DOI awards $108M contract to Maximus Federal for IT services, facing full and open competition

Contract Overview

Contract Amount: $107,917,179 ($107.9M)

Contractor: Maximus Federal Consulting, LLC

Awarding Agency: Department of the Interior

Start Date: 2020-07-02

End Date: 2026-01-01

Contract Duration: 2,009 days

Daily Burn Rate: $53.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DOD SAP CIO SETA AND FACILITY REQUIREMENTS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $107.9 million to MAXIMUS FEDERAL CONSULTING, LLC for work described as: DOD SAP CIO SETA AND FACILITY REQUIREMENTS Key points: 1. Contract value of $107.9M for IT services. 2. Maximus Federal Consulting, LLC is the prime contractor. 3. Competition method was full and open, suggesting potential for competitive pricing. 4. The sector is IT, specifically custom computer programming services.

Value Assessment

Rating: fair

The contract is a Time and Materials (T&M) type, which can lead to cost overruns if not managed closely. The awarded amount is significant, and without specific performance metrics or benchmarks, assessing its value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the T&M pricing structure requires diligent oversight to ensure cost-effectiveness.

Taxpayer Impact: Taxpayers are impacted by the $107.9M expenditure. While competition is positive, the T&M nature necessitates strong oversight to prevent excessive costs.

Public Impact

Federal IT infrastructure and custom programming services are supported. Maximus Federal Consulting, LLC receives a substantial contract award. The Department of the Interior benefits from specialized IT support. Potential for innovation and efficiency gains through contracted services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Long contract duration (2020-2026)
No small business participation indicated

Positive Signals

Full and open competition
Clear NAICS code for IT services

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services (NAICS 541511). Spending in this area is substantial across federal agencies, supporting critical digital infrastructure and software development.

Small Business Impact

The data indicates that small businesses were not prime contractors on this award (ss: false, sb: false). There is no indication of subcontracting plans for small businesses, which could be a missed opportunity for their participation.

Oversight & Accountability

The contract is a delivery order under a larger contract, suggesting a framework for oversight exists. However, the T&M nature requires robust monitoring of hours and materials to ensure accountability and prevent cost creep.

Related Government Programs

Custom Computer Programming Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for cost overruns due to T&M pricing
Lack of small business participation
Long contract duration may reduce flexibility
Need for strong contract oversight to ensure value

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $107.9 million to MAXIMUS FEDERAL CONSULTING, LLC. DOD SAP CIO SETA AND FACILITY REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $107.9 million.

What is the period of performance?

Start: 2020-07-02. End: 2026-01-01.

What specific IT services are being procured under this contract, and how do they align with the Department of the Interior's strategic goals?

The contract is for custom computer programming services (NAICS 541511), encompassing software development, integration, and maintenance. These services likely support the Department of the Interior's mission-critical IT systems, including data management, application modernization, and cybersecurity initiatives, ensuring operational efficiency and technological advancement.

Given the Time and Materials pricing, what mechanisms are in place to control costs and ensure the government receives fair value?

Effective cost control relies on stringent contract administration, including detailed tracking of labor hours, material costs, and regular performance reviews. The government should implement baseline estimates, monitor deviations closely, and enforce contract clauses that cap costs or require justification for increases to ensure fair value.

How will the performance of Maximus Federal Consulting, LLC be measured to ensure the effectiveness of the custom computer programming services provided?

Performance will be measured against defined metrics within the contract, such as adherence to project timelines, quality of code delivered, successful system integration, and user satisfaction. Regular progress reports, technical reviews, and potentially independent testing will be employed to assess the effectiveness and value derived from the services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maximus Federal Consulting LLC

Address: 1600 TYSONS BLVD STE 300, MC LEAN, 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: $199,712,409

Exercised Options: $199,712,409

Current Obligation: $107,917,179

Actual Outlays: $106,321,581

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0534W

IDV Type: FSS

Timeline