DoD's $23.3M IT Support Contract with Maximus Federal Consulting Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $23,288,329 ($23.3M)

Contractor: Maximus Federal Consulting, LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-29

End Date: 2018-09-29

Contract Duration: 1,461 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT&DEVELOPMENT SERVICES.

Place of Performance

Location: JOINT BASE LEWIS MCCHORD, PIERCE County, WASHINGTON, 98438

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to MAXIMUS FEDERAL CONSULTING, LLC for work described as: IT SUPPORT&DEVELOPMENT SERVICES. Key points: 1. The contract awarded to Maximus Federal Consulting for IT support and development services totals $23.3 million. 2. Competition was conducted under 'full and open competition after exclusion of sources,' raising questions about the breadth of the bidding process. 3. The contract's duration of 1461 days (approx. 4 years) suggests a significant, long-term need for these services. 4. The sector is IT, specifically Computer Systems Design Services, a critical area for government operations.

Value Assessment

Rating: questionable

The contract's total value of $23.3 million for IT support and development services needs further benchmarking against similar contracts. Without specific per-unit cost data, a precise value assessment is difficult, but the overall sum warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method, 'full and open competition after exclusion of sources,' implies that while open, certain sources were initially excluded, potentially limiting the competitive landscape and impacting price discovery.

Taxpayer Impact: The $23.3 million expenditure represents taxpayer funds. The effectiveness of the competition method in securing the best possible price for these services is a key concern for taxpayer impact.

Public Impact

Citizens rely on efficient and cost-effective IT services for government operations. Transparency in government contracting ensures public trust and accountability. The exclusion of sources in the competition process could limit innovation and potentially increase costs for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method
Lack of detailed per-unit cost data for value assessment
Long contract duration without clear performance metrics

Positive Signals

Contract awarded to a known entity (Maximus Federal Consulting)
Clear identification of the service provided (IT Support & Development)

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government agencies, with benchmarks varying widely based on complexity and scope. The $23.3M over four years suggests a significant, ongoing requirement.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). This means opportunities for small business participation in this specific contract were likely limited or non-existent.

Oversight & Accountability

The 'exclusion of sources' clause in the competition method warrants further oversight to ensure fairness and prevent potential favoritism. Accountability for the value and effectiveness of the IT services provided is crucial.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for limited competition due to 'exclusion of sources'
Lack of detailed cost breakdown for per-unit analysis
Long contract duration without explicit performance outcome data
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to MAXIMUS FEDERAL CONSULTING, LLC. IT SUPPORT&DEVELOPMENT SERVICES.

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2014-09-29. End: 2018-09-29.

What specific criteria led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final price?

The criteria for excluding sources are not detailed in the provided data. Typically, such exclusions might be based on specific technical capabilities, past performance, or security clearances. Understanding these criteria is vital to assess if the exclusion was justified and if it inadvertently limited competition, potentially leading to a higher price than a truly open bid might have achieved.

How does the $23.3 million contract value compare to industry benchmarks for similar IT support and development services, considering the contract's scope and duration?

Benchmarking the $23.3 million contract value requires detailed analysis of the specific services rendered, the complexity of the IT systems supported, and the duration. Without granular data on deliverables and performance metrics, a direct comparison is challenging. However, for a four-year contract of this magnitude, it suggests a substantial scope, and its value should be assessed against comparable government and private sector contracts to ensure cost-effectiveness.

What mechanisms are in place to ensure the effectiveness and efficiency of the IT support and development services provided by Maximus Federal Consulting over the contract's four-year term?

The provided data does not detail the specific performance metrics, service level agreements (SLAs), or oversight mechanisms established for this contract. Effective oversight would typically involve regular performance reviews, user feedback collection, and clear deliverables tied to payment. Ensuring these mechanisms are robust is critical for guaranteeing the government receives value for its investment and that the IT services meet operational needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $24,187,347

Exercised Options: $23,288,329

Current Obligation: $23,288,329

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200117W

IDV Type: GWAC

Timeline