DoD's $23.3M EHR Support Contract Awarded to Koniag Management Solutions LLC

Contract Overview

Contract Amount: $23,292,827 ($23.3M)

Contractor: Koniag Management Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2023-05-29

Contract Duration: 971 days

Daily Burn Rate: $24.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE CONTRACTOR WILL SUPPORT THE MANAGEMENT, INTEGRATION, AND STABILIZATION OF THE ELECTRONIC HEALTH RECORD CORE AREAS AND ALL CLINICAL INFORMATION SYSTEMS IN THE DHA PORTFOLIO.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to KONIAG MANAGEMENT SOLUTIONS LLC for work described as: THE CONTRACTOR WILL SUPPORT THE MANAGEMENT, INTEGRATION, AND STABILIZATION OF THE ELECTRONIC HEALTH RECORD CORE AREAS AND ALL CLINICAL INFORMATION SYSTEMS IN THE DHA PORTFOLIO. Key points: 1. Contract focuses on managing and stabilizing electronic health records within the Defense Health Agency portfolio. 2. The contract is a definitive contract with a firm-fixed-price structure. 3. Performance period spans nearly three years, from September 2020 to May 2023. 4. The contract was not competed, raising questions about potential price discovery. 5. The primary service falls under Administrative Management and General Management Consulting Services. 6. The award value is substantial, requiring careful oversight for value for money. 7. No small business set-aside or subcontracting was indicated, potentially limiting small business participation.

Value Assessment

Rating: fair

The contract value of $23.3 million over approximately three years for EHR management and stabilization is significant. Benchmarking this against similar IT support contracts for large-scale health systems is challenging without more specific service details. However, the lack of competition suggests that a thorough price analysis was likely not performed, potentially impacting the overall value for money achieved. The firm-fixed-price nature provides cost certainty but relies heavily on the initial pricing accuracy.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This approach is typically used when only one contractor possesses the unique capabilities or resources required for the specific task, or in situations where urgency or specific circumstances preclude full and open competition. The lack of competition limits the government's ability to leverage market forces to secure the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also reduces transparency in the procurement process.

Public Impact

Service members and beneficiaries of the Defense Health Agency will benefit from improved stability and management of their electronic health records. Ensures the continued operation and integration of critical clinical information systems within the DoD's healthcare portfolio. Supports the broader DoD mission of providing healthcare services to military personnel and their families. The contract supports administrative and management functions related to IT infrastructure, potentially impacting IT professionals within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than could have been achieved through a competitive process.
Sole-source awards reduce transparency and accountability in the procurement process.
The specific details of the EHR core areas and clinical information systems supported are not fully elaborated, making performance assessment difficult.
The contract duration and value warrant close monitoring to ensure continued alignment with evolving healthcare IT needs.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
The contract addresses critical IT infrastructure for healthcare delivery within the DoD.
The contractor is supporting the management, integration, and stabilization of essential systems.

Sector Analysis

The healthcare IT sector is a rapidly growing and critical area for government agencies, particularly the Department of Defense. This contract falls within the administrative management and general management consulting services category, specifically applied to complex IT systems like Electronic Health Records (EHRs). The market for EHR support is substantial, with significant investment from both public and private healthcare providers. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of military healthcare systems and the sole-source award.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of small business subcontracting requirements. This means that opportunities for small businesses to participate in this significant contract were likely limited. The absence of a subcontracting plan could mean that the full economic benefit to the small business ecosystem is not being realized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Health Agency (DHA) contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, but specific oversight mechanisms for performance and value are not detailed in the provided data.

Related Government Programs

Defense Health Agency IT Support Contracts
Electronic Health Record Systems Management
Federal Health IT Services
Administrative Management Consulting

Risk Flags

Sole-source award limits competition and price discovery.
Lack of small business participation noted.
Performance details and specific system scope are not fully elaborated.
Contract duration and value warrant ongoing monitoring for effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to KONIAG MANAGEMENT SOLUTIONS LLC. THE CONTRACTOR WILL SUPPORT THE MANAGEMENT, INTEGRATION, AND STABILIZATION OF THE ELECTRONIC HEALTH RECORD CORE AREAS AND ALL CLINICAL INFORMATION SYSTEMS IN THE DHA PORTFOLIO.

Who is the contractor on this award?

The obligated recipient is KONIAG MANAGEMENT SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2020-09-30. End: 2023-05-29.

What is the track record of Koniag Management Solutions LLC in supporting large-scale federal IT projects, particularly in the healthcare sector?

Koniag Management Solutions LLC has a history of performing government contracts, including those related to IT services and program management. While specific details on their track record with large-scale federal EHR systems are not provided in this data snippet, their award for this DHA contract suggests they possess relevant capabilities. Further investigation into their past performance on similar contracts, including client feedback and project outcomes, would be necessary for a comprehensive assessment. Their experience in administrative and management consulting services is a foundational element for managing complex IT projects. It is important to review their performance on other contracts to understand their reliability and effectiveness in delivering critical services.

How does the value of this contract compare to similar EHR management contracts within the federal government or large healthcare organizations?

Direct comparison of this $23.3 million contract for EHR management and stabilization is challenging due to the unique nature of the Defense Health Agency's portfolio and the sole-source award. Typically, large-scale EHR implementations and ongoing support contracts can range from tens of millions to billions of dollars, depending on the scope, number of users, and complexity of the systems. Contracts awarded through full and open competition often provide better benchmarks for pricing. The lack of competition for this specific contract means a direct value-for-money comparison against market rates is difficult. However, the firm-fixed-price structure implies a defined scope and cost, which should be assessed against the delivered outcomes and system stability achieved.

What are the primary risks associated with a sole-source award for critical IT infrastructure like EHR systems?

The primary risks associated with a sole-source award for critical IT infrastructure like EHR systems include potential overpayment due to the absence of competitive pricing, reduced incentive for the contractor to innovate or improve efficiency beyond the contract's minimum requirements, and a lack of transparency in the procurement process. There's also a risk that the chosen contractor may not be the most capable or cost-effective solution available in the market. Furthermore, reliance on a single source can create vendor lock-in and make future transitions more complex and costly. Effective oversight and robust performance metrics are crucial to mitigate these risks.

How effective is the firm-fixed-price contract type in ensuring value for money for EHR system stabilization and management?

The firm-fixed-price (FFP) contract type is generally effective in providing cost certainty to the government, as the contractor assumes the risk of cost overruns. For EHR system stabilization and management, an FFP contract can be beneficial if the scope of work is well-defined and stable. It incentivizes the contractor to manage costs efficiently to maximize profit. However, if the scope is not clearly defined or if unforeseen technical challenges arise, the contractor might be disincentivized from addressing them if they fall outside the defined scope, potentially impacting system stability or requiring costly contract modifications. The success of FFP in ensuring value for money hinges on the accuracy of the initial cost estimates and the clarity of the statement of work.

What are the historical spending patterns for EHR support within the Defense Health Agency or similar military health systems?

Historical spending patterns for EHR support within the Defense Health Agency and similar military health systems are substantial, reflecting the complexity and criticality of these IT infrastructures. Agencies like the DHA invest heavily in maintaining, integrating, and modernizing their EHR systems to ensure seamless patient care and data management for millions of service members and beneficiaries. While specific historical figures for this exact contract are not provided, it's understood that such support contracts are often multi-year and represent significant portions of IT budgets. Trends often show increasing investment in cybersecurity, data analytics, and interoperability solutions within these systems, driven by evolving healthcare needs and technological advancements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT001120R0042

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,154,982

Exercised Options: $23,368,237

Current Obligation: $23,292,827

Actual Outlays: $1,339,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline