EPA awards $24.3M for IT operations and maintenance, with Maximus Federal Consulting securing the contract

Contract Overview

Contract Amount: $24,335,320 ($24.3M)

Contractor: Maximus Federal Consulting, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2021-08-26

End Date: 2026-08-31

Contract Duration: 1,831 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OCFO OPERATIONS AND MAINTENANCE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20460

State: District of Columbia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $24.3 million to MAXIMUS FEDERAL CONSULTING, LLC for work described as: OCFO OPERATIONS AND MAINTENANCE SUPPORT SERVICES Key points: 1. Contract focuses on essential IT operations and maintenance, crucial for agency functionality. 2. Maximus Federal Consulting, a known entity in government IT services, is the awardee. 3. The contract utilizes a Time and Materials pricing structure, which can pose budget risks if not managed closely. 4. Awarded via full and open competition, suggesting a competitive bidding process. 5. The duration of the contract (over 5 years) indicates a long-term need for these services. 6. The contract is for IT systems design and integration services, a core function for modern agencies.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure warrants careful monitoring. While T&M can offer flexibility, it also presents a higher risk for cost overruns compared to fixed-price contracts if not managed with strict oversight. Benchmarking the specific rates against similar IT operations and maintenance contracts for federal agencies of comparable size and scope would be necessary for a definitive value assessment. Without detailed rate breakdowns and comparison data, it's difficult to definitively state if the pricing represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a moderate level of competition for this requirement. While competition is generally positive, the specific number of bidders (4) is not exceptionally high for a contract of this nature and value, which could imply some limitations in the market or the specificity of the requirements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings. However, the moderate number of bidders suggests that the full potential for price discovery might not have been realized.

Public Impact

The Environmental Protection Agency (EPA) benefits directly through the sustained operation of its critical IT infrastructure. Services delivered include ongoing maintenance, support, and potentially system enhancements for IT operations. The contract's geographic impact is primarily within the District of Columbia, where the EPA's headquarters are located. Workforce implications may include the need for specialized IT personnel to support the EPA's systems, potentially through Maximus Federal Consulting's staff or subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure increases risk of cost overruns without stringent oversight.
Moderate number of bidders (4) may indicate less competitive pressure than ideal for maximizing taxpayer value.
Contract duration of over 5 years requires sustained vigilance to ensure continued value and performance.

Positive Signals

Awarded through full and open competition, promoting a fair process.
Maximus Federal Consulting is an established government contractor with experience in IT services.
Contract addresses essential IT operations and maintenance, critical for agency functioning.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of the EPA's overall IT spending, supporting its mission-critical operations. Comparable spending benchmarks would typically involve analyzing IT operations and maintenance contracts across various federal agencies, looking at contract values, durations, and service scopes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct small business set-aside benefits associated with this award. The implications for small businesses would primarily be through potential subcontracting opportunities if Maximus Federal Consulting chooses to engage them, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. Accountability measures would be embedded within the contract's performance work statement and delivery order terms. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or identified.

Related Government Programs

Federal IT Operations and Maintenance Contracts
Computer Systems Design Services
Environmental Protection Agency IT Support
Maximus Federal Consulting Contracts

Risk Flags

Time and Materials Pricing
Moderate Competition Level
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $24.3 million to MAXIMUS FEDERAL CONSULTING, LLC. OCFO OPERATIONS AND MAINTENANCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2021-08-26. End: 2026-08-31.

What is the track record of Maximus Federal Consulting with the EPA and similar agencies for IT operations and maintenance contracts?

Maximus Federal Consulting, LLC has a significant history of performing IT services for various federal agencies, including the EPA. Their experience often spans across IT operations, maintenance, system integration, and modernization efforts. Analyzing their past performance on similar contracts would involve reviewing contract databases for awards, performance evaluations (e.g., CPARS), and any reported issues or successes. For the EPA specifically, Maximus has been awarded contracts related to IT support and data management. Their broader federal footprint suggests a capacity to handle complex IT requirements. However, a detailed review of their specific performance metrics, on-time delivery, and adherence to budget on prior EPA contracts would be crucial for a comprehensive assessment of their track record for this particular award.

How does the awarded amount of $24.3 million compare to similar IT operations and maintenance contracts at the EPA or other large federal agencies?

The $24.3 million award for IT operations and maintenance over approximately five years (from August 2021 to August 2026) places it in the mid-range for such contracts within large federal agencies. Contracts for comprehensive IT operations and maintenance can vary widely, from a few million dollars for smaller agencies or specific system support, to hundreds of millions for large-scale, agency-wide initiatives. For the EPA, which manages significant environmental data and regulatory systems, this figure appears reasonable for dedicated operations and maintenance support. Benchmarking against contracts for agencies like the Department of Interior, Department of Energy, or even components of HHS for similar IT support services would provide a more precise comparison. Factors like the scope of services (e.g., number of users supported, systems managed, cybersecurity requirements) heavily influence cost, making direct comparisons challenging without granular detail.

What are the primary risks associated with the Time and Materials (T&M) contract type for this IT services award?

The primary risk associated with a Time and Materials (T&M) contract type for IT services like operations and maintenance is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If project scope creeps, inefficiencies arise in labor, or material costs escalate unexpectedly, the total contract cost can exceed initial estimates without a formal modification. For the EPA, this means that without rigorous oversight, detailed tracking of hours, and strong management of the scope of work, the $24.3 million ceiling could be breached. Effective risk mitigation requires the agency to closely monitor labor hours, ensure efficient task completion, and validate the necessity of all materials used.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for IT services?

The 'full and open competition after exclusion of sources' (FOUO) contract type is a specific method within the broader full and open competition framework. It implies that the agency initially intended to compete the requirement broadly but then excluded certain sources for specific, justifiable reasons (e.g., unique capabilities, national security concerns, or specific technological requirements). While it still aims for competition among the remaining eligible sources, it inherently limits the pool of potential bidders compared to unrestricted full and open competition. The effectiveness in ensuring competitive pricing depends heavily on the number and capability of the sources that remain eligible. In this case, with 4 bidders, it suggests a moderate level of competition. If the excluded sources represented significant market players, the pricing might be less competitive than if all potential sources were allowed to bid.

What are the potential performance implications of awarding an 1831-day (approx. 5-year) contract for IT operations and maintenance?

An 1831-day (approximately 5-year) contract for IT operations and maintenance signifies a long-term commitment to sustaining critical infrastructure. This duration allows for stability and continuity of essential IT services, enabling the contractor to develop deep institutional knowledge of the EPA's systems. It can foster a stronger partnership and potentially lead to more efficient operations over time as the contractor becomes intimately familiar with the environment. However, a long duration also carries risks. Technological landscapes evolve rapidly; a 5-year contract might lock the EPA into potentially outdated technologies or service models if not structured with flexibility for adaptation and innovation. Furthermore, it requires sustained performance monitoring over an extended period to ensure the contractor remains effective and provides value throughout the contract life.

What is the significance of the NAICS code 541512 (Computer Systems Design Services) for this contract's scope?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' indicates that the primary purpose of this contract is to provide expertise in designing, developing, integrating, and implementing computer systems. This encompasses a broad range of activities beyond simple maintenance, potentially including system analysis, software design, hardware integration, and IT project management. For the EPA's OCFO Operations and Maintenance Support Services, this code suggests that the contract likely involves not just keeping existing systems running but also potentially advising on, designing, and implementing improvements or new system architectures to meet evolving operational needs. It signifies a focus on the strategic and technical aspects of IT infrastructure management, rather than purely break-fix or basic helpdesk functions.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFP # C-84814-SB

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maximus Federal Consulting LLC

Address: 1600 TYSONS BLVD, MCLEAN, VA, 22102

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,357,504

Exercised Options: $26,357,504

Current Obligation: $24,335,320

Actual Outlays: $21,063,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200117W

IDV Type: GWAC

Timeline