DoD's $27.2M AHLTA-T/MCC Sustainment contract awarded to The Informatics Applications Group, Inc. shows fair value

Contract Overview

Contract Amount: $27,225,986 ($27.2M)

Contractor: THE Informatics Applications Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-30

End Date: 2019-09-30

Contract Duration: 1,461 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF AHLTA-T/MCC SUSTAINMENT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.2 million to THE INFORMATICS APPLICATIONS GROUP, INC. for work described as: IGF::OT::IGF AHLTA-T/MCC SUSTAINMENT Key points: 1. The contract's value appears reasonable when benchmarked against similar IT sustainment services. 2. Competition was full and open, suggesting a competitive pricing environment. 3. The contract duration of approximately four years presents a moderate risk for long-term budget predictability. 4. Performance context is within the Defense Health Agency's critical IT infrastructure. 5. This contract falls under IT services, specifically computer systems design. 6. The fixed-price contract type helps mitigate cost overrun risks.

Value Assessment

Rating: fair

The total contract value of $27.2 million over approximately four years averages to about $6.8 million annually. This figure appears to be within a reasonable range for sustainment of complex IT systems like AHLTA-T/MCC, especially considering the specialized nature of military health IT. Benchmarking against similar large-scale IT sustainment contracts within the federal government suggests that this pricing is competitive, though specific per-unit cost comparisons are not readily available without more granular data on the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had restrictions, the final award was made after a broad competition. The presence of 3 bidders suggests a degree of competition, which is generally positive for price discovery. However, the 'Exclusion of Sources' aspect warrants further investigation to understand if it limited the competitive pool unnecessarily.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally leads to better pricing for taxpayers compared to sole-source or limited competition scenarios. This approach helps ensure that the government receives services at a fair market price.

Public Impact

The primary beneficiaries are the Department of Defense and the Defense Health Agency, ensuring the continued operation of critical healthcare IT systems. Services delivered include sustainment and support for the AHLTA-T/MCC system, vital for electronic health records and medical readiness. The geographic impact is nationwide within military treatment facilities and potentially extends to deployed forces. Workforce implications include the retention of specialized IT personnel required for maintaining sophisticated healthcare information systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly proprietary.
Risk of scope creep if sustainment requirements are not clearly defined and managed.
Dependence on a single contractor for critical system uptime.

Positive Signals

Firm Fixed Price contract type limits cost uncertainty for the government.
Full and open competition generally drives better value.
The contractor has a track record in IT services, suggesting relevant expertise.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and sustainment. The market for healthcare IT sustainment is significant, driven by the increasing digitization of medical records and the need for robust, secure systems. Comparable spending benchmarks for similar large-scale IT sustainment contracts within federal agencies often run into tens or hundreds of millions of dollars annually, depending on the complexity and scope of the systems being supported.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific contract award. There is no indication of small business set-asides or subcontracting requirements. This means the contract was likely awarded to a large business, and the direct impact on the small business ecosystem is minimal unless the prime contractor engages in significant subcontracting with small businesses, which is not specified here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Health Agency's contracting officers and program managers. Accountability measures are embedded within the contract's performance work statement and delivery terms. Transparency is facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

AHLTA (Armed Forces Health Longitudinal Technology Application)
Military Health System Electronic Health Record Systems
Defense Health Information Management System (DHIMS)
IT Sustainment Services Contracts
Computer Systems Design Services

Risk Flags

Potential for limited competition due to 'Exclusion of Sources' clause.
Long contract duration may pose budget planning challenges.
Dependence on a single vendor for critical healthcare IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.2 million to THE INFORMATICS APPLICATIONS GROUP, INC.. IGF::OT::IGF AHLTA-T/MCC SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is THE INFORMATICS APPLICATIONS GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $27.2 million.

What is the period of performance?

Start: 2015-09-30. End: 2019-09-30.

What is the specific nature of the 'Exclusion of Sources' in this 'Full and Open Competition After Exclusion of Sources' award, and how did it potentially impact the number of bidders?

The designation 'Full and Open Competition After Exclusion of Sources' suggests that while the competition was ultimately open, there might have been an initial phase where certain sources were excluded, possibly due to specific technical requirements, security clearances, or prior relationships with the system. This exclusion could have narrowed the field of potential bidders from the outset. Without further details from the solicitation documents (e.g., Sources Sought notices, RFPs), it's difficult to ascertain the exact reasons for the exclusion. However, such clauses can sometimes be used to ensure specialized expertise or compatibility with existing systems, but they also carry a risk of limiting competition and potentially increasing costs if not justified.

How does the annual cost of this sustainment contract compare to the initial development or implementation costs of the AHLTA-T/MCC system?

Direct comparison of sustainment costs to initial development costs for AHLTA-T/MCC is challenging without specific data on the system's lifecycle expenditures. However, it is common for complex IT systems, especially in the federal government, to have sustainment costs that can equal or even exceed initial development costs over their operational lifespan. Sustainment typically includes software updates, hardware maintenance, cybersecurity patching, help desk support, and system integration, all of which are ongoing expenses. If AHLTA-T/MCC is a mature system, the current annual sustainment cost of approximately $6.8 million might represent a typical proportion of its total cost of ownership, reflecting the ongoing investment required to keep such a critical system operational and secure.

What are the key performance indicators (KPIs) used to measure the success of the AHLTA-T/MCC sustainment services provided by The Informatics Applications Group, Inc.?

Key performance indicators (KPIs) for IT sustainment contracts like this typically focus on system availability, response times for issue resolution, security compliance, and user satisfaction. For AHLTA-T/MCC, specific KPIs would likely include metrics such as uptime percentage (e.g., 99.9% availability), average time to resolve critical incidents, number of security vulnerabilities identified and remediated, and successful completion of system updates and patches within defined timelines. User satisfaction surveys or feedback mechanisms might also be employed. The contract's performance work statement (PWS) would detail these KPIs and the associated service level agreements (SLAs) that The Informatics Applications Group, Inc. must meet.

Has The Informatics Applications Group, Inc. had other significant federal contracts for healthcare IT sustainment, and what is their performance history?

A review of federal procurement data indicates that The Informatics Applications Group, Inc. (TIAG) has a history of performing IT services for the federal government, including within the Department of Defense and other health-related agencies. While specific details on all past contracts and their performance ratings require deeper database analysis, TIAG has been involved in various IT support and system integration projects. Their track record generally suggests experience in managing complex IT environments. However, a comprehensive assessment would involve examining past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for this specific company to identify any recurring issues or consistent high performance in similar sustainment roles.

What is the projected spending trend for IT sustainment services within the Defense Health Agency, and how does this contract fit into that trend?

Spending trends for IT sustainment within the Defense Health Agency (DHA) are generally characterized by a consistent need for maintaining and upgrading complex, mission-critical systems. As legacy systems are modernized or replaced, sustainment budgets often shift but remain substantial. Contracts like the AHLTA-T/MCC sustainment represent a significant portion of the DHA's IT operational budget. The trend is towards integrated health information systems, requiring ongoing investment in interoperability, cybersecurity, and data management. This contract fits within the trend by ensuring the continued functionality of a core component of the Military Health System's electronic health record infrastructure, even as the DHA explores future system architectures.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Informatics Applications Group Inc.

Address: 11911FREEDOM DR, SUITE 1180, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $84,315,985

Exercised Options: $84,315,985

Current Obligation: $27,225,986

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200203W

IDV Type: GWAC

Timeline