Leidos awarded $61.1M for MHS Genesis deployment, impacting military treatment facilities
Contract Overview
Contract Amount: $61,135,210 ($61.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-03-09
End Date: 2026-01-31
Contract Duration: 2,154 days
Daily Burn Rate: $28.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Official Description: SITE DEPLOYMENT OF MHS GENESIS TO FORT BLISS AND FORT CARSON MILITARY TREATMENT FACILITIES.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $61.1 million to LEIDOS, INC. for work described as: SITE DEPLOYMENT OF MHS GENESIS TO FORT BLISS AND FORT CARSON MILITARY TREATMENT FACILITIES. Key points: 1. Value for money assessed through fixed-price incentive contract structure. 2. Full and open competition suggests potential for competitive pricing. 3. Contract duration of over 5 years indicates a significant, long-term project. 4. Deployment of MHS Genesis is a critical modernization effort for military healthcare. 5. Leidos, Inc. is a major IT services provider with extensive government experience. 6. The contract falls under Computer Systems Design Services, a key IT sector.
Value Assessment
Rating: good
The contract's fixed-price incentive (FPI) structure aims to balance cost control with contractor performance. While the total award is $61.1 million, the FPI nature means the final cost could vary based on performance metrics. Benchmarking against similar large-scale IT system deployments within the DoD suggests this award is within a reasonable range, though specific performance incentives would be needed for a more precise value assessment. The duration of the contract (over 5 years) also implies a substantial undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment was sought.
Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government explores a wide range of solutions.
Public Impact
Military treatment facilities at Fort Bliss and Fort Carson will benefit from the MHS Genesis system. The project delivers enhanced electronic health record capabilities for military personnel and their families. Geographic impact is focused on the specific military installations mentioned. Workforce implications include training and adoption of the new system by healthcare providers and staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if performance incentives are not met under the FPI contract.
- Integration challenges with existing military healthcare IT infrastructure.
- User adoption and training effectiveness for a complex system like MHS Genesis.
Positive Signals
- Deployment of a modern, integrated electronic health record system.
- Leidos's experience in large-scale IT system implementation.
- The contract's full and open competition structure.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a significant segment of the IT industry. The market for healthcare IT, particularly electronic health records (EHRs), is substantial, driven by the need for interoperability, efficiency, and improved patient care. The Department of Defense's MHS Genesis program represents a large-scale, complex EHR implementation, and spending in this area is benchmarked against other major federal and private sector EHR deployments, which often run into hundreds of millions or billions of dollars over their lifecycle.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (sb: false) and there is no indication of a small business subcontracting plan (ss: false). This suggests that the primary award went to a large business, Leidos, Inc. While large contracts often involve subcontracting opportunities, the absence of a specific set-aside or reporting on subcontracting suggests that small businesses may not be primary beneficiaries of this particular award, though they could be involved further down the supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Health Agency (DHA) and the Department of Defense. Mechanisms likely include contract performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General of the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- MHS Genesis Program
- Department of Defense IT Modernization Efforts
- Electronic Health Record Systems
- Military Healthcare IT Services
Risk Flags
- Potential for cost growth under FPI contract.
- User adoption and training effectiveness.
- System integration with existing DoD infrastructure.
Tags
it, defense, dod, defense-health-agency, computer-systems-design-services, full-and-open-competition, fixed-price-incentive, large-contract, healthcare-it, mhs-genesis, fort-bliss, fort-carson
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.1 million to LEIDOS, INC.. SITE DEPLOYMENT OF MHS GENESIS TO FORT BLISS AND FORT CARSON MILITARY TREATMENT FACILITIES.
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 $61.1 million.
What is the period of performance?
Start: 2020-03-09. End: 2026-01-31.
What is Leidos, Inc.'s track record with large-scale federal IT system deployments, particularly in the healthcare sector?
Leidos, Inc. has a significant track record in delivering large-scale IT solutions for the federal government, including extensive work within the Department of Defense and the healthcare sector. They have been involved in numerous complex system integrations and modernizations. For instance, Leidos has been a key contractor for various aspects of the MHS Genesis program itself, as well as other health IT initiatives. Their experience includes managing complex project lifecycles, ensuring cybersecurity, and facilitating user adoption across large organizations. This background suggests they possess the necessary expertise and capacity to manage the deployment of MHS Genesis at military treatment facilities, although the specific success metrics of past projects would provide further insight into their performance capabilities.
How does the $61.1 million award compare to other MHS Genesis deployment contracts or similar EHR implementations in the federal government?
The $61.1 million award for the site deployment of MHS Genesis to Fort Bliss and Fort Carson is a substantial but not unprecedented figure for large-scale IT system implementations within the federal government, especially for a critical system like an electronic health record (EHR). The overall MHS Genesis program is a multi-billion dollar initiative. Individual contract awards for specific deployments, modules, or support services can range from tens to hundreds of millions of dollars. Compared to other federal EHR implementations, such as the Veterans Affairs' own EHR Modernization program (which has faced significant cost challenges), this award appears to be within a typical range for a specific phase or set of facilities. The fixed-price incentive structure also suggests an effort to manage costs relative to performance, which is a common strategy in such large endeavors.
What are the primary risks associated with deploying a new EHR system like MHS Genesis in military treatment facilities?
The primary risks associated with deploying a new EHR system like MHS Genesis in military treatment facilities are multifaceted. Technical risks include system integration challenges with existing legacy systems, data migration errors, cybersecurity vulnerabilities, and potential system downtime during transition. Operational risks involve user adoption challenges, inadequate training leading to errors or inefficiencies, resistance to change from healthcare staff, and disruption to patient care workflows. Financial risks include potential cost overruns beyond the initial award, especially with fixed-price incentive contracts if performance targets are missed or scope creep occurs. Schedule risks involve delays in deployment due to unforeseen issues. Finally, there are risks related to data integrity and patient safety if the system does not function as intended or if users make critical errors due to system complexity or lack of proficiency.
What is the expected impact of MHS Genesis on the efficiency and quality of care provided at Fort Bliss and Fort Carson?
The MHS Genesis system is designed to significantly improve the efficiency and quality of care provided at military treatment facilities by offering a unified, modern electronic health record. It aims to provide a single source of truth for patient health information across the DoD, improving data accessibility and interoperability. This can lead to more informed clinical decision-making, reduced medical errors, and better care coordination. For efficiency, the system is intended to streamline administrative tasks, reduce duplicate testing, and improve communication among healthcare providers. The expected impact at Fort Bliss and Fort Carson includes enhanced patient safety through better medication management and allergy tracking, improved readiness reporting, and a more seamless healthcare experience for service members and their families. However, realizing these benefits is contingent on successful implementation, effective user training, and ongoing system optimization.
How has spending on IT systems for military healthcare evolved over the past decade, and where does MHS Genesis fit in?
Spending on IT systems for military healthcare has evolved significantly over the past decade, driven by the need for modernization, interoperability, and improved data analytics. Historically, the Military Health System (MHS) relied on a patchwork of legacy systems, leading to inefficiencies and data silos. Recognizing these limitations, the DoD initiated major programs to consolidate and upgrade its IT infrastructure. The MHS Genesis program represents the culmination of these efforts, aiming to replace multiple disparate systems with a single, integrated EHR. Spending in this area has increased substantially as the DoD invests in enterprise-wide solutions. MHS Genesis is a cornerstone of this modernization, with total program costs estimated in the billions of dollars over its lifecycle. This contract award is one of many necessary to achieve the full deployment and operationalization of the MHS Genesis system across the global military health enterprise.
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: FIXED PRICE INCENTIVE (L)
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: $62,748,199
Exercised Options: $62,748,199
Current Obligation: $61,135,210
Subaward Activity
Number of Subawards: 52
Total Subaward Amount: $22,522,950
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: 2020-03-09
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-11-05
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