CDC awards $77.5M contract to Maximus for Telemarketing and Contact Center services through full and open competition

Contract Overview

Contract Amount: $77,480,019 ($77.5M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-01

End Date: 2026-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $53.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CDC INFO

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $77.5 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: CDC INFO Key points: 1. The contract value is substantial at $77.5 million, indicating significant demand for these services. 2. Maximus Federal Services, Inc. is the sole awardee, suggesting strong performance or specific capabilities. 3. The contract duration of four years (2022-2026) implies a long-term need for these contact center operations. 4. The use of 'Labor Hours' as the payment type suggests flexibility but requires careful monitoring of hours worked. 5. The award is categorized under 'Telemarketing Bureaus and Other Contact Centers', a niche but essential service area.

Value Assessment

Rating: good

The contract value of $77.5M over four years appears reasonable for comprehensive contact center services. Benchmarking against similar large-scale federal contact center contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The specific pricing structure under 'Labor Hours' will be critical for cost control.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it drives efficiency and potentially lower costs through market forces.

Public Impact

Public health information dissemination and constituent services will be managed through this contract. Ensures continued operation of critical CDC communication channels. Potential for improved public access to health resources and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour pricing can lead to cost overruns if not managed tightly.
Dependence on a single contractor for critical communication functions.
Potential for scope creep if requirements are not clearly defined.

Positive Signals

Awarded via full and open competition, indicating a competitive process.
Long-term contract provides stability for essential services.
Clear service area (Telemarketing/Contact Centers) suggests focused expertise.

Sector Analysis

This contract falls within the broader IT and professional services sector, specifically focusing on outsourced contact center operations. Benchmarks for similar federal contracts of this size and scope are typically in the tens to hundreds of millions of dollars over multi-year periods.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary awardee is a large corporation, suggesting limited direct opportunities for small businesses unless they are subcontractors.

Oversight & Accountability

Oversight will be crucial to ensure the contractor meets performance standards and stays within budget, particularly given the labor hour payment structure. The Department of Health and Human Services and the CDC will be responsible for monitoring contract performance.

Related Government Programs

Telemarketing Bureaus and Other Contact Centers
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Potential for cost overruns due to labor hour pricing.
Reliance on a single vendor for critical communication functions.
Need for stringent performance monitoring and oversight.
Risk of scope creep if requirements are not precisely defined.
Data security and privacy concerns inherent in contact center operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $77.5 million to MAXIMUS FEDERAL SERVICES, INC.. CDC INFO

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $77.5 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-08-31.

What is the projected workload and average hourly rate to justify the $77.5M total contract value?

The total contract value of $77.5 million over 1460 days (4 years) suggests an average annual value of approximately $19.4 million. Without specific workload projections or average hourly rates, it's difficult to definitively assess value. However, given the nature of contact center operations, this figure could be justified by a high volume of calls, complex inquiries, and extended operating hours, potentially across multiple shifts.

What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to manage contractor performance and mitigate risks?

Effective contract management relies on clearly defined KPIs and SLAs. For a contact center contract, these would likely include metrics such as call answer rates, average handling time, first-call resolution rates, customer satisfaction scores, and data security compliance. Robust monitoring of these KPIs by the government contracting officer and technical representatives is essential to ensure service quality and identify potential performance issues early.

How does the pricing structure (Labor Hours) compare to fixed-price or other contract types for similar federal contact center services?

Labor hour contracts offer flexibility but can be prone to cost overruns if not managed diligently. Compared to fixed-price contracts, which offer more cost certainty for the government, labor hour contracts place more emphasis on monitoring and controlling the actual hours worked. For routine, well-defined tasks, fixed-price might be more cost-effective. However, for services with evolving requirements or unpredictable call volumes, labor hours can be appropriate if paired with strong oversight.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-22-Q-74383

Offers Received: 5

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: $97,755,911

Exercised Options: $77,480,019

Current Obligation: $77,480,019

Actual Outlays: $46,489,713

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F685GA

IDV Type: FSS

Timeline