DoD Awards Leidos $25.2M for MHS GENESIS Support, Highlighting Computer Systems Design Services

Contract Overview

Contract Amount: $252,581,998 ($252.6M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-29

End Date: 2026-07-28

Contract Duration: 364 days

Daily Burn Rate: $693.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MHS GENESIS SUPPORT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $252.6 million to LEIDOS, INC. for work described as: MHS GENESIS SUPPORT Key points: 1. Contract value of $25.2M for MHS GENESIS support. 2. Leidos, Inc. is the primary contractor. 3. Competition method is 'FULL AND OPEN COMPETITION'. 4. The sector is IT services, specifically Computer Systems Design. 5. Risk assessment is pending further analysis of specific performance metrics.

Value Assessment

Rating: good

The contract value of $25.2M for a 364-day period appears reasonable given the specialized nature of IT support for a system like MHS GENESIS. Benchmarking against similar large-scale IT support contracts would provide a more precise assessment.

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 typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives the best value for its investment.

Public Impact

Ensures continued functionality and support for the Military Health System's electronic health record. Impacts healthcare delivery for service members and their families. Supports the operational readiness of the Defense Health Agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in IT support contracts.
  • Dependence on a single contractor for critical system support.
  • Cybersecurity risks associated with sensitive health data.

Positive Signals

  • Awarded through full and open competition.
  • Clear contract duration and delivery order structure.
  • Focus on a critical national defense healthcare system.

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government agencies, supporting complex IT infrastructures and software development. Benchmarks for similar support contracts vary widely based on system complexity and duration.

Small Business Impact

While the prime contractor is Leidos, Inc., there is no explicit mention of small business participation in the provided data. Further analysis would be needed to determine if subcontracting opportunities for small businesses are included or mandated.

Oversight & Accountability

The contract is managed by the Defense Health Agency, a component of the Department of Defense. Oversight mechanisms would typically involve performance reviews, financial audits, and adherence to contractual terms to ensure accountability.

Related Government Programs

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

Risk Flags

  • Potential for vendor lock-in if not managed carefully.
  • Reliance on a single vendor for critical IT infrastructure.
  • Cybersecurity vulnerabilities in healthcare IT systems.
  • Ensuring adequate performance metrics are met.

Tags

computer-systems-design-services, department-of-defense, va, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $252.6 million to LEIDOS, INC.. MHS GENESIS SUPPORT

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 $252.6 million.

What is the period of performance?

Start: 2025-07-29. End: 2026-07-28.

What is the specific scope of 'MHS GENESIS SUPPORT' and how does it align with the contract value?

The scope of 'MHS GENESIS SUPPORT' likely encompasses a range of services including system maintenance, software updates, user support, and potentially system integration for the Military Health System's electronic health record. The contract value of $25.2M for a one-year period suggests a significant level of ongoing operational support required for this complex and critical healthcare IT system.

What are the key performance indicators (KPIs) for this contract to ensure effective service delivery?

Key performance indicators would likely focus on system uptime, response times for issue resolution, successful implementation of updates, and user satisfaction. Effective service delivery is crucial for maintaining the operational integrity of MHS GENESIS, directly impacting healthcare services for military personnel and their families.

How will the Defense Health Agency ensure continued competition for future support needs beyond this delivery order?

The Defense Health Agency can ensure continued competition by clearly defining future requirements, conducting market research to identify potential vendors, and structuring subsequent solicitations to encourage broad participation. Utilizing contract vehicles that allow for re-competition or phased awards can also foster a competitive environment.

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: FIRM FIXED PRICE (J)

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: $571,964,589

Exercised Options: $571,964,589

Current Obligation: $252,581,998

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $2,178,659

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: 2025-07-29

Current End Date: 2026-07-28

Potential End Date: 2026-07-28 00:00:00

Last Modified: 2025-12-22

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