DoD's $8.9M Cyber Command contract awarded to Maximus Federal Services for contact center support

Contract Overview

Contract Amount: $8,957,454 ($9.0M)

Contractor: Maximus Federal Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-06-30

End Date: 2026-06-29

Contract Duration: 364 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JOINT CYBER COMMAND AND CONTROL ENTERPRISE SERVICE CENTER

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.0 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: JOINT CYBER COMMAND AND CONTROL ENTERPRISE SERVICE CENTER Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for telemarketing and contact center services, a common support function. 3. Fixed-price contract type aims to control costs for the government. 4. The duration of one year with a potential for renewal indicates ongoing need. 5. The award amount is relatively modest for a Department of Defense contract. 6. The specific NAICS code (561422) points to a specialized service area.

Value Assessment

Rating: fair

The contract's value of $8.9 million over one year for contact center services appears within a reasonable range for government support functions. Benchmarking against similar contracts for telemarketing and contact center operations would provide a clearer picture of value for money. The firm fixed-price structure is a positive indicator for cost control, but the absence of detailed performance metrics makes a definitive value assessment challenging. Without more granular data on service levels and outcomes, it's difficult to ascertain if this represents excellent value.

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 bids. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While competition is generally beneficial for price discovery, the limited number of bidders might suggest a niche service or specific requirements that narrowed the field. Further analysis would be needed to determine if the competition was robust enough to drive optimal pricing.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by encouraging lower bids and better service offerings from contractors.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Joint Cyber Command and Control Enterprise. The contract delivers essential contact center and telemarketing support services. The geographic impact is likely concentrated within the operational areas of the Joint Cyber Command. Workforce implications may include the direct employment of individuals by Maximus Federal Services to staff the contact center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical communication channels could pose a risk.
Ensuring consistent service quality and performance over the contract term requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
Firm fixed-price contract type helps manage cost certainty for the government.
The contract duration allows for stable service provision for a defined period.

Sector Analysis

The contract falls within the broader IT and professional services sector, specifically focusing on contact center operations. The market for these services is competitive, with numerous providers offering solutions ranging from basic call handling to complex customer relationship management. Government spending in this area supports essential administrative and communication functions across various agencies. Comparable spending benchmarks would typically be found within the professional services category, often measured by cost per contact or per agent hour.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Maximus Federal Services voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force, overseeing the Joint Cyber Command. Accountability measures are embedded in the contract terms, including performance standards and the firm fixed-price structure. Transparency is facilitated through contract award databases, though detailed operational performance data may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Joint Cyber Command and Control Enterprise Services
Department of Defense Contact Center Support Contracts
Federal Telemarketing Services Contracts
IT Support Services for Defense Agencies

Risk Flags

Potential for performance issues impacting communication flow.
Data security and privacy risks associated with handling sensitive information.
Risk of cost escalation if contract scope requires significant modification.
Dependence on contractor's operational stability and continuity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.0 million to MAXIMUS FEDERAL SERVICES, INC.. JOINT CYBER COMMAND AND CONTROL ENTERPRISE SERVICE CENTER

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $9.0 million.

What is the period of performance?

Start: 2025-06-30. End: 2026-06-29.

What is the track record of Maximus Federal Services in providing similar contact center services to the Department of Defense?

Maximus Federal Services has a significant history of providing a wide range of services to government agencies, including contact center operations, claims processing, and IT support. Their experience often spans large-scale programs requiring extensive call handling, data management, and customer service capabilities. For the Department of Defense specifically, their past performance would likely include contracts related to personnel support, benefits administration, or logistical inquiries, demonstrating their capacity to handle complex government requirements. A detailed review of their contract history would reveal the scale, duration, and success rates of previous, similar engagements, providing insight into their reliability and expertise in supporting defense-related operations.

How does the awarded amount of $8.9 million compare to similar government contact center contracts?

The awarded amount of $8.9 million for a one-year contract for contact center services is within a typical range for government support functions. However, direct comparisons are challenging without knowing the exact scope of services, number of agents, hours of operation, and complexity of inquiries handled. For instance, a contract supporting basic information dissemination would be priced differently than one handling sensitive personal data or complex technical troubleshooting. Generally, government contact center contracts can range from a few million to tens or even hundreds of millions of dollars annually, depending on the scale and criticality of the operations. This $8.9 million figure suggests a moderately sized operation, likely supporting a specific program or function within the Joint Cyber Command.

What are the primary risks associated with this contract for the Department of Defense?

Key risks for the Department of Defense in this contract include potential performance deficiencies, where Maximus Federal Services may fail to meet service level agreements (SLAs) for call response times, resolution rates, or customer satisfaction. Another risk is data security and privacy, given the sensitive nature of government information that contact center personnel might access. Cost overruns, although mitigated by the firm fixed-price structure, could still occur if the scope of work expands beyond initial estimates or if unforeseen operational challenges arise. Furthermore, there's a risk of vendor lock-in, making it difficult and costly to switch providers if performance issues persist. Finally, reliance on a single contractor for critical communication channels could pose an operational risk if the contractor experiences significant disruptions.

What does the 'Telemarketing Bureaus and Other Contact Centers' NAICS code (561422) imply about the services being procured?

The NAICS code 561422, 'Telemarketing Bureaus and Other Contact Centers,' indicates that the contract is for services related to operating call centers. This typically includes inbound and outbound calling, customer service, technical support, appointment setting, lead generation, and potentially data entry or processing associated with these activities. For the Joint Cyber Command, these services could be used for a variety of purposes, such as providing information to personnel, managing inquiries related to cyber operations, facilitating communication with stakeholders, or supporting administrative functions. The code suggests a focus on communication management and customer interaction, rather than core cyber defense technology development or implementation.

What is the significance of the contract being 'FIRM FIXED PRICE'?

A 'FIRM FIXED PRICE' (FFP) contract type is significant because it places the primary responsibility for cost control on the contractor, Maximus Federal Services. Under an FFP agreement, the contractor agrees to a set price for the defined scope of work, and they bear the risk of any cost overruns. This structure provides the government, in this case the Department of Defense, with a high degree of cost certainty. It incentivizes the contractor to manage their resources efficiently and to perform the work within the agreed-upon budget. While FFP contracts are generally preferred for well-defined requirements to minimize cost uncertainty for the government, they can sometimes lead to less flexibility if the scope needs to change, potentially requiring contract modifications.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 TYSONS BLVD STE 300, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,246,150

Exercised Options: $13,334,726

Current Obligation: $8,957,454

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F685GA

IDV Type: FSS

Timeline