Maximus Challenges Early Rebid of 1-800-MEDICARE Contract to U.S. Court of Federal Claims
Maximus (NYSE: MMS) has filed a lawsuit in the U.S. Court of Federal Claims challenging the rebid of the 1-800-MEDICARE and Federal Marketplace contract. Despite 95% customer satisfaction and exceeding performance metrics, CMS is rebidding the contract only two years into its nine-year term, requiring a labor harmony agreement. The lawsuit follows GAO's September 2024 ruling that partially sustained Maximus' pre-award protest. CMS has exercised the contract's third option year through September 2025, acknowledging Maximus' service quality. During recent hurricanes, Maximus maintained operations, handling over 190,000 calls without impacting wait times while protecting affected employees' pay.
Maximus (NYSE: MMS) ha intentato una causa presso la Corte Federale degli Stati Uniti contestando il nuovo bando per il contratto di 1-800-MEDICARE e del Mercato Federale. Nonostante un 95% di soddisfazione dei clienti e prestazioni superiori ai parametri stabiliti, il CMS sta rilanciando il contratto solo due anni dopo l'inizio del suo termine di nove anni, richiedendo un accordo di armonia lavorativa. La causa segue la decisione del GAO di settembre 2024 che ha parzialmente accolto il ricorso preassegnazione di Maximus. Il CMS ha esercitato il terzo anno di opzione del contratto fino a settembre 2025, riconoscendo la qualità dei servizi forniti da Maximus. Durante i recenti uragani, Maximus ha mantenuto le operazioni, gestendo oltre 190.000 chiamate senza impattare i tempi di attesa, proteggendo allo stesso tempo lo stipendio dei dipendenti colpiti.
Maximus (NYSE: MMS) ha presentado una demanda en el Tribunal de Reclamos Federales de EE. UU. impugnando la nueva licitación del contrato de 1-800-MEDICARE y del Mercado Federal. A pesar de tener un 95% de satisfacción del cliente y superar las métricas de rendimiento, el CMS está haciendo una nueva licitación del contrato solo dos años después de su término de nueve años, exigiendo un acuerdo de armonía laboral. La demanda sigue la resolución de septiembre de 2024 del GAO que sustentó parcialmente el recurso previo a la adjudicación de Maximus. El CMS ha ejercido el tercer año de opción del contrato hasta septiembre de 2025, reconociendo la calidad del servicio de Maximus. Durante los recientes huracanes, Maximus mantuvo operaciones, manejando más de 190,000 llamadas sin afectar los tiempos de espera mientras protegía los salarios de los empleados afectados.
맥시머스(NYSE: MMS)는 미국 연방 소송 법원에 1-800-MEDICARE 및 연방 시장 계약의 재입찰에 이의를 제기하는 소송을 제기했습니다. 95%의 고객 만족도와 성과 지표 초과 달성에도 불구하고 CMS는 9년 계약 기간의 2년 만에 계약을 재입찰하고 노동 조화 협정을 요구하고 있습니다. 이 소송은 GAO의 2024년 9월 결정에 이어졌으며, 이 결정은 맥시머스의 사전 수여 이의를 부분적으로 유지했습니다. CMS는 계약의 세 번째 옵션 연도를 2025년 9월까지 행사했으며, 맥시머스의 서비스 품질을 인정했습니다. 최근 집중호우 동안 맥시머스는 운영을 유지하며 190,000통 이상의 전화를 처리하였고, 대기 시간에 영향을 미치지 않으면서 영향을 받은 직원의 급여를 보호했습니다.
Maximus (NYSE: MMS) a déposé une plainte devant le Tribunal des Réclamations Fédérales des États-Unis contestant le nouvel appel d'offres du contrat 1-800-MEDICARE et du Marché Fédéral. Malgré un taux de satisfaction client de 95% et des performances supérieures aux critères, le CMS relance le contrat seulement deux ans après le début de son terme de neuf ans, exigeant un accord de bonne entente au travail. La plainte fait suite à la décision du GAO de septembre 2024 qui a partiellement soutenu la contestation préalable à l'attribution de Maximus. Le CMS a exercé la troisième année optionnelle du contrat jusqu'en septembre 2025, reconnaissant la qualité du service de Maximus. Lors des récents ouragans, Maximus a maintenu ses opérations, traitant plus de 190 000 appels sans impacter les temps d'attente tout en protégeant les salaires des employés concernés.
Maximus (NYSE: MMS) hat eine Klage beim US Court of Federal Claims eingereicht, um die Neuausschreibung des 1-800-MEDICARE und des Bundesmarktkontrakts anzufechten. Trotz einer Kundenzufriedenheit von 95 % und übertreffenden Leistungskennzahlen, schreibt CMS den Vertrag nur zwei Jahre nach Beginn seiner neunjährigen Laufzeit neu aus und verlangt eine Arbeitsvereinbarung. Die Klage folgt dem Urteil des GAO vom September 2024, das Maximus' Vorbehalt teilweise stattgab. CMS hat die dritte Optionsjahr des Vertrags bis September 2025 in Anspruch genommen und damit die Servicequalität von Maximus anerkannt. Während der jüngsten Hurrikane hielt Maximus den Betrieb aufrecht und bearbeitete über 190.000 Anrufe, ohne die Wartezeiten zu beeinflussen, während die Gehälter der betroffenen Mitarbeiter geschützt wurden.
- 95% customer satisfaction rating over past five years
- Contract extended through September 2025
- Successfully maintained operations during hurricanes, handling 190,000 calls without service disruption
- 80% workforce satisfaction according to independent surveys
- Early contract rebid challenge could affect service stability
- Legal dispute with HHS may impact business relationship
- Uncertainty regarding contract continuation beyond 2025
Insights
This legal challenge against HHS's early rebid of the
CMS's decision to exercise the next option year through September 2025 while simultaneously pursuing a rebid creates a complex legal scenario. This contradiction could bolster Maximus' case, as it demonstrates satisfaction with current performance while pursuing potentially unlawful procurement changes.
The contract dispute carries substantial implications for Maximus' revenue stream and market position. The 1-800-MEDICARE contract is a cornerstone federal agreement serving 75 million Americans. The early rebid attempt introduces significant business uncertainty despite strong operational performance. Key factors supporting Maximus' position include:
- Consistent service delivery during natural disasters
- Exceeding all performance metrics
- High employee satisfaction rates above
80%
Lawsuit pursues fair resolution of early rebid contingent on adding unnecessary labor harmony agreement
Despite baseless rebid effort, CMS exercises next contract option year recognizing Maximus for high-quality service
Throughout historic hurricanes, Maximus continued to operate state and federal programs without disruption
TYSONS, Va.--(BUSINESS WIRE)--
Maximus (NYSE: MMS), a leading employer and provider of government services worldwide, announced they have filed suit in the
The lawsuit follows the Government Accountability Office (GAO)’s ruling in September 2024 that partially sustained Maximus’ pre-award protest, requiring HHS to redraft the labor harmony requirement. We believe there is merit to contesting HHS’s procurement authority as it violates federal contracting laws.
“The government has clearly overstepped its authority and is unlawfully using the competitive bidding process to force their policy agenda on workers and employers,” said Eileen Cassidy Rivera, Vice President for Public Relations, Maximus. “Maximus is a pro-employee company, offering competitive pay and benefits that have led to more than 80 percent of our workforce stating in independent surveys they enjoy working for our company.”
CMS recently exercised the current contract’s third option year through September 2025, recognizing Maximus’ ability to deliver uninterrupted, high-quality service as the rebid’s procurement process extends beyond the originally intended timeline. Maximus’ high-quality service under the CCO contract has led to a 95 percent customer satisfaction rating over the past five years.
As an example, during the recent, historically damaging hurricanes in
Despite this reduction in staffing, Maximus maintained the expected service levels throughout the crisis. From an HHS and caller perspective, service remained uninterrupted, and Maximus fielded over 190,000 calls with no impact to call wait times.
“Through every challenge, Maximus employees have stepped up to ensure Americans can access essential health care services without disruption,” added Rivera. “CMS recognized our ability to perform when they awarded us this contract initially and again by recently extending the contract for another year. Yet, at the same time, the Department is pursuing a re-procurement that causes great uncertainty for the contact center employees they rely upon. This unprecedented decision is unnecessary, improper, and as our lawsuit highlights, violates established law.”
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/20241101767197/en/
Investor Relations
James Francis
Jessica Batt
IR@maximus.com
Media & Public Relations
Eileen Cassidy Rivera
media@maximus.com
Source: Maximus
FAQ
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