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New five-year contract at Data Dimensions means new jobs, records management facility

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Shelly Birkelo
Friday, December 11, 2015

JANESVILLE—Data Dimensions has been awarded a five-year government contract that's projected to bring more than 100 new jobs and a new 23,000-square-foot records management facility to Janesville.

The contract is for document intake conversion and mail handling services for the U.S. Department of Veterans Affairs.

The contract essentially renews a three-year deal that ends Dec. 31 between Data Dimensions and prime contractor Systems Made Simple, a subsidiary of Lockheed Martin. Like Data Dimension's current contract, the new contract and the work it involves would be funded through federal sources, company CEO and President Jon Boumstein said.    

Boumstein said the deal represents a major contract for the Janesville-based data conversion company, and will give Data Dimensions a strengthened foothold here. The contract provides about 25 percent of the company's work, he said.

“Data Dimensions is strong as ever, the VA has big confidence in SMS and Data Dimensions, and they've recommitted to us for five years. Things are great. We're growing. We're expanding,” Boumstein said. "This reinforces our commitment to Janesville, which is our headquarters and will be our headquarters for the foreseeable future."

Data Dimensions, 400 Midland Court, provides document conversion services for the VA to accelerate the processing of veteran disability claims. Boumstein said the company through its contract work with the VA  has significantly reduced a backlog of veterans claims, which he said Data Dimensions is "very proud of."

Boumstein shared with employees news of the new contract at two announcements made Friday to first- and second-shift employees. Through its VA contract, Data Dimensions has processed records in Janesville and at its facility in Clinton, Iowa.

Boumstein said all new hiring for the contract will happen at the Janesville facility. He said that a site for the new facility--a secure records storage center--is not yet determined, but could be chosen in a few weeks.

He said there is only one other similar records storage facility in the U.S. 

The contract means growth, continued expansion and stability to the workforce plus a continued commitment to the veterans and the Veterans Administration, Boumstein said.

“It's terrific and additional opportunity with our document management software,” he said.

Data Dimensions in February laid of 120 third-shift workers after about 10 percent of funding dried up under the company's VA subcontract with SMS. That led to less work being sent to Data Dimensions for processing, Boumstein said. Employees laid off in February can reapply, he said.

Data Dimensions already has added 47 technical jobs for work through a related proprietary software contract that came earlier this year, Boumstein said. Further hiring by 2016 could add nearly as many jobs as the number Data Dimensions cut in Janesville earlier this year, Boumstein said.

“We anticipate we will be adding roughly another 100 jobs from the general employee population, hiring another 10 or 15 additional technical resources' jobs and another handful of folks once the record center to store government records is built, which we hopefully will occupy sometime in June or July of 2016, depending on the weather,” he said.

Construction could start in the first quarter of 2016, Boumstein said.

Boumstein said that Data Dimensions' contract was awarded under similar terms of its current VA contract, in that it's tied to federal funding which fuels the amount of work the company will get throughout the contract. That means that under government cuts or shifts in funding, there could be a slowdown in the contract like the one earlier this year.

But Boumstein said he's been told the VA records program is a "high priority" for the federal government, and he said the VA contract slowdown earlier was the only one of its kind Data Dimensions has seen since it began in 1982.

He said the company has had good luck recently securing private contracts that provides some of the work at its other facilities, which are in Brown Deer, Brookfield and Clinton, Iowa.

Janesville, Brown Deer, Brookfield and Clinton, Iowa. - See more at: http://www.walworthcountytoday.com/20150401/data_dimensions_opens_facility_in_kentucky#sthash.MRQ6TOPK.dpuf

last week at an 11,000-square-foot former pharmacy in Mount Sterling, which is about 40 miles east of Lexington, Kentucky.

The facility, which the company says is a $3.2 million investment, has been converted to a data processing center. The company announced the facility conversion in August.

The company said it has 15 employees working at the Mount Sterling facility, and the facility is expected to create as many as 200 jobs for the area.

- See more at: http://www.walworthcountytoday.com/20150401/data_dimensions_opens_facility_in_kentucky#sthash.MRQ6TOPK.dpuf

last week at an 11,000-square-foot former pharmacy in Mount Sterling, which is about 40 miles east of Lexington, Kentucky.

The facility, which the company says is a $3.2 million investment, has been converted to a data processing center. The company announced the facility conversion in August.

The company said it has 15 employees working at the Mount Sterling facility, and the facility is expected to create as many as 200 jobs for the area.

- See more at: http://www.walworthcountytoday.com/20150401/data_dimensions_opens_facility_in_kentucky#sthash.MRQ6TOPK.dpuf

In March, the company opened a new data processing center in a Mount Sterling, Kentucky, in an 11,000-square-foot former pharmacy.

That facility was a $3.2 million investment, and employed 15 people earlier this year, Data Dimensions officials said, but eventually could employ as many as 200 there.



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