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 Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP 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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