Treasury's IRS awards Maximus Federal Services $23.7M for DDS domain support through full and open competition
Contract Overview
Contract Amount: $23,702,564 ($23.7M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2023-04-28
End Date: 2026-04-27
Contract Duration: 1,095 days
Daily Burn Rate: $21.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CONTRACTOR SUPPORT FOR THE DDS DOMAIN AND ITS CURRENT AND FUTURE PROJECTS AND SYSTEMS INCLUDING BUT NOT LIMITED TO CDR, IRDB AND ISR A&R.
Place of Performance
Location: NEW CARROLLTON, PRINCE GEORGES County, MARYLAND, 20784
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $23.7 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: CONTRACTOR SUPPORT FOR THE DDS DOMAIN AND ITS CURRENT AND FUTURE PROJECTS AND SYSTEMS INCLUDING BUT NOT LIMITED TO CDR, IRDB AND ISR A&R. Key points: 1. The contract focuses on critical IT infrastructure for the IRS's Data Dissemination Services (DDS) domain. 2. Maximus Federal Services, Inc. is the sole awardee for this delivery order. 3. The contract is valued at $23.7 million over a 3-year period. 4. This award falls under Computer Systems Design Services (NAICS 541512).
Value Assessment
Rating: good
The contract value of $23.7 million for 3 years of IT support appears reasonable given the scope of supporting critical IRS systems. Benchmarking against similar government IT support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust process for discovering the best value and price. This method generally leads to more competitive pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential IT services.
Public Impact
Ensures continuity of critical IRS data dissemination and management systems. Supports ongoing and future projects within the DDS domain, impacting tax administration. Provides essential IT services to a major federal agency, indirectly benefiting taxpayers through efficient operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on work is not competitively procured.
- Reliance on a single contractor for critical infrastructure could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Clear scope of work for DDS domain and related projects.
- Long-term contract provides stability for essential IT services.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Government spending in this area is substantial, supporting agency operations and modernization efforts. Benchmarks for similar IT support contracts vary widely based on complexity and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee, Maximus Federal Services, Inc., is a large business. There is no explicit indication of small business subcontracting goals in the provided data.
Oversight & Accountability
The award is a delivery order under a larger contract, suggesting existing oversight mechanisms. Further review of the parent contract and specific oversight plans for this delivery order would be necessary to assess accountability.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on a single contractor for critical systems.
- Scope creep risk if not managed tightly.
- Performance degradation over time.
Tags
computer-systems-design-services, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $23.7 million to MAXIMUS FEDERAL SERVICES, INC.. CONTRACTOR SUPPORT FOR THE DDS DOMAIN AND ITS CURRENT AND FUTURE PROJECTS AND SYSTEMS INCLUDING BUT NOT LIMITED TO CDR, IRDB AND ISR A&R.
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 $23.7 million.
What is the period of performance?
Start: 2023-04-28. End: 2026-04-27.
What specific metrics are used to evaluate Maximus Federal Services' performance in supporting the DDS domain and its projects?
Performance metrics are typically detailed in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). These often include measures related to system uptime, response times for issue resolution, successful project delivery, and adherence to security protocols. The IRS likely has specific KPIs tied to the availability and integrity of the DDS domain and its associated systems like CDR, IRDB, and ISR A&R.
How does the IRS ensure continued cost-effectiveness and value for money throughout the contract's duration, especially given the firm-fixed-price structure?
The firm-fixed-price (FFP) structure shifts most cost risk to the contractor, incentivizing efficiency. The IRS ensures value by closely monitoring performance against contract requirements and potentially through periodic market research or benchmarking. If performance is unsatisfactory, the IRS has remedies available, and the competitive nature of the initial award provides a baseline for future negotiations or procurements.
What is the IRS's contingency plan if Maximus Federal Services fails to meet its contractual obligations for critical systems like CDR and IRDB?
Contingency plans typically involve contract remedies outlined in the Federal Acquisition Regulation (FAR), such as requiring corrective action plans, withholding payments, or ultimately terminating the contract for default. The IRS would likely have pre-identified potential alternative contractors or internal resources to mitigate disruption during a transition, especially given the critical nature of these systems for tax administration.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1600 TYSONS BLVD STE 300, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,923,348
Exercised Options: $24,068,260
Current Obligation: $23,702,564
Actual Outlays: $18,744,094
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $6,859,424
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0044
IDV Type: GWAC
Timeline
Start Date: 2023-04-28
Current End Date: 2026-04-27
Potential End Date: 2028-04-27 14:29:47
Last Modified: 2025-09-30
More Contracts from Maximus Federal Services, Inc.
- Contact Center Operations (CCO) — $5.5B (Department of Health and Human Services)
- Contact Center Operations — $2.6B (Department of Health and Human Services)
- 2020 Census Questionnaire Assistance (2020 CQA) — $918.3M (Department of Commerce)
- Debt Management and Collections System (dmcs) Igf::ct::igf — $906.9M (Department of Education)
- CDC Info Surge Support and National Covid 19 Vaccination Assistance Hotline — $354.6M (General Services Administration)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)