Maximus backs away from Postal Service protest

A postal worker delivers the mail.

A postal worker delivers the mail. Gettyimages.com/ Image Source

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The company withdraws its challenge over the $175 million award to build a health benefits system for the U.S. Postal Service.

Maximus has given up its fight over a $175 million contract to build a health benefits system for the U.S. Postal Service.

The contract went to Deloitte and Maximus filed a protest July 18 challenging the award. But Maximus withdrew its protest on Aug. 18 before the Postal Service could respond.

Maximus officials declined to comment on why it withdrew. Companies do not have to tell the Government Accountability Office the reasons for their withdrawala.

Deloitte is now free to begin work on building a new system for delivering health insurance benefits to Postal Service employees. The system will cover enrollment processing, eligibility determinations, data analytics, and other features.

The initial user base for the Postal Service Health Benefits System stands at 1.7 million people today, according to solicitation documents on GovTribe. That number could grow by another 6.5 million as more federal employees, retirees and eligible family members sign up.