CDC Call Center Services contract awarded to MAXIMUS FEDERAL SERVICES for over $1.28M, with a 3-year term

Contract Overview

Contract Amount: $1,282,437 ($1.3M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CDC CALL CENTER SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $1.3 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: CDC CALL CENTER SERVICES Key points: 1. The contract utilizes a Firm Fixed Price (FFP) structure, which shifts cost risk to the contractor. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately three years provides a stable period for service delivery. 4. The North American Industry Classification System (NAICS) code 541512 indicates a focus on computer systems design services. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The small business set-aside flag is false, indicating no specific preference for small businesses in this award.

Value Assessment

Rating: good

The contract value of approximately $1.28 million over three years for call center services appears reasonable, especially given the FFP pricing structure which incentivizes contractor efficiency. Benchmarking against similar federal call center contracts would provide a more precise value-for-money assessment. However, the absence of specific performance metrics in the provided data makes a definitive value judgment challenging. The fixed-price nature suggests that the government has a clear understanding of the required services and associated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it is a single delivery order suggests it was competed as part of a larger IDIQ or a specific solicitation. The number of bidders is not specified, but full and open competition generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation from multiple vendors, leading to better value for public funds.

Public Impact

The primary beneficiaries are the Centers for Disease Control and Prevention (CDC) and the public who utilize its call center services for health-related information and support. The contract ensures the continued operation and availability of essential public health communication channels. Services are likely delivered from the contractor's facilities, with a geographic impact centered around the operational hubs of MAXIMUS FEDERAL SERVICES. The contract supports jobs within the call center and IT support sectors, contributing to the workforce in the areas where the contractor operates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess service quality and contractor performance.
The 'Computer Systems Design Services' NAICS code might not fully capture the breadth of call center operations, potentially leading to scope gaps if not managed carefully.
Reliance on a single delivery order within a potentially larger IDIQ could obscure the overall spending trend and contractor performance across multiple task orders.

Positive Signals

The Firm Fixed Price (FFP) contract type transfers cost overrun risk to the contractor, encouraging efficiency.
Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The contract duration of nearly three years provides stability for service continuity and planning.
The contractor, MAXIMUS FEDERAL SERVICES, likely has established processes and experience in delivering similar government services.

Sector Analysis

This contract falls within the broader Information Technology and Business Support Services sector, specifically focusing on IT services and call center operations. The market for federal call center services is competitive, with numerous companies offering solutions ranging from basic customer support to complex technical assistance. Comparable spending benchmarks for similar federal call center contracts would typically be assessed based on call volume, complexity of inquiries, and required service levels. The NAICS code 541512, Computer Systems Design Services, suggests an IT-centric approach to managing and operating the call center infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and were likely the primary participants. Consequently, there are no direct subcontracting implications for small businesses stemming from a small business set-aside requirement. The absence of a set-aside suggests that the contracting agency did not prioritize small business participation for this specific procurement, which could mean fewer opportunities for small businesses to engage with this particular contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). As a delivery order under a potential IDIQ, oversight may be managed through the terms of the base contract and the specific delivery order. Accountability measures would be defined in the contract's performance work statement (PWS), including service level agreements (SLAs). Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS Call Center Support Services
CDC Public Health Information Dissemination
Federal Customer Support Contracts
IT Services for Health Agencies
Government Contact Center Solutions

Risk Flags

Potential for scope creep if PWS is not clearly defined.
Dependence on contractor's IT infrastructure stability.
Risk of service quality degradation if performance metrics are not rigorously monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $1.3 million to MAXIMUS FEDERAL SERVICES, INC.. CDC CALL CENTER SERVICES

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 Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $1.3 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is the historical spending pattern for CDC call center services, and how does this award compare?

Analyzing historical spending for CDC call center services requires access to detailed procurement data over multiple fiscal years. Without specific historical data for this exact service category, a direct comparison is difficult. However, the current award of approximately $1.28 million over three years suggests a moderate investment. If previous contracts for similar services were significantly higher or lower, it could indicate changes in service scope, pricing, or market conditions. A trend of increasing or decreasing spending might also reflect shifts in public demand for CDC information or changes in the agency's communication strategies. Further analysis would involve identifying all prior contracts for CDC call center operations, examining their values, durations, and the contractors involved to establish a comprehensive spending baseline and identify any anomalies or significant shifts.

What specific services are included under the 'Computer Systems Design Services' NAICS code for this call center contract?

While the NAICS code 541512, 'Computer Systems Design Services,' is assigned, it typically encompasses a broad range of IT-related activities. For a call center contract, this could include the design, development, integration, and maintenance of the underlying IT infrastructure that supports call operations. This might involve customer relationship management (CRM) systems, telephony platforms (VoIP, ACD), interactive voice response (IVR) systems, data analytics tools for call monitoring and reporting, and potentially the integration of these systems with other CDC databases or public health information systems. It's crucial to note that this NAICS code might not fully encompass the human element of call center operations, such as agent training, quality assurance, or direct customer interaction management, which would likely be detailed in the contract's Performance Work Statement (PWS).

How does the Firm Fixed Price (FFP) contract type impact risk and potential cost savings for the government?

The Firm Fixed Price (FFP) contract type is advantageous for the government when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor assumes the majority of the cost risk. This means that MAXIMUS FEDERAL SERVICES is obligated to perform the work for the agreed-upon price, regardless of their actual costs. If their costs exceed the contract price, their profit margin decreases or they may incur a loss. Conversely, if they can perform the work more efficiently and at a lower cost than anticipated, their profit margin increases. This structure incentivizes the contractor to manage costs effectively and deliver services efficiently, potentially leading to cost savings for the government compared to cost-reimbursement contracts where the government bears more of the financial risk.

What is the track record of MAXIMUS FEDERAL SERVICES in delivering similar government call center or IT support contracts?

MAXIMUS FEDERAL SERVICES, as a subsidiary of MAXIMUS, Inc., has a significant track record in providing a wide range of government services, including health and human services programs, IT solutions, and contact center operations. They have historically managed large-scale government contracts for various federal agencies, often involving complex data management, citizen engagement, and program administration. Their experience typically includes managing large workforces, implementing and maintaining sophisticated IT systems, and adhering to strict regulatory and security requirements. A detailed review of their contract history, including past performance evaluations and any reported issues on similar federal contracts, would be necessary to fully assess their capabilities and reliability for this specific CDC call center requirement.

Given the 'full and open competition' award, what does this imply about the competitiveness of the federal call center services market?

An award made under 'full and open competition' suggests that the federal call center services market is sufficiently robust and competitive to attract multiple qualified bidders for this particular requirement. It indicates that the government's solicitation was structured in a way that allowed any responsible source to participate, and that the agency received bids from various entities. This level of competition generally leads to better price discovery, as contractors are incentivized to offer competitive pricing to win the contract. It also implies that the government has access to a range of providers with potentially different capabilities and technological approaches, fostering innovation and ensuring that taxpayer dollars are used efficiently. The presence of multiple bidders points to a healthy market where established players and potentially newer entrants vie for government work.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-24-Q-77458

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $2,156,950

Exercised Options: $1,282,437

Current Obligation: $1,282,437

Actual Outlays: $548,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201600006W

IDV Type: GWAC

Timeline