MAXIMUS Federal Services, Inc. (75FCMC24R0010)

B-422676 Sep 16, 2024 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights MAXIMUS Federal Services, Inc., of McLean, Virginia, the incumbent contractor, protests the terms of request for proposals (RFP) No. 75FCMC24R0010, issued by the Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS), for contact center operations support services. MAXIMUS primarily argues that the RFP contains an unreasonable "labor harmony agreement" (LHA) clause. We sustain the protest in part and deny it in part. View Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: MAXIMUS Federal Services, Inc. File: B-422676 Date: September 16, 2024 Kara L. Daniels, Esq., Ian Hoffman, Esq., Roee Talmor, Esq., Nicole Williamson, Esq., and Jillian Williams, Esq., Arnold & Porter LLP, for the protester. Douglas Kornreich, Esq. and Pamela Waldron, Esq., Department of Health and Human Services, for the agency. Todd C. Culliton, Esq. and Tania Calhoun, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest that a “labor harmony agreement” (LHA) clause is unreasonable because it violates the Labor Management Relations Act and is preempted by the National Labor Relations Act is dismissed because our Office does not review violations of or preemption by those statutes. 2. Protest that an LHA clause is unreasonable because it violates or is not authorized under Federal Acquisition Regulation 22.101-1 is denied where the clause does not violate or conflict with the authority provided under that regulation. 3. Protest that the LHA clause is unduly restrictive of competition is denied where the clause is consistent with the agency's needs and does not otherwise limit competition. 4. Protest that the LHA clause is ambiguous is sustained where the clause does not reasonably articulate the period of time during which an apparent successful offeror will have to negotiate a pre-award LHA with any qualifying labor organization. DECISION MAXIMUS Federal Services, Inc., of McLean, Virginia, the incumbent contractor, protests the terms of request for proposals (RFP) No. 75FCMC24R0010, issued by the Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS), for contact center operations support services. MAXIMUS primarily argues that the RFP contains an unreasonable “labor harmony agreement” (LHA) clause. We sustain the protest in part and deny it in part. DISCUSSION To meet national program missions and strategies, as well as legislative mandates, CMS operates a toll-free, nation-wide, and continuously operating contact center operation (CCO), which provides customer service to federal health insurance recipients, as well as support to persons inquiring about benefits available under the Affordable Care Act. Contracting Officer's Statement (COS) at 1; Agency Report (AR), Tab 2A, RFP at 2. The CCO customer service channels are a critical source of information and assistance for consumers enrolled in Medicare or insurance plans sold through the federal health insurance marketplace. COS at 1. CMS handles more than 35 million inquiries annually (over 95,000 per day on average) at call centers located across the country. Id. at 1-2. Since 2018, MAXIMUS has managed the CCO as the prime contractor under two different federal contracts.[1] See Protest at 12; AR, Tab 12, HHS Acquisition Plan at 3. During this period, MAXIMUS and its subcontractors have operated eleven call center locations throughout the United States, including sites at Bogalusa, Louisiana; Hattiesburg, Mississippi; London, Kentucky; and Chester, Virginia. COS at 2. Starting in 2022, CMS explains that “several job actions” have occurred at call center locations. COS at 2. Specifically, the agency identifies the following “labor strikes” having occurred: · March 23, 2022 -- Strikes at Bogalusa, Louisiana; and Hattiesburg, Mississippi. · May 23 - 24, 2022 -- Strikes at Bogalusa, Louisiana; and Hattiesburg, Mississippi. · August 8, 2022 -- Strikes at Bogalusa, Louisiana; Hattiesburg, Mississippi; London, Kentucky; and, Chester, Virginia. · November 1, 2022 -- Strikes at Bogalusa, Louisiana; Hattiesburg, Mississippi; London, Kentucky; and, Chester, Virginia. · May 23, 2023 -- Strikes at Strikes at Bogalusa, Louisiana; Hattiesburg, Mississippi; and Tampa, Florida. · June 5, 2023 -- Strikes at Bogalusa, Louisiana; Hattiesburg, Mississippi; Phoenix, Arizona; Tampa, Florida; Chester, Virginia; and, London, Kentucky. · November 9, 2023 -- Strikes at Bogalusa, Louisiana; Hattiesburg, Mississippi; Phoenix, Arizona; Tampa, Florida; Chester, Virginia; and, London, Kentucky. Id. at 2-3.