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 Services › Computer Systems Design and Related Services › Computer 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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