Treasury's IRS awards $21.2M IT Security contract to Maximus Federal Services
Contract Overview
Contract Amount: $21,249,713 ($21.2M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2025-03-27
End Date: 2026-03-26
Contract Duration: 364 days
Daily Burn Rate: $58.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TASK ORDER FOR IT SECURITY IMPLEMENTATION (ITSI) BRIDGE
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $21.2 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: TASK ORDER FOR IT SECURITY IMPLEMENTATION (ITSI) BRIDGE Key points: 1. Contract value of $21.2M for IT security implementation. 2. Awarded under full and open competition. 3. Potential risk in the limited duration and fixed-price structure. 4. Sector is Information Technology, specifically contact center services.
Value Assessment
Rating: fair
The contract value of $21.2M for a 364-day duration appears reasonable for IT security implementation. Benchmarking against similar IT security contracts of this scope and duration would provide a clearer assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing. The fixed-price contract type aims to control costs, but the short duration might limit the full benefits of price discovery.
Taxpayer Impact: Taxpayers benefit from competitive bidding, potentially leading to more cost-effective IT security solutions for the IRS.
Public Impact
Enhances IRS cybersecurity posture to protect sensitive taxpayer data. Ensures continuity of critical IT security services. Supports the IRS's mission to administer tax laws effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration may lead to follow-on contract costs.
- Fixed-price contract risk if scope creep occurs.
- Reliance on a single vendor for critical security functions.
Positive Signals
- Awarded through full and open competition.
- Addresses critical IT security needs.
- Clear contract end date.
Sector Analysis
This contract falls within the IT sector, specifically focusing on contact center IT security. Spending benchmarks for IT security services vary widely based on complexity and scope, but this award appears within a typical range for a bridge contract of this nature.
Small Business Impact
The contract was awarded through full and open competition, with no specific mention of small business participation. Further analysis would be needed to determine if small businesses had an opportunity to compete or subcontract.
Oversight & Accountability
The award process under full and open competition suggests a degree of oversight. However, the short duration and bridge nature of the contract warrant monitoring to ensure efficient use of funds and prevent sole-source extensions.
Related Government Programs
- Telemarketing Bureaus and Other Contact Centers
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Short contract duration (364 days).
- Fixed-price contract type.
- Potential for follow-on contracts.
- No explicit small business set-aside mentioned.
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 $21.2 million to MAXIMUS FEDERAL SERVICES, INC.. TASK ORDER FOR IT SECURITY IMPLEMENTATION (ITSI) BRIDGE
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 $21.2 million.
What is the period of performance?
Start: 2025-03-27. End: 2026-03-26.
What is the primary driver for this bridge contract, and what is the long-term strategy for IT security at the IRS?
This bridge contract likely aims to maintain essential IT security services while the IRS develops or procures a more permanent solution. The primary driver is often to avoid service disruption. The long-term strategy should focus on a comprehensive cybersecurity roadmap, potentially involving multiple vendors or in-house capabilities, to address evolving threats and ensure robust protection of taxpayer data beyond the immediate need.
What are the potential risks associated with a fixed-price contract for IT security implementation, especially in a bridge scenario?
A fixed-price contract for IT security implementation carries the risk of the contractor either overcharging if the scope is underestimated or underdelivering if the scope is underestimated and they cannot meet requirements within budget. In a bridge scenario, the short duration might incentivize the contractor to cut corners on quality or security measures to meet the fixed price, potentially leaving vulnerabilities. Scope creep is also a significant risk, as it can lead to disputes or require costly modifications.
How does this contract contribute to the overall effectiveness of the IRS's IT security infrastructure?
This contract is intended to ensure the continuity and effectiveness of critical IT security functions during a transition period. By maintaining existing security measures or implementing necessary updates, it helps prevent breaches and protect sensitive taxpayer information. Its effectiveness hinges on the contractor's ability to deliver the specified security services competently within the fixed-price and timeframe, thereby supporting the IRS's operational integrity.
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: 1
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: $21,249,716
Exercised Options: $21,249,713
Current Obligation: $21,249,713
Actual Outlays: $19,736,114
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F685GA
IDV Type: FSS
Timeline
Start Date: 2025-03-27
Current End Date: 2026-03-26
Potential End Date: 2026-03-26 14:14:27
Last Modified: 2026-02-27
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