DOE awards $5.5M contract for application support services to Maximus Federal Services
Contract Overview
Contract Amount: $5,474,622 ($5.5M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2024-10-01
End Date: 2026-09-30
Contract Duration: 729 days
Daily Burn Rate: $7.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TRINITY APPLICATION SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $5.5 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: TRINITY APPLICATION SUPPORT SERVICES Key points: 1. Contract awarded through a competitive process, suggesting potential for good value. 2. The contract duration of 729 days provides a stable period for service delivery. 3. The use of Time and Materials pricing requires careful monitoring to control costs. 4. The specific services are related to contact center operations, a common government function. 5. The award is to a single contractor, Maximus Federal Services, Inc.
Value Assessment
Rating: good
The contract value of $5.5 million over approximately two years suggests a moderate investment for application support services. Benchmarking against similar contracts for contact center operations would be necessary for a precise value-for-money assessment. However, the competitive award process generally indicates that pricing was evaluated against market standards. The Time and Materials (T&M) pricing model, while flexible, necessitates diligent oversight to ensure costs remain aligned with the expected scope and effort.
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 offers. The number of bidders is not specified, but the competitive nature suggests that multiple companies vied for this opportunity. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a marketplace where contractors are incentivized to offer competitive pricing and innovative solutions to win awards.
Public Impact
The Department of Energy benefits from enhanced application support services. Citizens and stakeholders interacting with the Department of Energy may experience improved service through the contact center. The contract supports operations within the District of Columbia. The contract likely supports a workforce involved in IT and customer service roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing if not closely managed.
- Dependence on a single contractor for critical application support functions.
- Scope creep could increase the overall cost beyond the initial $5.5 million estimate.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Contract duration of two years provides stability for service continuity.
- Maximus Federal Services, Inc. is an established government contractor, suggesting experience.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on contact center operations. The market for government IT support services is substantial, with agencies increasingly relying on specialized contractors to manage complex application infrastructures and provide user support. Comparable spending benchmarks for similar IT support contracts within federal agencies can range widely based on scope, duration, and complexity, but a $5.5 million award over two years for application support is within a common range for mid-sized engagements.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no explicit subcontracting requirements mandated for small businesses under this award. The impact on the small business ecosystem is neutral, as this contract does not appear to be designed to directly promote small business engagement.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and service level agreements. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Federal IT Support Services
- Contact Center Operations
- Application Maintenance and Support
- Department of Energy IT Contracts
Risk Flags
- Potential for cost overruns with T&M pricing.
- Need for strong performance monitoring to ensure service levels are met.
- Dependence on contractor for critical support functions.
Tags
it-services, application-support, contact-center, department-of-energy, maximus-federal-services, time-and-materials, full-and-open-competition, district-of-columbia, moderate-value-contract, service-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $5.5 million to MAXIMUS FEDERAL SERVICES, INC.. TRINITY APPLICATION SUPPORT SERVICES
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 $5.5 million.
What is the period of performance?
Start: 2024-10-01. End: 2026-09-30.
What is the track record of Maximus Federal Services, Inc. with similar government contracts?
Maximus Federal Services, Inc. has a significant history of performing government contracts, particularly in areas related to IT services, citizen engagement, and administrative support. They have been awarded numerous contracts across various federal agencies, including health and human services, transportation, and defense. Their experience often involves managing large-scale IT systems, call centers, and data processing. A review of their past performance on similar application support and contact center contracts would reveal their ability to meet performance metrics, manage budgets, and adhere to security requirements. Analyzing past contract awards and performance evaluations can provide insights into their reliability and effectiveness in delivering services comparable to those required by the Department of Energy.
How does the $5.5 million value compare to similar application support contracts within the Department of Energy or other agencies?
The $5.5 million value for a two-year contract for application support services is considered a moderate-sized award within the federal IT landscape. For the Department of Energy, which manages a wide array of complex IT systems, this amount could represent support for a specific suite of applications or a particular functional area within their contact center operations. When compared to larger, enterprise-wide IT support contracts that can run into tens or hundreds of millions of dollars, this award is more focused. However, it is substantial enough to indicate a significant operational need. Benchmarking against contracts for similar services (e.g., help desk, application maintenance, citizen portals) across agencies like HHS or GSA would provide a clearer picture of whether this represents a competitive price point for the scope of work.
What are the primary risks associated with a Time and Materials (T&M) contract for application support?
The primary risk with a Time and Materials (T&M) contract for application support is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure can incentivize contractors to extend project timelines or increase labor hours if there isn't robust oversight. For the government, this means the total cost can exceed initial estimates, especially if the scope of work is not well-defined or if unforeseen technical challenges arise. Effective risk mitigation involves clear task definitions, strong project management, regular progress reviews, and vigilant monitoring of labor hours and material expenditures to ensure the work performed aligns with the government's needs and budget.
What is the expected impact of this contract on the Department of Energy's operational efficiency?
This contract is expected to enhance the Department of Energy's operational efficiency by ensuring reliable and effective support for its applications and contact center operations. By outsourcing these functions to Maximus Federal Services, Inc., the DOE can focus its internal resources on its core mission objectives. Improved application support can lead to reduced downtime, faster resolution of technical issues, and better user experience for both internal staff and external stakeholders interacting with the department. A well-functioning contact center, supported by this contract, can improve communication, streamline information dissemination, and enhance citizen services, ultimately contributing to the overall effectiveness and responsiveness of the Department of Energy.
How has federal spending on IT application support services evolved, and where does this contract fit?
Federal spending on IT application support services has consistently been a significant portion of overall IT budgets, driven by the increasing complexity and criticality of government systems. Agencies rely heavily on contractors for maintaining legacy systems, developing new applications, and providing ongoing technical support. Over the years, there has been a trend towards more specialized services and a greater emphasis on cybersecurity and cloud integration. This $5.5 million contract for application support and contact center services fits within this ongoing trend, representing a typical investment for an agency like the Department of Energy to ensure the smooth operation of essential digital services. It reflects the continued reliance on external expertise to manage and enhance critical IT functions.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers
Product/Service Code: IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: TIME AND MATERIALS (Y)
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: $19,892,402
Exercised Options: $6,073,009
Current Obligation: $5,474,622
Actual Outlays: $3,287,198
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303024AET000003
IDV Type: BPA
Timeline
Start Date: 2024-10-01
Current End Date: 2026-09-30
Potential End Date: 2030-03-31 00:00:00
Last Modified: 2026-04-10
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