HHS awards $27M to Maximus Federal Consulting for DISA ACESO PMO labor support

Contract Overview

Contract Amount: $27,021,937 ($27.0M)

Contractor: Maximus Federal Consulting, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2018-06-11

End Date: 2021-06-10

Contract Duration: 1,095 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TO PROVIDE FUNDING FOR DISA CESO PMO REQUIREMENT - CLIN 0001 LABOR.

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.0 million to MAXIMUS FEDERAL CONSULTING, LLC for work described as: TO PROVIDE FUNDING FOR DISA CESO PMO REQUIREMENT - CLIN 0001 LABOR. Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract type is Cost Plus Fixed Fee, which can shift risk to the government. 3. Performance period spans three years, from June 2018 to June 2021. 4. The contract is for Computer Systems Design Services, a common IT support category. 5. The award was made by the National Institutes of Health (NIH) under the Department of Health and Human Services (HHS). 6. The base contract value is approximately $27 million.

Value Assessment

Rating: fair

The contract value of $27 million over three years for IT support services appears within a reasonable range for similar government contracts. However, without specific details on the scope of work and labor categories, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can lead to higher costs for the government compared to fixed-price contracts if not managed carefully. Benchmarking against similar IT support contracts for PMO requirements would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, certain sources may have been excluded for specific reasons, potentially related to prior performance or specific requirements. The exact number of bidders is not provided, but the 'full and open' designation implies multiple interested parties were considered. This level of competition generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more competitive price than a sole-source or limited competition scenario. It ensures that taxpayer funds are being used efficiently by selecting the most capable and cost-effective offeror.

Public Impact

The primary beneficiary is the Defense Information Systems Agency (DISA) through the support of its ACESO PMO. Services delivered include labor support for program management office functions. The geographic impact is primarily within Maryland, where the contractor is located. Workforce implications include employment for personnel at Maximus Federal Consulting, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not closely monitored.
Exclusion of sources in a 'full and open' competition warrants understanding the rationale to ensure no viable competitors were unfairly excluded.
Lack of detailed performance metrics makes it difficult to assess the quality and efficiency of services provided.

Positive Signals

Awarded through a competitive process, suggesting a degree of market validation.
Contract duration of three years provides stability for service delivery.
Contractor is a federal consulting firm with experience in government contracts.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and program management support. The federal IT services market is substantial, with agencies like HHS and DISA being significant spenders. Contracts for PMO support are crucial for managing complex government programs, ensuring efficient execution and alignment with strategic objectives. Benchmarking against other IT support contracts within HHS or similar agencies would provide context on the scale and pricing of this award.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Maximus Federal Consulting, LLC, may engage small businesses as subcontractors depending on their own subcontracting plans and the specific needs of the contract, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Institutes of Health (NIH) and potentially DISA, given the nature of the requirement. Accountability measures are typically embedded within the Cost Plus Fixed Fee contract structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance reports and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DISA ACESO Program
HHS IT Support Services
NIH Contract Vehicles
Federal Program Management Support

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost risk for the government.
Exclusion of sources in a competitive process requires justification to ensure fairness and optimal selection.
Lack of detailed performance metrics limits assessment of service quality and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.0 million to MAXIMUS FEDERAL CONSULTING, LLC. TO PROVIDE FUNDING FOR DISA CESO PMO REQUIREMENT - CLIN 0001 LABOR.

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2018-06-11. End: 2021-06-10.

What is the specific scope of 'DISA ACESO PMO Requirement - CLIN 0001 Labor' and how does it align with DISA's mission?

The 'DISA ACESO PMO Requirement - CLIN 0001 Labor' refers to the labor services procured to support the Program Management Office (PMO) for the Defense Information Systems Agency's (DISA) Application and Cloud Environment Services Office (ACESO). The ACESO program aims to modernize and manage DISA's application portfolio and cloud environments, ensuring secure, reliable, and efficient IT services for the Department of Defense. The labor provided under this contract likely encompasses project management, systems analysis, technical support, administrative assistance, and other personnel needed to effectively plan, execute, and monitor ACESO initiatives. This support is critical for DISA's mission of providing and assuring information superiority for national security.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and cost for the government?

The Cost Plus Fixed Fee (CPFF) contract type is a cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. This structure places a significant portion of the cost risk on the government, as the final price is not definitively known at the outset and can exceed initial estimates if costs escalate. Compared to Fixed-Price contracts, CPFF offers greater flexibility for scope changes and is often used when the scope of work is uncertain or R&D is involved. However, it requires robust government oversight to control costs and prevent overruns. Incentive contracts or Firm-Fixed-Price contracts generally offer better cost certainty for the government but may require a more clearly defined scope upfront.

What does 'Full and Open Competition After Exclusion of Sources' imply about the bidding process and potential competitors?

The term 'Full and Open Competition After Exclusion of Sources' indicates that the solicitation was made available to all responsible prospective contractors, aligning with the principles of full and open competition. However, it also signifies that certain sources were specifically excluded from consideration. The reasons for exclusion are typically documented and can include factors like past performance issues, failure to meet specific pre-qualification criteria, or other contractual or regulatory reasons. While the competition was broad, the exclusion means the pool of potential bidders was narrower than if no exclusions were made. This approach aims to balance broad competition with the need to avoid awarding contracts to entities that may pose a risk or are demonstrably less capable.

What is the typical cost range for similar IT PMO support contracts within HHS or DoD agencies?

Determining a precise 'typical' cost range for IT PMO support contracts is complex due to variations in scope, duration, labor mix, and specific agency requirements. However, contracts of this nature, supporting critical program management functions for large IT initiatives, can range from several million to tens or even hundreds of millions of dollars over their lifecycle. For a three-year contract with a value around $27 million, this suggests a moderate-sized engagement. Factors influencing cost include the level of technical expertise required, the number of personnel, the complexity of the programs being managed, and the specific overhead and profit margins negotiated. Benchmarking against publicly available data for similar IT support or PMO contracts within HHS or DoD agencies, particularly those managed by NIH or DISA, would provide a more accurate comparison.

What are the potential risks associated with a CPFF contract for IT services, and how can they be mitigated?

The primary risk with a CPFF contract for IT services is the potential for cost overruns, as the government bears the risk of actual costs incurred. This can lead to the final contract price exceeding the initial estimate. Another risk is scope creep, where the project's requirements expand without a corresponding adjustment to the fee, potentially increasing costs. Mitigation strategies include establishing a clear and detailed Statement of Work (SOW), implementing rigorous cost tracking and reporting mechanisms, conducting regular performance reviews, and ensuring strong contract administration by the government. Setting realistic target costs and negotiating appropriate fee structures can also help manage risk. Furthermore, defining clear milestones and deliverables can provide better control over project progression and expenditure.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHJT2010002

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maximus Inc

Address: 1600 TYSONS BLVD STE 1400, 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: $65,354,284

Exercised Options: $27,855,363

Current Obligation: $27,021,937

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200117W

IDV Type: GWAC

Timeline