DoD's $26.3M EHR Deployment Services Contract Awarded to Leidos, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $26,336,514 ($26.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-28
End Date: 2023-09-30
Contract Duration: 732 days
Daily Burn Rate: $36.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Official Description: DEPLOYMENT SERVICES, 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 $26.3 million to LEIDOS, INC. for work described as: DEPLOYMENT SERVICES, 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. The contract covers comprehensive deployment services for an Electronic Health Record (EHR) solution across multiple waves. 2. Leidos, Inc. secured the award, indicating strong capabilities in complex IT system deployments. 3. The fixed-price incentive contract structure aims to align contractor performance with government objectives. 4. This spending falls under Computer Systems Design Services, a critical sector for modernizing government operations.
Value Assessment
Rating: good
The contract value of $26.3M for deployment services appears reasonable given the scope, which includes site preparation, training, and post-installation support for an EHR system. Benchmarking against similar large-scale IT system deployments suggests this is within expected cost ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, fostering competitive pricing and ensuring the government receives the best value.
Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by leveraging market forces.
Public Impact
Enhances healthcare delivery for Department of Defense personnel through a modernized EHR system. Potential for improved data accuracy and accessibility in military healthcare settings. Supports the broader digital transformation initiative within the federal government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if incentive targets are not met efficiently.
- Integration challenges with existing legacy systems.
- Dependence on a single contractor for critical deployment phases.
Positive Signals
- Clear definition of deployment phases and support.
- Use of a fixed-price incentive contract to manage costs.
- Awarded through full and open competition.
Sector Analysis
This contract falls under Computer Systems Design Services, a sector vital for modernizing government IT infrastructure. Spending in this area is often substantial due to the complexity of system integration and deployment, with benchmarks varying widely based on project scale and technology.
Small Business Impact
The contract was awarded under full and open competition and does not indicate specific set-asides for small businesses. While Leidos, Inc. is a large prime contractor, subcontracting opportunities for small businesses may exist within the execution of this contract.
Oversight & Accountability
The award was made by the Defense Health Agency, a key component of the Department of Defense, suggesting established oversight mechanisms. The fixed-price incentive contract type implies performance monitoring and accountability for meeting defined objectives.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for scope creep impacting final cost.
- Dependency on contractor's ability to manage complex integrations.
- Risk of user resistance to new system adoption.
- Cybersecurity vulnerabilities during deployment and operation.
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 $26.3 million to LEIDOS, INC.. DEPLOYMENT SERVICES, 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 $26.3 million.
What is the period of performance?
Start: 2021-09-28. End: 2023-09-30.
What is the projected return on investment for the EHR system deployment, considering the total contract value?
The return on investment (ROI) for the EHR system deployment is projected to be significant, driven by improved clinical efficiency, reduced administrative overhead, and enhanced data analytics capabilities for military healthcare. While the initial contract value is $26.3M, the long-term benefits in patient care quality and operational effectiveness are expected to far outweigh this investment over the system's lifecycle.
What are the primary risks associated with the post-installation support phase, and how are they being mitigated?
Primary risks in post-installation support include system downtime, user adoption challenges, and the need for ongoing technical expertise. Mitigation strategies involve robust service level agreements (SLAs) with Leidos, comprehensive training programs for end-users, and establishing a dedicated support team within the DHA to manage vendor performance and address issues proactively.
How effectively does this EHR deployment align with the broader goals of the Department of Defense's digital transformation strategy?
This EHR deployment is highly aligned with the DoD's digital transformation strategy by modernizing a critical healthcare IT system. It aims to create a more integrated, data-driven healthcare environment, enabling better decision-making, improved readiness, and enhanced care for service members. The success of this deployment is a key indicator of the DoD's progress in achieving its digital modernization objectives.
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: $26,336,514
Exercised Options: $26,336,514
Current Obligation: $26,336,514
Actual Outlays: $1,900,434
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $22,628,758
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: 2021-09-28
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2023-09-11
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