Leidos Inc. awarded $25.5M for AHLTA CHCS Systems Maintenance by Defense Health Agency
Contract Overview
Contract Amount: $25,501,176 ($25.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-11-26
End Date: 2021-11-25
Contract Duration: 364 days
Daily Burn Rate: $70.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AHLTA CHCS SYSTEMS MAINTENANCE
Place of Performance
Location: JBSA FT SAM HOUSTON, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $25.5 million to LEIDOS, INC. for work described as: AHLTA CHCS SYSTEMS MAINTENANCE Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Fixed-price contract type suggests cost certainty for the government. 3. Performance period of one year with no option periods. 4. Contractor Leidos, Inc. has a significant presence in government IT services. 5. NAICS code 541519 covers a broad range of computer-related services. 6. The contract is not set aside for small businesses.
Value Assessment
Rating: fair
The contract value of $25.5 million for a one-year systems maintenance agreement appears within a reasonable range for large-scale IT support. Benchmarking against similar contracts for Electronic Health Record (EHR) system maintenance is challenging without more specific service details. However, given the critical nature of military health systems, the pricing is likely influenced by specialized requirements and security protocols. Further analysis would require comparing the specific deliverables and service level agreements against industry standards and other government contracts for comparable systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, likely through a Blanket Purchase Agreement (BPA) Call. This indicates that multiple vendors had the opportunity to bid on the underlying BPA, and then this specific call was also competed. The specific number of bidders for this BPA Call is not provided, but the full and open nature suggests a competitive process was intended. This approach generally promotes price discovery and allows the government to select the best value offer.
Taxpayer Impact: A full and open competition ensures that taxpayers benefit from the widest possible range of offers, potentially leading to more competitive pricing and innovative solutions.
Public Impact
Supports the maintenance of critical AHLTA and CHCS systems used by the Defense Health Agency. Ensures the continued operation of electronic health records for military personnel and their families. Benefits healthcare providers within the Department of Defense by providing reliable IT infrastructure. Impacts the operational readiness of military medical facilities. Workforce implications include the need for skilled IT professionals to maintain these specialized systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the BPA is not regularly re-competed.
- Reliance on a single contractor for critical system maintenance could pose risks if performance degrades.
- Scope creep could occur if not managed tightly within the BPA framework.
Positive Signals
- Awarded through a competitive process, suggesting potential for good value.
- Fixed-price contract type provides cost predictability.
- Contractor Leidos, Inc. is a large, established provider with significant experience in government IT.
Sector Analysis
The IT services sector, particularly within defense and healthcare, is characterized by large, complex contracts requiring specialized expertise. The market for maintaining legacy systems like AHLTA and CHCS is often dominated by a few key players with the necessary security clearances and technical knowledge. Spending in this area is substantial, driven by the government's need for secure and reliable health information systems. This contract fits within the broader category of IT support services for federal health agencies.
Small Business Impact
This contract was not set aside for small businesses, as indicated by 'sb': false. The prime contractor, Leidos, Inc., is a large business. There is no explicit information on subcontracting plans for small businesses within this specific BPA Call. However, large IT contracts often include subcontracting goals, and it would be beneficial to examine the broader BPA for any such provisions. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited.
Oversight & Accountability
Oversight for this contract would primarily fall under the Defense Health Agency (DHA) contracting officers and program managers. As a BPA Call, the underlying BPA likely has its own oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Performance monitoring would be crucial to ensure the contractor meets the terms and conditions of the fixed-price contract.
Related Government Programs
- AHLTA System
- CHCS System
- Defense Health Information Technology
- Military Health System IT Support
- Electronic Health Records Maintenance
Risk Flags
- Potential for system obsolescence
- Cybersecurity vulnerabilities in legacy systems
- Dependence on a single vendor for critical maintenance
Tags
it-services, defense, defense-health-agency, leidos-inc, full-and-open-competition, bpa-call, fixed-price, systems-maintenance, texas, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.5 million to LEIDOS, INC.. AHLTA CHCS SYSTEMS MAINTENANCE
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 $25.5 million.
What is the period of performance?
Start: 2020-11-26. End: 2021-11-25.
What is the historical spending trend for AHLTA and CHCS systems maintenance by the Defense Health Agency?
Analyzing historical spending for AHLTA and CHCS systems maintenance requires accessing contract data over several fiscal years. While this specific award is for $25.5 million in 2021, previous years may show fluctuations based on system upgrades, contract vehicles, and vendor competition. For instance, if previous maintenance contracts were significantly higher or lower, it could indicate changes in system complexity, service requirements, or market pricing. A trend of increasing spending might suggest growing system demands or aging infrastructure, while decreasing spending could point to efficiencies or consolidation. Without a multi-year view, it's difficult to establish a definitive trend, but this single award provides a data point for current spending levels on these critical systems.
How does the contractor, Leidos, Inc., perform on other similar IT maintenance contracts with the federal government?
Leidos, Inc. is a major federal IT contractor with a substantial portfolio of similar contracts. Assessing their performance on other IT maintenance agreements, particularly those involving large-scale health IT systems, is crucial. Key performance indicators would include on-time delivery, adherence to service level agreements (SLAs), contract modifications, and any past performance ratings or disputes. Reviewing publicly available contract data and performance reports for Leidos on comparable contracts can reveal patterns of reliability, responsiveness, and cost-effectiveness. A strong track record on similar contracts would suggest a lower risk for this specific award, while a history of issues might raise concerns about potential performance problems and the need for closer oversight.
What are the specific IT services included in this $25.5 million contract for AHLTA and CHCS systems maintenance?
The contract description 'AHLTA CHCS SYSTEMS MAINTENANCE' and NAICS code '541519' (Other Computer Related Services) indicate a broad scope. Specific services likely encompass software maintenance, bug fixes, system updates, patch management, and potentially help desk support for the AHLTA (Armed Forces Longitudinalరోగ (Health) Application) and CHCS (Composite Health Care System) platforms. Given the critical nature of these systems within the Department of Defense, services could also include cybersecurity maintenance, system monitoring, performance tuning, and ensuring compliance with federal data security regulations. A detailed statement of work (SOW) within the contract documents would provide the precise breakdown of deliverables and service level agreements, which are essential for a comprehensive value assessment.
What is the potential impact of this contract on the overall IT budget of the Defense Health Agency?
This $25.5 million contract represents a significant, albeit specific, allocation within the Defense Health Agency's (DHA) IT budget for the fiscal year it covers. To understand its overall impact, it needs to be viewed in the context of the DHA's total IT spending. If DHA's annual IT budget is in the billions, this contract, while substantial, might represent a relatively small percentage. However, if DHA's budget for system maintenance is constrained, this award could consume a larger portion, potentially affecting funding for other IT initiatives or upgrades. Analyzing this contract's proportion relative to the DHA's overall IT expenditure and its specific maintenance budget category is key to gauging its budgetary impact.
Are there any known risks associated with the AHLTA and CHCS systems that this contract aims to mitigate?
AHLTA and CHCS are legacy systems that have undergone various iterations and integrations over the years. Risks associated with such systems often include technical obsolescence, cybersecurity vulnerabilities due to outdated architecture, integration challenges with newer technologies, and potential performance degradation. This maintenance contract is likely designed to mitigate these risks by ensuring the systems remain operational, secure, and compliant with current standards. This includes applying security patches, updating software, and performing routine maintenance to prevent failures. The fixed-price nature suggests the government is seeking cost certainty in managing these inherent risks, aiming to keep the systems functional for the duration of the contract.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $25,501,176
Exercised Options: $25,501,176
Current Obligation: $25,501,176
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,261,480
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT001518A0001
IDV Type: BPA
Timeline
Start Date: 2020-11-26
Current End Date: 2021-11-25
Potential End Date: 2021-11-25 00:00:00
Last Modified: 2025-04-26
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