MAXIMUS FEDERAL CONSULTING awarded $67.6M for IT services, with a 20% cost overrun on a prior contract

Contract Overview

Contract Amount: $67,578,195 ($67.6M)

Contractor: Maximus Federal Consulting, LLC

Awarding Agency: National Archives and Records Administration

Start Date: 2014-06-11

End Date: 2019-12-31

Contract Duration: 2,029 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $67.6 million to MAXIMUS FEDERAL CONSULTING, LLC for work described as: IGF::OT::IGF Key points: 1. Value for money is questionable due to significant cost overruns on a previous, related contract. 2. Competition dynamics indicate a full and open competition, which typically fosters better pricing. 3. Risk indicators include past performance issues related to cost control. 4. Performance context shows a long-term engagement for IT services. 5. Sector positioning is within IT services, a common area for federal contracting. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The contract was awarded by the National Archives and Records Administration. 8. The period of performance spans over five years.

Value Assessment

Rating: questionable

The total award amount is $67.6 million. Benchmarking against similar Computer Systems Design Services contracts is difficult without more specific service details. However, a prior contract with the same vendor for similar services (NAICS 541512) experienced a cost overrun of approximately 20%, suggesting potential issues with initial cost estimation or scope management. While the current contract is Firm Fixed Price, the historical cost performance raises concerns about the overall value and efficiency of this engagement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, certain sources were initially excluded before the final award. The data does not specify the number of bidders, but the 'full and open' nature suggests a competitive process was intended. This type of competition generally allows for a wider range of potential contractors to bid, which can lead to better price discovery and innovation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to submit bids, driving down prices and improving the quality of services offered.

Public Impact

The National Archives and Records Administration benefits from these IT services, likely supporting its mission to preserve and provide access to historical records. Services delivered include computer systems design, crucial for managing and modernizing federal IT infrastructure. The geographic impact is primarily within the United States, supporting federal operations. Workforce implications may include the need for specialized IT personnel within the agency or reliance on contractor staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant cost overrun on a prior, related contract indicates potential issues with cost estimation or management.
The 'AFTER EXCLUSION OF SOURCES' clause in the competition type warrants further investigation into why certain sources were excluded.
Long contract duration (over 5 years) increases the risk of scope creep or changing technological needs not being adequately addressed.
Reliance on a single vendor for a long period could limit future competition and innovation.

Positive Signals

Firm Fixed Price contract type shifts cost risk to the contractor, potentially protecting the government from unexpected cost increases.
Full and open competition, even with exclusions, suggests an effort to engage a broad market.
The vendor, MAXIMUS FEDERAL CONSULTING, LLC, has experience in federal IT services.
The contract is for essential IT systems design services, critical for agency operations.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically Computer Systems Design Services (NAICS 541512). This is a large and dynamic sector within federal procurement, encompassing a wide range of services from software development to IT infrastructure management. Federal spending in this area is consistently high, driven by the need to maintain and modernize aging systems, enhance cybersecurity, and implement new digital services. Comparable spending benchmarks would depend on the specific nature of the systems design work, but the $67.6 million award suggests a significant project.

Small Business Impact

The data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. There is no explicit information regarding subcontracting plans for small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, large IT contracts often have subcontracting requirements, which could provide opportunities for small businesses if included in the contract terms.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the National Archives and Records Administration, responsible for monitoring performance and ensuring compliance. The contract type (Firm Fixed Price) implies that financial oversight will focus on deliverables and adherence to scope rather than detailed cost monitoring. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Systems Modernization
Cloud Computing Services
Cybersecurity Services
Data Management Solutions
Digital Transformation Initiatives

Risk Flags

Potential for cost overruns based on prior contract performance.
Unclear justification for 'exclusion of sources' in competition.
Risk of technology obsolescence over the five-year performance period.
Lack of explicit small business subcontracting information.

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $67.6 million to MAXIMUS FEDERAL CONSULTING, LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is MAXIMUS FEDERAL CONSULTING, LLC.

Which agency awarded this contract?

Awarding agency: National Archives and Records Administration (National Archives and Records Administration).

What is the total obligated amount?

The obligated amount is $67.6 million.

What is the period of performance?

Start: 2014-06-11. End: 2019-12-31.

What specific IT systems are being designed or improved under this contract, and how do they align with the National Archives and Records Administration's strategic goals?

The contract specifies 'Computer Systems Design Services' (NAICS 541512). While the exact systems are not detailed in the provided data, these services typically involve the design, development, integration, and testing of computer hardware and software systems. For the National Archives and Records Administration (NARA), this could encompass systems for digital archiving, public access portals, internal record management, preservation technologies, or data analytics platforms. Aligning with NARA's strategic goals would mean these systems enhance the agency's ability to preserve, protect, and provide access to our nation's historical records in both physical and digital formats, potentially improving efficiency, security, and user experience.

How does the 20% cost overrun on the prior related contract impact the assessment of MAXIMUS FEDERAL CONSULTING's past performance and the value proposition of this current contract?

A 20% cost overrun on a previous, similar contract is a significant indicator of potential weaknesses in MAXIMUS FEDERAL CONSULTING's cost estimation, project management, or scope control capabilities. This raises concerns about the reliability of their initial pricing and their ability to deliver within budget. For the current $67.6 million Firm Fixed Price contract, this past performance suggests a higher risk that the contractor may struggle to meet the agreed-upon price, potentially leading to requests for change orders, reduced scope, or quality compromises if they encounter unforeseen issues. While the FFP structure shifts cost risk to the contractor, a history of overruns warrants closer scrutiny of their performance throughout the contract lifecycle to ensure taxpayer funds are used effectively and the government receives the intended value.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the level of competition and potential impact on pricing?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the solicitation was intended to be open to all qualified sources, certain potential offerors were excluded from the competition at some stage. The reasons for exclusion are not provided but could range from failure to meet specific pre-qualification criteria to other administrative or strategic decisions. Ideally, 'full and open competition' maximizes the number of bidders, fostering robust price discovery and innovation. However, the 'exclusion of sources' element introduces a layer of complexity. If the exclusion was justified and based on objective criteria, it might still result in healthy competition among the remaining qualified vendors. Conversely, if the exclusions were arbitrary or overly restrictive, it could limit competition, potentially leading to less favorable pricing and reduced innovation for the government.

Given the five-year duration, what mechanisms are in place to ensure the IT services remain relevant and cost-effective as technology evolves?

For a five-year IT contract, ensuring relevance and cost-effectiveness requires proactive contract management and flexibility. Mechanisms typically include clauses for technical refresh, performance-based metrics tied to evolving needs, and potentially options for service level adjustments. The Firm Fixed Price nature might limit flexibility for scope changes unless addressed through formal modification processes. The contracting agency, NARA, would likely rely on its COR to monitor technological advancements and assess if the contractor's solutions remain optimal. Periodic reviews and discussions about future technology roadmaps are crucial. If the contract includes specific service level agreements (SLAs), these should be reviewed to ensure they continue to meet NARA's operational requirements and incentivize efficient service delivery throughout the contract term.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract that can be used to evaluate MAXIMUS FEDERAL CONSULTING's performance?

The provided data does not explicitly list specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, for a Computer Systems Design Services contract, typical KPIs could include system uptime, response times, successful completion of development milestones, adherence to security protocols, user satisfaction ratings, and defect rates. As the contract is Firm Fixed Price, performance evaluation would likely focus on the successful delivery of defined technical requirements and adherence to the project schedule. The contracting officer's representative (COR) at NARA would be responsible for monitoring these aspects, and the contract document itself should detail the specific metrics and acceptable performance thresholds.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 15

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: $67,971,431

Exercised Options: $67,971,431

Current Obligation: $67,578,195

Actual Outlays: $12,861,486

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200117W

IDV Type: GWAC

Timeline