CMS pulls the plug on $6.6B call center recompete

The Centers for Medicare and Medicaid Services on Tuesday cancelled the recompete of its potential $6.6 billion contract to operate citizen contact centers that handle inquiries about the federal health insurance marketplace and Medicare benefits.

CMS' update to Sam.gov was short and to the point: "Effective immediately, Solicitation 75FCMC24R0010 for Contact Center Operations (CCO) is hereby cancelled. This project will not be re-solicited at this time."

Which means that Maximus will continue work on the current contract it won in 2022. The work could continue through 2031 if CMS exercises all options.

In setting up the recompete, CMS decided it would not renew future options on Maximus contract and inserted a labor harmony agreement into the new solicitation.

Maximus responded first with a protest at the Government Accountability Office, then at the Court of Federal Claims earlier this month after GAO sided with the company on one point but did not weigh in on the others.

But by cancelling the CCO solicitation altogether, CMS has ended the case altogether and opted to continue on with the status quo. Maximus filed a motion to the Court of Federal Claims on Tuesday asking for a dismissal without prejudice, meaning the company wants to raise its arguments again if it believes that is warranted.