VA awards $239K contract for document storage systems tracking, impacting IT services

Contract Overview

Contract Amount: $239,042 ($239.0K)

Contractor: Document Storage Systems, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-09-01

End Date: 2027-08-31

Contract Duration: 364 days

Daily Burn Rate: $657/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VA NATIONAL CONTRACT DOCUMENT STORAGE SYSTEMS CONSULT TRACKING MANAGER PLUS

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68105

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $239,041.89 to DOCUMENT STORAGE SYSTEMS, INC. for work described as: VA NATIONAL CONTRACT DOCUMENT STORAGE SYSTEMS CONSULT TRACKING MANAGER PLUS Key points: 1. Contract focuses on IT services for document management and tracking. 2. Full and open competition indicates a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty for the government. 4. Contract duration of one year suggests a focused, short-term need. 5. The award is managed by the Department of Veterans Affairs. 6. The North American Industry Classification System (NAICS) code is 541519, indicating a broad IT services category.

Value Assessment

Rating: fair

The contract value of $239,041.89 appears to be a moderate amount for IT consulting services. Benchmarking against similar contracts for document storage system tracking would be necessary for a definitive value assessment. The firm fixed-price structure suggests an attempt to control costs, but the overall value proposition depends on the quality and effectiveness of the services delivered by DOCUMENT STORAGE SYSTEMS, INC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this procurement method generally promotes price discovery and allows the government to select from a wide range of qualified contractors. This approach is intended to ensure fair pricing and access to the best available solutions.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider selection of services, potentially reducing overall expenditure.

Public Impact

Benefits the Department of Veterans Affairs by improving document management and tracking capabilities. Services delivered are related to IT consulting for specialized software systems. Geographic impact is likely focused on VA facilities or personnel utilizing the system. Workforce implications may involve training or integration with existing IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes deeply integrated.
Dependence on a single vendor for critical document tracking functions.
Risk of scope creep if requirements are not clearly defined.
Ensuring data security and privacy within the document storage system.

Positive Signals

Firm fixed-price contract can provide cost predictability.
Full and open competition suggests a potentially competitive market.
Award to a specialized vendor may indicate expertise in the required area.
Clear contract end date limits long-term financial commitment.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically under IT consulting and software services. The NAICS code 541519 covers a wide range of computer-related services. The market for document management and tracking systems is competitive, with numerous providers offering solutions ranging from cloud-based platforms to on-premise installations. Government spending in this area is substantial, driven by the need for efficient data management and compliance.

Small Business Impact

The data does not indicate if this contract included small business set-asides or subcontracting goals. As it was awarded under full and open competition, it is possible that small businesses participated in the bidding process. However, without specific information on subcontracting plans, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Veterans Affairs. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

VA IT Modernization Initiatives
Federal Electronic Records Management Systems
Department of Veterans Affairs Information Technology Services

Risk Flags

Potential for vendor lock-in
Data security and privacy concerns
Scope definition and management
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $239,041.89 to DOCUMENT STORAGE SYSTEMS, INC.. VA NATIONAL CONTRACT DOCUMENT STORAGE SYSTEMS CONSULT TRACKING MANAGER PLUS

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 $239,041.89.

What is the period of performance?

Start: 2026-09-01. End: 2027-08-31.

What is the track record of DOCUMENT STORAGE SYSTEMS, INC. with federal contracts, particularly for similar IT services?

A review of federal procurement data would be necessary to assess DOCUMENT STORAGE SYSTEMS, INC.'s track record. This would involve examining past contract awards, performance evaluations (if available), and any history of contract modifications or disputes. Understanding their experience with the Department of Veterans Affairs or other agencies in providing document management and tracking solutions is crucial for evaluating their capability and reliability on this current contract. Without specific historical data, it is difficult to definitively assess their past performance.

How does the awarded amount compare to market rates for similar document storage system tracking consulting services?

The awarded amount of $239,041.89 for a one-year contract needs to be benchmarked against prevailing market rates for similar IT consulting services. This comparison should consider factors such as the scope of work, the complexity of the system, the required expertise, and the geographic location of service delivery. If comparable contracts awarded through full and open competition show significantly lower or higher prices for similar services, it would indicate whether this award represents good or questionable value for money. A detailed market analysis or review of industry pricing benchmarks would provide a more concrete comparison.

What are the specific risks associated with this contract, considering its focus on document storage and tracking systems?

Key risks for this contract include potential data security breaches if the system is not adequately protected, vendor lock-in if the chosen system becomes proprietary and difficult to replace, and performance issues if the system does not meet the VA's operational needs. There's also a risk of inadequate user adoption or training, leading to inefficiencies. Furthermore, if the system is critical for regulatory compliance, any failures could lead to significant legal and financial repercussions for the VA. The firm fixed-price nature, while offering cost control, could also incentivize the contractor to cut corners on quality if not properly monitored.

How effective is the Department of Veterans Affairs in managing and overseeing IT consulting contracts of this nature?

The effectiveness of the VA in managing IT consulting contracts can vary. Historically, large agencies like the VA have faced challenges with IT project management, including cost overruns and schedule delays. However, the VA has also implemented various reforms and oversight mechanisms to improve its contracting processes. The success of this specific contract will depend on the clarity of the SOW, the diligence of contract administration, the performance monitoring by the COR (Contracting Officer's Representative), and the contractor's ability to deliver. Publicly available IG reports or GAO reviews related to VA IT procurements could offer insights into their general effectiveness.

What has been the historical spending pattern of the VA for document storage and tracking systems over the past five years?

Analyzing the VA's historical spending on document storage and tracking systems over the past five years would provide context for this $239,041.89 award. This would involve identifying all contracts related to electronic records management, document imaging, and system tracking. Understanding the total investment, the types of contracts awarded (e.g., sole-source vs. competitive), and the average contract values would reveal trends. Significant increases or decreases in spending could indicate shifts in VA priorities, technological adoption, or budgetary constraints within this domain.

What are the implications of using a firm fixed-price contract for specialized IT consulting services like document system tracking?

A firm fixed-price (FFP) contract is generally preferred by the government for its cost certainty. For specialized IT consulting services, FFP can be effective if the scope of work is well-defined and unlikely to change significantly. It places the risk of cost overruns on the contractor. However, if the scope is ambiguous or prone to change, an FFP contract might lead the contractor to inflate their bid to account for potential unknowns, or conversely, to deliver minimal acceptable services to maximize profit. For complex IT projects, cost-plus contracts might sometimes offer more flexibility, but FFP encourages efficiency and clear deliverables.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $286,483

Exercised Options: $239,042

Current Obligation: $239,042

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10A25D0003

IDV Type: IDC

Timeline