VA awards $23.8M for document management, highlighting potential for efficiency gains

Contract Overview

Contract Amount: $23,789 ($23.8K)

Contractor: Document Storage Systems, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-12

End Date: 2027-05-11

Contract Duration: 729 days

Daily Burn Rate: $33/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RX TRACKER

Place of Performance

Location: DUBLIN, LAURENS County, GEORGIA, 31021

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23,789.41 to DOCUMENT STORAGE SYSTEMS, INC. for work described as: RX TRACKER Key points: 1. Contract focuses on modernizing document storage, aiming to improve accessibility and reduce physical storage needs. 2. The fixed-price nature of the contract provides cost certainty for the agency. 3. Competition level suggests a healthy market for these services, potentially driving competitive pricing. 4. Performance period of two years allows for phased implementation and evaluation. 5. This award aligns with broader government efforts to digitize records and enhance data management. 6. Geographic focus on Georgia may indicate specific regional needs or consolidation of services.

Value Assessment

Rating: good

The contract value of $23.8 million over two years for document storage and management appears reasonable, especially considering the scope of digitizing and managing records. Benchmarking against similar large-scale document management contracts within federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure helps control costs, but ongoing monitoring will be crucial to ensure value is realized through improved efficiency and reduced physical storage.

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 typically fosters a competitive environment, encouraging bidders to offer their best pricing and solutions. The presence of multiple bidders suggests a robust market for document storage and management services, which is beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by driving down prices and encouraging innovation among contractors. It ensures that the most capable and cost-effective solutions are considered, preventing potential overspending associated with less competitive procurement methods.

Public Impact

Veterans will benefit from potentially faster access to their records and improved service delivery. The Department of Veterans Affairs gains enhanced capabilities for managing and accessing critical documents. Services are primarily delivered within Georgia, potentially impacting local IT and administrative support workforces. The contract supports the digitization of records, contributing to a more sustainable and efficient federal information management system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition to a new system is complex.
Ensuring data security and privacy throughout the digitization and storage process is paramount.
Adequate training for VA staff will be critical for successful adoption and utilization of the new system.

Positive Signals

Modernization of document management can lead to significant long-term cost savings.
The use of a firm fixed-price contract provides budget predictability.
Full and open competition suggests a competitive market, likely yielding good value.
The contract duration allows for a structured implementation and potential for performance improvements over time.

Sector Analysis

The federal document management and storage sector is a significant market driven by the need for compliance, efficiency, and digital transformation across agencies. This contract fits within the broader IT services category, specifically focusing on enterprise content management. Comparable spending benchmarks for similar digitization and storage solutions vary widely based on scale and complexity, but this award appears to be a mid-sized investment for a critical agency function.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Document Storage Systems, Inc., there is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and how they might impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures will be tied to the performance standards outlined in the contract's statement of work and delivery orders. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Records Centers Program
Electronic Records Management
Digital Government Initiatives
IT Modernization Programs

Risk Flags

Data Security and Privacy
User Adoption and Training
System Integration Complexity
Vendor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23,789.41 to DOCUMENT STORAGE SYSTEMS, INC.. RX TRACKER

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 $23,789.41.

What is the period of performance?

Start: 2025-05-12. End: 2027-05-11.

What is the track record of Document Storage Systems, Inc. in fulfilling federal contracts, particularly for document management solutions?

Document Storage Systems, Inc. (DSS) has a history of serving federal agencies, including the Department of Veterans Affairs. Their experience often involves providing solutions for electronic health records, document management, and IT modernization. Analyzing DSS's past performance on similar contracts, including any reported issues or successes, would provide further insight into their capability to execute this $23.8 million award effectively. A review of their contract history, including contract close-outs and any performance evaluations, is recommended to assess their reliability and expertise in delivering complex document management systems.

How does the pricing of this contract compare to similar document management and storage solutions procured by other federal agencies?

Benchmarking the $23.8 million contract value against similar procurements requires detailed analysis of contract scope, duration, and specific services offered. Factors such as the volume of documents to be digitized, the complexity of the storage system, and the level of integration with existing agency IT infrastructure significantly influence pricing. Generally, firm fixed-price contracts aim for cost efficiency, but without specific per-unit metrics (e.g., cost per document digitized, cost per terabyte stored), a precise comparison is challenging. However, the full and open competition suggests market forces are at play, likely leading to competitive pricing relative to industry standards for comparable services.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential data security breaches during digitization and storage, challenges in user adoption and training for the new system, and the possibility of scope creep leading to cost overruns despite the fixed-price nature. Mitigation strategies should involve robust cybersecurity protocols, comprehensive training programs for VA staff, and stringent contract management to monitor performance and control scope. The two-year performance period allows for phased implementation, which can help identify and address risks early on. The success of the contract hinges on effective project management and adherence to security and privacy regulations.

How effective is the chosen document management solution likely to be in improving the VA's operational efficiency and service delivery?

The effectiveness of the solution will depend heavily on its implementation and integration with existing VA workflows. Modern document management systems, when properly deployed, can significantly improve efficiency by enabling faster retrieval of information, reducing reliance on physical storage, and facilitating better collaboration. For the VA, this could translate to quicker processing of claims, improved patient record access, and streamlined administrative tasks. The success metrics should be clearly defined in the contract, focusing on quantifiable improvements in processing times, error rates, and user satisfaction to gauge the solution's impact.

What are the historical spending patterns for document management and storage services at the Department of Veterans Affairs?

Analyzing historical spending patterns for document management and storage at the VA is crucial for context. This $23.8 million award should be compared against previous investments in similar services. Understanding whether this represents an increase, decrease, or stable level of spending can indicate shifts in agency priorities or the effectiveness of past solutions. Trends in spending might also reveal a move towards digitization over physical storage, or a consolidation of contracts. Examining the VA's budget allocations for IT and administrative services over the past several years would provide the necessary data for this analysis.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Computer Training

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 701 US HIGHWAY 1 STE 101, NORTH PALM 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: $128,245

Exercised Options: $35,394

Current Obligation: $23,789

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA23D005Q

IDV Type: FSS

Timeline