DoD's $335M MHS Genesis Program Management Contract Awarded to Leidos, Inc
Contract Overview
Contract Amount: $334,915,694 ($334.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-07-29
End Date: 2022-07-28
Contract Duration: 364 days
Daily Burn Rate: $920.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: PROGRAM MANAGEMENT, ENTERPRISE SUSTAINMENT, AND LICENSE MANAGEMENT FOR MHS GENESIS.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $334.9 million to LEIDOS, INC. for work described as: PROGRAM MANAGEMENT, ENTERPRISE SUSTAINMENT, AND LICENSE MANAGEMENT FOR MHS GENESIS. Key points: 1. Leidos, Inc. secured a significant contract for MHS Genesis program management. 2. The contract focuses on enterprise sustainment and license management. 3. This award falls under Computer Systems Design Services, a key IT sector. 4. The $335M value indicates substantial investment in healthcare IT infrastructure.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) pricing structure is common for complex IT projects. Benchmarking against similar large-scale IT sustainment contracts suggests the pricing is within a reasonable range, though detailed cost breakdowns would be needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense health IT systems.
Public Impact
Enhances the operational capabilities of the MHS Genesis electronic health record system. Supports the sustainment and ongoing development of a critical military healthcare platform. Impacts the efficiency and effectiveness of healthcare delivery to service members and veterans. Ensures continued access to vital health data for medical personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPFF contract type.
- Vendor lock-in risk for future sustainment phases.
- Dependence on a single vendor for critical system management.
Positive Signals
- Awarded through full and open competition.
- Addresses a critical need for healthcare IT modernization.
- Significant investment in improving military healthcare services.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending benchmarks for enterprise IT sustainment contracts of this magnitude are typically in the hundreds of millions, aligning with the awarded value.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Larger prime contractors like Leidos often subcontract portions of their work, potentially creating opportunities for small businesses down the line.
Oversight & Accountability
The Department of Defense's Defense Health Agency is responsible for overseeing this contract. Robust oversight is crucial to ensure performance, manage costs, and achieve the program's objectives effectively.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Sole-source potential for future contract modifications or extensions.
- High dependency on a single vendor for critical system sustainment.
- Cybersecurity risks associated with managing sensitive health data.
- Potential for scope creep in enterprise sustainment.
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 $334.9 million to LEIDOS, INC.. PROGRAM MANAGEMENT, ENTERPRISE SUSTAINMENT, AND LICENSE MANAGEMENT FOR MHS GENESIS.
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 $334.9 million.
What is the period of performance?
Start: 2021-07-29. End: 2022-07-28.
What is the projected long-term cost of ownership for MHS Genesis, considering sustainment and future upgrades?
The long-term cost of ownership for MHS Genesis is a critical consideration beyond this initial award. It will depend on factors like the complexity of future upgrades, the efficiency of ongoing sustainment efforts by Leidos, and potential changes in technology. A comprehensive total lifecycle cost analysis is necessary to fully understand the financial commitment.
What are the key performance indicators (KPIs) used to measure the success of Leidos's program management and sustainment efforts?
Key performance indicators likely include system uptime and availability, response times for issue resolution, successful deployment of updates and patches, user satisfaction ratings, and adherence to security protocols. The Defense Health Agency would establish specific, measurable, achievable, relevant, and time-bound (SMART) KPIs to ensure the contractor meets performance expectations.
How does the MHS Genesis program contribute to interoperability with other healthcare systems, both within the DoD and potentially with civilian providers?
The MHS Genesis program is designed to improve interoperability by providing a unified electronic health record. Its success hinges on its ability to seamlessly exchange data with other DoD systems and, where appropriate, with civilian healthcare providers through standardized interfaces like HL7. This interoperability is crucial for comprehensive patient care and data continuity.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer 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: COST PLUS FIXED FEE (U)
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: $334,915,694
Exercised Options: $334,915,694
Current Obligation: $334,915,694
Actual Outlays: $36,202,415
Subaward Activity
Number of Subawards: 78
Total Subaward Amount: $187,000,964
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: 2021-07-29
Current End Date: 2022-07-28
Potential End Date: 2022-07-28 00:00:00
Last Modified: 2025-06-30
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