DoD's $28.2M training contract for legacy EHR systems awarded to Kapili Services, LLC

Contract Overview

Contract Amount: $28,212,180 ($28.2M)

Contractor: Kapili Services, LLC

Awarding Agency: Department of Defense

Start Date: 2019-06-07

End Date: 2021-11-29

Contract Duration: 906 days

Daily Burn Rate: $31.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR WILL PROVIDE END-USER SUSTAINMENT SUPPORT TRAINING TO MILITARY FACILITIES AND DEFENSE HEALTH AGENCY END-USERS ON THE LEGACY ELECTRONIC HEALTH RECORD, HEALTH SOLUTIONS, AND LEGACY APPLICATIONS.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to KAPILI SERVICES, LLC for work described as: THE CONTRACTOR WILL PROVIDE END-USER SUSTAINMENT SUPPORT TRAINING TO MILITARY FACILITIES AND DEFENSE HEALTH AGENCY END-USERS ON THE LEGACY ELECTRONIC HEALTH RECORD, HEALTH SOLUTIONS, AND LEGACY APPLICATIONS. Key points: 1. Value for money assessed through comparison with similar training contracts. 2. Competition dynamics indicate a sole-source award, potentially impacting price. 3. Risk indicators include reliance on legacy systems and potential for knowledge gaps. 4. Performance context is tied to sustaining critical healthcare IT infrastructure. 5. Sector positioning within Defense Health Agency's IT support framework.

Value Assessment

Rating: fair

The contract value of $28.2 million for approximately 30 months of support appears within a reasonable range for specialized IT training services within the Department of Defense. However, without specific benchmarks for similar legacy EHR training, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty, but the lack of competition limits opportunities for price negotiation and potential savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates. The limited competition means that the government did not benefit from a range of proposals and pricing, which could have led to a more competitive price.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing available in the market, as alternative vendors were not solicited.

Public Impact

Military personnel and Defense Health Agency staff benefit from training on critical healthcare IT systems. Services delivered include end-user sustainment support and training. Geographic impact is nationwide, supporting various military facilities. Workforce implications involve ensuring proficiency in operating and maintaining legacy electronic health records.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on legacy systems may indicate an aging IT infrastructure.
Sole-source award limits competitive pricing and potential innovation.
Training on older systems might not align with future modernization efforts.

Positive Signals

Ensures continued operational capability of critical healthcare systems.
Provides specialized training to maintain essential IT functions.
Contractor has a defined role in supporting Defense Health Agency's IT sustainment.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on professional development and training for healthcare IT systems. The Defense Health Agency's reliance on specialized training for its complex IT infrastructure, including legacy electronic health records, highlights a significant area of government spending. Comparable spending benchmarks in this niche often involve high costs due to the specialized knowledge and security requirements inherent in military healthcare IT.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to Kapili Services, LLC, a single entity, suggests a focus on direct service delivery rather than a strategy to leverage the small business ecosystem for this particular requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Defense Health Agency. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified training services. Transparency is limited due to the sole-source nature, but contract awards are generally reported in federal procurement databases.

Related Government Programs

Defense Health Agency IT Support Contracts
Electronic Health Record System Training
Military Healthcare IT Sustainment
Professional Development Training Services

Risk Flags

Sole-source award may limit price competition.
Reliance on legacy systems could pose long-term modernization challenges.
Contract performance data not readily available to assess effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to KAPILI SERVICES, LLC. THE CONTRACTOR WILL PROVIDE END-USER SUSTAINMENT SUPPORT TRAINING TO MILITARY FACILITIES AND DEFENSE HEALTH AGENCY END-USERS ON THE LEGACY ELECTRONIC HEALTH RECORD, HEALTH SOLUTIONS, AND LEGACY APPLICATIONS.

Who is the contractor on this award?

The obligated recipient is KAPILI SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2019-06-07. End: 2021-11-29.

What is Kapili Services, LLC's track record with similar government training contracts, particularly within the DoD or DHA?

Information on Kapili Services, LLC's specific track record with similar government training contracts, especially within the DoD or DHA, is not detailed in the provided data. However, the award of this $28.2 million contract suggests a level of capability and past performance deemed sufficient by the Defense Health Agency for providing end-user sustainment support and training on legacy electronic health record systems. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain the full scope of their contract history, including performance ratings, past issues, and the types of services previously rendered to government entities.

How does the cost per training hour or per user compare to industry benchmarks for similar IT training services?

The provided data does not include specific metrics like cost per training hour or per user, making a direct comparison to industry benchmarks difficult. The total contract value of $28.2 million over approximately 30 months covers sustainment support and training for legacy electronic health record systems across military facilities and Defense Health Agency end-users. To establish a benchmark, one would need to know the total number of training hours delivered, the number of users trained, and the specific content covered. Given the specialized nature of military healthcare IT and the legacy systems involved, costs could be higher than commercial equivalents due to unique requirements, security protocols, and the need for deep subject matter expertise. The sole-source nature of the award also limits the ability to leverage competitive pricing.

What are the primary risks associated with relying on a single contractor for training on critical legacy healthcare IT systems?

The primary risks associated with relying on a single contractor, Kapili Services, LLC, for training on critical legacy healthcare IT systems include potential price escalation over time due to the lack of competition, reduced incentive for innovation or service improvement, and the risk of service disruption if the contractor faces financial or operational difficulties. Furthermore, if the contractor's personnel possess unique knowledge of these legacy systems, their departure could create significant knowledge gaps within the Defense Health Agency. This sole-source dependency also limits the government's flexibility in adapting training programs or switching providers if needs evolve or performance issues arise.

How effective has this training been in ensuring end-user proficiency and supporting the sustainment of the legacy EHR systems?

The provided data does not contain information on the effectiveness of the training delivered under this contract. Assessing effectiveness would require performance metrics, user feedback surveys, analysis of system usage data, and potentially evaluations of end-user proficiency post-training. While the contract was awarded to provide sustainment support and training, the actual impact on operational readiness, system efficiency, and user competency is not detailed. The duration of the contract (ending November 2021) suggests that performance data should be available through contract close-out reports or agency performance reviews, but this information is not included in the summary.

What has been the historical spending trend for similar legacy EHR training services within the Defense Health Agency?

The provided data focuses on a single contract award and does not offer historical spending trends for similar legacy EHR training services within the Defense Health Agency. To analyze historical spending, one would need to examine procurement data over multiple fiscal years, identifying all contracts related to EHR training, sustainment, and support, particularly for legacy systems. This would involve looking at contract values, durations, award types (competitive vs. sole-source), and the specific systems supported. Such an analysis could reveal patterns of increasing or decreasing investment, shifts in technology reliance, and the overall budget allocated to maintaining and training personnel on these critical healthcare IT systems.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT001119R0031

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12565 RESEARCH PKWY STE 300, ORLANDO, FL, 32826

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native Hawaiian Organization Owned Firm, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,216,091

Exercised Options: $28,216,091

Current Obligation: $28,212,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline