VA awards $435K firm-fixed-price purchase order to Stericycle for document destruction services in Washington

Contract Overview

Contract Amount: $435,383 ($435.4K)

Contractor: Stericycle Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $398/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOCUMENT DESTRUCTION FOR PUGET SOUND AND SURROUNDING FACILITIES BASE + 4 OYS

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $435,382.51 to STERICYCLE INC for work described as: DOCUMENT DESTRUCTION FOR PUGET SOUND AND SURROUNDING FACILITIES BASE + 4 OYS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term need for these services. 3. The award type is a purchase order, typically used for simpler, lower-value acquisitions. 4. The North American Industry Classification System (NAICS) code 561990 covers 'All Other Support Services'. 5. The contract is firm-fixed-price, providing cost certainty for the government. 6. The contractor, Stericycle Inc., is a known entity in the document destruction and medical waste industry.

Value Assessment

Rating: good

The contract value of $435,382.51 over three years appears reasonable for document destruction services, especially considering the specialized nature of handling sensitive government documents. Benchmarking against similar contracts for document destruction services for federal agencies would provide a more precise value assessment. However, the firm-fixed-price structure helps manage cost overruns. Without specific per-pound or per-document pricing, a detailed value-for-money analysis is limited, but the overall award size seems aligned with the scope of services for a regional facility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this service. A higher number of bidders would typically lead to more aggressive pricing and potentially better value for the government. However, the specific nature of document destruction, which may involve specialized equipment and security protocols, could limit the pool of qualified bidders.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best prices, potentially leading to cost savings for the government.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs (VA) facilities in Puget Sound and surrounding areas, ensuring secure and compliant destruction of sensitive documents. The services delivered include the secure collection, transportation, and destruction of documents, likely including medical records and administrative files. The geographic impact is focused on Washington state, specifically serving VA facilities within the Puget Sound region. This contract supports the operational efficiency of the VA by outsourcing a specialized administrative function, allowing VA staff to focus on core healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Reliance on a single contractor for a critical service like document destruction carries inherent risk if the contractor faces operational issues.
Ensuring consistent data security and chain of custody throughout the destruction process requires ongoing vigilance.

Positive Signals

Firm-fixed-price contract provides budget certainty for the VA.
Awarded through full and open competition, indicating a competitive process was utilized.
Contract duration of three years allows for stable service provision.

Sector Analysis

The document destruction services market is a niche within the broader business support services sector. This contract falls under the 'All Other Support Services' NAICS code (561990). The market is characterized by companies specializing in secure document handling, shredding, and disposal, often catering to industries with strict regulatory compliance requirements like healthcare and government. Spending in this area is driven by the need for data privacy, regulatory compliance (e.g., HIPAA for healthcare records), and secure disposal of sensitive information. Comparable spending benchmarks would depend on the volume of documents, frequency of service, and specific security requirements.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of document destruction services, which often require specialized equipment and certifications, larger, established firms like Stericycle Inc. are typically well-positioned to compete. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal for this specific award, as it was not designated for small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the designated contract administration office within the Department of Veterans Affairs. Performance monitoring would likely involve ensuring that Stericycle Inc. adheres to the terms of the purchase order, including pickup schedules, destruction protocols, and timely delivery of certificates of destruction. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to this contract arise.

Related Government Programs

VA Medical Records Management
Federal Records Centers
Secure Document Disposal Services
Information Governance Contracts

Risk Flags

Data Security Risk
Contractor Performance Risk
Regulatory Compliance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $435,382.51 to STERICYCLE INC. DOCUMENT DESTRUCTION FOR PUGET SOUND AND SURROUNDING FACILITIES BASE + 4 OYS

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 $435,382.51.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is Stericycle Inc.'s track record with the federal government, particularly with the Department of Veterans Affairs?

Stericycle Inc. has a history of contracting with various federal agencies, including the Department of Veterans Affairs, for services related to medical waste management and document destruction. A review of federal procurement data indicates multiple awards to Stericycle across different departments. For the VA specifically, Stericycle has been awarded contracts for similar services in other regions. While this specific purchase order is for document destruction, the company's broader experience in handling sensitive materials for government entities suggests a foundational understanding of compliance and security requirements. Further analysis would involve examining past performance evaluations and any documented issues or successes from previous VA contracts to fully assess their track record.

How does the pricing of this contract compare to similar document destruction services procured by other federal agencies?

Benchmarking the pricing of this $435,382.51 contract over three years requires detailed cost breakdowns, such as per-pound or per-document pricing, which are not provided in the summary data. However, the total award value for document destruction services can vary significantly based on the volume of documents, frequency of service, security levels required, and geographic location. Federal agencies often procure these services through various contract vehicles, including GSA schedules, which can offer pre-negotiated rates. Without access to the specific unit prices or service levels agreed upon in this purchase order, a direct comparison to other agency contracts is challenging. Generally, firm-fixed-price contracts aim for cost certainty, but the ultimate value-for-money depends on the negotiated rates relative to the market and the actual service delivery.

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

Key risks for this document destruction contract include potential data breaches if security protocols are not strictly followed during collection, transport, or destruction, leading to regulatory penalties and reputational damage for the VA. Another risk is service disruption if Stericycle Inc. experiences operational failures or goes out of business. Mitigation strategies typically involve stringent contract terms requiring adherence to security standards (e.g., NIST guidelines, HIPAA compliance), background checks for personnel handling sensitive documents, and clear chain-of-custody procedures. The firm-fixed-price nature mitigates financial risk for the government regarding cost overruns. The VA would also likely have contingency plans and monitor performance closely to ensure compliance and address any emerging issues promptly.

What is the expected effectiveness of this contract in meeting the VA's document destruction needs?

The effectiveness of this contract hinges on Stericycle Inc.'s ability to consistently provide secure, compliant, and timely document destruction services as outlined in the purchase order. Given that Stericycle is an established provider in this sector, the expectation is that they possess the necessary infrastructure, technology, and expertise to meet the VA's requirements. The firm-fixed-price structure and the three-year duration suggest a commitment to reliable service delivery. Effectiveness will be measured by the VA's satisfaction with the service, adherence to destruction schedules, proper handling of sensitive materials, and compliance with all relevant federal regulations. Regular performance reviews and feedback mechanisms will be crucial for ensuring ongoing effectiveness.

How does historical spending on document destruction services by the VA compare to this award?

Analyzing historical spending patterns for document destruction services by the VA is essential for contextualizing this $435,382.51 award. Without specific historical data for this exact service category across the entire VA system or for the Puget Sound region, a direct comparison is difficult. However, federal agencies, including the VA, consistently require secure document destruction due to the sensitive nature of patient records and administrative data. Spending in this area can fluctuate based on changes in record retention policies, digitization efforts, and the number of facilities requiring service. This particular award represents a specific procurement for a defined period and location. A broader analysis of VA's total spending on records management and destruction over the past several years would provide a more comprehensive understanding of trends and the relative scale of this contract.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26024Q0001

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $804,050

Exercised Options: $435,383

Current Obligation: $435,383

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline