FEMA's $11.7M contact center order to Maximus Federal Services, Inc. awarded under a full and open competition

Contract Overview

Contract Amount: $11,747,090 ($11.7M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-07

End Date: 2025-05-04

Contract Duration: 209 days

Daily Burn Rate: $56.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Other

Official Description: LABOR HOUR CALL ORDER AGAINST FEMAS BPA OUTSOURCED CONTACT CENTER OC3

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.7 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: LABOR HOUR CALL ORDER AGAINST FEMAS BPA OUTSOURCED CONTACT CENTER OC3 Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a robust bidding process. 3. Risk indicators are monitored through performance metrics and oversight. 4. Performance context is framed by the need for outsourced contact center services. 5. Sector positioning is within the government's IT and administrative support services. 6. The contract type is a delivery order against an existing BPA.

Value Assessment

Rating: good

The contract's value of $11.7 million for approximately 7 months of service appears reasonable given the scope of outsourced contact center operations. Benchmarking against similar government contracts for call center support suggests that the pricing is competitive. The labor hour pricing model allows for flexibility, but requires diligent oversight to ensure efficient resource utilization and prevent cost overruns. Further analysis of the specific services delivered and the volume of calls handled would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bidders suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and encourages contractors to offer competitive terms and services to win the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. This approach maximizes the opportunity for the government to receive the best value for its investment.

Public Impact

Citizens and residents seeking assistance from FEMA will benefit from improved contact center services. Essential services delivered include call handling, information dissemination, and support for FEMA programs. The geographic impact is national, supporting FEMA's nationwide operations. Workforce implications include the potential for Maximus to utilize its existing call center staff, with potential for surge capacity needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly.
Reliance on a single contractor for critical citizen interaction.
Ensuring consistent service quality across all interactions.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Clear performance standards and delivery timelines are likely in place.
FEMA's established BPA provides a framework for oversight.

Sector Analysis

This contract falls within the broader Information Technology and Administrative Support Services sector, specifically focusing on outsourced contact center operations. The market for government contact center services is substantial, with agencies increasingly relying on specialized vendors to manage high volumes of citizen inquiries. Comparable spending benchmarks for similar services indicate that pricing is generally competitive when procured through competitive processes.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. While Maximus Federal Services, Inc. is a large business, the impact on the small business ecosystem would depend on whether Maximus engages small businesses as subcontractors. Without specific subcontracting plans, the direct benefit to the small business ecosystem may be limited.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Emergency Management Agency (FEMA) through its contracting officers and program managers. Accountability measures are typically embedded in the contract's performance work statement, including service level agreements and key performance indicators. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FEMA BPA Call Center Services
Outsourced Contact Center Support
Department of Homeland Security IT Services
Federal Citizen Services

Risk Flags

Labor Hour Contract Type
Potential for Service Quality Degradation
Data Security and Privacy Concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.7 million to MAXIMUS FEDERAL SERVICES, INC.. LABOR HOUR CALL ORDER AGAINST FEMAS BPA OUTSOURCED CONTACT CENTER OC3

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 $11.7 million.

What is the period of performance?

Start: 2024-10-07. End: 2025-05-04.

What is the historical spending pattern for FEMA's outsourced contact center services?

Historical spending on outsourced contact center services by FEMA can vary significantly year over year, influenced by disaster declarations, program expansions, and evolving operational needs. While specific historical dollar amounts for this particular BPA or similar contracts are not provided in the data, agencies like FEMA often utilize multi-year contracts and Blanket Purchase Agreements (BPAs) to ensure continuity of essential services. Analysis of past FEMA budgets and contract awards would reveal trends in outsourcing call center functions, potentially showing an increase in demand during major events or a steady investment in maintaining citizen communication channels. Understanding these patterns is crucial for forecasting future needs and ensuring adequate funding is allocated.

How does the per-unit cost of this contract compare to other federal contact center contracts?

A direct per-unit cost comparison is challenging without knowing the specific metrics (e.g., cost per call, cost per hour for specific skill sets) and the exact services rendered under this $11.7 million contract for Maximus Federal Services. However, the contract's award under full and open competition with four bidders suggests that the pricing is likely competitive within the federal market. Government benchmarks for similar services, such as those provided by the General Services Administration (GSA) or other agency-specific IT/contact center contracts, would be used internally to validate the reasonableness of the pricing. If the average cost per labor hour or per call falls within or below established benchmarks for comparable services, it indicates good value for money.

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

Key Performance Indicators (KPIs) for this labor hour call order contract would typically include metrics such as average speed of answer (ASA), abandonment rate, first call resolution (FCR), customer satisfaction scores (CSAT), and adherence to schedule. Performance monitoring is usually conducted by the Contracting Officer's Representative (COR) at FEMA, who reviews contractor reports, conducts quality assurance checks, and holds regular performance review meetings. The contract likely specifies acceptable ranges for these KPIs, with deviations potentially leading to corrective actions or penalties. The labor hour nature of the contract also necessitates close monitoring of hours worked to ensure efficiency and prevent overspending.

What is Maximus Federal Services, Inc.'s track record with similar government contracts?

Maximus Federal Services, Inc. has a significant track record of providing a wide range of government services, including health and human services, IT support, and contact center operations, to various federal agencies. They are known for managing large-scale programs and complex IT systems. Their experience often includes supporting critical government functions, handling large volumes of citizen interactions, and managing sensitive data. Past performance evaluations and contract awards databases (like SAM.gov) would provide specific details on their success in delivering similar contact center services to agencies like FEMA or other components of the Department of Homeland Security, highlighting their capabilities and reliability.

What are the potential risks associated with outsourcing FEMA's contact center operations?

Potential risks associated with outsourcing FEMA's contact center operations include data security breaches, degradation of service quality, loss of institutional knowledge, and over-reliance on a single vendor. If not managed properly, there's also a risk of cost overruns, especially with a labor-hour contract if efficiency is not maintained. Ensuring that Maximus Federal Services adheres to strict data privacy regulations (like HIPAA, if applicable) and maintains high service standards is paramount. FEMA must maintain robust oversight to mitigate these risks, including regular performance reviews, audits, and contingency planning for service disruptions.

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: 70FBTX25Q00000001

Offers Received: 4

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: $11,747,090

Exercised Options: $11,747,090

Current Obligation: $11,747,090

Actual Outlays: $11,747,090

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F685GA

IDV Type: FSS

Timeline