DoD's $24.18M 3M Software Contract Awarded to Solumtum Health Information Systems
Contract Overview
Contract Amount: $24,179,492 ($24.2M)
Contractor: Solventum Health Information Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2026-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $13.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 3M SOFTWARE
Place of Performance
Location: JBSA FT SAM HOUSTON, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $24.2 million to SOLVENTUM HEALTH INFORMATION SYSTEMS, INC. for work described as: 3M SOFTWARE Key points: 1. Contract value of $24.18 million over 5 years. 2. Awarded under full and open competition. 3. Potential risk associated with 'Other Computer Related Services' NAICS code. 4. Sector is Defense, specifically supporting the Defense Health Agency.
Value Assessment
Rating: fair
The contract value of $24.18 million over 1826 days suggests a moderate annual spend. Benchmarking against similar 'Other Computer Related Services' contracts would be necessary to assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing and allows for a broad range of potential offerors. This method is expected to yield fair market value.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer dollars are spent efficiently by fostering a competitive environment for contract awards.
Public Impact
Supports critical healthcare information systems for the Department of Defense. Ensures continued access to essential software services for military health personnel. Potential for improved healthcare delivery through updated software capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- NAICS code 541519 is broad and may not fully capture the specific nature of the software services.
- Contract duration of 5 years could lead to price escalation if not managed carefully.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Supports a vital government function (military healthcare).
Sector Analysis
This contract falls within the IT services sector, specifically supporting defense healthcare operations. Benchmarks for similar IT service contracts within the federal government would provide context for the $24.18 million award.
Small Business Impact
The data does not indicate whether small businesses were involved in the subcontracting opportunities for this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The award was made under full and open competition, suggesting a standard procurement process. Oversight would focus on contract performance, delivery, and adherence to the firm fixed price terms.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Broad NAICS code may obscure specific service details.
- Long contract duration increases risk of obsolescence.
- Potential for vendor lock-in.
- Lack of small business participation data.
Tags
other-computer-related-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.2 million to SOLVENTUM HEALTH INFORMATION SYSTEMS, INC.. 3M SOFTWARE
Who is the contractor on this award?
The obligated recipient is SOLVENTUM HEALTH INFORMATION SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $24.2 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-09-30.
What specific software services are included under NAICS code 541519 for this contract?
NAICS code 541519, 'Other Computer Related Services,' is a broad category encompassing a wide range of IT services not elsewhere classified. For this specific contract, it likely includes software development, integration, maintenance, and support tailored to the Defense Health Agency's unique requirements, potentially covering electronic health records, data management, or other specialized health IT solutions.
What are the primary risks associated with a 5-year contract for 'Other Computer Related Services'?
The primary risks include technological obsolescence, as software needs can rapidly evolve over five years. There's also a risk of scope creep if requirements are not clearly defined, potentially leading to cost overruns despite the firm fixed price. Vendor lock-in and potential price increases upon renewal are also concerns.
How does this contract contribute to the effectiveness of military healthcare delivery?
This contract is crucial for ensuring the Defense Health Agency has access to necessary software and related services, which directly impacts the efficiency and effectiveness of military healthcare delivery. Reliable and up-to-date IT systems are fundamental for patient care, medical record management, and operational readiness of healthcare facilities.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HT001521R0119
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: 3M Company
Address: 575 W MURRAY BLVD, MURRAY, UT, 84123
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,017,445
Exercised Options: $24,960,856
Current Obligation: $24,179,492
Actual Outlays: $13,951,411
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F098GA
IDV Type: FSS
Timeline
Start Date: 2021-09-30
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-09-30
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