Leidos Inc. contract for AHLTA-CHCS enhancement and sustainment valued at over $133 million
Contract Overview
Contract Amount: $133,556,035 ($133.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-09-01
End Date: 2022-10-31
Contract Duration: 1,521 days
Daily Burn Rate: $87.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ARMED FORCES HEALTH LONGITUDINAL TECHNOLOGY APPLICATION COMPOSITE HEALTH CARE SYSTEM (AHLTA-CHCS) ENHANCEMENT AND SUSTAINMENT SITE OPERATIONS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $133.6 million to LEIDOS, INC. for work described as: ARMED FORCES HEALTH LONGITUDINAL TECHNOLOGY APPLICATION COMPOSITE HEALTH CARE SYSTEM (AHLTA-CHCS) ENHANCEMENT AND SUSTAINMENT SITE OPERATIONS Key points: 1. Contract awarded to Leidos, Inc. for critical healthcare IT systems. 2. Focus on enhancing and sustaining the Armed Forces Longitudinal Technology Application Composite Health Care System (AHLTA-CHCS). 3. Contract duration spans over four years, indicating a significant commitment. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. Awarded under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-negotiated framework. 6. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services'.
Value Assessment
Rating: good
The contract value of over $133 million for a four-year period for healthcare IT sustainment and enhancement appears reasonable given the critical nature of the systems involved. Benchmarking against similar large-scale IT sustainment contracts for federal health systems would provide a more precise value-for-money assessment. The Firm Fixed Price (FFP) contract type is generally favorable for the government as it caps costs, provided the scope is well-defined.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This competitive process is expected to yield a fair market price and encourage innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value available.
Public Impact
Benefits military personnel and their families by ensuring the continuity and improvement of their electronic health records. Delivers essential IT services for the sustainment and enhancement of a critical healthcare system. Geographic impact is nationwide, supporting military health facilities across various locations. Workforce implications include IT professionals and support staff involved in system maintenance and development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if enhancement requirements are not tightly managed.
- Dependence on a single contractor for critical health IT infrastructure.
- Risk of vendor lock-in if transition to a new system is complex.
Positive Signals
- Firm Fixed Price contract structure mitigates cost overruns for the government.
- Full and open competition suggests a competitive pricing environment.
- Long-term sustainment contract provides stability for critical healthcare IT systems.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on healthcare IT. The market for healthcare IT sustainment and enhancement is substantial, driven by the need for secure, interoperable, and advanced electronic health record systems. Comparable spending benchmarks would involve analyzing other large federal contracts for similar health IT infrastructure management, which often run into hundreds of millions of dollars over several years.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. As a large contract awarded to Leidos, Inc., it is possible that subcontracting opportunities may exist for small businesses, but this is not explicitly detailed in the summary data. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Health Agency (DHA) and potentially the Department of Defense's Inspector General. Mechanisms would include regular performance reviews, milestone tracking, and adherence to contract terms. Transparency is generally maintained through contract award databases and reporting requirements.
Related Government Programs
- TRICARE Management Activity IT Support
- Defense Health Information Management System (DHIMS)
- Electronic Health Record Modernization (EHR-M)
Risk Flags
- Potential for technical debt due to legacy system components.
- Cybersecurity risks associated with maintaining older software versions.
- Dependency on contractor expertise for critical system functions.
Tags
it-services, healthcare-it, dod, defense-health-agency, firm-fixed-price, full-and-open-competition, bpa-call, virginia, large-contract, system-sustainment, electronic-health-records
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $133.6 million to LEIDOS, INC.. ARMED FORCES HEALTH LONGITUDINAL TECHNOLOGY APPLICATION COMPOSITE HEALTH CARE SYSTEM (AHLTA-CHCS) ENHANCEMENT AND SUSTAINMENT SITE OPERATIONS
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 $133.6 million.
What is the period of performance?
Start: 2018-09-01. End: 2022-10-31.
What is the historical spending trend for AHLTA-CHCS enhancement and sustainment prior to this contract?
Historical spending data for AHLTA-CHCS enhancement and sustainment prior to this specific contract (2018-2022) would provide crucial context for evaluating the $133 million award. Analyzing previous contract values, durations, and the scope of work would reveal whether this award represents an increase, decrease, or stable level of investment. Understanding past spending patterns can highlight trends in system upgrades, maintenance needs, and the overall lifecycle management of these critical healthcare IT systems. Without this historical data, it is difficult to definitively assess if the current investment is aligned with long-term strategic goals or if it represents a significant shift in resource allocation for the AHLTA-CHCS.
How does the per-unit cost of this contract compare to similar healthcare IT sustainment contracts in the federal government?
A direct per-unit cost comparison for this contract is challenging without a clearly defined 'unit' of service (e.g., per user, per module, per transaction). However, we can assess the overall value proposition by comparing the total contract value ($133M) against its duration (approx. 4 years) and the scope of sustaining and enhancing a large-scale composite health care system. If comparable contracts for similar systems (e.g., other large EHR sustainment efforts within the VA or DoD) have significantly lower or higher total values for comparable durations and scope, it would indicate potential over or under-pricing. Benchmarking against industry standards for IT sustainment, adjusted for the complexity and security requirements of a federal health system, is also essential for a robust value assessment.
What are the key performance indicators (KPIs) used to measure the success of this contract?
The success of the AHLTA-CHCS enhancement and sustainment contract is likely measured through a combination of technical performance metrics, user satisfaction, and system availability. Key Performance Indicators (KPIs) would typically include system uptime and reliability, response times for critical functions, successful implementation of enhancements within defined timelines and budgets, and adherence to cybersecurity protocols. User feedback from healthcare providers and administrators would also be a critical component. The contract's Firm Fixed Price (FFP) nature implies that meeting these KPIs is paramount for the contractor, Leidos, Inc., to achieve profitability without incurring cost overruns.
What is Leidos, Inc.'s track record with similar large-scale federal health IT contracts?
Leidos, Inc. has a significant track record in providing IT services to the federal government, including extensive experience within the healthcare sector. They have been involved in numerous large-scale contracts for agencies like the Department of Defense (DoD) and the Department of Veterans Affairs (VA), managing complex IT infrastructure, electronic health records, and data analytics solutions. Their past performance on contracts such as the Defense Health Agency's (DHA) various IT support roles and contributions to the VA's electronic health record initiatives would be relevant. Evaluating the quality of their past performance, including any past performance issues or successes, is crucial for assessing the risk associated with this specific AHLTA-CHCS contract.
What are the potential risks associated with the sustainment and enhancement of legacy healthcare IT systems like AHLTA-CHCS?
Sustaining and enhancing legacy healthcare IT systems like AHLTA-CHCS presents several inherent risks. These include the potential for technical obsolescence, where underlying technologies become outdated and difficult to support or integrate with newer systems. There's also the risk of security vulnerabilities, as older systems may not have been designed with modern cybersecurity threats in mind, requiring significant patching and mitigation efforts. Furthermore, maintaining and enhancing legacy systems can be more costly and complex than working with modern, modular architectures, potentially leading to budget overruns or delays if not managed effectively. Interoperability challenges with other health IT systems can also arise, impacting data sharing and continuity of care.
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: HT001517R0000
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: $136,061,181
Exercised Options: $136,061,181
Current Obligation: $133,556,035
Actual Outlays: $4,962,130
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT001518A0001
IDV Type: BPA
Timeline
Start Date: 2018-09-01
Current End Date: 2022-10-31
Potential End Date: 2022-10-31 00:00:00
Last Modified: 2023-03-09
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