Leidos Inc. awarded $34.6M contract for MHS Genesis implementation support at military facilities
Contract Overview
Contract Amount: $34,607,105 ($34.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-12-06
End Date: 2024-11-30
Contract Duration: 1,090 days
Daily Burn Rate: $31.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: REVENUE CYCLE EXPANSION IMPLEMENTATION SUPPORT WILL IMPLEMENT CAPABILITIES AT MILITARY TREATMENT FACILITIES THAT ALREADY HAVE MHS GENESIS IN OPERATION.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $34.6 million to LEIDOS, INC. for work described as: REVENUE CYCLE EXPANSION IMPLEMENTATION SUPPORT WILL IMPLEMENT CAPABILITIES AT MILITARY TREATMENT FACILITIES THAT ALREADY HAVE MHS GENESIS IN OPERATION. Key points: 1. Contract focuses on expanding capabilities within existing MHS Genesis environments. 2. Leidos, Inc. is the sole contractor for this delivery order. 3. The contract duration is 1090 days, spanning over three years. 4. This award falls under Computer Systems Design Services. 5. The contract type is Firm Fixed Price, indicating predictable costs. 6. The contract was awarded via Full and Open Competition.
Value Assessment
Rating: good
The contract value of $34.6 million for implementation support of a major healthcare IT system like MHS Genesis appears reasonable given the scope and duration. Benchmarking against similar large-scale IT implementation contracts within the federal government would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost predictability for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. The number of bidders is not specified, but the competitive process is expected to drive fair pricing and encourage innovative solutions. This approach generally benefits the government by ensuring a wide selection of qualified contractors.
Taxpayer Impact: A full and open competition process for this IT support contract likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.
Public Impact
Military Treatment Facilities (MTFs) will benefit from enhanced capabilities within their MHS Genesis system. The services delivered will improve the functionality and user experience of the MHS Genesis electronic health record system. The geographic impact is nationwide, covering all MTFs where MHS Genesis is operational. Workforce implications include potential training and adaptation for healthcare professionals using the enhanced system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if implementation requirements expand beyond initial MHS Genesis capabilities.
- Dependence on Leidos, Inc. for successful implementation could pose a risk if performance issues arise.
- Integration challenges with existing IT infrastructure at various MTFs could lead to delays or cost overruns.
Positive Signals
- Leidos, Inc. has a significant track record in large-scale government IT contracts.
- The firm-fixed-price contract type provides cost certainty for the government.
- The contract duration allows for thorough implementation and testing of new capabilities.
Sector Analysis
The federal healthcare IT sector is a significant market, driven by the need to modernize electronic health record systems and improve data interoperability. Contracts like this are crucial for the Defense Health Agency's ongoing efforts to standardize and enhance its IT infrastructure across military medical facilities. Comparable spending benchmarks in this area often involve multi-million dollar awards for system implementation, maintenance, and support.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As a large prime contract awarded to Leidos, Inc., the potential for small business participation would likely be through subcontracting opportunities, which are not detailed here. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Health Agency's program management and contracting offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified capabilities. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight activities are not detailed in the provided data.
Related Government Programs
- MHS Genesis EHR Modernization
- Department of Defense IT Modernization Programs
- Military Health System IT Services
- Healthcare IT Implementation Services
Risk Flags
- Potential for integration challenges
- User adoption and training needs
- Cybersecurity vulnerabilities during implementation
Tags
healthcare, it-services, defense, department-of-defense, defense-health-agency, firm-fixed-price, full-and-open-competition, computer-systems-design-services, e-health-records, mhs-genesis, implementation-support, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.6 million to LEIDOS, INC.. REVENUE CYCLE EXPANSION IMPLEMENTATION SUPPORT WILL IMPLEMENT CAPABILITIES AT MILITARY TREATMENT FACILITIES THAT ALREADY HAVE MHS GENESIS IN OPERATION.
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 $34.6 million.
What is the period of performance?
Start: 2021-12-06. End: 2024-11-30.
What is Leidos, Inc.'s track record with MHS Genesis or similar large-scale EHR implementations?
Leidos, Inc. has a substantial history of supporting large federal IT programs, including significant work within the Department of Defense. While specific details on their direct involvement with the core MHS Genesis development might vary, they have been a major contractor for various IT modernization and system integration projects across government agencies. Their experience often includes managing complex deployments, cybersecurity integration, and user support for critical systems. Assessing their past performance on similar scale EHR or health IT implementations would involve reviewing contract performance reports and past performance questionnaires from previous government awards to gauge their reliability and effectiveness in delivering complex IT solutions within budget and schedule constraints.
How does the $34.6 million contract value compare to similar MHS Genesis implementation support contracts?
Direct comparisons for 'REVENUE CYCLE EXPANSION IMPLEMENTATION SUPPORT' specifically for MHS Genesis are difficult without access to detailed contract databases and specific scope definitions. However, the overall MHS Genesis modernization program has involved billions of dollars in contracts awarded to various vendors for different phases and functionalities. A $34.6 million award for implementation support over approximately three years for specific capabilities at operational sites appears to be within the expected range for specialized IT support services for a system of this magnitude. Factors influencing this value include the number of sites supported, the complexity of the revenue cycle expansion, and the level of integration required with existing systems. Broader IT system implementation contracts of similar duration and complexity for other federal agencies can range from tens to hundreds of millions of dollars.
What are the primary risks associated with this contract for the Department of Defense?
The primary risks associated with this contract include potential implementation delays if unforeseen technical challenges arise during the integration of revenue cycle expansion capabilities into existing MHS Genesis environments. There's also a risk of cost overruns if the scope expands beyond the initial definition, although the firm-fixed-price structure aims to mitigate this. Another key risk is user adoption and training; ensuring healthcare staff are adequately trained and can effectively utilize the new functionalities is critical for realizing the intended benefits. Finally, cybersecurity risks associated with implementing new system capabilities must be continuously managed to protect sensitive patient data.
How effective is the MHS Genesis system expected to be after the implementation of these revenue cycle expansion capabilities?
The effectiveness of the MHS Genesis system post-implementation of these revenue cycle expansion capabilities is expected to be enhanced in areas related to patient administration, billing, and financial management within military treatment facilities. The goal is to streamline processes, improve data accuracy for revenue capture, and potentially reduce administrative overhead. Successful implementation should lead to more efficient operations, better financial reporting, and improved patient experience by reducing administrative friction. The overall effectiveness will depend on the quality of the implementation, user training, and how well the new functionalities integrate with the broader MHS Genesis ecosystem and existing workflows.
What are the historical spending patterns for IT support services within the Defense Health Agency related to EHR systems?
The Defense Health Agency (DHA) has consistently allocated significant funding towards IT support services, particularly for its electronic health record (EHR) systems like MHS Genesis. Historical spending patterns show a substantial and increasing investment in EHR modernization, implementation, and sustainment over the past decade. This includes contracts for system development, integration, cybersecurity, training, and ongoing technical support. The scale of spending reflects the complexity and criticality of managing a unified health record system for millions of service members and their families. Annual IT budgets for DHA often run into the billions, with a considerable portion dedicated to maintaining and enhancing its digital health infrastructure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 4, 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: $34,901,579
Exercised Options: $34,607,105
Current Obligation: $34,607,105
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $23,581,307
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0008
IDV Type: GWAC
Timeline
Start Date: 2021-12-06
Current End Date: 2024-11-30
Potential End Date: 2024-11-30 00:00:00
Last Modified: 2024-11-06
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