Department of Energy's $30.2M IT Support Contract Awarded to MAXIMUS FEDERAL SERVICES, INC. for 3 Years
Contract Overview
Contract Amount: $30,243,447 ($30.2M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2025-05-01
End Date: 2028-04-30
Contract Duration: 1,095 days
Daily Burn Rate: $27.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES 2 (ITSS2): THE PURPOSE OF THE ITSS2 CONTRACT IS TO PROVIDE SUPPORT FOR IT OPERATION AND MAINTENANCE FUNCTIONS, INCLUSIVE OF ENTERPRISE IT, CYBERSECURITY, AND RESEARCH IT, AS WELL AS ALLOW FOR ACQUISITION OF SPE
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26501
Plain-Language Summary
Department of Energy obligated $30.2 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES 2 (ITSS2): THE PURPOSE OF THE ITSS2 CONTRACT IS TO PROVIDE SUPPORT FOR IT OPERATION AND MAINTENANCE FUNCTIONS, INCLUSIVE OF ENTERPRISE IT, CYBERSECURITY, AND RESEARCH IT, AS WELL AS ALLOW FOR ACQUISITION OF SPE Key points: 1. Contract focuses on critical IT operations, maintenance, enterprise IT, cybersecurity, and research IT. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of three years provides a stable period for service delivery. 4. Firm Fixed Price contract type helps manage cost predictability for the government. 5. The contract is a Delivery Order under a larger IDIQ vehicle (ITSS2). 6. Geographic focus includes West Virginia, potentially impacting regional IT infrastructure. 7. No small business set-aside, indicating a focus on larger prime contractors.
Value Assessment
Rating: good
The contract value of $30.2 million over three years averages to approximately $10 million annually. Benchmarking this against similar large-scale IT support contracts for federal agencies, this appears to be within a reasonable range, assuming the scope of services is comprehensive. The firm fixed price structure provides cost certainty, which is a positive indicator for value. However, without detailed service level agreements and performance metrics, a definitive value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders (no is 2) suggests a moderate level of competition for this specific delivery order. While two bidders is better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and evaluation criteria would provide further insight into the effectiveness of the competition.
Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government receives services from qualified contractors. This process helps prevent inflated costs that might arise from sole-source or limited competition awards.
Public Impact
The Department of Energy benefits from enhanced IT operations, cybersecurity, and research support. Federal employees and researchers will have access to reliable IT infrastructure and services. The contract supports IT functions within West Virginia, potentially bolstering the regional tech ecosystem. The delivery of cybersecurity services contributes to the overall national security posture. The acquisition of specialized IT support ensures the continuity of critical government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competitively procured.
- Dependence on a single contractor for critical IT infrastructure could pose a risk if performance degrades.
- Scope creep could lead to cost overruns if not managed tightly under the fixed-price structure.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Awarded through full and open competition, suggesting a competitive selection process.
- Contract duration of three years offers stability for service delivery and planning.
- MAXIMUS FEDERAL SERVICES, INC. is an established government contractor with experience in IT services.
Sector Analysis
The Information Technology Support Services 2 (ITSS2) contract vehicle is designed to procure a wide range of IT support services for various federal agencies. This specific delivery order falls within the broader IT services sector, which is a significant area of federal spending. The market for IT support services is highly competitive, with numerous large and small businesses offering specialized capabilities. This contract fits within the government's strategy to consolidate IT support needs under flexible IDIQ vehicles to streamline procurement and achieve economies of scale.
Small Business Impact
This contract was not awarded as a small business set-aside, and the prime contractor, MAXIMUS FEDERAL SERVICES, INC., is a large business. There is no explicit information provided regarding subcontracting requirements or goals for small businesses on this specific delivery order. Therefore, the direct impact on the small business ecosystem is likely minimal unless MAXIMUS voluntarily includes small businesses in its subcontracting plan. Further investigation into the contractor's subcontracting history would be needed to assess potential indirect benefits.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of Energy's contracting officers and program managers. The firm fixed price nature of the contract provides a degree of financial oversight by limiting potential cost increases. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are reported. While no specific Inspector General jurisdiction is mentioned for this delivery order, the Department of Energy's Office of Inspector General generally has oversight over agency spending and contract performance.
Related Government Programs
- Information Technology Support Services (ITSS)
- General Services Administration (GSA) IT Schedule
- Department of Defense IT Services Contracts
- Cybersecurity Support Services Contracts
Risk Flags
- Potential for vendor lock-in
- Cybersecurity risk exposure
- Performance degradation risk
- Scope creep potential
Tags
it-services, department-of-energy, cybersecurity, it-operations, firm-fixed-price, full-and-open-competition, delivery-order, maximus-federal-services, west-virginia, research-it
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $30.2 million to MAXIMUS FEDERAL SERVICES, INC.. INFORMATION TECHNOLOGY SUPPORT SERVICES 2 (ITSS2): THE PURPOSE OF THE ITSS2 CONTRACT IS TO PROVIDE SUPPORT FOR IT OPERATION AND MAINTENANCE FUNCTIONS, INCLUSIVE OF ENTERPRISE IT, CYBERSECURITY, AND RESEARCH IT, AS WELL AS ALLOW FOR ACQUISITION OF SPE
Who is the contractor on this award?
The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $30.2 million.
What is the period of performance?
Start: 2025-05-01. End: 2028-04-30.
What is the track record of MAXIMUS FEDERAL SERVICES, INC. in delivering similar IT support services to federal agencies?
MAXIMUS FEDERAL SERVICES, INC. has a substantial track record of providing IT and professional services to various federal agencies, including the Department of Energy, Department of Health and Human Services, and the Social Security Administration. Their experience encompasses areas such as IT operations and maintenance, cybersecurity, data management, and system modernization. While specific performance metrics for past contracts are not detailed here, their consistent awards and long-standing presence in the federal contracting space suggest a capacity to meet government requirements. A deeper dive into past performance evaluations and contract close-outs would provide a more granular understanding of their reliability and quality of service delivery.
How does the annual cost of this contract compare to similar IT support contracts at the Department of Energy or other agencies of comparable size?
The annual cost of this contract, averaging approximately $10 million ($30.2M / 3 years), needs to be contextualized by the specific scope of services. If this contract covers comprehensive enterprise IT, cybersecurity, and research IT support for a significant portion of the Department of Energy's operations, the cost appears reasonable. For comparison, large-scale IT support contracts for agencies like the Department of Defense or NASA can range from tens to hundreds of millions annually, depending on the complexity and scale. Without a detailed breakdown of the services provided (e.g., number of users supported, systems managed, specific cybersecurity measures), a precise benchmark is difficult. However, the firm fixed price structure suggests a defined scope, which aids in value assessment.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Key risks include potential performance degradation by the contractor, cybersecurity vulnerabilities within the supported systems, and the possibility of scope creep if requirements are not clearly defined and managed. Mitigation strategies inherent in the contract include the firm fixed price structure, which incentivizes the contractor to manage costs efficiently. The full and open competition process aims to select a capable vendor. The Department of Energy's oversight, through contract managers and performance monitoring, is crucial for identifying and addressing performance issues. Robust cybersecurity protocols and regular audits should be part of the service delivery to mitigate security risks. Clear change management processes are essential to control scope creep.
How effective is the ITSS2 contract vehicle in facilitating efficient IT support procurement for the Department of Energy?
The ITSS2 contract vehicle, as an Indefinite Delivery/Indefinite Quantity (IDIQ) contract, is designed to streamline IT support procurement by pre-vetting vendors and establishing terms and conditions. This allows agencies like the Department of Energy to issue delivery orders more rapidly than starting a new procurement from scratch. The effectiveness hinges on the quality of the original ITSS2 solicitation, the competitiveness of the awarded IDIQ contracts, and the agency's ability to effectively define requirements for each delivery order. For this specific $30.2M award, the use of ITSS2 likely reduced the time and administrative burden compared to a standalone procurement, contributing to procurement efficiency.
What is the historical spending trend for similar IT support services at the Department of Energy over the past five years?
Analyzing historical spending trends for IT support services at the Department of Energy (DOE) over the past five years would reveal patterns in contract awards, average contract values, and the types of services procured. Generally, federal IT spending has been on an upward trend, driven by modernization efforts, increasing cybersecurity threats, and the expansion of digital services. For the DOE, specific trends might reflect investments in areas like high-performance computing, grid modernization, cybersecurity for critical infrastructure, and general IT operations. Understanding these trends helps contextualize the current $30.2M award, indicating whether it represents an increase, decrease, or stable level of investment in IT support.
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 - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 89243324RFE000084
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3120 FAIRVIEW PARK DR STE 400, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,798,225
Exercised Options: $63,798,225
Current Obligation: $30,243,447
Actual Outlays: $16,862,720
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201600006W
IDV Type: GWAC
Timeline
Start Date: 2025-05-01
Current End Date: 2028-04-30
Potential End Date: 2028-04-30 00:00:00
Last Modified: 2026-03-27
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