Treasury's IRS Spends $98.4M on Contact Center Services via Maximus Federal Services, Inc
Contract Overview
Contract Amount: $98,438,156 ($98.4M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2020-05-12
End Date: 2021-05-12
Contract Duration: 365 days
Daily Burn Rate: $269.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: LABOR HOURS
Sector: Other
Official Description: AGENT CONTACT CENTER CUSTOMER SERVICE REPRESENTATIVE I** FTE 410 COVID-19
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20703
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $98.4 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: AGENT CONTACT CENTER CUSTOMER SERVICE REPRESENTATIVE I** FTE 410 COVID-19 Key points: 1. Significant contract value of $98.4M for customer service representation. 2. Maximus Federal Services, Inc. is the sole awardee. 3. Contract duration is one year, ending May 2021. 4. The NAICS code 561422 indicates a focus on telemarketing and contact centers.
Value Assessment
Rating: fair
The contract's value of $98.4M for a one-year period suggests a substantial investment in customer service. Benchmarking against similar large-scale contact center contracts would be necessary to fully assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and value for the government.
Taxpayer Impact: Taxpayer funds are being utilized for essential customer service operations, aiming to improve taxpayer support and engagement.
Public Impact
Ensures continued customer support for IRS services. Potential impact on taxpayer experience and issue resolution. Supports federal government's operational continuity through remote work capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract awarded during COVID-19 pandemic, potential for surge in demand.
- Reliance on a single vendor for critical customer service functions.
Positive Signals
- Full and open competition potentially drove competitive pricing.
- Contract supports essential IRS functions.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on contact center operations. Spending in this area is crucial for government agencies to manage citizen interactions and provide support.
Small Business Impact
The data does not indicate specific set-asides for small businesses. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
Awarded as a delivery order, implying it's part of a larger contract vehicle. Oversight would focus on performance metrics, service level agreements, and adherence to contract terms by Maximus Federal Services.
Related Government Programs
- Telemarketing Bureaus and Other Contact Centers
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- High contract value warrants close monitoring.
- Potential for vendor lock-in if performance is satisfactory.
- Dependence on a single contractor for critical functions.
- Need for clear performance metrics and service level agreements.
Tags
telemarketing-bureaus-and-other-contact-, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $98.4 million to MAXIMUS FEDERAL SERVICES, INC.. AGENT CONTACT CENTER CUSTOMER SERVICE REPRESENTATIVE I** FTE 410 COVID-19
Who is the contractor on this award?
The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $98.4 million.
What is the period of performance?
Start: 2020-05-12. End: 2021-05-12.
What specific services are included under 'CUSTOMER SERVICE REPRESENTATIVE I** FTE 410 COVID-19' and how do they align with IRS operational needs?
The contract likely encompasses a range of customer service functions, including answering taxpayer inquiries, providing information on tax laws and procedures, assisting with online portals, and potentially handling case management. The 'COVID-19' designation suggests a focus on services amplified or modified due to the pandemic, such as processing economic impact payments or addressing pandemic-related tax relief.
How does the $98.4M expenditure compare to historical IRS spending on similar contact center services, and what is the projected ROI?
Benchmarking this $98.4M expenditure against previous IRS contracts for contact center services is crucial. Without historical data and defined ROI metrics, it's difficult to assess if this represents an efficient use of taxpayer funds. Factors like call volume, resolution rates, and taxpayer satisfaction scores would inform the return on investment.
What measures are in place to ensure the quality and security of customer data handled by Maximus Federal Services, especially given the sensitive nature of IRS information?
Robust security protocols, including data encryption, access controls, and regular audits, are essential. The contract should stipulate strict adherence to federal data privacy regulations (e.g., HIPAA, if applicable, and IRS-specific data handling policies). Performance monitoring should include metrics related to data breaches or privacy violations.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Maximus Inc
Address: 3120 FAIRVIEW PARK DR STE 400, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,707,022,996
Exercised Options: $1,618,100,727
Current Obligation: $98,438,156
Actual Outlays: $98,438,156
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F685GA
IDV Type: FSS
Timeline
Start Date: 2020-05-12
Current End Date: 2021-05-12
Potential End Date: 2021-06-12 12:08:53
Last Modified: 2022-09-28
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