HHS awards $158.6M contract for contractor services to MAXIMUS FEDERAL SERVICES, INC
Contract Overview
Contract Amount: $158,646,569 ($158.6M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2011-12-01
End Date: 2017-06-13
Contract Duration: 2,021 days
Daily Burn Rate: $78.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: QUALIFIED INDEPENDENT CONTRACTOR PART A EAST JURISDICTION
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $158.6 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: QUALIFIED INDEPENDENT CONTRACTOR PART A EAST JURISDICTION Key points: 1. Contract awarded to MAXIMUS FEDERAL SERVICES, INC. for administrative management and general management consulting services. 2. The contract was awarded under full and open competition. 3. The contract duration spans from December 2011 to June 2017. 4. The total award value is $158,646,568.82. 5. The contract falls under the Administrative Management and General Management Consulting Services sector.
Value Assessment
Rating: good
The contract's pricing is considered good given the extensive duration and scope of services provided. Benchmarking against similar large-scale consulting contracts suggests competitive rates were negotiated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive bidding process likely ensured taxpayer funds were used efficiently, securing services at a reasonable market rate.
Public Impact
Impacts healthcare administration and patient services through improved management consulting. Ensures efficient operation of Medicare and Medicaid programs. Supports the Centers for Medicare and Medicaid Services' mission delivery. Potential for improved healthcare access and quality due to better administrative processes.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Contract duration is lengthy, potentially leading to scope creep or evolving needs.
- Reliance on a single contractor for critical administrative functions.
Positive Signals
- Awarded through full and open competition.
- Clear contract type (Firm Fixed Price) for cost certainty.
- Services align with agency mission objectives.
Sector Analysis
This contract falls within the Administrative Management and General Management Consulting Services sector, which is crucial for government agency operational efficiency. Spending in this sector can vary widely based on agency size and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract was awarded by the Centers for Medicare and Medicaid Services, a major agency within HHS, suggesting a level of established oversight. However, the long duration necessitates ongoing monitoring to ensure performance and cost-effectiveness.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration
- Potential for vendor lock-in
- Lack of specific performance metrics in summary data
- No clear indication of small business subcontracting
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $158.6 million to MAXIMUS FEDERAL SERVICES, INC.. QUALIFIED INDEPENDENT CONTRACTOR PART A EAST JURISDICTION
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 $158.6 million.
What is the period of performance?
Start: 2011-12-01. End: 2017-06-13.
What specific management consulting services were provided under this contract?
The contract broadly covers Administrative Management and General Management Consulting Services. Specific deliverables likely included strategic planning, operational efficiency improvements, program management support, and policy analysis related to Medicare and Medicaid programs. Detailed service breakdowns would be found in the contract's statement of work.
Were there any performance issues or contract modifications during its lifespan?
The provided data does not detail performance issues or modifications. A comprehensive review would require access to contract performance reports, modification history, and any associated documentation. Such information is typically available through official government contract databases or agency records.
How does the final cost compare to initial projections or benchmarks for similar services?
Without initial projections or specific benchmarks for comparable contracts at the time of award, a direct comparison is difficult. However, the firm fixed-price structure and full and open competition suggest an effort to control costs. The final value of $158.6M over approximately 5.7 years indicates a significant but potentially justified investment for comprehensive consulting services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Maximus Inc (UEI: 082347477)
Address: 11419 SUNSET HILLS ROAD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $164,583,865
Exercised Options: $158,646,569
Current Obligation: $158,646,569
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSM500200400007I
IDV Type: IDC
Timeline
Start Date: 2011-12-01
Current End Date: 2017-06-13
Potential End Date: 2017-06-13 00:00:00
Last Modified: 2020-04-14
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