DHS awards $52.9M contract for TSA IT support, with Maximus Federal Services Inc. as prime

Contract Overview

Contract Amount: $52,912,424 ($52.9M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-06-01

End Date: 2026-09-05

Contract Duration: 1,192 days

Daily Burn Rate: $44.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPERATIONS, TECHNOLOGY, INNOVATION, AND MANAGEMENT (OPTIMA) SUPPORT SERVICES OF ALL TRANSPORTATION SECURITY ADMINISTRATION / INFORMATION TECHNOLOGY / TECHNOLOGY SOLUTIONS DIVISION MISSION ESSENTIAL SYSTEMS IN VARIOUS LOCATIONS.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $52.9 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: OPERATIONS, TECHNOLOGY, INNOVATION, AND MANAGEMENT (OPTIMA) SUPPORT SERVICES OF ALL TRANSPORTATION SECURITY ADMINISTRATION / INFORMATION TECHNOLOGY / TECHNOLOGY SOLUTIONS DIVISION MISSION ESSENTIAL SYSTEMS IN VARIOUS LOCATIONS. Key points: 1. Contract focuses on essential IT systems for TSA's mission. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration is over three years, indicating a long-term need. 4. The award type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The fixed-price contract type aims to control costs for the government. 6. The contractor, Maximus Federal Services, Inc., has a significant role in this award.

Value Assessment

Rating: good

The contract value of $52.9 million over approximately three years for IT support services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, mitigating risks associated with cost overruns. However, a detailed cost breakdown and comparison to specific industry benchmarks would be necessary for a more precise value 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 responsible sources were permitted to submit bids. The number of bidders is not explicitly stated, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency's decision to use this procurement method suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of innovative solutions, potentially leading to better value for public funds.

Public Impact

The primary beneficiaries are the Transportation Security Administration (TSA) and its operational efficiency through reliable IT systems. Services delivered include computer systems design and support for mission-essential IT systems. The geographic impact is likely nationwide, supporting TSA operations across various locations. Workforce implications include potential employment opportunities for IT professionals supporting Maximus Federal Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the incumbent contractor's solutions become deeply integrated.
Risk of scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract helps control costs and provides budget predictability.
Full and open competition suggests a robust market offering and potential for competitive pricing.
Long-term contract duration allows for stability and continuity of essential IT services.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The federal IT services market is substantial, with agencies heavily reliant on technology for operations. This contract supports a critical function within the Department of Homeland Security (DHS) via the Transportation Security Administration (TSA), highlighting the importance of secure and efficient IT infrastructure for national security and public safety. Comparable spending benchmarks for large federal IT support contracts often run into tens or hundreds of millions of dollars annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Maximus Federal Services, Inc., may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means the primary competition was open to all responsible sources, including large businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officers and program managers within the Transportation Security Administration (TSA) and the Department of Homeland Security (DHS). Performance will be monitored against the terms and conditions of the firm-fixed-price delivery order. Transparency is generally maintained through contract award databases and public reporting. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Transportation Security Administration (TSA) IT Modernization Programs
Department of Homeland Security (DHS) Information Technology Services
Federal Civilian Agency IT Support Contracts
Computer Systems Design Services Contracts

Risk Flags

Potential for performance issues impacting critical TSA operations.
Risk of cost overruns if scope is not tightly managed.
Dependence on a single contractor for essential IT systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $52.9 million to MAXIMUS FEDERAL SERVICES, INC.. OPERATIONS, TECHNOLOGY, INNOVATION, AND MANAGEMENT (OPTIMA) SUPPORT SERVICES OF ALL TRANSPORTATION SECURITY ADMINISTRATION / INFORMATION TECHNOLOGY / TECHNOLOGY SOLUTIONS DIVISION MISSION ESSENTIAL SYSTEMS IN VARIOUS LOCATIONS.

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $52.9 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-09-05.

What is the track record of Maximus Federal Services, Inc. in performing similar IT support contracts for federal agencies, particularly within the Department of Homeland Security or Transportation Se

Maximus Federal Services, Inc. has a substantial history of performing government contracts, including significant work within civilian agencies and departments like Health and Human Services (HHS) and the Social Security Administration (SSA). Their experience often spans IT modernization, citizen services, and program management. While specific details on their performance with TSA or DHS for this exact type of IT systems support would require deeper analysis of past performance reviews and contract histories, their general profile suggests they possess the scale and experience to handle large federal IT contracts. A review of their past performance ratings on similar contracts, if publicly available, would provide a clearer picture of their reliability and effectiveness in delivering complex IT solutions.

How does the awarded value of $52.9 million compare to similar IT support contracts for federal agencies of comparable size and scope?

The awarded value of $52.9 million over approximately three years for comprehensive IT support services for the TSA appears to be within a reasonable range for large federal IT contracts. Many federal agencies, particularly those with extensive operational needs like TSA, invest significant sums in maintaining and upgrading their technology infrastructure. For instance, contracts for similar IT operations, maintenance, and systems design services for agencies like the IRS, GSA, or other components of DHS can range from tens to hundreds of millions of dollars over similar timeframes. The firm-fixed-price nature of this contract also suggests an effort to cap costs, which is a positive indicator for value. However, a precise comparison would necessitate analyzing the specific deliverables, service level agreements, and the complexity of the systems supported.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential performance issues from the contractor, leading to disruptions in TSA's critical IT systems. There's also the risk of cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen technical challenges or scope creep. Vendor lock-in is another concern, where TSA might become overly dependent on Maximus's specific solutions. Mitigation strategies likely include robust performance monitoring by TSA, clearly defined service level agreements (SLAs), and strict change control processes to manage scope. The full and open competition process itself acts as a risk mitigation by selecting a contractor based on demonstrated capability and competitive pricing. Regular contract reviews and potential for exercising contract options based on satisfactory performance also play a role.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific IT support service?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks of unforeseen costs are manageable. For IT support services like those described, where the tasks may involve routine maintenance, system design, and operational support, an FFP contract provides the government with cost certainty. This means the contractor assumes most of the financial risk. If the contractor can deliver the required services efficiently and within budget, they profit; if they incur higher costs, their profit margin shrinks. This incentivizes the contractor to be efficient and control costs. The effectiveness hinges on the clarity of the SOW and the government's ability to monitor performance against the fixed price.

What are the historical spending patterns for IT support services within the Transportation Security Administration (TSA) or similar agencies?

Historical spending on IT support services within the TSA and similar federal agencies has consistently been substantial, reflecting the critical role technology plays in their operations. Agencies like TSA, responsible for national security and transportation safety, require continuous investment in IT infrastructure, cybersecurity, and system modernization. Spending often fluctuates based on major upgrade initiatives, cybersecurity threats, and evolving operational requirements. Over the past decade, federal IT spending has generally trended upwards, driven by digital transformation efforts and the need to replace aging systems. Contracts for IT support, systems integration, and cybersecurity services frequently represent significant portions of agency budgets, often in the tens to hundreds of millions of dollars annually for large agencies.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70T02021R7554N001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 TYSONS BLVD STE 300, MC LEAN, 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: $170,966,081

Exercised Options: $52,912,424

Current Obligation: $52,912,424

Actual Outlays: $8,187,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0044

IDV Type: GWAC

Timeline