HHS awarded $21.5M for IT application support, with MAXIMUS FEDERAL CONSULTING, LLC as the primary contractor

Contract Overview

Contract Amount: $21,512,891 ($21.5M)

Contractor: Maximus Federal Consulting, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2013-08-12

End Date: 2018-12-31

Contract Duration: 1,967 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF APPLICATION SUPPORT SERVICES, SUPPORTING OFFICE OF ENTERPRISE AND APPLICATION DEVELOPMENT, OPERATIONS AND MAINTENANCE ACTIVITIES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.5 million to MAXIMUS FEDERAL CONSULTING, LLC for work described as: IGF::CT::IGF APPLICATION SUPPORT SERVICES, SUPPORTING OFFICE OF ENTERPRISE AND APPLICATION DEVELOPMENT, OPERATIONS AND MAINTENANCE ACTIVITIES Key points: 1. The contract value of $21.5 million over approximately five years suggests a moderate investment in IT support services. 2. Full and open competition was utilized, indicating a potentially competitive bidding process that could lead to favorable pricing. 3. The contract type is Time and Materials, which can pose risks if not managed closely to control costs. 4. The services provided fall under Computer Systems Design, a common area for federal IT spending. 5. The duration of the contract (1967 days) is substantial, requiring ongoing performance monitoring. 6. The award was a Delivery Order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, though details of the base IDIQ are not provided.

Value Assessment

Rating: fair

The total award of $21.5 million over nearly five years averages to approximately $4.3 million annually. Benchmarking this against similar IT application support contracts is difficult without knowing the specific scope and complexity of the services. However, the Time and Materials (T&M) pricing structure, while common, can lead to cost overruns if not diligently managed and monitored by the agency. The absence of a fixed price or cap on hours could indicate a higher risk for the government if the contractor's efficiency is low or if the scope expands unexpectedly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of 5 bidders suggests a reasonable level of competition for this specific delivery order. This level of competition is generally positive for price discovery, as it encourages bidders to offer competitive rates to secure the award.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The Office of the Assistant Secretary for Administration (ASA) at HHS benefits from the IT application support, ensuring the smooth operation of enterprise and application development, operations, and maintenance activities. This contract supports critical IT infrastructure and services essential for the day-to-day functioning of administrative operations within HHS. The geographic impact is primarily within Maryland, where the contractor is located, but the services support a federal agency with national reach. The contract likely supports a workforce of IT professionals employed by MAXIMUS FEDERAL CONSULTING, LLC, contributing to employment in the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type carries inherent risks of cost escalation if not closely monitored and managed by the agency.
Lack of specific performance metrics or Service Level Agreements (SLAs) in the provided data makes it difficult to assess the contractor's performance objectively.
The duration of the contract (nearly 5 years) requires sustained oversight to ensure continued value and alignment with agency needs.

Positive Signals

The use of full and open competition suggests a robust process that likely yielded competitive pricing.
The award to a single contractor (MAXIMUS FEDERAL CONSULTING, LLC) for a specific delivery order indicates a focused approach to meeting defined IT support needs.
The contract falls under NAICS code 541512 (Computer Systems Design Services), a standard category for IT support, suggesting alignment with established industry practices.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT market is substantial, with agencies consistently investing in application support, development, and maintenance to ensure operational efficiency and security. Comparable spending benchmarks for IT application support can vary widely based on the complexity of the systems, the number of users, and the criticality of the applications. Contracts of this size are common for supporting specific departmental functions or enterprise-wide systems.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The primary contractor, MAXIMUS FEDERAL CONSULTING, LLC, is likely a large business, and their subcontracting plans would be governed by general federal acquisition regulations rather than specific set-aside goals for this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Office of the Assistant Secretary for Administration (ASA) at HHS. Accountability measures would be tied to the terms of the delivery order, including performance expectations and payment schedules. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Specific details on Inspector General (IG) jurisdiction would depend on whether the IG's office has identified specific risks or concerns related to this contract or the broader IT support services within HHS.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian IT Services
Application Development and Maintenance Contracts
Computer Systems Design Services
MAXIMUS FEDERAL CONSULTING, LLC Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust oversight to manage long contract duration.
Lack of detailed performance metrics in summary data.
Unspecified reasons for 'Exclusion of Sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.5 million to MAXIMUS FEDERAL CONSULTING, LLC. IGF::CT::IGF APPLICATION SUPPORT SERVICES, SUPPORTING OFFICE OF ENTERPRISE AND APPLICATION DEVELOPMENT, OPERATIONS AND MAINTENANCE ACTIVITIES

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 (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2013-08-12. End: 2018-12-31.

What is the track record of MAXIMUS FEDERAL CONSULTING, LLC with the Department of Health and Human Services?

MAXIMUS FEDERAL CONSULTING, LLC has a significant history of contracting with the Department of Health and Human Services (HHS). While this specific award is for IT application support, Maximus is broadly known for providing a wide range of services to HHS, including health and human services program administration, eligibility determination, call center operations, and IT solutions. Their extensive involvement suggests a deep understanding of HHS's mission and operational needs. Analyzing their past performance on similar contracts, particularly those involving IT services and application support, would be crucial to fully assess their capability and reliability for this specific award. Past performance reviews and any documented issues or successes on prior HHS contracts would provide valuable context.

How does the $21.5 million award compare to other federal IT application support contracts?

The $21.5 million award over approximately five years places this contract in the mid-tier range for federal IT application support. Many federal agencies award contracts for similar services that can range from a few million dollars for smaller, specialized support tasks to hundreds of millions or even billions for large-scale enterprise-wide system maintenance and development. For instance, large agencies like the Department of Defense or Social Security Administration often have much larger IT support portfolios. However, for a specific office like HHS's Office of the Assistant Secretary for Administration, this award size is substantial and indicates a significant commitment to maintaining their IT applications. Benchmarking requires detailed comparison of scope, complexity, and service level agreements, which are not fully detailed here.

What are the primary risks associated with a Time and Materials (T&M) contract for IT application support?

The primary risk with a Time and Materials (T&M) contract for IT application support is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials. If the scope of work is not clearly defined, if the contractor is inefficient, or if the agency's requirements change without proper scope management, costs can escalate beyond initial estimates. For IT application support, this could mean paying for extended troubleshooting, unplanned development, or inefficient work practices. Effective oversight, including detailed tracking of hours, regular progress reviews, and clear task definitions, is critical to mitigate these risks and ensure the government receives good value.

What is the significance of 'Full and Open Competition After Exclusion of Sources'?

The term 'Full and Open Competition After Exclusion of Sources' indicates a specific type of competitive procurement process. It means that the solicitation was made available to all responsible sources (full and open competition), but certain sources were excluded from consideration for specific, justifiable reasons, often related to national security, proprietary information, or specific program requirements. In this case, the exclusion of sources is noted, but the specific reasons are not detailed in the provided data. While the 'full and open' aspect suggests a broad solicitation, the 'exclusion of sources' element warrants further investigation to understand if it limited the competitive landscape or potentially impacted the final pricing or innovation available to the government.

How does the duration of the contract (1967 days) impact performance and oversight?

A contract duration of 1967 days, approximately 5.4 years, is a significant commitment. This extended period allows for stability and continuity in IT application support, which can be beneficial for maintaining complex systems. However, it also necessitates robust, long-term oversight. The agency must ensure that the contractor remains aligned with evolving technological needs and agency priorities throughout the contract's life. Performance monitoring needs to be continuous, not just at the beginning or end. Risks include potential contractor complacency, technological obsolescence if not managed proactively, and the need for consistent contract management resources within the agency. Regular performance reviews and potential contract modifications will be essential to manage this long-term engagement effectively.

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: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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: $21,512,891

Exercised Options: $21,512,891

Current Obligation: $21,512,891

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200117W

IDV Type: GWAC

Timeline