DOT awards $2.3M for PHMSA security assessment and authorization support to Maximus Federal Consulting

Contract Overview

Contract Amount: $2,295,062 ($2.3M)

Contractor: Maximus Federal Consulting, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-03-15

End Date: 2026-03-14

Contract Duration: 1,095 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PHMSA SECURITY ASSESSMENT & AUTHORIZATION SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.3 million to MAXIMUS FEDERAL CONSULTING, LLC for work described as: PHMSA SECURITY ASSESSMENT & AUTHORIZATION SUPPORT SERVICES Key points: 1. Contract provides essential cybersecurity and authorization support for critical pipeline infrastructure. 2. Maximus Federal Consulting, a large business, secured this contract. 3. The contract is a firm-fixed-price BPA call, indicating predictable costs. 4. Competition was full and open, suggesting a potentially competitive pricing environment. 5. The contract duration is three years, aligning with typical cybersecurity support cycles. 6. The award falls under IT professional services, specifically custom computer programming. 7. This contract supports the Pipeline and Hazardous Materials Safety Administration's (PHMSA) mission.

Value Assessment

Rating: good

The contract value of $2.3 million over three years for specialized cybersecurity and authorization support appears reasonable. While direct comparisons are difficult without more detailed service breakdowns, the firm-fixed-price structure provides cost certainty. Benchmarking against similar IT professional services contracts for government agencies suggests this pricing is within expected ranges for specialized technical expertise. The award was made via a BPA call, which typically leverages pre-negotiated rates, further supporting a fair price assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The solicitation resulted in three bids, suggesting a moderate level of competition for this specialized service. While three bidders is not extensive, it demonstrates that multiple firms were interested and capable of performing the work, which generally aids in price discovery and ensures a selection based on a balance of cost and technical merit.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider pool of qualified contractors, ultimately driving better value for government spending.

Public Impact

The primary beneficiary is the Pipeline and Hazardous Materials Safety Administration (PHMSA), which receives critical support for its cybersecurity and authorization processes. The services delivered will enhance the security posture and compliance of PHMSA's systems and operations. The geographic impact is primarily within the District of Columbia, where PHMSA is headquartered, but the services support national pipeline safety. The contract supports a specialized workforce in IT security and compliance, contributing to the federal IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single contractor for critical security functions requires robust oversight.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive bidding process.
Awarded to a large, established federal contractor with demonstrated experience.

Sector Analysis

This contract falls within the Information Technology professional services sector, specifically custom computer programming and related services. The market for cybersecurity and authorization support services is robust and growing, driven by increasing cyber threats and regulatory requirements. PHMSA's need for these services is critical for ensuring the safety and security of national pipeline infrastructure. Comparable spending in this sector often involves significant investments in specialized IT support, with contract values varying widely based on scope and duration.

Small Business Impact

The contract was awarded to Maximus Federal Consulting, LLC, a large business. There is no indication of a small business set-aside for this specific award. As a large business award, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed in the provided data. The absence of a small business set-aside means that larger firms were the primary focus of this competition.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Transportation and the Pipeline and Hazardous Materials Safety Administration. As a firm-fixed-price contract, performance monitoring will focus on deliverables and adherence to the Statement of Work. Transparency is facilitated through federal contract databases. While specific Inspector General jurisdiction is not detailed, the DOT OIG would likely have oversight capabilities over contracts awarded by the department.

Related Government Programs

Cybersecurity Support Services
IT Professional Services
Federal Authorization and Accreditation Support
Pipeline Safety Regulations
Department of Transportation IT Contracts

Risk Flags

Moderate competition level (3 bidders) warrants close monitoring of performance and pricing.
Reliance on external contractors for critical security functions requires strong internal oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.3 million to MAXIMUS FEDERAL CONSULTING, LLC. PHMSA SECURITY ASSESSMENT & AUTHORIZATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Pipeline and Hazardous Materials Safety Administration).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2023-03-15. End: 2026-03-14.

What is the track record of Maximus Federal Consulting, LLC in providing similar cybersecurity and authorization support services to federal agencies?

Maximus Federal Consulting, LLC has a significant track record in providing a wide range of federal IT and consulting services. While specific details on their cybersecurity and authorization support for PHMSA-like agencies require deeper investigation into their contract history, Maximus generally performs large-scale IT modernization, data analytics, and program management for various federal entities. Their experience often includes navigating complex regulatory environments and implementing secure IT solutions. A thorough review of their past performance on similar contracts, particularly those involving critical infrastructure or sensitive data, would be necessary to fully assess their suitability and past success in this specific domain.

How does the awarded amount of $2.3 million compare to historical spending on similar PHMSA security assessment and authorization support services?

Analyzing historical spending requires access to PHMSA's specific contract data for these services over previous years. Without that granular data, a direct comparison is challenging. However, the $2.3 million award over three years ($767k annually) for specialized IT security and authorization support appears to be a moderate investment for a federal agency. If PHMSA has previously contracted for similar services, comparing the scope, duration, and number of bidders would provide context. Generally, cybersecurity and compliance support costs have been rising across government, so this figure should be evaluated against trends and the specific requirements outlined in the contract's Statement of Work.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of Maximus Federal Consulting under this contract?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, for cybersecurity and authorization support services, typical KPIs often include metrics related to the timely completion of security assessments, successful achievement of authorization milestones (e.g., Authority to Operate - ATO), reduction in identified vulnerabilities, adherence to security protocols and standards (like NIST), and responsiveness to emerging threats. The firm-fixed-price nature of the contract implies that performance will be measured against the successful delivery of defined tasks and objectives within the agreed-upon budget and schedule.

What specific types of custom computer programming services are included in this contract, and how do they relate to security assessment and authorization?

The contract falls under NAICS code 541511 (Custom Computer Programming Services), indicating that the work involves designing, developing, and implementing tailored software solutions. In the context of security assessment and authorization, this could include developing custom tools for vulnerability scanning, creating dashboards for security monitoring, building systems to manage compliance documentation, or integrating security features into existing PHMSA applications. The 'custom' aspect suggests that off-the-shelf solutions were not sufficient, and specialized programming is needed to meet PHMSA's unique security and authorization requirements for its systems.

Given the 'full and open competition' and three bidders, what is the potential risk of inadequate competition leading to suboptimal pricing or performance?

While 'full and open competition' is the preferred method, having only three bidders suggests a moderately competitive environment rather than a highly saturated one. The risk of suboptimal pricing or performance due to inadequate competition is present but mitigated by the firm-fixed-price (FFP) contract type. FFP incentivizes the contractor to perform efficiently to maximize profit. However, if the three bidders were not strongly differentiated in price or capability, or if there's an implicit understanding among them, the government might not have achieved the absolute lowest price. Robust evaluation criteria beyond price are crucial in such scenarios to ensure the best value is selected.

What is the potential impact of this contract on PHMSA's overall cybersecurity posture and its ability to meet regulatory compliance deadlines?

This contract is directly aimed at bolstering PHMSA's cybersecurity posture and supporting its authorization processes, which are critical for regulatory compliance. By providing specialized assessment and authorization support, Maximus Federal Consulting helps PHMSA identify vulnerabilities, implement security controls, and achieve necessary authorizations to operate its systems securely. This support is crucial for meeting deadlines set by federal mandates (like FISMA) and ensuring the integrity and safety of the data and systems managing pipeline safety information. The successful execution of this contract should lead to a stronger, more compliant cybersecurity framework for PHMSA.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - SECURITY AND COMPLIANCE

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

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: $2,295,062

Exercised Options: $2,295,062

Current Obligation: $2,295,062

Actual Outlays: $2,198,929

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JJ320A000010

IDV Type: BPA

Timeline