MAXIMUS FEDERAL SERVICES awarded $39.3M for consumer resource center support, a firm-fixed-price contract

Contract Overview

Contract Amount: $39,310,810 ($39.3M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2017-03-01

End Date: 2021-11-30

Contract Duration: 1,735 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF CONSUMER RESOURCE CENTER SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20552

State: District of Columbia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $39.3 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: IGF::CL::IGF CONSUMER RESOURCE CENTER SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1735 days indicates a long-term need for these services. 3. Firm-fixed-price contract type aims to control costs for the government. 4. The North American Industry Classification System (NAICS) code 519190 points to 'All Other Information Services'. 5. The contract was awarded to a single vendor, MAXIMUS FEDERAL SERVICES, INC. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) vehicle or similar framework.

Value Assessment

Rating: good

The contract's firm-fixed-price structure is a positive indicator for cost control. Benchmarking this specific contract's value requires access to similar support services contracts within the CFPB or other federal agencies. Without direct comparable data, assessing the precise value-for-money is challenging, but the competitive award process suggests a reasonable price was negotiated. The total award amount of $39.3 million over approximately 4.8 years indicates a significant investment in consumer support infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 5 bids indicates a healthy level of interest and competition for this requirement. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures the government receives the best value for its investment.

Public Impact

Consumers seeking assistance and information from the Consumer Financial Protection Bureau (CFPB) are the primary beneficiaries. The services delivered likely include call center operations, information dissemination, and potentially case management support for consumer inquiries. The contract's primary geographic impact is within the District of Columbia, where the agency is headquartered, but services likely extend nationwide to consumers. The contract supports a workforce dedicated to consumer protection and financial education.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single vendor for critical consumer support functions could pose a risk if performance degrades.
The long-term nature of the contract may limit opportunities for smaller, more agile firms to enter the market.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type helps manage cost uncertainty for the government.
The contract supports a vital consumer protection mission of the CFPB.

Sector Analysis

This contract falls within the Information Services sector, specifically related to customer support and information dissemination. The NAICS code 519190 covers a broad range of 'All Other Information Services'. The market for such services is competitive, with numerous companies offering call center, data processing, and information management solutions to government agencies. The total federal spending in this broad category can be substantial, with agencies like the CFPB relying on external support for specialized functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). MAXIMUS FEDERAL SERVICES, INC. is a large business. There is no explicit information on subcontracting plans for small businesses within this data snippet. The lack of a small business set-aside means that large businesses were eligible and competed for this award, which could limit direct opportunities for small businesses unless they are part of a large business's subcontracting team.

Oversight & Accountability

Oversight for this contract would typically reside with the Consumer Financial Protection Bureau's contracting officers and program managers. As a federal contract, it is subject to the oversight of the Government Accountability Office (GAO) for bid protests and potentially the CFPB's Office of Inspector General (OIG) for audits and investigations into performance and financial integrity. Transparency is generally maintained through contract award databases like FPDS-NG (now SAM.gov).

Related Government Programs

Consumer Financial Protection Bureau Operations Support
Federal Call Center Services
Information Services Contracts
Customer Relationship Management Services

Risk Flags

Contract Duration
Vendor Performance History
Data Security and Privacy
Scope Definition

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $39.3 million to MAXIMUS FEDERAL SERVICES, INC.. IGF::CL::IGF CONSUMER RESOURCE CENTER SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).

What is the total obligated amount?

The obligated amount is $39.3 million.

What is the period of performance?

Start: 2017-03-01. End: 2021-11-30.

What is the track record of MAXIMUS FEDERAL SERVICES, INC. with the federal government, particularly in consumer support services?

MAXIMUS FEDERAL SERVICES, INC. has a significant history of contracting with the federal government across various agencies and service areas. They are known for providing health and human services programs, technology solutions, and administrative support. Their experience often includes large-scale government contracts, such as managing health insurance marketplaces, administering benefits programs, and providing customer service support. For consumer support services specifically, their past performance would likely include managing large call centers, processing inquiries, and providing information to the public, aligning with the scope of the IGF::CL::IGF CONSUMER RESOURCE CENTER SUPPORT SERVICES contract. A detailed review of their contract history on platforms like SAM.gov would reveal specific past performance metrics, past issues, and client agency satisfaction.

How does the awarded price of $39.3 million compare to similar consumer support contracts within the federal government?

Benchmarking the $39.3 million award requires comparing it against contracts for similar services (e.g., call center operations, consumer information services) awarded by other federal agencies over comparable timeframes (approximately 4.8 years). Factors influencing price include the volume of inquiries, complexity of services, required staffing levels, technology infrastructure, and geographic scope. Without access to a comprehensive database of comparable contract pricing, a precise comparison is difficult. However, for a contract supporting a major federal agency like the CFPB over nearly five years, $39.3 million suggests a substantial operational scale. A detailed analysis would involve identifying contracts with similar NAICS codes and service descriptions, then normalizing for contract duration and scope to assess if the per-year or per-unit cost is within market norms.

What are the primary risks associated with this contract for the Consumer Financial Protection Bureau?

Key risks for the CFPB associated with this contract include performance degradation by MAXIMUS FEDERAL SERVICES, INC., where the quality of consumer support might decline, leading to public dissatisfaction and potential reputational damage for the agency. Another risk is vendor lock-in, where the specialized nature of the services and the long-term relationship make it difficult and costly to switch providers if needed. There's also a risk related to data security and privacy, as the contractor will handle sensitive consumer information; a breach could have severe legal and financial consequences. Finally, cost overruns, although mitigated by the firm-fixed-price structure, could still occur if the scope of work expands significantly beyond initial projections without proper change order management.

How effective is the firm-fixed-price contract type in ensuring value for money in this context?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money for the government when the scope of work is well-defined and unlikely to change significantly. For consumer resource center support services, where the tasks are often repetitive and predictable (e.g., answering common questions, directing inquiries), FFP provides cost certainty. The contractor assumes the risk of cost overruns, incentivizing them to manage their resources efficiently to maintain profitability. This structure helps prevent scope creep from driving up costs unexpectedly. However, if unforeseen complexities arise or the nature of consumer inquiries changes dramatically, an FFP contract might make it more difficult or costly to adapt the services compared to a cost-reimbursement contract, potentially limiting flexibility.

What are the historical spending patterns of the CFPB on consumer support services?

Analyzing historical spending patterns for the CFPB on consumer support services would involve examining their budget allocations and contract awards over previous fiscal years. This specific contract, awarded in March 2017 and ending in November 2021, represents a significant portion of spending in that period. To understand broader patterns, one would look at whether the CFPB has consistently used large, long-term contracts for these services, the number of vendors they typically engage, and the average award values. Trends might indicate an increasing reliance on outsourced support, shifts in the types of services procured, or changes in the competitive landscape for these services within the agency. Comparing spending on this contract to previous or subsequent contracts for similar services would reveal trends in cost and contract duration.

What is the significance of the NAICS code 519190 ('All Other Information Services') for understanding this contract's scope?

The NAICS code 519190, 'All Other Information Services,' signifies that this contract covers a broad category of information-related services that do not fit into more specific NAICS codes. For consumer resource center support, this likely encompasses activities such as operating call centers, providing information via various channels (phone, email, web), managing databases of consumer information, and potentially performing data analysis related to consumer inquiries. This broad classification suggests the contract could involve a diverse set of tasks aimed at facilitating consumer access to information and support from the CFPB. It implies the contractor needs a flexible operational framework to handle various information service needs as they arise within the agency's consumer protection mission.

Industry Classification

NAICS: Information › Other Information Services › All Other Information Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maximus Inc

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: $52,192,114

Exercised Options: $39,310,810

Current Obligation: $39,310,810

Actual Outlays: $23,439,191

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00V08PDD0068

IDV Type: IDC

Timeline