VA awards $2.1M for document shredding, with 3 bidders competing for the 5-year contract

Contract Overview

Contract Amount: $212,479 ($212.5K)

Contractor: Stericycle Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-08-01

End Date: 2025-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $116/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOCUMENT SHREDDING AND MEDIA DESTRUCTION SERVICES

Place of Performance

Location: SALEM, ROANOKE County, VIRGINIA, 24153

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $212,478.57 to STERICYCLE INC for work described as: DOCUMENT SHREDDING AND MEDIA DESTRUCTION SERVICES Key points: 1. Value for money appears reasonable given the 5-year duration and competitive nature of the award. 2. Competition dynamics show a healthy level of interest with three bidders participating. 3. Risk indicators are low, with a firm-fixed-price contract type mitigating cost overrun risks. 4. Performance context is established through a multi-year contract for essential facility support services. 5. Sector positioning is within facilities support services, a common requirement for government agencies.

Value Assessment

Rating: good

The contract value of $2.1 million over five years averages to $424,957 annually. Benchmarking this against similar facilities support services contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests the government has locked in costs, providing a degree of cost certainty. The presence of multiple bidders also implies a degree of market validation for the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating it was likely a full and open competition for a purchase order valued below certain thresholds. Three bidders participated in the competition, suggesting a reasonable level of market interest and engagement for this type of service. The competition level is sufficient to provide price discovery and encourage competitive offers.

Taxpayer Impact: A competitive process with three bidders helps ensure taxpayer dollars are used efficiently by driving down costs compared to a sole-source award.

Public Impact

The Department of Veterans Affairs benefits from secure and compliant destruction of sensitive documents. Essential services for facilities support are delivered, ensuring operational continuity. The primary geographic impact is within Virginia, where the VA facility is located. Workforce implications are minimal, primarily involving the contractor's personnel for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if the contractor fails to meet performance standards.
Reliance on a single contractor for a critical service could pose a risk if not managed effectively.

Positive Signals

Firm-fixed-price contract type limits the government's exposure to cost increases.
Multi-year award provides stability and predictability for service provision.
Competitive award process suggests a fair market price was achieved.

Sector Analysis

The facilities support services sector encompasses a wide range of services essential for the operation and maintenance of government facilities. This contract for document shredding and media destruction falls under this broad category, specifically addressing information security and compliance needs. Spending in this sector is consistent across federal agencies requiring secure handling and disposal of sensitive materials.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to Stericycle Inc., a large corporation, suggests that small business participation may be limited unless subcontracting opportunities are actively pursued and awarded.

Oversight & Accountability

As a purchase order awarded under SAP, oversight would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs. Accountability is ensured through the firm-fixed-price contract terms and performance expectations. Transparency is facilitated by the contract award data being publicly available.

Related Government Programs

General Services Administration (GSA) Schedule Contracts for Facilities Maintenance and Support
Department of Defense (DoD) Information Security and Destruction Services
National Archives and Records Administration (NARA) Records Management

Risk Flags

Contract performance risk
Data security and compliance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $212,478.57 to STERICYCLE INC. DOCUMENT SHREDDING AND MEDIA DESTRUCTION SERVICES

Who is the contractor on this award?

The obligated recipient is STERICYCLE 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 $212,478.57.

What is the period of performance?

Start: 2020-08-01. End: 2025-07-31.

What is Stericycle Inc.'s track record with federal government contracts, particularly for document destruction services?

Stericycle Inc. has a history of securing federal contracts, including those for document destruction and related services. While specific details on past performance for this exact service line with the VA are not provided in this data snippet, their presence as a bidder and awardee suggests they are an established provider in this space. Federal procurement databases would contain more granular information on their past performance ratings, contract values, and agencies served. A deeper dive would involve reviewing contract award histories and performance evaluations to assess their reliability and adherence to contractual obligations in previous federal engagements.

How does the $2.1 million contract value compare to similar document shredding and media destruction contracts awarded by the VA or other federal agencies?

Without specific details on the scope of services, volume, and frequency, a direct comparison of the $2.1 million contract value is difficult. However, considering it covers a 5-year period, the annual average of approximately $425,000 is within a reasonable range for comprehensive document destruction services for a large agency like the VA. Contracts for similar services can vary significantly based on the number of locations served, the types of media destroyed (paper, digital), the required destruction level (e.g., cross-cut, pulverization), and the frequency of service. The competitive nature of this award suggests the price is aligned with market rates for the defined scope.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential service disruptions if Stericycle Inc. fails to meet performance standards, data breaches if destruction protocols are not followed rigorously, and potential cost increases if the firm-fixed-price (FFP) structure is not adequately defined or managed. Mitigation strategies include the FFP contract type, which caps the government's financial liability. The VA's oversight through the contracting officer and program manager is crucial for monitoring performance and ensuring compliance with security and destruction standards. Clear performance work statements (PWS) and regular performance reviews are essential to identify and address any issues proactively.

How effective is the current contract in ensuring the secure and compliant destruction of sensitive VA documents?

The effectiveness of this contract hinges on the contractor's adherence to the performance work statement (PWS) and relevant federal regulations (e.g., HIPAA, FACTA). The firm-fixed-price nature incentivizes the contractor to perform efficiently. The VA's oversight mechanisms, including regular inspections and performance reviews, are critical for ensuring compliance and security. While the award itself indicates a selection based on perceived capability, ongoing monitoring by the VA is paramount to guarantee that sensitive documents are destroyed securely and compliantly throughout the contract's duration.

What are the historical spending patterns for document shredding and media destruction services by the Department of Veterans Affairs?

Historical spending patterns for document shredding and media destruction by the VA would likely show consistent expenditure on these services due to the sensitive nature of veteran health and personal information. Agencies like the VA generate large volumes of physical and digital records requiring secure disposal. Spending in this category typically fluctuates based on agency-wide records management policies, the volume of data generated, and the number of contracts awarded. Analyzing past VA spending on similar services would provide context for the current $2.1 million award, indicating whether it represents an increase, decrease, or stable level of investment in this area.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24620Q0149

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6838 FAIRFIELD BUSINESS CENTER DR, FAIRFIELD, OH, 45014

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $215,287

Exercised Options: $212,479

Current Obligation: $212,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline