DoD Awards $214M for MHS Genesis Enterprise Support to Leidos, Inc
Contract Overview
Contract Amount: $214,049,004 ($214.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-07-29
End Date: 2020-07-28
Contract Duration: 365 days
Daily Burn Rate: $586.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: STAGE 5 OF ENTERPRISE SUPPORT FOR MHS GENESIS INCLUDING PROGRAM MANAGEMENT, LICENSE MAINTENANCE, AND ENTERPRISE SUSTAINMENT.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $214.0 million to LEIDOS, INC. for work described as: STAGE 5 OF ENTERPRISE SUPPORT FOR MHS GENESIS INCLUDING PROGRAM MANAGEMENT, LICENSE MAINTENANCE, AND ENTERPRISE SUSTAINMENT. Key points: 1. Leidos, Inc. secured a significant contract for critical healthcare IT infrastructure. 2. The award represents a substantial investment in sustaining the MHS Genesis platform. 3. Competition method and pricing effectiveness warrant close examination for taxpayer value. 4. The IT sector, particularly healthcare IT, sees continued robust government spending.
Value Assessment
Rating: fair
The contract value of $214M for one year of enterprise support appears high. Benchmarking against similar large-scale IT sustainment contracts is needed to assess if the pricing is competitive for the scope of services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, impacting a full assessment of price competitiveness.
Taxpayer Impact: The substantial award necessitates scrutiny to ensure taxpayer funds are used efficiently for essential defense health IT services.
Public Impact
Ensures continuity of critical healthcare IT systems for military personnel and veterans. Supports the ongoing modernization and sustainment of the MHS Genesis electronic health record. Potential impact on patient care and medical readiness through system stability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value requires thorough price justification.
- Limited insight into competitive landscape and specific performance metrics.
- Potential for scope creep in long-term enterprise sustainment contracts.
Positive Signals
- Awarded under full and open competition.
- Supports a critical national defense healthcare initiative.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computer systems design services for healthcare. Government spending in this area is consistently high due to the need for secure, reliable, and modern IT infrastructure for critical services.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large prime contractor, Leidos, Inc. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight will be crucial to ensure Leidos, Inc. meets all performance requirements and manages the contract effectively within the allocated budget. The Defense Health Agency is responsible for monitoring this contract's execution.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- High dollar value award.
- Potential for cost overruns in long-term IT sustainment.
- Need for detailed performance metrics and oversight.
- Limited transparency on specific competitive outcomes.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $214.0 million to LEIDOS, INC.. STAGE 5 OF ENTERPRISE SUPPORT FOR MHS GENESIS INCLUDING PROGRAM MANAGEMENT, LICENSE MAINTENANCE, AND ENTERPRISE SUSTAINMENT.
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 $214.0 million.
What is the period of performance?
Start: 2019-07-29. End: 2020-07-28.
What was the competitive landscape for this contract, and how did the winning bid compare to others in terms of price and technical merit?
The contract was awarded under full and open competition, suggesting multiple bids were solicited. However, specific details regarding the number of bidders and the comparative analysis of their proposals are not publicly available. Further analysis would require access to bid data to determine if the price paid represents optimal value and if the technical solution was superior.
What are the key performance indicators (KPIs) for this enterprise support contract, and how is Leidos, Inc. being held accountable for meeting them?
Key performance indicators for enterprise support typically include system uptime, response times for maintenance and issue resolution, security compliance, and successful implementation of updates. Accountability is usually managed through contract clauses, service level agreements (SLAs), and regular performance reviews by the contracting agency, the Defense Health Agency.
How does the annual cost of this contract compare to previous sustainment efforts for the MHS Genesis system or similar large-scale EHR implementations?
Benchmarking this $214M annual cost against historical data for MHS Genesis sustainment or comparable large EHR projects is essential for value assessment. Without specific historical cost data or industry benchmarks for similar systems, it's difficult to definitively state if this represents an efficient use of funds or a potential overpayment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $214,049,004
Exercised Options: $214,049,004
Current Obligation: $214,049,004
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $5,550,238
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003915D0044
IDV Type: IDC
Timeline
Start Date: 2019-07-29
Current End Date: 2020-07-28
Potential End Date: 2020-07-28 00:00:00
Last Modified: 2024-09-13
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