MAXIMUS INC awarded $52.2M for SSA's Ticket-to-Work Program support, spanning nearly 8 years

Contract Overview

Contract Amount: $52,241,281 ($52.2M)

Contractor: Maximus Inc

Awarding Agency: Social Security Administration

Start Date: 2005-09-29

End Date: 2013-09-12

Contract Duration: 2,905 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TO SUPPORT THE DAILY OPERATION OF SSA'S TICKET-TO-WORK PROGRAM.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $52.2 million to MAXIMUS INC for work described as: TO SUPPORT THE DAILY OPERATION OF SSA'S TICKET-TO-WORK PROGRAM. Key points: 1. Contract value of $52.2 million over 2905 days suggests a significant investment in program operations. 2. The 'Administrative Management and General Management Consulting Services' NAICS code indicates a focus on operational support rather than direct service provision. 3. A Cost Plus Fixed Fee (CPFF) contract type can incentivize cost control by the contractor while ensuring a defined profit margin. 4. The contract's duration of nearly 8 years (2905 days) suggests a long-term need for these administrative services. 5. The absence of small business set-aside flags indicates this contract was not specifically targeted for small business participation. 6. The award was made by the Social Security Administration (SSA) to support its Ticket-to-Work Program.

Value Assessment

Rating: fair

The total award of $52.2 million over approximately 8 years averages to about $6.5 million annually. Without specific performance metrics or comparable contract data for similar program support services, it is difficult to definitively benchmark the value for money. The CPFF structure requires careful monitoring to ensure costs remain reasonable and that the fixed fee is appropriate for the services rendered. The duration suggests a stable, ongoing need, but the cost-effectiveness over time will depend on the efficiency and impact of the administrative support provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield fair pricing and encourage efficiency from the winning contractor. The number of bidders (3) is relatively low for a full and open competition, which could suggest a specialized service or a limited pool of qualified contractors. However, the open nature of the competition provides a baseline for price discovery.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition, which aims to secure the most advantageous terms for the government.

Public Impact

Beneficiaries of the Social Security Administration's Ticket-to-Work Program are indirectly supported through the efficient operation of the program. The contract ensures the continuity of administrative and management consulting services essential for the program's daily functions. The geographic impact is primarily national, supporting a federal program administered across the United States. Workforce implications are related to the administrative and consulting personnel employed by MAXIMUS INC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Limited number of bidders (3) in a full and open competition might indicate a niche market or high barriers to entry.
Long contract duration could lead to complacency or reduced innovation if not actively managed and reviewed.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contractor MAXIMUS INC has a track record with government contracts, implying familiarity with federal requirements.
The Ticket-to-Work Program is a vital initiative, and securing dedicated support ensures its continued operation.

Sector Analysis

The administrative management and general management consulting services sector is broad, encompassing a wide range of support functions for government agencies. This contract falls within the IT and administrative support categories, serving a specific social program. Comparable spending benchmarks are difficult to establish without knowing the precise scope of services, but federal agencies frequently contract for such support to manage complex programs efficiently. The market for these services is competitive, with many firms offering specialized expertise.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. Therefore, its direct impact on the small business ecosystem is likely minimal, focusing instead on larger, established contractors capable of managing extensive federal programs. The absence of set-asides means opportunities for small businesses would primarily arise through subcontracting if MAXIMUS INC chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Social Security Administration's contracting officers and program managers. The CPFF structure necessitates close monitoring of costs and performance to ensure value. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Social Security Administration Programs
Ticket-to-Work Program
Federal Administrative Support Contracts
Management Consulting Services

Risk Flags

Contract duration is long, requiring sustained oversight.
CPFF contract type necessitates careful cost monitoring.
Limited number of bidders in competition.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $52.2 million to MAXIMUS INC. TO SUPPORT THE DAILY OPERATION OF SSA'S TICKET-TO-WORK PROGRAM.

Who is the contractor on this award?

The obligated recipient is MAXIMUS INC.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $52.2 million.

What is the period of performance?

Start: 2005-09-29. End: 2013-09-12.

What is the historical spending pattern for the SSA's Ticket-to-Work Program support contracts over the last decade?

Analyzing historical spending for the SSA's Ticket-to-Work Program support requires access to detailed federal procurement databases. However, this specific contract, awarded to MAXIMUS INC for $52.2 million and spanning from September 2005 to September 2013, represents a significant portion of spending during its active period. Without further data points on prior or subsequent contracts for similar services, it's challenging to establish a comprehensive decade-long trend. Generally, federal agencies aim for stable or optimized spending on essential program support, adjusting based on program needs, budget allocations, and contractor performance. The duration and value of this contract suggest a consistent need for administrative management services for the Ticket-to-Work Program over its term.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar administrative support services?

The Cost Plus Fixed Fee (CPFF) contract type, used here, reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. This structure is often employed when the scope of work is well-defined but precise cost estimation is difficult, or when there's a need to incentivize contractor efficiency. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost overruns if not managed diligently. Compared to Cost-Plus-Incentive-Fee (CPIF) contracts, CPFF provides a stable profit margin without the shared savings or cost-sharing incentives that can drive down costs further. For administrative support, FFP might be preferred for highly standardized services, while CPFF or CPIF are suitable for complex, evolving operational support where precise cost prediction is challenging.

What is MAXIMUS INC's track record with the Social Security Administration and similar federal agencies?

MAXIMUS INC is a well-established government contractor with a significant history of serving federal agencies, including the Social Security Administration (SSA). They have been involved in various health and human services programs, often providing administrative, operational, and IT support. Their work with the SSA has included contracts related to disability determination services, health information technology, and program management, such as the Ticket-to-Work Program. A review of federal procurement data would reveal numerous awards to MAXIMUS INC across multiple agencies, indicating a substantial presence and experience in managing large-scale government contracts. Their track record generally reflects experience in complex program administration and compliance with federal regulations.

What are the key performance indicators (KPIs) typically used to evaluate the success of administrative support for the Ticket-to-Work Program?

Key performance indicators (KPIs) for administrative support of the Ticket-to-Work Program would likely focus on operational efficiency, program accessibility, and stakeholder satisfaction. Examples could include the timeliness of processing applications or inquiries, accuracy of data management, responsiveness to beneficiaries and service providers, and the effectiveness of communication channels. Metrics related to the program's overall success, such as the number of beneficiaries successfully placed in employment or the efficiency of resource allocation, might also be indirectly influenced by the quality of administrative support. The contract's performance would be evaluated against specific service level agreements (SLAs) and deliverables outlined in the contract documents, ensuring the contractor meets defined standards for service delivery.

How does the $52.2 million award compare to the overall budget or spending of the Ticket-to-Work Program?

To accurately compare the $52.2 million award to the overall budget or spending of the Ticket-to-Work Program, one would need access to the program's total annual or multi-year budget figures during the contract's performance period (2005-2013). This contract specifically covers administrative and management consulting services, which represent a component of the program's operational costs, not necessarily the entirety of its budget. Federal programs often have separate allocations for direct services, administrative overhead, technology, and outreach. If the Ticket-to-Work Program's total annual budget was significantly larger than the annual prorated amount of this contract (approx. $6.5 million), it would suggest that administrative support constitutes a reasonable portion of the overall expenditure. Conversely, if it represented a dominant share, it might warrant closer scrutiny of administrative efficiency.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SSA-RFP-05-1047

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11419 SUNSET HILLS RD, RESTON, VA, 11

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

Financial Breakdown

Contract Ceiling: $52,241,281

Exercised Options: $52,241,281

Current Obligation: $52,241,281

Timeline