HHS Awards $104M Contract to Maximus for QIC Services, Full and Open Competition

Contract Overview

Contract Amount: $104,141,440 ($104.1M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-04-13

End Date: 2026-04-30

Contract Duration: 1,478 days

Daily Burn Rate: $70.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PART C QUALIFIED INDEPENDENT CONTRACTOR (QIC) AWARD

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $104.1 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: PART C QUALIFIED INDEPENDENT CONTRACTOR (QIC) AWARD Key points: 1. Contract awarded to Maximus Federal Services, Inc. for Qualified Independent Contractor (QIC) services. 2. The contract has a total value of $104,141,439.76 and runs from April 2022 to April 2026. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The North American Industry Classification System (NAICS) code is 541611 for Administrative Management and General Management Consulting Services. 5. The contract is a Delivery Order with a Firm Fixed Price type.

Value Assessment

Rating: good

The contract value of $104M over approximately 4 years suggests a significant investment in QIC services. Benchmarking against similar large-scale consulting contracts would be necessary for a precise pricing assessment, but the firm fixed price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a wide range of potential bidders. This method is expected to yield fair market prices.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving value for money, as multiple vendors had the opportunity to bid.

Public Impact

Ensures continued operation of the Qualified Independent Contractor program, vital for Medicare beneficiaries. Supports administrative management and general management consulting services for the Centers for Medicare and Medicaid Services. The long-term nature of the contract provides stability for service delivery. Maximus Federal Services, Inc. is a significant player in government health and human services contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to contract duration.
Reliance on a single contractor for critical QIC functions.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type provides cost predictability.
Long contract duration ensures continuity of services.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector. Spending in this sector often supports government agencies in optimizing operations, managing programs, and implementing policy. Benchmarks for similar large-scale consulting contracts would indicate if this award is within the expected range.

Small Business Impact

The data indicates that small business participation (sb) was not a specific requirement or outcome for this particular award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The award is a Delivery Order under a larger contract vehicle. Oversight would typically involve monitoring performance against contract requirements, ensuring adherence to the firm fixed price, and managing the contractor relationship by the Centers for Medicare and Medicaid Services.

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

Contract duration is substantial (approx. 4 years).
Potential for single-source dependency for critical QIC functions.
Complexity of managing large-scale consulting contracts.
Reliance on contractor performance for beneficiary services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $104.1 million to MAXIMUS FEDERAL SERVICES, INC.. PART C QUALIFIED INDEPENDENT CONTRACTOR (QIC) AWARD

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 $104.1 million.

What is the period of performance?

Start: 2022-04-13. End: 2026-04-30.

What is the specific scope of work for the Qualified Independent Contractor (QIC) services provided by Maximus?

The Qualified Independent Contractor (QIC) services are crucial for the Medicare program, involving the review and adjudication of certain beneficiary claims and appeals. This includes processing reconsiderations for Medicare Advantage and Part D prescription drug plans. The contract likely details specific performance metrics, reporting requirements, and operational standards Maximus must meet to ensure fair and timely resolution of beneficiary disputes.

How does the firm fixed price structure mitigate risks associated with potential cost overruns for this $104M contract?

A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor, Maximus Federal Services, Inc. The government agrees to pay a set price regardless of the contractor's actual costs. This structure incentivizes the contractor to manage its expenses efficiently and effectively to maintain profitability. For the government, it provides budget certainty and protects against unexpected increases in project costs.

What mechanisms are in place to ensure the effectiveness and quality of the QIC services provided by Maximus under this contract?

Effectiveness and quality are typically ensured through robust performance standards, key performance indicators (KPIs), and regular monitoring by the contracting agency (CMS). The contract likely includes provisions for service level agreements (SLAs), quality assurance reviews, and potential penalties for non-performance. Regular reporting and communication channels between CMS and Maximus are essential for identifying and addressing any issues promptly.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $104,143,222

Exercised Options: $104,141,440

Current Obligation: $104,141,440

Actual Outlays: $92,606,707

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM500200400007I

IDV Type: IDC

Timeline