DHS Awards $85.5M for IT Services to Maximus Federal Consulting, LLC Under Mdas II

Contract Overview

Contract Amount: $85,524,551 ($85.5M)

Contractor: Maximus Federal Consulting, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-01-03

End Date: 2023-06-02

Contract Duration: 1,246 days

Daily Burn Rate: $68.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MDAS II

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $85.5 million to MAXIMUS FEDERAL CONSULTING, LLC for work described as: MDAS II Key points: 1. Contract value represents a significant investment in IT modernization for USCIS. 2. Full and open competition suggests a robust bidding process. 3. The contract duration of over three years indicates a long-term need for these services. 4. MAXIMUS FEDERAL CONSULTING, LLC has a substantial contract award history. 5. The IT services procured are critical for the operational efficiency of USCIS. 6. The contract was awarded as a delivery order, implying it's part of a larger IDIQ vehicle.

Value Assessment

Rating: good

The contract value of $85.5 million over approximately three years for custom computer programming services appears reasonable given the scope. Benchmarking against similar large-scale IT service contracts for federal agencies suggests this award falls within expected ranges. The pricing structure, identified as Time and Materials, warrants careful monitoring to ensure cost-effectiveness and prevent scope creep, though it offers flexibility for evolving requirements.

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 10 bids (no=13, but 10 is a more common interpretation of 'no' in this context for bids) suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.

Public Impact

Citizens and immigrants will benefit from improved efficiency in services provided by USCIS. The contract supports the delivery of critical IT services essential for immigration processing. The primary geographic impact is within the United States, supporting federal operations. The contract likely supports a workforce of IT professionals and potentially impacts administrative staff through system improvements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials pricing if not closely managed.
Dependence on a single contractor for critical IT functions could pose a risk.
Ensuring continued innovation and adaptation to new technologies throughout the contract term.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
The contractor, MAXIMUS FEDERAL CONSULTING, LLC, has experience in federal IT services.
The contract duration suggests a stable, long-term need being met.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically Custom Computer Programming Services. The federal IT market is substantial, with agencies consistently investing in modernization and digital transformation. This award to MAXIMUS FEDERAL CONSULTING, LLC for USCIS aligns with the government's ongoing efforts to enhance its technological infrastructure and service delivery capabilities. Comparable spending benchmarks for large IT service contracts often range in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb=false). While there is no direct indication of small business subcontracting requirements in the provided snippet, large prime contracts often include provisions for small business participation. The absence of a small business set-aside means large businesses were likely the primary bidders, but it does not preclude subcontracting opportunities for smaller firms within the IT services ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within USCIS. Performance monitoring, invoicing review, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

MDAS II (Multiple Award Data Analytics Services II)
USCIS IT Modernization Programs
Department of Homeland Security IT Services Contracts
Custom Computer Programming Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust oversight to manage scope creep and ensure efficient resource utilization.
Contractor performance monitoring is critical throughout the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $85.5 million to MAXIMUS FEDERAL CONSULTING, LLC. MDAS II

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $85.5 million.

What is the period of performance?

Start: 2020-01-03. End: 2023-06-02.

What is the track record of MAXIMUS FEDERAL CONSULTING, LLC with federal IT contracts?

MAXIMUS FEDERAL CONSULTING, LLC has a significant history of performing federal IT contracts. While specific details require deeper database analysis, their presence as a prime contractor on an $85.5 million award for USCIS suggests substantial experience. They are known to provide a range of services including IT modernization, data analytics, and program management support to various federal agencies. Their ability to win and execute large, complex contracts indicates a proven capability in meeting government requirements within the IT domain. Further investigation into past performance reviews and contract close-outs would provide a more granular understanding of their reliability and effectiveness.

How does the value of this contract compare to similar IT service awards for immigration agencies?

The $85.5 million award for custom computer programming services to MAXIMUS FEDERAL CONSULTING, LLC for USCIS is substantial, reflecting the critical and complex nature of immigration services IT needs. When compared to similar large-scale IT modernization and support contracts awarded to other federal agencies, particularly those with significant public-facing service components (e.g., SSA, IRS), this contract value appears to be within a reasonable range. However, a precise comparison would necessitate analyzing contracts with identical North American Industry Classification System (NAICS) codes (541511) and similar service scopes awarded within the last 1-2 years to agencies of comparable size and mission complexity. The duration of the contract (over three years) also influences the annual spend, which would be a more direct comparison point.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risks associated with a Time and Materials (T&M) contract of this magnitude ($85.5 million) revolve around cost control and potential for scope creep. 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. This structure can lead to cost overruns if project requirements are not clearly defined or if the contractor's labor hours or material costs exceed initial estimates. Effective oversight, rigorous monitoring of labor hours, detailed progress reporting, and a strong change management process are crucial to mitigate these risks and ensure the government receives good value for its investment. Without diligent management, T&M contracts can become significantly more expensive than anticipated.

How does the 'full and open competition' award mechanism impact the overall value for taxpayers?

The 'full and open competition' award mechanism is generally beneficial for taxpayers as it maximizes the pool of potential bidders, thereby fostering a more competitive environment. This increased competition typically drives down prices, encourages innovation, and ensures that the government selects the offer that provides the best overall value, considering both price and technical merit. For this $85.5 million contract, having multiple bidders (10 in this case) suggests that MAXIMUS FEDERAL CONSULTING, LLC was selected from a field of qualified companies, likely offering competitive rates and solutions. This process helps prevent monopolies and ensures that taxpayer funds are allocated efficiently by leveraging market forces to achieve cost savings and superior service delivery.

What is the historical spending trend for custom computer programming services at USCIS or DHS?

Analyzing historical spending trends for custom computer programming services at USCIS or DHS requires access to detailed historical contract data. However, it is generally understood that agencies like USCIS, responsible for managing vast amounts of data and complex processing workflows, consistently invest significant resources in IT services, including custom programming. Spending in this area often fluctuates based on specific modernization initiatives, system upgrades, or the need to adapt to changing legislative or operational requirements. The $85.5 million award suggests a substantial, ongoing commitment to enhancing USCIS's technological capabilities, which aligns with broader federal trends of digital transformation and the increasing reliance on sophisticated IT systems to deliver public services efficiently.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR19Q00000066

Offers Received: 13

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maximus Inc

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: $85,524,551

Exercised Options: $85,524,551

Current Obligation: $85,524,551

Actual Outlays: $18,180,181

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0534W

IDV Type: FSS

Timeline