DoD's Defense Health Agency awards $22.17M contract for enterprise software delivery platform to American Systems Corp
Contract Overview
Contract Amount: $22,174,780 ($22.2M)
Contractor: American Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-03-27
End Date: 2026-04-26
Contract Duration: 395 days
Daily Burn Rate: $56.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE SERVICES SOFTWARE REQUIREMENT INCLUDES ENTERPRISE LEVEL SOFTWARE DELIVERY SERVICE PLATFORM NECESSARY TO TRANSFORM EXISTING INFRASTRUCTURE INTO MODERN SOFTWARE.
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.2 million to AMERICAN SYSTEMS CORPORATION for work described as: ENTERPRISE SERVICES SOFTWARE REQUIREMENT INCLUDES ENTERPRISE LEVEL SOFTWARE DELIVERY SERVICE PLATFORM NECESSARY TO TRANSFORM EXISTING INFRASTRUCTURE INTO MODERN SOFTWARE. Key points: 1. The contract aims to modernize the Defense Health Agency's infrastructure through an enterprise-level software delivery service platform. 2. American Systems Corporation, the incumbent, secured this definitive contract. 3. The award is a firm-fixed-price contract with a duration of 395 days. 4. The total value is $22.17 million, with a base year value of $5.61 million.
Value Assessment
Rating: fair
The contract value of $22.17M for enterprise software delivery services appears reasonable given the scope of transforming existing infrastructure. However, without detailed cost breakdowns or comparisons to similar large-scale modernization projects, a precise value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure, which could lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher price than if the contract had been competitively bid, impacting taxpayer value.
Public Impact
Modernization of critical healthcare IT infrastructure for the Department of Defense. Potential impact on the delivery of healthcare services through improved IT systems. Ensuring the security and efficiency of sensitive health data. The award to a single vendor raises questions about market competitiveness for such services.
Waste & Efficiency Indicators
Waste Risk Score: 56 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to sole-source award
Positive Signals
- Addresses critical infrastructure modernization
- Clear contract duration and pricing type
Sector Analysis
This contract falls within the IT services sector, specifically focusing on enterprise software delivery platforms. Spending benchmarks for similar large-scale IT modernization projects within the federal government can vary significantly based on scope and complexity.
Small Business Impact
The contract data does not indicate any specific provisions or set-asides for small businesses. The award was made to American Systems Corporation, a large business, suggesting limited direct opportunities for small businesses on this specific contract.
Oversight & Accountability
The contract is a definitive contract awarded by the Department of Defense's Defense Health Agency. Oversight would typically involve contract management teams ensuring performance and adherence to terms, with potential for audits and reviews.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for higher costs due to lack of competitive pressure.
- Lack of transparency on specific platform capabilities and benefits.
- No indication of small business participation.
Tags
computer-facilities-management-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to AMERICAN SYSTEMS CORPORATION. ENTERPRISE SERVICES SOFTWARE REQUIREMENT INCLUDES ENTERPRISE LEVEL SOFTWARE DELIVERY SERVICE PLATFORM NECESSARY TO TRANSFORM EXISTING INFRASTRUCTURE INTO MODERN SOFTWARE.
Who is the contractor on this award?
The obligated recipient is AMERICAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $22.2 million.
What is the period of performance?
Start: 2025-03-27. End: 2026-04-26.
What specific capabilities does the enterprise software delivery service platform offer to justify the $22.17M investment?
The platform is intended to transform existing infrastructure into a modern software delivery capability. This likely includes features for automated deployment, continuous integration/continuous delivery (CI/CD) pipelines, enhanced security scanning, and improved collaboration tools for development teams. The goal is to accelerate software development cycles and improve the reliability and scalability of applications supporting the Defense Health Agency's mission.
What are the risks associated with a sole-source award for critical IT infrastructure modernization?
A sole-source award bypasses the competitive bidding process, which can lead to a lack of price transparency and potentially higher costs for the government. It also limits the government's ability to explore innovative solutions from a wider range of vendors. This can create vendor lock-in and reduce leverage in future negotiations, potentially impacting long-term value and adaptability.
How will the effectiveness of the new software delivery platform be measured to ensure it meets the Defense Health Agency's modernization goals?
Effectiveness will likely be measured through key performance indicators (KPIs) related to software development lifecycle acceleration (e.g., deployment frequency, lead time for changes), system reliability (e.g., uptime, error rates), security compliance, and user satisfaction. Regular performance reviews and milestone assessments against the contract's objectives will be crucial for evaluating success.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HT003825R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14151 PARK MEADOW DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,370,287
Exercised Options: $22,361,045
Current Obligation: $22,174,780
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Timeline
Start Date: 2025-03-27
Current End Date: 2026-04-26
Potential End Date: 2026-08-26 00:00:00
Last Modified: 2025-12-02
More Contracts from American Systems Corporation
- Arms Csip FR300 Cs-Tsr in JAX — $107.2M (Department of Defense)
- Testing Infrastructure Managed Services (tims) for PEO,Dhms "igf::ct::igf" — $83.6M (Department of the Interior)
- Program Engagement and Independent Technical Assessments — $75.1M (Department of Defense)
- This IS for Operational Professional Research and Engineering Support for the Under Secretary of Defense Research and Engineering, Developmental Test Evaluation and Assessments Office — $74.6M (Department of Defense)
- Emergency Mass Notification System Task Order Award — $74.4M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)