OPM Awards $17.7M Contract for Federal Annuitant Health Benefit Services to Maximus Federal Services
Contract Overview
Contract Amount: $17,710,256 ($17.7M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Office of Personnel Management
Start Date: 2020-06-17
End Date: 2025-09-23
Contract Duration: 1,924 days
Daily Burn Rate: $9.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FEDERAL ANNUITANT HEALTH BENEFIT OPEN SEASON SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415
Plain-Language Summary
Office of Personnel Management obligated $17.7 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: FEDERAL ANNUITANT HEALTH BENEFIT OPEN SEASON SERVICES Key points: 1. The contract, valued at $17.7 million, is for Federal Annuitant Health Benefit Open Season Services. 2. Maximus Federal Services, Inc. is the awardee for this definitive contract. 3. The contract was awarded under full and open competition. 4. This service falls under the 'Other Business Service Centers' NAICS code. 5. The contract duration is 1924 days, ending in September 2025.
Value Assessment
Rating: good
The contract value of $17.7 million appears reasonable for a multi-year service contract of this nature, covering health benefit open season services for federal annuitants. Benchmarking against similar large-scale administrative service contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating a robust process to solicit bids from all eligible offerors. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential federal annuitant services.
Public Impact
Ensures federal annuitants have access to necessary health benefit information and enrollment services. Supports the Office of Personnel Management's mission in administering benefits for retired federal employees. Provides continuity of service for a critical population during open enrollment periods. Maximus Federal Services, a known entity in government contracting, will deliver these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized
- Definitive contract type
- Long-term service provision
Sector Analysis
This contract falls under the 'Other Business Service Centers' sector, specifically NAICS 561439. Spending in this sector often relates to administrative support, call centers, and information processing services for government agencies. The $17.7M value is significant for a specialized service contract.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to Maximus Federal Services, Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract is managed by the Office of Personnel Management (OPM), which is responsible for overseeing federal employee benefits. The use of a definitive contract with a set end date suggests a defined scope and oversight mechanism.
Related Government Programs
- Other Business Service Centers (including Copy Shops)
- Office of Personnel Management Contracting
- Office of Personnel Management Programs
Risk Flags
- Contract duration extends over multiple years.
- Specific performance metrics and service level agreements are not detailed in the provided data.
- Potential for vendor lock-in due to specialized nature of services.
Tags
other-business-service-centers-including, office-of-personnel-management, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Office of Personnel Management awarded $17.7 million to MAXIMUS FEDERAL SERVICES, INC.. FEDERAL ANNUITANT HEALTH BENEFIT OPEN SEASON SERVICES
Who is the contractor on this award?
The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Office of Personnel Management (Office of Personnel Management).
What is the total obligated amount?
The obligated amount is $17.7 million.
What is the period of performance?
Start: 2020-06-17. End: 2025-09-23.
What specific services are included in the 'Federal Annuitant Health Benefit Open Season Services'?
These services likely encompass managing the open enrollment period for federal annuitants, including providing information on health plan options, assisting with enrollment and disenrollment, processing changes, and addressing inquiries related to health benefits during the designated open season. This ensures annuitants can make informed decisions about their healthcare coverage.
What are the potential risks associated with a long-term contract for health benefit services?
Risks include potential cost overruns if not managed tightly, vendor lock-in, and the possibility of service degradation over time if performance is not consistently monitored. Changes in healthcare regulations or annuitant needs could also pose challenges if the contract is not flexible enough to adapt.
How effectively does this contract ensure value for taxpayer money in administering health benefits?
The use of full and open competition is a strong indicator of seeking value. The firm fixed price structure also helps control costs. However, ongoing performance monitoring and comparison against industry benchmarks are crucial to ensure continued value realization throughout the contract's life.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Other Business Service Centers (including Copy Shops)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 24322620R0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $21,665,013
Exercised Options: $20,564,471
Current Obligation: $17,710,256
Actual Outlays: $14,456,386
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-06-17
Current End Date: 2025-09-23
Potential End Date: 2025-09-23 00:00:00
Last Modified: 2025-09-23
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