DoD Awards Leidos $29.4M for MHS Genesis EHR Deployment Services

Contract Overview

Contract Amount: $29,406,996 ($29.4M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-14

End Date: 2023-03-31

Contract Duration: 625 days

Daily Burn Rate: $47.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: DEPLOYMENT SERVICES FOR MHS GENESIS, INCLUDING SITE PREPARATION, DEPLOYMENT, TRAINING, CHANGE MANAGEMENT, AND POST-INSTALLATION SUPPORT REQUIRED TO DEPLOY THE ELECTRONIC HEALTH RECORD SOLUTION TO THE SITES IN EACH WAVE.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to LEIDOS, INC. for work described as: DEPLOYMENT SERVICES FOR MHS GENESIS, INCLUDING SITE PREPARATION, DEPLOYMENT, TRAINING, CHANGE MANAGEMENT, AND POST-INSTALLATION SUPPORT REQUIRED TO DEPLOY THE ELECTRONIC HEALTH RECORD SOLUTION TO THE SITES IN EACH WAVE. Key points: 1. Contract supports critical Electronic Health Record (EHR) deployment for military personnel. 2. Leidos, Inc. is the incumbent contractor, suggesting potential for continuity but also a need to assess ongoing value. 3. The fixed-price incentive contract type aims to control costs while incentivizing performance. 4. This spending falls within the Computer Systems Design Services sector, a significant area for government IT investment.

Value Assessment

Rating: good

The $29.4 million award for deployment services appears reasonable given the scope of MHS Genesis, a large-scale EHR implementation. Benchmarking against similar complex IT deployment contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process that should have driven price discovery. The use of a delivery order under an existing contract structure needs to be reviewed for its impact on initial pricing.

Taxpayer Impact: Competition in this award is expected to yield fair pricing for taxpayers, ensuring value for the significant investment in modernizing military healthcare IT infrastructure.

Public Impact

Enhances healthcare delivery for service members and their families through a modernized EHR system. Supports the Department of Defense's strategic goal of improving medical readiness and interoperability. Potential for improved data accuracy and accessibility, leading to better patient care and operational efficiency. Impacts thousands of military healthcare professionals who will use the new system. Ensures continuity of critical health IT services during the deployment phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in large-scale IT deployments.
  • Risk of user adoption challenges and training effectiveness.
  • Dependence on a single contractor for critical deployment phases.

Positive Signals

  • Clear scope of work for deployment services.
  • Fixed-price incentive contract structure to manage costs.
  • Awarded under full and open competition.

Sector Analysis

This contract falls under Computer Systems Design Services, a broad category encompassing IT implementation and support. Spending in this sector is substantial government-wide, particularly for large-scale system modernizations like MHS Genesis.

Small Business Impact

The data does not indicate specific subcontracting opportunities for small businesses on this particular delivery order. Further analysis would be needed to determine if small business participation goals were met or if there are future opportunities.

Oversight & Accountability

The Defense Health Agency is responsible for overseeing this contract. Robust oversight is crucial for managing the complexities of EHR deployment, ensuring adherence to schedule, budget, and performance requirements.

Related Government Programs

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

Risk Flags

  • Complexity of large-scale IT system deployment.
  • Potential for scope creep and schedule delays.
  • User adoption and training effectiveness.
  • Integration challenges with existing systems.
  • Cybersecurity risks associated with sensitive health data.

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 $29.4 million to LEIDOS, INC.. DEPLOYMENT SERVICES FOR MHS GENESIS, INCLUDING SITE PREPARATION, DEPLOYMENT, TRAINING, CHANGE MANAGEMENT, AND POST-INSTALLATION SUPPORT REQUIRED TO DEPLOY THE ELECTRONIC HEALTH RECORD SOLUTION TO THE SITES IN EACH WAVE.

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 $29.4 million.

What is the period of performance?

Start: 2021-07-14. End: 2023-03-31.

What is the total projected cost of the MHS Genesis program across all waves and contract vehicles, and how does this specific deployment contract fit into the overall budget?

The total projected cost for the MHS Genesis program is substantial, encompassing various phases and contract types. This $29.4 million award represents a portion of the overall deployment effort. A comprehensive review of the program's total lifecycle cost is necessary to contextualize this specific contract's financial impact and ensure alignment with broader budgetary constraints and strategic objectives.

What are the key performance indicators (KPIs) for this contract, and how will success be measured to ensure effective deployment and user adoption of the EHR system?

Key performance indicators likely include successful site preparations, timely deployment across waves, training completion rates, and post-installation support effectiveness. Success measurement will involve tracking user satisfaction, system uptime, reduction in manual workarounds, and achievement of interoperability goals. The fixed-price incentive structure suggests that meeting specific performance targets will be tied to financial outcomes.

How does the pricing structure of this fixed-price incentive contract compare to industry benchmarks for similar large-scale EHR deployment projects, considering the specific services provided?

The fixed-price incentive structure aims to balance cost control with performance. Benchmarking this contract's pricing against similar large-scale EHR deployments requires detailed analysis of service scope, duration, and complexity. Factors like site preparation, change management, and training intensity influence costs. Without specific benchmark data for comparable DoD EHR deployments, a definitive assessment of cost-effectiveness is challenging.

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: $29,415,246

Exercised Options: $29,415,246

Current Obligation: $29,406,996

Actual Outlays: $1,519,645

Subaward Activity

Number of Subawards: 57

Total Subaward Amount: $27,099,726

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: 2021-07-14

Current End Date: 2023-03-31

Potential End Date: 2023-03-31 00:00:00

Last Modified: 2023-08-25

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