DoD Awards Leidos $29.3M for MHS Genesis Site Deployment in Georgia

Contract Overview

Contract Amount: $29,326,913 ($29.3M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2023-04-30

Contract Duration: 668 days

Daily Burn Rate: $43.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: SITE DEPLOYMENT OF MHS GENESIS TO IDENTIFIED MILITARY TREATMENT FACILITIES LOCATED IN GEORGIA.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to LEIDOS, INC. for work described as: SITE DEPLOYMENT OF MHS GENESIS TO IDENTIFIED MILITARY TREATMENT FACILITIES LOCATED IN GEORGIA. Key points: 1. Leidos, Inc. secured a $29.3 million contract for MHS Genesis deployment. 2. The contract falls under Computer Systems Design Services (NAICS 541512). 3. Full and open competition was utilized for this award. 4. The project aims to deploy MHS Genesis to military treatment facilities in Georgia. 5. This is a fixed-price incentive contract with a duration of 668 days.

Value Assessment

Rating: good

The contract's fixed-price incentive structure aims to control costs while incentivizing performance. The awarded amount of $29.3 million for a 668-day deployment project appears reasonable given the scope of implementing a major healthcare IT system across multiple facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process, allowing multiple vendors to bid and potentially driving down costs. This method is generally preferred for ensuring fair market value.

Taxpayer Impact: Taxpayer funds are being used for a critical healthcare IT system upgrade, aiming for improved efficiency and patient care within military facilities.

Public Impact

Enhances healthcare IT infrastructure for military personnel and their families in Georgia. Potential for improved patient care coordination and data management through MHS Genesis. Supports the modernization of the Department of Defense's healthcare systems. Ensures continuity of healthcare services during the system deployment phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if performance incentives are not met effectively.
  • Integration challenges with existing military healthcare systems.
  • User adoption and training effectiveness for MHS Genesis.

Positive Signals

  • Deployment of a modern, integrated healthcare system.
  • Utilizes full and open competition for a significant IT project.
  • Focus on improving military healthcare delivery.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design. Spending in this area is crucial for modernizing government operations, with benchmarks varying widely based on project complexity and scale.

Small Business Impact

The data indicates that this contract was awarded to Leidos, Inc., a large business. There is no explicit mention of small business participation in this specific award, suggesting potential missed opportunities for subcontracting.

Oversight & Accountability

The Defense Health Agency is responsible for overseeing this contract. Robust oversight will be critical to ensure timely deployment, system functionality, and adherence to budget, especially given the complexity of implementing a new EHR system.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Defense Health Agency Programs

Risk Flags

  • Potential for scope creep impacting budget and timeline.
  • Risk of data security breaches during system migration and deployment.
  • Dependency on vendor performance for successful implementation.
  • Challenges in integrating with legacy systems and workflows.
  • Ensuring adequate user training and adoption across diverse military personnel.

Tags

computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to LEIDOS, INC.. SITE DEPLOYMENT OF MHS GENESIS TO IDENTIFIED MILITARY TREATMENT FACILITIES LOCATED IN GEORGIA.

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 $29.3 million.

What is the period of performance?

Start: 2021-07-01. End: 2023-04-30.

What is the projected return on investment for the MHS Genesis system deployment in terms of improved healthcare outcomes and cost savings?

The return on investment for the MHS Genesis system is projected through enhanced patient care coordination, reduced medical errors, and streamlined administrative processes. While specific ROI figures are not provided in this data, the long-term goal is to achieve significant cost savings through system integration and improved efficiency across the Military Health System, ultimately leading to better health outcomes for service members and their families.

What are the key performance indicators (KPIs) being tracked to measure the success of this deployment and the effectiveness of the fixed-price incentive contract?

Key performance indicators likely include on-time deployment to all identified facilities, system uptime and reliability post-launch, successful data migration, user satisfaction rates, and the achievement of specific functional milestones. The fixed-price incentive structure suggests that performance against these KPIs will directly impact the final contract cost, incentivizing Leidos to meet or exceed targets efficiently.

How will the effectiveness of user training and adoption of the MHS Genesis system be assessed to ensure maximum benefit realization?

Effectiveness will likely be assessed through post-deployment surveys, user feedback mechanisms, help desk ticket analysis, and potentially direct observation of system usage. Training programs are typically designed to be comprehensive, covering various user roles and functionalities. Ongoing support and refresher training are also crucial to ensure sustained adoption and maximize the benefits of the new system.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: $29,326,913

Exercised Options: $29,326,913

Current Obligation: $29,326,913

Actual Outlays: $167,708

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $26,607,571

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: 2021-07-01

Current End Date: 2023-04-30

Potential End Date: 2023-04-30 00:00:00

Last Modified: 2023-08-25

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