DHS awards $67.3M contract for contact center services to Maximus Federal Services, Inc

Contract Overview

Contract Amount: $67,278,447 ($67.3M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-11-08

End Date: 2025-11-30

Contract Duration: 387 days

Daily Burn Rate: $173.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: OC3 CALL ORDER 15

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $67.3 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: OC3 CALL ORDER 15 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration is approximately 1.3 years, indicating a medium-term service need. 3. Services are categorized under Telemarketing Bureaus and Other Contact Centers, a common administrative function. 4. The award is a BPA Call, suggesting it leverages an existing Blanket Purchase Agreement. 5. The contract type is Labor Hours, which can offer flexibility but requires careful monitoring of effort. 6. The geographic location of the contractor is Virginia.

Value Assessment

Rating: fair

The total award amount is $67.3 million over roughly 1.3 years. Without specific performance metrics or a detailed breakdown of labor hours and rates, it is difficult to definitively benchmark the value for money. However, the nature of contact center services can be subject to significant cost variations based on complexity and volume. Further analysis would require comparing the per-hour rates and the scope of services to similar government contracts for contact center operations.

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 number of bidders is not specified, but this method generally promotes price discovery and allows the government to select from a wide range of qualified contractors. The competitive nature should theoretically lead to more favorable pricing and better service offerings.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds by encouraging multiple companies to offer their services at competitive rates.

Public Impact

The primary beneficiaries are likely citizens and stakeholders interacting with the Department of Homeland Security who require assistance or information through contact center channels. The services delivered will involve telemarketing and other contact center operations, potentially including customer support, information dissemination, and inbound/outbound communication. The geographic impact is national, as the Department of Homeland Security serves the entire United States. Workforce implications may include job creation within the contact center industry, primarily in Virginia where the contractor is located, and potentially in other locations depending on Maximus Federal Services' operational footprint.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not managed efficiently.
Risk of service quality degradation if performance standards are not rigorously enforced.
Dependence on a single contractor for critical citizen-facing communication channels.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contractor has experience in federal services, indicated by the award to Maximus Federal Services, Inc.
Clear contract end date provides a defined period for service delivery and future re-evaluation.

Sector Analysis

The contact center services sector is a significant part of the business services industry, supporting government agencies and private companies in managing customer interactions. Government spending in this area is driven by the need for efficient communication channels for citizen services, program support, and emergency response. Benchmarks for similar contracts would typically involve analyzing per-hour labor rates, average handling times, and customer satisfaction scores for government contact center operations.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Maximus Federal Services, Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether Maximus Federal Services actively seeks to subcontract portions of this work to small businesses, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. Accountability measures would be defined in the contract's performance work statement, including service level agreements and key performance indicators. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Homeland Security Contact Center Operations
Federal Emergency Management Agency Citizen Support Services
Government Telecommunications Services
Public Safety Communication Contracts

Risk Flags

Potential for cost overruns due to Labor Hours contract type.
Need for rigorous performance monitoring to ensure service quality.
Risk of service disruption if follow-on procurement is delayed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $67.3 million to MAXIMUS FEDERAL SERVICES, INC.. OC3 CALL ORDER 15

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 $67.3 million.

What is the period of performance?

Start: 2024-11-08. End: 2025-11-30.

What is the historical spending by the Department of Homeland Security on contact center services?

Historical spending by the Department of Homeland Security (DHS) on contact center services can be substantial, reflecting the agency's broad mandate to serve the public and manage various programs. While specific aggregate figures for 'contact center services' are not readily available without deep dives into procurement databases, DHS agencies like FEMA, TSA, and USCIS frequently utilize call centers for citizen inquiries, application processing, and emergency information. For instance, FEMA's disaster response efforts often involve extensive call center operations to assist affected individuals. Analyzing past contracts for similar services, including telemarketing, customer support, and information hotlines, would reveal trends in spending, contractor performance, and the evolution of service requirements. This contract's $67.3 million award over approximately 1.3 years represents a significant, albeit specific, investment in maintaining these communication channels.

How does the per-hour labor cost for this contract compare to industry benchmarks for similar government services?

Determining the precise per-hour labor cost for this contract is not possible with the provided data, as the contract type is 'Labor Hours' (pt: LABOR HOURS) and the total award amount ($67.3M) is for the entire duration. To perform a comparison, one would need the estimated total hours and the blended hourly rate, or specific rates for different labor categories. Generally, government contact center services can range widely in cost depending on the complexity of inquiries, required security clearances, geographic location of the call center, and the specific labor categories involved. Benchmarking would involve comparing the negotiated hourly rates against those of other federal contracts for similar services, considering factors like the agency served (e.g., FEMA vs. a less sensitive agency), the volume of calls, and the required skill sets. Without these specifics, a direct comparison to industry benchmarks remains speculative.

What is the track record of Maximus Federal Services, Inc. in delivering similar government contact center services?

Maximus Federal Services, Inc. has a significant track record in providing a wide range of services to government agencies, including extensive experience in contact center operations, citizen support, and program administration. They are known for managing large-scale government contracts, often involving sensitive data and high volumes of public interaction. Their past performance includes work with agencies like the Centers for Medicare & Medicaid Services (CMS), the Social Security Administration (SSA), and various state and local governments. This includes managing health insurance marketplaces, processing benefits applications, and providing customer service support. While this specific contract is with DHS/FEMA, Maximus's broader experience suggests they possess the infrastructure and expertise to handle complex government contact center requirements. A thorough assessment would involve reviewing past performance evaluations and contract close-out reports for similar DHS or FEMA contracts.

What are the potential risks associated with a 'Labor Hours' contract type for contact center services?

The 'Labor Hours' contract type (pt: LABOR HOURS) for contact center services presents several potential risks. Primarily, it shifts the cost risk to the government, as the final price is determined by the actual hours worked multiplied by the negotiated labor rates. This can lead to cost overruns if the contractor is inefficient, if the scope of work expands unexpectedly, or if labor hours are not meticulously tracked and managed. For the government, effective oversight is crucial to ensure that only necessary and productive hours are billed. Without clear performance metrics tied to outcomes rather than just hours, there's a risk of paying for time spent rather than results achieved. This necessitates robust government monitoring of contractor performance and diligent auditing of labor hours to mitigate these risks and ensure value for money.

How does the duration of this contract (approx. 1.3 years) impact service continuity and future planning for DHS?

The contract duration of approximately 1.3 years (ending November 30, 2025) provides a defined period for the delivery of contact center services by Maximus Federal Services, Inc. This duration is relatively short to medium-term, which can be advantageous for agencies needing flexibility to adapt to changing requirements or to re-evaluate their long-term strategy for contact center operations. For DHS, this allows for a focused period to assess the contractor's performance and the effectiveness of the services provided. However, it also means that DHS will need to initiate a new procurement process well in advance of the expiration date to ensure seamless service continuity. A shorter duration might also influence the contractor's investment in long-term process improvements, as their focus may be on meeting the immediate contract requirements rather than on transformative, long-term solutions.

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: 70FBTX25Q00000002

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: $67,278,447

Exercised Options: $67,278,447

Current Obligation: $67,278,447

Actual Outlays: $39,813,928

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70FBTX21A00000003

IDV Type: BPA

Timeline