VA awards $110M for FBCS software licenses and support to Document Storage Systems, Inc

Contract Overview

Contract Amount: $110,152,702 ($110.2M)

Contractor: Document Storage Systems, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-10-01

End Date: 2021-06-30

Contract Duration: 1,733 days

Daily Burn Rate: $63.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF FBCS BRIDGE CONTRACT - THE RENEWAL OF 142 SOFTWARE LICENSES, MAINTENANCE AND TECHNICAL SUPPORT FOR THE FEE BASIS CLAIMS SYSTEM (FBCS) AT THE 142 END USER SITES WHERE FBCS IS CURRENTLY DEPLOYED. THE CONTRACTOR SHALL PROVIDE ANNUAL SOFTWARE LICENSES, AND SOFTWARE MAINTENANCE SERVICES, WHICH INCLUDE PERIODIC UPDATES, UPGRADES, ENHANCEMENTS AND CORRECTIONS TO THE SOFTWARE, TRAINING, AND TECHNICAL SUPPORT, SO AS TO CAUSE THE SOFTWARE TO PERFORM ACCORDING TO ITS SPECIFICATIONS, DOCUMENTATION OR DEMONSTRATED CLAIMS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $110.2 million to DOCUMENT STORAGE SYSTEMS, INC. for work described as: IGF::OT::IGF FBCS BRIDGE CONTRACT - THE RENEWAL OF 142 SOFTWARE LICENSES, MAINTENANCE AND TECHNICAL SUPPORT FOR THE FEE BASIS CLAIMS SYSTEM (FBCS) AT THE 142 END USER SITES WHERE FBCS IS CURRENTLY DEPLOYED. THE CONTRACTOR SHALL PROVIDE ANNUAL SOFTWARE LICENSES, AND SOFTWARE MAINT… Key points: 1. The contract covers 142 software licenses, maintenance, and technical support for the Fee Basis Claims System (FBCS). 2. This is a renewal of existing services, indicating a continued reliance on the current solution. 3. The contract is a firm-fixed-price definitive contract, providing cost certainty. 4. The primary contractor is Document Storage Systems, Inc., with the Department of Veterans Affairs as the agency. 5. The contract duration is 1733 days, spanning from October 1, 2016, to June 30, 2021.

Value Assessment

Rating: fair

The contract value of $110M over approximately 4.75 years for software licenses, maintenance, and support appears to be within a reasonable range for enterprise-level systems. However, without specific details on the number of users or the scope of support, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was 'NOT COMPETED,' indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment. The rationale for not competing is not provided.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services, as there was no market pressure to drive down costs.

Public Impact

Veterans may experience continuity in claims processing due to the renewal of the FBCS system. The Department of Veterans Affairs relies on this system for critical claims management functions. The significant investment highlights the importance of robust IT infrastructure for government services. Potential for vendor lock-in due to the sole-source nature of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to sole-source award
No clear justification for not competing

Positive Signals

Ensures continuity of critical FBCS operations
Firm-fixed-price contract provides cost predictability
Long-term relationship with a known vendor

Sector Analysis

The IT services sector, particularly software licensing and maintenance, is a significant area of government spending. Benchmarks for similar contracts are highly variable based on software type, user base, and support levels. This contract falls under 'Other Computer Related Services'.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The 'NOT COMPETED' status raises questions about the oversight process and whether alternative solutions or competitive bidding were adequately considered. Further review of the justification for sole-source procurement would be beneficial.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency on justification for sole-source award
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $110.2 million to DOCUMENT STORAGE SYSTEMS, INC.. IGF::OT::IGF FBCS BRIDGE CONTRACT - THE RENEWAL OF 142 SOFTWARE LICENSES, MAINTENANCE AND TECHNICAL SUPPORT FOR THE FEE BASIS CLAIMS SYSTEM (FBCS) AT THE 142 END USER SITES WHERE FBCS IS CURRENTLY DEPLOYED. THE CONTRACTOR SHALL PROVIDE ANNUAL SOFTWARE LICENSES, AND SOFTWARE MAINTENANCE SERVICES, WHICH INCLUDE PERIODIC UPDATES, UPGRADES, ENHANCEMENTS AND CORRECTIONS TO THE SOFTWARE, TRAINING, AND TECHNICAL SUPPORT, SO AS TO CAUSE THE SOFTWARE TO PERFORM ACCORDING TO ITS SPECIFICATIONS, DOCUMENTAT

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 $110.2 million.

What is the period of performance?

Start: 2016-10-01. End: 2021-06-30.

What was the justification for not competing this contract, and were any market research efforts conducted to ensure the best value for taxpayers?

The provided data states the contract was 'NOT COMPETED.' Without further documentation, the specific justification is unknown. Typically, sole-source awards require a detailed justification, such as the unique capability of the vendor or the unavailability of alternatives. Market research is usually a prerequisite to determine if competition is feasible and to establish a fair and reasonable price.

How does the per-unit cost of these software licenses and maintenance compare to industry standards or similar government contracts, especially given the sole-source nature?

A direct per-unit cost comparison is challenging without knowing the exact number of users, specific software modules licensed, and the level of technical support included. However, sole-source contracts inherently lack the price competition that typically drives costs down to industry benchmarks. The VA should have conducted a price analysis to ensure the $110M was fair and reasonable.

What is the long-term strategy for the Fee Basis Claims System (FBCS), and will future procurements for this system be competed?

The renewal of existing licenses suggests a continued reliance on the current FBCS. The long-term strategy is not detailed in this data. Future procurements should ideally be competed to leverage market dynamics and ensure cost-effectiveness, unless a compelling justification for a sole-source award can be rigorously demonstrated.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: VA118-16-R-1294

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12575 US HWY 1 STE 200, JUNO BEACH, FL, 33408

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

Financial Breakdown

Contract Ceiling: $117,326,661

Exercised Options: $110,152,702

Current Obligation: $110,152,702

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline