DoD's $27.4M AHLTA-CHCS Integration Services Contract Awarded to Leidos, Inc

Contract Overview

Contract Amount: $27,407,281 ($27.4M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-06-28

End Date: 2018-12-31

Contract Duration: 916 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF AHLTA-CHCS INTEGRATION SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to LEIDOS, INC. for work described as: IGF::OT::IGF AHLTA-CHCS INTEGRATION SERVICES Key points: 1. Contract value of $27.4M for IT integration services. 2. Leidos, Inc. secured the award. 3. Competition was full and open. 4. Sector is Defense Health IT.

Value Assessment

Rating: good

The contract value of $27.4M appears reasonable for a two-year IT integration project. Benchmarking against similar DoD IT service contracts suggests this pricing is within expected ranges, though specific service scope is key.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: The competitive award process likely ensured taxpayer funds were used efficiently for these critical health IT integration services.

Public Impact

Ensures continuity of care for military personnel by integrating key health systems. Supports the Department of Defense's mission to provide healthcare to service members and their families. Potential for improved data sharing and interoperability between AHLTA and CHCS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in complex IT integration projects.
  • Dependence on a single contractor for critical system integration.

Positive Signals

  • Awarded under full and open competition.
  • Clear contract duration and delivery order structure.

Sector Analysis

This contract falls within the Defense Health IT sector, a critical area for military readiness and personnel well-being. Spending in this sector often involves complex integration and modernization efforts.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Larger IT integration contracts often involve prime contractors who may then subcontract to smaller entities.

Oversight & Accountability

Oversight would typically be managed by the Defense Health Agency contracting officers and program managers to ensure performance and adherence to contract terms.

Related Government Programs

  • Other Computer Related Services
  • Department of Defense Contracting
  • Defense Health Agency Programs

Risk Flags

  • Potential for vendor lock-in if integration is highly proprietary.
  • Complexity of IT integration projects can lead to unforeseen costs.
  • Dependence on contractor's cybersecurity expertise.
  • Ensuring long-term system maintainability and scalability.

Tags

other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to LEIDOS, INC.. IGF::OT::IGF AHLTA-CHCS INTEGRATION SERVICES

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.4 million.

What is the period of performance?

Start: 2016-06-28. End: 2018-12-31.

What specific integration challenges were addressed by this contract, and how did they impact the final price?

The contract aimed to integrate the AHLTA (Armed Forces Health Longitudinal Technology Application) and CHCS (Composite Health Care System) to improve data flow and patient care continuity. The complexity of merging these legacy systems, ensuring data integrity, and meeting stringent security requirements likely influenced the pricing. Specific challenges could include data migration, interface development, and user training, all contributing to the overall cost.

What are the potential risks associated with integrating these two major healthcare IT systems, and how were they mitigated?

Risks include data breaches, system downtime during integration, interoperability failures, and user adoption issues. Mitigation strategies likely involved robust cybersecurity protocols, phased deployment schedules, comprehensive testing, contingency planning for system outages, and extensive user training and support. The contract's fixed-price nature also incentivizes the contractor to manage these risks effectively.

How effectively did the full and open competition process ensure value for money in this IT integration contract?

Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that drives down prices and encourages innovative solutions. For this $27.4M contract, it suggests that multiple qualified vendors vied for the work, allowing the DoD to select the best technical solution at a competitive price. The success in achieving value is ultimately measured by the system's performance and reliability post-integration.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001516R0017

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1750 PRESIDENTS ST, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $27,412,243

Exercised Options: $27,407,281

Current Obligation: $27,407,281

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $6,498,385

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F116AA

IDV Type: FSS

Timeline

Start Date: 2016-06-28

Current End Date: 2018-12-31

Potential End Date: 2018-12-31 00:00:00

Last Modified: 2022-04-02

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