FEMA's $24.8M call order for outsourced contact center services supports disaster response nationwide

Contract Overview

Contract Amount: $24,801,307 ($24.8M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-07-20

End Date: 2025-03-16

Contract Duration: 239 days

Daily Burn Rate: $103.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CALL ORDER 13 AGAINST FEMAS BPA OUTSOURCED CONTACT CENTER CONTRACT IN SUPPORT OF FEMAS DECLARED DISASTER RESPONSE THROUGHOUT THE UNITED STATES.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.8 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: CALL ORDER 13 AGAINST FEMAS BPA OUTSOURCED CONTACT CENTER CONTRACT IN SUPPORT OF FEMAS DECLARED DISASTER RESPONSE THROUGHOUT THE UNITED STATES. Key points: 1. Contract provides essential surge capacity for disaster-affected citizens. 2. Competition was full and open, suggesting a competitive pricing environment. 3. Performance period is relatively short, indicating a need for immediate support. 4. Contract type is labor hours, which can be subject to scope creep if not managed. 5. The contractor, Maximus Federal Services, Inc., has a significant federal presence. 6. Spending is concentrated in Virginia, the contractor's operational base.

Value Assessment

Rating: good

This call order against a larger BPA represents a specific need for contact center support. While direct comparison to similar standalone contracts is difficult without more context on the BPA's overall value and scope, the pricing for labor hours will be benchmarked against the underlying BPA rates. The value is derived from providing critical, on-demand support during disaster events, which is difficult to quantify in purely financial terms but essential for public service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the open competition suggests a robust process.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential disaster response services.

Public Impact

Citizens affected by declared disasters receive critical communication and support. Provides essential surge capacity for FEMA's disaster response operations. Supports workforce needs within the contact center industry. Geographic impact is nationwide, covering all areas experiencing declared disasters.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contracts require diligent oversight to prevent cost overruns and scope creep.
Reliance on outsourced services may impact direct government control over critical functions.
The short performance period necessitates rapid mobilization and potential for rushed operations.

Positive Signals

Full and open competition suggests a focus on achieving best value.
Contract supports a critical public service function during emergencies.
The contractor has experience in federal services, potentially leading to efficient execution.

Sector Analysis

The North American Industry Classification System (NAICS) code 561422 categorizes Telemarketing Bureaus and Other Contact Centers. This sector is vital for customer service, sales, and support operations across various industries, including government. Federal spending in this area often supports citizen engagement, emergency response hotlines, and administrative functions. Benchmarking this contract's value would involve comparing its labor rates and overall cost against other federal contracts for similar contact center services, particularly those supporting emergency management.

Small Business Impact

This contract was not set aside for small businesses and is not indicated to involve significant subcontracting opportunities for small businesses. The primary contractor, Maximus Federal Services, Inc., is a large entity. Therefore, the direct impact on the small business ecosystem is likely minimal, though large prime contractors often engage small businesses for specialized support in other areas.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA) within the Department of Homeland Security. Accountability measures would be tied to performance metrics outlined in the BPA and this specific call order, focusing on service delivery, response times, and data security. Transparency is facilitated through contract award databases, though detailed operational performance data may be internal.

Related Government Programs

FEMA Disaster Relief Fund
FEMA Emergency Management and Assistance
Department of Homeland Security Contact Center Services
Federal BPA Call Orders

Risk Flags

Potential for cost overruns due to labor hours contract type.
Need for robust oversight to ensure efficient labor utilization.
Short performance period may require rapid ramp-up and potential for operational strain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.8 million to MAXIMUS FEDERAL SERVICES, INC.. CALL ORDER 13 AGAINST FEMAS BPA OUTSOURCED CONTACT CENTER CONTRACT IN SUPPORT OF FEMAS DECLARED DISASTER RESPONSE THROUGHOUT THE UNITED STATES.

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2024-07-20. End: 2025-03-16.

What is the historical spending pattern for FEMA's outsourced contact center services, particularly under this BPA?

Analyzing historical spending for FEMA's outsourced contact center services requires examining data beyond this single call order. FEMA utilizes various mechanisms, including Broad Agency Announcements (BAAs) and Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, to procure such services. Spending patterns can fluctuate significantly based on the frequency and severity of declared disasters. For instance, during major hurricane seasons or widespread emergencies, the demand for contact center support surges, leading to increased call volume and potentially higher spending. Examining past BPA call orders under this specific contract vehicle, or comparable contracts, would reveal trends in utilization and expenditure. Without access to the full BPA's award history and spending, it's challenging to establish a definitive historical pattern for this specific contract, but it's reasonable to assume spending correlates with disaster declaration activity.

How does the labor rate for this contract compare to other federal contact center contracts?

Benchmarking the labor rates for this contract against other federal contact center contracts is crucial for assessing value. This call order is under a BPA, meaning the rates were likely negotiated and established during the initial BPA competition. To perform a thorough comparison, one would need to identify similar federal contracts for outsourced contact center services, ideally those awarded under full and open competition and supporting similar functions (e.g., citizen support, emergency response). Key metrics to compare would include hourly rates for different labor categories (e.g., call center representative, supervisor, technical support). Factors like geographic location of service delivery, required security clearances, and specific service level agreements (SLAs) can influence rates. If this contract's rates are significantly higher than comparable contracts with similar requirements and performance standards, it could indicate a potential value concern.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Key performance indicators (KPIs) for outsourced contact center contracts typically revolve around service delivery efficiency, quality, and customer satisfaction. For FEMA's disaster response support, critical KPIs would likely include: average speed of answer (ASA), abandonment rate, first call resolution (FCR), call handling time (CHT), and accuracy of information provided. Customer satisfaction surveys might also be employed. Performance measurement is usually conducted through regular reporting by the contractor, verified by government quality assurance personnel. The specific KPIs and measurement methodologies would be detailed within the Statement of Work (SOW) for this call order and the overarching BPA. Failure to meet these KPIs could result in contractual remedies, such as reduced payment or termination.

What is the track record of Maximus Federal Services, Inc. in supporting federal emergency response operations?

Maximus Federal Services, Inc. has a substantial track record in providing services to various federal agencies, including those involved in health and human services, and emergency response. They are known for managing large-scale contact centers and citizen support programs. For FEMA specifically, their experience would likely involve handling high-volume inbound and outbound calls related to disaster assistance applications, information dissemination, and case management. Their ability to scale operations rapidly to meet surge demands during emergencies is a key aspect of their federal service offering. A review of their past performance on similar FEMA contracts or other disaster-related federal programs would provide insight into their reliability, efficiency, and effectiveness in supporting critical public safety missions.

What is the potential risk associated with the labor hours contract type for this service?

Labor hours (LH) contracts, like this one, are used when the exact amount of labor is difficult to determine at the time of award. The primary risk associated with LH contracts is the potential for cost overruns if the scope of work expands beyond initial estimates or if labor hours are not efficiently utilized. Without a fixed ceiling on the number of hours or a firm-fixed price for the service, there's a risk that the total cost could exceed expectations. Effective management requires diligent oversight from the government to monitor labor hours, ensure work is necessary and productive, and control scope creep. Clear task orders and regular progress reviews are essential to mitigate these risks and ensure the contract remains within budget and delivers the intended value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70FBTX24Q00000009

Pricing Type: LABOR HOURS (Z)

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: $24,801,307

Exercised Options: $24,801,307

Current Obligation: $24,801,307

Actual Outlays: $24,801,307

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70FBTX21A00000003

IDV Type: BPA

Timeline