VA awards $1.65M contract for document destruction services to Stericycle Inc

Contract Overview

Contract Amount: $16,549 ($16.5K)

Contractor: Stericycle Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $45/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOCUMENT DESTRUCTION BASE +4 OYS WHITE CITY SORCC AND 2 CBOCS

Place of Performance

Location: WHITE CITY, JACKSON County, OREGON, 97503

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,549 to STERICYCLE INC for work described as: DOCUMENT DESTRUCTION BASE +4 OYS WHITE CITY SORCC AND 2 CBOCS Key points: 1. Contract awarded for essential document destruction and mailroom services. 2. Firm Fixed Price contract type suggests predictable costs. 3. Competition was conducted under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 4. Contract duration of 364 days aligns with typical service agreements. 5. The award is a Purchase Order, a common instrument for services. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $1.65 million for a one-year period for document destruction and mailroom services appears to be within a reasonable range for such specialized support. Benchmarking against similar contracts for document destruction services across federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost predictability for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bids received is not detailed, SAP aims to streamline the procurement process for smaller dollar amounts, balancing efficiency with a degree of competition.

Taxpayer Impact: Using SAP for this procurement suggests an effort to efficiently acquire necessary services. The level of competition under SAP can influence price discovery, but the focus is often on meeting agency needs within established thresholds.

Public Impact

The Department of Veterans Affairs (VA) will benefit from secure and compliant document destruction services. Essential mailroom operations and document management will be supported. Services will be provided in Oregon, impacting the local region. The contract supports the VA's administrative functions, ensuring proper handling of sensitive information.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not always yield the lowest possible price.
Lack of specific details on the bidding process makes a thorough competition assessment difficult.
The contract value, while not excessively high, warrants scrutiny for potential cost efficiencies.
Reliance on a single vendor for a year requires robust performance monitoring.

Positive Signals

Firm Fixed Price contract provides cost certainty for the VA.
The contract duration is standard for this type of service.
Awarding to a known entity (Stericycle Inc.) may indicate a track record of performance.
Purchase Orders are a common and efficient procurement method for services.

Sector Analysis

The document destruction and support services sector is a critical component of government operations, ensuring compliance with data privacy regulations and secure disposal of sensitive materials. This contract fits within the broader administrative and support services category for the federal government. Spending in this area is driven by regulatory requirements and the need for efficient operational support across various agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that larger businesses were eligible to compete and potentially win the award, with no explicit mechanism to ensure a portion of the work flows down to the small business sector.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the relevant program managers within the Department of Veterans Affairs. Accountability is managed through the terms and conditions of the Purchase Order, including performance standards and payment schedules. Transparency is facilitated by public contract databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Federal Records Management Services
Mail and Distribution Services
Secure Document Destruction Contracts
VA Administrative Support Contracts

Risk Flags

Limited competition due to SAP
Potential for service disruption
Data security and breach risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,549 to STERICYCLE INC. DOCUMENT DESTRUCTION BASE +4 OYS WHITE CITY SORCC AND 2 CBOCS

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 $16,549.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is Stericycle Inc.'s track record with the federal government for similar services?

Stericycle Inc. has a history of contracting with various federal agencies, including the Department of Veterans Affairs, for services such as medical waste disposal and document destruction. Analyzing past performance reviews, any documented disputes, or contract terminations associated with Stericycle's federal awards would provide insight into their reliability and adherence to contractual obligations. A review of their federal procurement history can indicate whether they have consistently met performance standards or if there have been recurring issues that might pose a risk to this current contract.

How does the $1.65 million contract value compare to similar document destruction contracts awarded by the VA or other agencies?

To benchmark the value, one would compare this $1.65 million contract for a 364-day period against other federal contracts for document destruction and related support services. Factors such as the volume of documents, frequency of destruction, specific security requirements (e.g., HIPAA compliance), and geographic coverage would need to be considered for a fair comparison. If similar contracts for comparable services are significantly lower or higher, it would indicate whether this award represents good or questionable value for money. Without specific comparative data, it's difficult to definitively assess the pricing.

What are the primary risks associated with this contract for the VA?

Key risks include potential service disruptions if Stericycle Inc. fails to meet performance standards, leading to non-compliance with document retention and destruction regulations. There's also a risk of data breaches if destruction processes are not adequately secured. Another risk is potential cost overruns if the firm fixed-price contract doesn't adequately account for fluctuating service needs or unforeseen operational challenges. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.

How effective are Simplified Acquisition Procedures (SAP) in ensuring competitive pricing for services like document destruction?

Simplified Acquisition Procedures (SAP) are designed for procurements under a certain dollar threshold (currently $250,000, though specific agency policies and contract types can influence this) to promote efficiency. While SAP can expedite the acquisition process, the level of competition is often limited compared to full and open competition. This can mean fewer bidders and potentially less aggressive pricing. For services like document destruction, where specialized providers exist, the effectiveness of SAP in achieving optimal pricing depends heavily on the number of qualified vendors willing to participate and the agency's ability to solicit adequate quotes within the SAP framework.

What is the historical spending pattern of the VA on document destruction and mailroom services?

Analyzing the VA's historical spending on document destruction and mailroom services would reveal trends in contract values, durations, and the types of contractors utilized. This includes understanding if spending has increased or decreased over time, whether specific regions or facilities have higher costs, and the prevalence of sole-source versus competed contracts. Understanding these patterns can help identify potential areas for cost savings, forecast future needs, and assess the overall efficiency of the VA's procurement strategy in this service category.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26026Q0373

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2355 WAUKEGAN ROAD, BANNOCKBURN, IL, 60015

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

Financial Breakdown

Contract Ceiling: $87,373

Exercised Options: $16,549

Current Obligation: $16,549

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline