HHS Awards $176M Contact Center Bridge Contract to Maximus Federal Services
Contract Overview
Contract Amount: $176,432,657 ($176.4M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2022-06-01
End Date: 2022-09-10
Contract Duration: 101 days
Daily Burn Rate: $1.7M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: CONTACT CENTER OPERATIONS - BRIDGE CONTRACT
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $176.4 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: CONTACT CENTER OPERATIONS - BRIDGE CONTRACT Key points: 1. Maximus Federal Services secured a $176.4 million definitive contract for contact center operations. 2. The contract was not competed, raising questions about price discovery and potential value. 3. This bridge contract likely covers essential services while a more permanent solution is sought. 4. The sector is IT services, specifically telemarketing and contact centers.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar contact center services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition may have prevented the government from obtaining the best possible price and value.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for these essential contact center services.
Public Impact
Citizens relying on contact center services may experience continuity of operations. The lack of competition could lead to higher operational costs being passed on. Transparency in how the award was made and the pricing structure is limited.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee contract type
- Bridge contract nature
Positive Signals
- Ensures continuity of essential contact center services
Sector Analysis
This contract falls within the IT services sector, specifically focusing on telemarketing and contact center operations. Benchmarks for similar large-scale contact center contracts are difficult to ascertain without competitive data, but significant investments are typical for government-wide solutions.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, as it was awarded to a single large entity.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and justification for the lack of competition.
Related Government Programs
- Telemarketing Bureaus and Other Contact Centers
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Lack of competition raises concerns about value for money.
- Cost Plus Award Fee structure may lead to cost overruns.
- Bridge contract implies a temporary solution, potentially leading to future procurement inefficiencies.
- Limited transparency on the justification for non-competition.
Tags
telemarketing-bureaus-and-other-contact-, department-of-health-and-human-services, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $176.4 million to MAXIMUS FEDERAL SERVICES, INC.. CONTACT CENTER OPERATIONS - BRIDGE CONTRACT
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 Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $176.4 million.
What is the period of performance?
Start: 2022-06-01. End: 2022-09-10.
What is the justification for not competing this essential contact center services contract?
The provided data indicates the contract was 'NOT COMPETED'. A detailed justification would typically be required for such awards, often citing urgency, lack of available sources, or specific technical requirements that only one vendor can meet. Without this justification, it's difficult to assess the necessity of bypassing the competitive process.
How does the Cost Plus Award Fee structure impact the final cost to taxpayers?
Cost Plus Award Fee contracts reimburse the contractor for allowable costs and provide a fee based on performance against predetermined objectives. While intended to incentivize good performance, this structure can lead to higher overall costs compared to fixed-price contracts if cost controls are not rigorous or if award fee criteria are easily met without significant efficiency gains.
What is the expected duration and cost of the follow-on contract after this bridge?
This is a bridge contract with a duration of 101 days, ending September 10, 2022, with a total value of $176,432,657. The data does not specify the duration or cost of any subsequent, more permanent contract. Future procurements will determine the long-term cost and operational plan.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 75FCMC22R0012
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
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: $514,223,111
Exercised Options: $176,432,657
Current Obligation: $176,432,657
Actual Outlays: $174,338,605
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-06-01
Current End Date: 2022-09-10
Potential End Date: 2022-09-10 00:00:00
Last Modified: 2024-12-13
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