Treasury's IRS Awards $92M Contract to Maximus for Integrated Information Systems Support
Contract Overview
Contract Amount: $92,312,504 ($92.3M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2024-05-23
End Date: 2029-05-22
Contract Duration: 1,825 days
Daily Burn Rate: $50.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BUILD, TEST, DELIVER AND MAINTAIN INTEGRATED INFORMATION SYSTEMS THAT SUPPORT MODERNIZED SYSTEMS FOR INTERNAL OPERATIONS AND ACCOUNTING SYSTEMS
Place of Performance
Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21279
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $92.3 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: BUILD, TEST, DELIVER AND MAINTAIN INTEGRATED INFORMATION SYSTEMS THAT SUPPORT MODERNIZED SYSTEMS FOR INTERNAL OPERATIONS AND ACCOUNTING SYSTEMS Key points: 1. Contract awarded to Maximus Federal Services, Inc. for $92.3M. 2. Supports modernized internal operations and accounting systems for the IRS. 3. Full and open competition was utilized. 4. Contract duration is 5 years, ending May 2029. 5. The North American Industry Classification System (NAICS) code is 561422.
Value Assessment
Rating: good
The contract value of $92.3M over 5 years appears reasonable for integrated information system support, especially given the full and open competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a fair price for essential IT services.
Public Impact
Ensures IRS can modernize critical internal operations and accounting systems. Supports taxpayer services by maintaining reliable information systems. Contract provides stability for IT support services over the next five years.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation noted.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
Sector Analysis
The IT services sector, particularly for government agencies, involves significant investment in maintaining and modernizing complex information systems. Benchmarks vary widely based on scope and complexity.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if any subcontracting opportunities exist.
Oversight & Accountability
The contract was awarded through full and open competition, suggesting a transparent process. Oversight will be crucial to ensure Maximus meets performance requirements and delivers value.
Related Government Programs
- Telemarketing Bureaus and Other Contact Centers
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- No small business participation.
- Potential for vendor lock-in over the contract duration.
- Reliance on a single vendor for critical IT infrastructure.
Tags
telemarketing-bureaus-and-other-contact-, department-of-the-treasury, md, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $92.3 million to MAXIMUS FEDERAL SERVICES, INC.. BUILD, TEST, DELIVER AND MAINTAIN INTEGRATED INFORMATION SYSTEMS THAT SUPPORT MODERNIZED SYSTEMS FOR INTERNAL OPERATIONS AND ACCOUNTING SYSTEMS
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 $92.3 million.
What is the period of performance?
Start: 2024-05-23. End: 2029-05-22.
What specific performance metrics will be used to evaluate Maximus's success in building, testing, delivering, and maintaining these integrated information systems?
Performance metrics are not detailed in the provided data. However, typical evaluations for such contracts include system uptime, response times, bug resolution rates, successful deployment of new features, and adherence to security protocols. The IRS will likely establish a Service Level Agreement (SLA) with specific, measurable, achievable, relevant, and time-bound (SMART) goals to track contractor performance.
What is the potential risk of vendor lock-in with Maximus Federal Services, Inc. given the long-term nature of this contract for critical internal systems?
The risk of vendor lock-in exists with any long-term IT support contract. However, the use of full and open competition for this award suggests that the IRS is not exclusively tied to Maximus. Future re-competition or the use of open standards in system design can mitigate lock-in risks, allowing for easier transitions if needed.
How effectively will this contract support the IRS's broader modernization goals and improve the efficiency of its internal operations and accounting functions?
The effectiveness hinges on the specific capabilities Maximus brings and the IRS's clear articulation of modernization requirements. If Maximus delivers robust, scalable, and secure systems that align with IRS objectives, it can significantly improve operational efficiency and accounting accuracy. Regular performance reviews and adaptive management will be key to ensuring alignment and effectiveness.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1600 TYSONS BLVD STE 300, MCLEAN, 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: $94,118,419
Exercised Options: $92,351,824
Current Obligation: $92,312,504
Actual Outlays: $26,679,022
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2032H523A00002
IDV Type: BPA
Timeline
Start Date: 2024-05-23
Current End Date: 2029-05-22
Potential End Date: 2029-05-22 08:01:50
Last Modified: 2025-07-17
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