General Dynamics awarded $82.6M for IHS EHR pilot, extending services through August 2026

Contract Overview

Contract Amount: $82,597,658 ($82.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-08-27

End Date: 2026-08-26

Contract Duration: 364 days

Daily Burn Rate: $226.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: INDIAN HEALTH SERVICE ELECTRONIC HEALTH RECORD - TASK ORDER 7 - PILOT ENGAGEMENT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $82.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: INDIAN HEALTH SERVICE ELECTRONIC HEALTH RECORD - TASK ORDER 7 - PILOT ENGAGEMENT Key points: 1. Contract value represents a significant investment in modernizing health records for the Indian Health Service. 2. The task order is a Time and Materials type, which can pose cost control challenges if not closely managed. 3. Competition was full and open, suggesting a robust market for these services. 4. The contract duration of one year is typical for pilot engagements, allowing for evaluation before broader rollout. 5. Performance is situated within the Department of the Interior's broader IT modernization efforts. 6. The specific NAICS code (541512) indicates a focus on computer systems design, aligning with EHR system needs.

Value Assessment

Rating: good

The contract value of $82.6 million for a one-year pilot engagement appears substantial, but without specific benchmarks for similar EHR pilot projects within federal health agencies, a precise value-for-money assessment is challenging. The Time and Materials pricing structure necessitates vigilant oversight to ensure costs remain aligned with the scope of work and do not escalate beyond initial projections. Benchmarking against industry standards for EHR implementation and support services would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a healthy market for these specialized IT services. This approach generally leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down costs through market forces and ensures the government receives services from the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are the Indian Health Service (IHS) and the American Indian and Alaska Native (AI/AN) communities it serves, who will experience improvements in healthcare delivery through a modernized EHR system. The services delivered include pilot engagement for an electronic health record system, crucial for efficient patient management and data security. The geographic impact is focused on facilities operated by the IHS, potentially spanning numerous locations across the United States. Workforce implications may include training for healthcare professionals on the new EHR system and potential IT support roles related to its implementation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type introduces inherent risk of cost overruns if not managed meticulously.
The pilot nature of the engagement means success is not guaranteed and further investment may be required.
Dependence on a single vendor for a critical system like EHR requires robust performance monitoring.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a qualified vendor.
The contract is for a pilot engagement, allowing for phased evaluation and risk mitigation before full-scale deployment.
The task order extends existing services, implying a level of familiarity and potentially reduced ramp-up time.

Sector Analysis

The federal IT services sector is vast, with significant spending allocated to health IT modernization. The Indian Health Service's need for an updated Electronic Health Record system falls within this critical area. Comparable spending benchmarks for EHR implementations in large healthcare organizations, both federal and private, can range widely based on scope, complexity, and vendor. This contract represents a focused investment within the broader federal health IT landscape, aiming to improve care delivery for a specific population.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. While General Dynamics Information Technology, Inc. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on the prime's subcontracting plan. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Interior's contracting officers and program managers responsible for the Indian Health Service. Accountability measures would be embedded in the contract's performance work statement, including deliverables, milestones, and quality standards. Transparency is generally facilitated through contract award databases like FPDS, though detailed operational oversight is internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Indian Health Service Electronic Health Record System Modernization
Federal Health IT Initiatives
Department of the Interior IT Modernization Programs
General Dynamics IT Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Success of pilot engagement is not guaranteed and depends on effective implementation and user adoption.
Dependence on a single vendor for a critical system requires strong performance management.
Integration challenges with existing legacy systems could arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $82.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. INDIAN HEALTH SERVICE ELECTRONIC HEALTH RECORD - TASK ORDER 7 - PILOT ENGAGEMENT

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $82.6 million.

What is the period of performance?

Start: 2025-08-27. End: 2026-08-26.

What is the historical spending trend for the Indian Health Service Electronic Health Record system, and how does this task order compare?

Analyzing historical spending for the IHS EHR system requires access to detailed contract data over multiple years. Without specific historical figures for this particular EHR system, it's difficult to provide a direct comparison. However, the current task order of $82.6 million for a one-year pilot engagement represents a substantial, focused investment. Typically, EHR system development and implementation can involve multi-year, multi-million dollar commitments. This pilot phase suggests a strategic approach to testing and refining the system before potentially larger, follow-on investments are made. Understanding the total lifecycle cost of EHR modernization for IHS would provide better context for this pilot's financial scale.

What are the key performance indicators (KPIs) for this pilot engagement, and how will success be measured?

The specific Key Performance Indicators (KPIs) for this pilot engagement are not detailed in the provided summary data. However, for an Electronic Health Record (EHR) pilot, typical KPIs would likely focus on system usability, data accuracy and integrity, system performance (e.g., response times, uptime), interoperability with existing systems, and user adoption rates among healthcare providers. Success measurement would involve tracking these KPIs against pre-defined targets outlined in the contract's Performance Work Statement (PWS). Regular progress reports, user feedback surveys, and system audits would likely be employed to assess performance and determine the pilot's effectiveness in meeting its objectives.

What is General Dynamics Information Technology's track record with large-scale federal health IT projects, particularly EHR systems?

General Dynamics Information Technology (GDIT) has a significant track record in providing IT services to various federal agencies, including those in the healthcare sector. They have been involved in numerous large-scale federal IT projects, which often include components related to health information systems. While specific details on their past EHR implementations for agencies of similar size and scope to the Indian Health Service (IHS) would require deeper research into their contract history, GDIT's experience generally encompasses system design, integration, modernization, and support for complex IT infrastructures. Their portfolio often includes work with agencies like the Department of Defense (DoD) and Veterans Affairs (VA), which have extensive health IT systems, suggesting they possess the capability to manage such projects.

What are the potential risks associated with a Time and Materials (T&M) contract for an EHR pilot, and what mitigation strategies are in place?

Time and Materials (T&M) contracts, while offering flexibility, carry inherent risks of cost escalation if not managed stringently. For an EHR pilot, potential risks include scope creep, inefficient labor utilization, and unforeseen technical challenges leading to extended work hours. Mitigation strategies typically involve robust oversight from the government contracting officer and technical team, detailed tracking of labor hours and materials, clearly defined ceilings for contract value, and regular reviews of progress against milestones. The PWS should clearly delineate the scope of work and the types of activities permissible under T&M. Establishing clear communication channels and change control processes are also crucial for managing risks effectively.

How does this contract align with broader federal initiatives for improving healthcare access and outcomes for Native American populations?

This contract directly aligns with broader federal initiatives aimed at improving healthcare access and outcomes for Native American populations, primarily through the mandate of the Indian Health Service (IHS). Modernizing the EHR system is a foundational step towards achieving better health data management, enabling more coordinated care, improving patient safety, and facilitating public health reporting. An efficient EHR can lead to more accurate diagnoses, better chronic disease management, and streamlined administrative processes, ultimately contributing to improved health equity and outcomes for AI/AN communities. This investment underscores the federal government's commitment to fulfilling its trust responsibility in providing healthcare services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $159,509,145

Exercised Options: $99,377,439

Current Obligation: $82,597,658

Actual Outlays: $9,848,162

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $63,202,966

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0424D0001

IDV Type: IDC

Timeline