Maximus Named to $300 Million IRS Consulting Services Blanket Purchase Agreement

Rhea-AI Summary

Maximus (NYSE: MMS) has been awarded a spot on a $300 million Blanket Purchase Agreement (BPA) with the Internal Revenue Service (IRS) for Non-IT Consulting Services. The multiple-award BPA has a five-year period of performance and allows Maximus to compete for task orders. Services include Strategic Planning, Strategy Initiatives, Business Process Improvement, Regulatory Compliance, Concept of Operations (CONOPS), and Program Integration Support across the Taxpayer Services Organization.

The BPA focuses on developing operational plans aligned with the IRS Strategic Plan through 2031. Maximus, with its 30-year history of supporting the IRS, will assist in identifying, developing, and implementing the agency's modernization needs and improving services to taxpayers. This agreement expands Maximus' role to directly support the business organization at the IRS, driving greater business value and continuous improvement of the taxpayer experience.

Positive

• Awarded spot on $300 million IRS Blanket Purchase Agreement
• Five-year period of performance for the BPA
• Expands Maximus' role in supporting IRS business organization
• Opportunity to compete for task orders within the $300 million ceiling
• Builds on three-decade partnership with the IRS

Negative

• None.

Insights

Financial Analyst

The $300 million IRS Consulting Services BPA award to Maximus is a significant win for the company. This five-year agreement strengthens Maximus's long-standing relationship with the IRS and opens up new revenue opportunities. While the full $300 million isn't guaranteed, it represents substantial potential for task order competitions. This contract expands Maximus's role beyond IT projects to include strategic planning and business process improvement, potentially leading to higher-value engagements. For investors, this demonstrates Maximus's ability to grow its government services portfolio and diversify its offerings. The long-term nature of the agreement also provides some revenue visibility for the next five years, which is positive for financial stability. However, investors should note that the impact on near-term financials may be , as task orders will be competed for over time.

Government Services Expert

This BPA award signifies Maximus's strong positioning in the government services sector, particularly in tax administration. The focus on improving taxpayer experience aligns with broader government modernization efforts, potentially opening doors for similar contracts with other agencies. The scope of services, including strategic planning and regulatory compliance, indicates a shift towards higher-level consulting work, which typically commands better margins. This could lead to improved profitability for Maximus if executed well. The contract's alignment with the IRS Strategic Plan through 2031 suggests potential for long-term engagement beyond the initial five-year period. For the industry, this signals increased government spending on modernizing citizen services, which could benefit other players in the government services space. Investors should watch for Maximus's success in winning task orders under this BPA, as it will be a key indicator of the company's competitive strength and potential revenue growth.

Multiple-award, five-year Blanket Purchase Agreement (BPA) will help strengthen Taxpayer Services Organization and improve the taxpayer experience

TYSONS, Va.--(BUSINESS WIRE)-- Maximus (NYSE: MMS), a leading employer and provider of government services worldwide, announced today it has been awarded a spot on a Blanket Purchase Agreement (BPA) with the Internal Revenue Service (IRS) for Non-IT Consulting Services. The multiple-award BPA has a five-year period of performance and allows Maximus to compete for task orders with a combined ceiling of $300 million.

The services under this BPA include Strategic Planning, Strategy Initiatives, Business Process Improvement, Regulatory Compliance, Concept of Operations (CONOPS), and Program Integration Support across the Taxpayer Services Organization, formerly known as Wage and Investment (W&I). Among the focus areas of this BPA is the development of operational plans that align with the IRS Strategic Plan through 2031 while adhering to the agency’s mission, vision, and values.

“Maximus has a unique understanding of taxpayer needs based on our support of the IRS for more than three decades,” said Tricia Belman, Managing Director, Federal Financial, Maximus. “We’ve worked with the IRS across a wide range of modernization and IT projects focused on improving how the public interacts with the agency. This new contract expands our role to directly support the business organization at the IRS to drive greater business value and continuous improvement of the taxpayer experience.”

This BPA complements the decades-long partnership between Maximus and the IRS. Through the Consulting Services BPA, Maximus, together with the IRS, will assist in identifying, developing, and implementing the agency’s modernization needs and improving services to the taxpayers and the public.

“We view our relationship with the IRS as a trusted and strategic partner, working to help improve services, increase accountability, and bolster public trust,” said Larry Reagan, Senior Managing Director, Civilian, Maximus. “We’re committed to our investment in the IRS and proud to support their mission in service to citizens across the country.”

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/20241017722195/en/

Investor Relations

James Francis

Jessica Batt

IR@maximus.com

Media & Public Relations

Eileen Rivera

media@maximus.com

Source: Maximus

FAQ

What is the value of the IRS Blanket Purchase Agreement awarded to Maximus (MMS)?

The Blanket Purchase Agreement (BPA) awarded to Maximus has a combined ceiling of $300 million.

How long is the period of performance for the Maximus (MMS) IRS contract?

The Blanket Purchase Agreement (BPA) has a five-year period of performance.

What services will Maximus (MMS) provide under the IRS Blanket Purchase Agreement?

Maximus will provide services including Strategic Planning, Strategy Initiatives, Business Process Improvement, Regulatory Compliance, Concept of Operations (CONOPS), and Program Integration Support across the Taxpayer Services Organization.

How does the new IRS contract align with Maximus' (MMS) existing relationship with the agency?

The new contract complements Maximus' decades-long partnership with the IRS, expanding their role to directly support the business organization and drive improvements in taxpayer experience.