DoD's Defense Health Agency Awards $11.2M for Enterprise Systems Sustainment and Development to American Systems Corp

Contract Overview

Contract Amount: $11,237,189 ($11.2M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2026-01-06

End Date: 2027-01-05

Contract Duration: 364 days

Daily Burn Rate: $30.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTINUE SUSTAINMENT ACTIVITIES AND DEVELOPMENT OF CRITICAL NEW CAPABILITIES AND CRITICAL ENHANCEMENTS TO SUPPORT LEGISLATIVE REQUIREMENTS TO SUITE OF THE DEFENSE HEALTH AGENCY ENTERPRISE SYSTEMS.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to AMERICAN SYSTEMS CORPORATION for work described as: CONTINUE SUSTAINMENT ACTIVITIES AND DEVELOPMENT OF CRITICAL NEW CAPABILITIES AND CRITICAL ENHANCEMENTS TO SUPPORT LEGISLATIVE REQUIREMENTS TO SUITE OF THE DEFENSE HEALTH AGENCY ENTERPRISE SYSTEMS. Key points: 1. The contract focuses on critical sustainment and development for legislative requirements within the Defense Health Agency's enterprise systems. 2. American Systems Corporation is the awardee for this firm-fixed-price delivery order. 3. The contract duration is one year, from January 2026 to January 2027. 4. This award falls under the Custom Computer Programming Services NAICS code.

Value Assessment

Rating: good

The contract value of $11.2M for a one-year period for custom computer programming services appears reasonable given the scope of sustaining and developing critical defense health enterprise systems. Benchmarking against similar contracts for complex IT sustainment and development in the defense sector would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to promote price discovery and ensure the government receives competitive pricing for the services rendered.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense health IT infrastructure.

Public Impact

Ensures continuity of critical healthcare IT systems for military personnel and their families. Supports legislative mandates related to defense health information management. Enhances the capabilities of the Defense Health Agency's enterprise systems. Maintains and improves the technological infrastructure supporting military healthcare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in 'critical new capabilities and critical enhancements'.
Dependence on a single vendor for a full year could pose risks if performance issues arise.

Positive Signals

Full and open competition suggests a healthy market and potential for good value.
Firm-fixed-price contract provides cost certainty for the government.
Focus on critical sustainment ensures operational continuity of essential systems.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across the federal government, particularly within defense agencies requiring robust and secure systems. Benchmarks for similar sustainment and development contracts can vary widely based on complexity and criticality.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to American Systems Corporation, a large business. There is no explicit mention of small business subcontracting goals in the provided data.

Oversight & Accountability

The award was made by the Department of Defense's Defense Health Agency. Oversight would typically involve contract management personnel within the agency to monitor performance, adherence to scope, and financial expenditures.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Defense Health Agency Programs

Risk Flags

Potential for scope creep.
Dependence on a single vendor.
Complexity of integrating new capabilities with existing systems.
Risk of unforeseen technical challenges impacting schedule or cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to AMERICAN SYSTEMS CORPORATION. CONTINUE SUSTAINMENT ACTIVITIES AND DEVELOPMENT OF CRITICAL NEW CAPABILITIES AND CRITICAL ENHANCEMENTS TO SUPPORT LEGISLATIVE REQUIREMENTS TO SUITE OF THE DEFENSE HEALTH AGENCY ENTERPRISE SYSTEMS.

Who is the contractor on this award?

The obligated recipient is AMERICAN SYSTEMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2026-01-06. End: 2027-01-05.

What specific legislative requirements necessitate these critical new capabilities and enhancements, and how will their successful implementation be measured?

The specific legislative requirements driving these enhancements are not detailed in the provided data. However, they likely pertain to data security, interoperability, patient care reporting, or compliance with evolving healthcare regulations. Success measurement would typically involve defined performance metrics, user acceptance testing, and adherence to delivery schedules outlined in the contract's statement of work.

Given the focus on 'critical new capabilities,' what is the risk of cost overruns or schedule delays if unforeseen technical challenges arise during development?

The risk of cost overruns or schedule delays exists, particularly with the development of 'critical new capabilities.' While the firm-fixed-price structure offers cost certainty, significant unforeseen technical challenges could strain the contractor's resources or necessitate contract modifications. Robust project management and contingency planning by both the government and the contractor are crucial to mitigate these risks.

How does the sustainment of existing enterprise systems align with the development of new capabilities to ensure a cohesive and efficient IT environment?

The alignment of sustainment and new development is crucial for a cohesive IT environment. Effective integration requires careful planning to ensure new capabilities are compatible with existing systems, do not introduce vulnerabilities, and enhance overall functionality. The contractor's technical approach and the agency's oversight will be key to managing this balance and preventing system fragmentation or obsolescence.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8260 GREENSBORO DR STE 600, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $15,140,078

Exercised Options: $11,237,189

Current Obligation: $11,237,189

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F500CA

IDV Type: FSS

Timeline