Maximus Awarded $87 Million Task Order Under IRS Transformational Enterprise Development, Operations Service (EDOS) Contract

Rhea-AI Summary

Maximus (NYSE: MMS) has been awarded an $87 million, five-year task order by the IRS to deliver comprehensive development and modernization services. This task order, part of the IRS's Enterprise Development, Operations Services (EDOS) contract, aims to enhance the financial management systems of the IRS. Maximus will support the IRS Internal Management Division, providing General Ledger support and aiding in compliance and enforcement programs. The task order builds on a longstanding partnership, including previous work on the IRS Master File system. Maximus will design, develop, and maintain various IT services, contributing to improved taxpayer services and accountability.

Positive

• Maximus secured an $87 million, five-year task order from the IRS, enhancing its revenue stream.
• The task order strengthens Maximus' longstanding partnership with the IRS, potentially leading to future contracts.
• Maximus will play a important role in the IRS's modernization efforts, positioning itself as a key partner in federal IT services.

Negative

• None.

Insights

Government Services Analyst

Maximus' $87 million task order from the IRS is a substantial expansion of its existing partnership, reflecting both the company's established reliability and the importance of this project in the IRS's modernization efforts. For retail investors, it's worth noting that Maximus has long-standing experience with the IRS, which likely contributed to winning this contract. This kind of continuity and familiarity can enhance the likelihood of project success, as less time is spent on the learning curve.

In the short term, this task order provides a predictable revenue stream that could positively impact Maximus' earnings for the next five years. In the long term, successful execution on such high-profile projects can lead to more government contracts, further reinforcing the company's role as a preferred supplier of modernization services. Additionally, the emphasis on modernized and efficient financial systems aligns with broader government trends towards digital transformation, which can be a steady source of business for Maximus.

Retail investors should consider the stability and growth potential that comes with government contracts, as these are generally less susceptible to market fluctuations compared to commercial contracts. However, the dependence on government contracts could also be a potential risk factor if political or budgetary priorities change.

Financial Analyst

From a financial perspective, the $87 million task order is a meaningful addition to Maximus' revenue base. With the IRS looking to modernize its financial systems, this contract not only contributes to immediate revenue but also positions Maximus as a go-to provider for future IRS projects. This can create a compounding effect, where each successful project makes it easier to win the next one.

Given the scale of the contract and its multi-year nature, it offers excellent revenue visibility and predictability. For retail investors, this means potential earnings stability and less volatility in operating margins. It's also worth highlighting that Maximus' track record with the IRS suggests a high level of trust and competence, which could translate into higher operating efficiency and lower project risks.

Potential drawbacks include the risk of project delays or cost overruns, which are always a possibility in large-scale IT modernization projects. However, given Maximus' historical performance, these risks seem relatively contained. Overall, this task order is a positive development for Maximus' business outlook.

Maximus expands role delivering modernized services for the IRS Suite of Financial Systems

TYSONS, Va.--(BUSINESS WIRE)-- Maximus (NYSE: MMS), a leading employer and provider of government services worldwide, today announced it has been awarded a five-year, $87 million task order by the Internal Revenue Service (IRS) to deliver end-to-end development and modernization services.

IRS awarded Maximus the task order through the Blanket Purchase Agreement (BPA) for the Enterprise Development, Operations Services (EDOS) contract, which supports the agency’s modernization plans for delivering world-class customer service to taxpayers. Previously, IRS named Maximus to the multiple-award BPA in May 2023.

Through this task order, Maximus will support the IRS Internal Management Division, which is responsible for the full suite of financial management systems. In particular, Maximus will become the provider for General Ledger support and its critical compliance and enforcement programs used by the IRS in Fiscal Year 2023 to collect more than $104.1 billion in unpaid assessments on returns filed with additional tax due, resulting in $68.3 billion after credit transfers.

“Maximus has supported the IRS on a number of modernization and technology projects for the past three decades,” said Tricia Belman, Managing Director, Federal Financial, Maximus. “This task order marks another expansion of Maximus’ partnership with the IRS, building upon projects such as supporting the IRS Master File, which is the system the agency uses to store and process tax submissions for all taxpayers.”

Maximus will design and develop all functional and technical enhancements for the agency’s IO&A program. The company will also deliver a wide range of services, including systems development and modernization, program and project management of IT activities, operations and maintenance (O&M) support, and staffing for continuous operations.

“Across the federal government, Maximus implements large enterprise technologies and digital modernization strategies to improve services, increase accountability, and bolster the public’s trust in agencies,” said Bruce Caswell, President and CEO, Maximus. “We’re pleased the IRS has expanded our role to include this vitally important work.”

To learn more about Maximus and its work with the IRS, visit maximus.com/irs.

About Maximus

As a leading strategic partner to governments across the globe, Maximus helps improve the delivery of public services amid complex technology, health, economic, environmental, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus delivers innovative business process management, impactful consulting services, and technology solutions that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit maximus.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240627491447/en/

Investor Relations

James Francis

Jessica Batt

IR@maximus.com



Media & Public Relations

Eileen Cassidy Rivera

media@maximus.com

Source: Maximus

FAQ

What is the value and duration of the task order awarded to Maximus by the IRS?

Maximus has been awarded an $87 million, five-year task order by the IRS.

What is the purpose of the task order awarded to Maximus by the IRS?

The task order aims to deliver end-to-end development and modernization services for the IRS's financial management systems.

When was Maximus named to the IRS EDOS contract BPA?

Maximus was named to the multiple-award Blanket Purchase Agreement (BPA) for the EDOS contract in May 2023.

What division of the IRS will Maximus support under the new task order?

Maximus will support the IRS Internal Management Division, responsible for the full suite of financial management systems.

What are some of the services Maximus will provide under the new IRS task order?

Maximus will provide systems development and modernization, project and program management, operations and maintenance support, and staffing for continuous operations.

How does the new task order expand Maximus' role with the IRS?

The task order expands Maximus' role by including General Ledger support and critical compliance and enforcement programs.

What previous IRS project has Maximus supported?

Maximus has previously supported the IRS Master File, the system used to store and process tax submissions for all taxpayers.