this award notice. The absence of a small business set-aside suggests that the competition was open to all eligible firms, and the primary focus was on selecting the best solution regardless of business size. This could mean fewer direct opportunities for small businesses as prime contractors on this specific award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, which ties payment to deliverables and performance. Transparency is facilitated by the public nature of federal contract awards, allowing for scrutiny. The Inspector General's office within the VA may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Veterans Health Administration IT Modernization Programs
Department of Veterans Affairs Electronic Health Record Modernization
Federal Government IT Services Procurement
Computer Systems Design and Related Services Contracts

Risk Flags

Potential for vendor lock-in if the solution is highly proprietary.
Risk of integration challenges with existing VA IT infrastructure.
Need for robust cybersecurity measures to protect sensitive veteran data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36.8 million to DOCUMENT STORAGE SYSTEMS, INC.. HICBA VIRR SOFTWARE SOLUTION

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 $36.8 million.

What is the period of performance?

Start: 2025-06-01. End: 2026-04-30.

What is the specific functionality and purpose of the HICBA VIRR Software Solution?

The provided data does not detail the specific functionality of the HICBA VIRR Software Solution. However, based on the contract's North American Industry Classification System (NAICS) code (541512 - Computer Systems Design Services), it is understood to involve the design, development, and integration of computer systems. Given it's for the Department of Veterans Affairs (VA), the solution likely aims to improve administrative processes, data management, or clinical support systems for veterans' healthcare. Further details would typically be found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract, which are not included in the provided data.

How does the awarded amount of $36.8 million compare to similar IT system design contracts within the VA or other federal agencies?

Without specific comparable contract data, a direct comparison of the $36.8 million award is difficult. However, large-scale IT system design and development contracts for federal agencies often range from tens to hundreds of millions of dollars, depending on complexity, duration, and scope. The VA, in particular, has undertaken significant IT modernization efforts, including electronic health record systems, which have involved substantial investments. This $36.8 million award appears to be a significant, but not unprecedented, investment for a specialized software solution within the federal IT landscape. A more precise benchmark would require access to a database of similar VA or DoD IT contracts with detailed scope and performance information.

What is Document Storage Systems, Inc.'s track record with the Department of Veterans Affairs and other federal agencies?

The provided data identifies Document Storage Systems, Inc. (DSS, Inc.) as the awardee but does not detail their past performance or track record with the VA or other agencies. A comprehensive assessment would require reviewing DSS, Inc.'s contract history, past performance evaluations, and any reported issues or successes on previous federal contracts. Agencies typically maintain internal records of contractor performance, and public databases like the Federal Procurement Data System (FPDS) can offer insights into awarded contracts and their values. However, detailed qualitative performance data is often not publicly accessible.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided contract data does not specify the Key Performance Indicators (KPIs) or metrics for evaluating the success of the HICBA VIRR Software Solution contract. Typically, these would be detailed in the contract's Performance Work Statement (PWS) or Statement of Work (SOW). Common KPIs for IT system design contracts include system uptime, response times, data accuracy, user satisfaction, successful integration with existing systems, and timely delivery of milestones. The firm fixed-price nature of the contract implies that meeting defined deliverables and performance standards is crucial for the contractor to receive full payment.

What is the historical spending pattern for similar computer systems design services at the Department of Veterans Affairs?

The provided data focuses on a single contract award and does not offer historical spending patterns for computer systems design services at the VA. To analyze historical spending, one would need to query federal procurement databases (like FPDS or USASpending.gov) for all contracts awarded under NAICS code 541512 by the VA over several fiscal years. This would reveal trends in contract values, awardees, and the overall investment in IT system design. Such an analysis would help contextualize the $36.8 million award within the VA's broader IT procurement strategy and budget allocation.

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 › IT AND TELECOM - STORAGE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10B25R0015

Offers Received: 2

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: $212,629,053

Exercised Options: $36,811,518

Current Obligation: $36,811,518

Actual Outlays: $36,509,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline