Treasury's $32.1M contract for digitalization services awarded to Iron Mountain, emphasizing efficient document management

Contract Overview

Contract Amount: $32,113,676 ($32.1M)

Contractor: Iron Mountain Information Management LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-09-15

End Date: 2026-09-14

Contract Duration: 364 days

Daily Burn Rate: $88.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DIGITALIZATION-AS-A-SERVICE, DIGITALIZING PAPER TAX AND INFORMATION RETURNS.

Place of Performance

Location: PORTSMOUTH, ROCKINGHAM County, NEW HAMPSHIRE, 03801

State: New Hampshire Government Spending

Plain-Language Summary

Department of the Treasury obligated $32.1 million to IRON MOUNTAIN INFORMATION MANAGEMENT LLC for work described as: DIGITALIZATION-AS-A-SERVICE, DIGITALIZING PAPER TAX AND INFORMATION RETURNS. Key points: 1. Value for money is assessed through benchmarking against similar digitalization contracts and market rates for document management services. 2. Competition dynamics indicate a full and open competition, suggesting a robust market for these services. 3. Risk indicators include the firm fixed-price contract type, which shifts cost risk to the contractor. 4. Performance context is framed by the need for efficient tax and information return digitalization. 5. Sector positioning places this contract within the broader information management and digital services industry.

Value Assessment

Rating: good

The contract's value of $32.1 million over one year appears reasonable given the scope of digitalizing tax and information returns. Benchmarking against similar government contracts for large-scale document digitization and secure storage would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government has negotiated a set cost, which is generally favorable for predictable budgeting. However, a detailed analysis of the per-unit cost for digitizing documents compared to industry standards is needed for a complete picture.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 8 bidders suggests a competitive marketplace for digitalization and information management services. This level of competition is generally expected to drive favorable pricing and service quality for the government. The agency's selection process likely involved evaluating technical capabilities, past performance, and price to determine the best value.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best terms.

Public Impact

Taxpayers benefit from more efficient processing and accessibility of tax and information returns. The Internal Revenue Service (IRS) will receive digitized records, improving data management and retrieval. Services are delivered nationwide, supporting the IRS's broad operational requirements. The contract supports the workforce involved in document handling and digital conversion processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if data migration or integration proves complex.
Ensuring data security and privacy compliance throughout the digitalization process is critical.
Scalability challenges if the volume of documents significantly exceeds projections.

Positive Signals

Firm fixed-price contract limits cost overruns for the government.
Full and open competition suggests a healthy market and potential for competitive pricing.
Iron Mountain's established presence in information management may indicate reliable service delivery.

Sector Analysis

This contract falls within the broader information management and digital services sector, a rapidly growing area driven by the need for efficient data handling. The market for document digitalization and archival services is substantial, with numerous providers offering solutions ranging from scanning and indexing to secure digital storage and retrieval. Government agencies, in particular, represent a significant customer base due to the vast amounts of paper records that require modernization. Comparable spending benchmarks would involve looking at other federal or state contracts for similar large-scale digitization projects.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Iron Mountain is a large business, the competitive nature of the award means that subcontracting opportunities may arise for small businesses within the information management or specialized digital services ecosystem. The extent of small business participation will depend on Iron Mountain's subcontracting plan and the availability of qualified small business vendors for specific tasks.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the IRS. Performance metrics and delivery schedules will be monitored to ensure compliance with the contract terms. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to meet agreed-upon deliverables within the set budget. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive.

Related Government Programs

Federal Records Management
Digital Transformation Initiatives
Information Technology Services
Document Imaging and Archiving

Risk Flags

Data Security and Privacy Compliance
Project Scope Creep
Vendor Performance and Reliability
Accuracy of Digitized Records

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $32.1 million to IRON MOUNTAIN INFORMATION MANAGEMENT LLC. DIGITALIZATION-AS-A-SERVICE, DIGITALIZING PAPER TAX AND INFORMATION RETURNS.

Who is the contractor on this award?

The obligated recipient is IRON MOUNTAIN INFORMATION MANAGEMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $32.1 million.

What is the period of performance?

Start: 2025-09-15. End: 2026-09-14.

What is Iron Mountain's track record with federal government contracts, particularly for large-scale digitalization projects?

Iron Mountain has a significant history of contracting with the U.S. federal government, providing a range of information management, storage, and digital transformation services. Their experience often includes handling sensitive government documents and complying with stringent security and privacy regulations. While specific details on past digitalization projects of this exact scale for the IRS may not be publicly detailed, their extensive portfolio suggests a capacity for managing large volumes of records and implementing digital solutions. A review of their contract history, including performance ratings and any past issues, would provide further insight into their reliability for this specific task.

How does the per-unit cost of digitalization under this contract compare to industry benchmarks or similar government contracts?

Without specific per-unit cost data (e.g., cost per page digitized), a direct comparison to industry benchmarks or similar government contracts is challenging. The total contract value of $32.1 million for a 364-day duration suggests a significant volume of documents. Industry rates for document scanning and digitization can vary widely based on document type, complexity, required quality, and associated services like indexing and metadata creation. Government contracts often have specific requirements that can influence pricing. A detailed analysis would require breaking down the total cost by the number of documents or pages processed to establish a meaningful per-unit metric for comparison.

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

Key risks include data security breaches during transit or processing, potential inaccuracies in the digitized records, delays in project completion, and vendor lock-in. Mitigation strategies likely involve stringent security protocols mandated in the contract, quality control measures for scanned documents, clear performance milestones with associated penalties for delays, and defined data ownership and retrieval clauses. The firm fixed-price nature also mitigates cost overrun risks for the government. The IRS's oversight and Iron Mountain's established procedures are crucial for managing these risks.

How effective is the firm fixed-price contract type in ensuring value for money for this specific digitalization service?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For a digitalization project, FFP shifts the risk of cost overruns to the contractor, Iron Mountain. This encourages efficient operations and cost management on their part. The government benefits from budget certainty. However, if unforeseen complexities arise in the documents or the digitalization process that were not anticipated during the bidding phase, the contractor might be less incentivized to address them without additional cost, potentially impacting the quality or completeness of the service if not managed through contract modifications or performance clauses.

What is the historical spending pattern for digitalization services by the IRS or the Department of the Treasury?

Historical spending data for digitalization services by the IRS or the Department of the Treasury would provide context for the $32.1 million award. Analyzing past contracts for similar services can reveal trends in contract values, durations, awardees, and competition levels. Significant increases or decreases in spending could indicate shifts in agency priorities, technological adoption, or budget allocations. Understanding this historical context helps in assessing whether the current contract represents a continuation, expansion, or change in the agency's approach to digitalizing its vast records.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2023H2-25-Q-00048

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Iron Mountain Incorporated

Address: 85 NEW HAMPSHIRE AVE STE 150, PORTSMOUTH, NH, 03801

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $714,121,974

Exercised Options: $72,508,794

Current Obligation: $32,113,676

Actual Outlays: $8,608,971

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F049GA

IDV Type: FSS

Timeline