Notice ID: HT0038-24-R-0004
MHS GENESIS was fully deployed (see DoDI 5000.75) in March 2024. Maintaining the current on-premises enclave has been challenging due to the sheer size of the system, the continued need to expand the hardware and software footprint to stay ahead of database growth, long lead times to procure expansion hardware, the need for duplicative hardware to support Continuity of Operations/Disaster Recovery (COOP/DR), and the need for touch labor required to physically execute updates. Modernization of the MHS GENESIS architecture, that is, moving from an on-premises solution to a cloud solution, has become necessary to maintain the system within the current contractual performance parameters, keep ahead of the database growth, and provide improved scalability, resilience, reliability, and cyber security. The previous 9 years have shown that these are commonly experienced problems with IT solutions across a wide variety of domains, both in the commercial and public sectors. These factors informed the Government’s decision to move forward with planning for the migration of the on-premises solution to the cloud, and authorization for the COTS vendors to begin the process of ensuring their solutions are “cloud ready.”
In preparation for conducting a fair and open competition at the completion of the current contract, the Defense Healthcare Management System Modernization (DHMSM) Program Management Office (PMO) engaged industry and conducted extensive market research looking to inform its acquisition strategy starting in early 2023 through mid-2024. Industry’s responses underscored the PMO’s concerns about the high-risk nature of transitioning the systems integrator role to a different contractor immediately following full deployment that informed the Acquisition Strategy. Furthermore, industry noted the importance of complete documentation in order to be able to successfully compete the role of systems integrator. In February 2024, the Change Healthcare (CHC-OPTUM) ransomware attack caused the Government to review the state of its documentation amid new security and operational vulnerability concerns.
Based on the above, the DHMSM PEO decided that, before being able to openly compete the role of systems integrator, it is necessary to migrate to the cloud and to create documentation with respect to its processes and procedures and system internal configurations to adequately address and resolve potential vulnerabilities. Thus, the scope of this sole source will include the services associated with migrating to the cloud in addition to the services at a scale and complexity described below which are required to support the MHS GENESIS solution into the continuous support phase as a defense business system. The follow-on contract will also include deliverables for system documentation of its processes and procedures and system internal configurations as well as a requirement to cooperate with a third-party contractor the Government will engage to ensure the creation of understandable and complete documentation.
The incumbent, Leidos Inc., is the only known source with the unique MHS GENESIS development, integration, and sustainment knowledge necessary to seamlessly migrate integration and sustainment responsibilities to the cloud and ensure unfettered support of MHS GENESIS during the migration period.
The Defense Health Agency (DHA), Contracting Division – Defense Healthcare Management Systems (CD-DHMS), intends to award a Firm Fixed-Price IDIQ Contract to Leidos (CAGE: 5UTE2) for providing the following services at a 99% average system availability:
- Software licensing: The contractor shall be responsible for the procurement and management of software licenses for the suite of COTS products that comprise the MHS GENESIS system of systems on premises and in the cloud. The contractor manages the acquisition of these licenses and monitors usage by the DOD and its federal partners to ensure the Government has the appropriate number of licenses and terms for its user base. As part of the migration from an on-premises hosting solution to a cloud-based hosting solution, the contractor shall ensure continued licensing and terms for all COTS products, which are anticipated to change to Software as a Service (SaaS). Note: Because the current contract requires that the licenses are transferable to the Government but does not require transferability to a new prime contractor, interested companies must address their ability to manage the negotiation and transfer of more than 100 software licenses without interruption.
- Hosting: The contractor is responsible for providing all the hosting services. The MHS GENESIS solution uses primarily on-premises hosting and leverages the DOD Information Technology networks, as well as DHA infrastructure to enable communications between the MHS GENESIS solution and the Military Treatment Facilities (MTFs) worldwide. This effort also includes cloud migration for the MHS GENESIS solution.
- System Integration: The contractor is responsible for connecting and maintaining all software products that comprise MHS GENESIS to ensure smooth interaction and data flow. Duties include system/sustainment engineering, testing, cybersecurity/accreditation, system/database administration, and optimization efforts (technical and functional) of the current DHMSM portfolio of products and hardware refresh for solution specific proprietary hardware. The contractor will be required to deliver documentation of its processes and procedures and system internal configurations, among other deliverables, and cooperate with another contractor to develop documentation understandable to a third party. The contractor shall be required to create deliverables addressing processes and procedures and system internal configurations, as well as how it will cooperative with another contractor to develop documentation understandable to a third party.
- Enable New Capabilities: The contractor shall be responsible for enabling new capabilities that are part of the existing MHS GENESIS solution that align with a functional requirement once approved by the EHR configuration steering board (CSB). Following CSB approval of new capabilities that are not part of the current MHS GENESIS solution the contractor shall enable the system integration/system interface for a seamless interaction/data flow. These capabilities may be identified through non-traditional contract mechanisms (e.g., other transactions) or in accordance with the requirements of the Federal Acquisition Regulation. The contract strategy for the specific functional requirement will consider how to leverage competition.
The period of performance for this follow-on contract is dependent upon the completion of the cloud migration, the availability of comprehensible documentation, and time for the Government to properly compete the requirement. The Government intends to leverage an IDIQ in the form of a base year plus option years in order to tailor the period of performance to the shortest time-period needed to satisfy these conditions and then compete the subsequent contract. The Government will also include an individual option contract line item on the IDIQ that will give the Government the unilateral option to extend the period of performance up to nine months, which will allow the Government to retain the incumbent for transition activities should a new prime contractor be selected as a result of full and open competition. Task orders similarly may be issued with a combination of base and option terms to tailor the periods of performance to facilitate competition at the earliest date possible. For planning purposes, the Government is estimating a three-year total effort for a dollar value of $1.131B with a transition option for an additional nine months and $263.34M.
In the best interest of the Government, Leidos, Inc, the incumbent of the current contract, will be afforded the opportunity to continue to provide above mentioned support services. The Government intends to award the contract no later than July 28, 2025.
Be advised that the aforementioned information is anticipatory in nature and is not binding. This notice is not a request for competitive proposals; however, any firm believing it can fulfill the requirement of providing these services may be considered by the Agency. Interested parties shall identify their interest and capabilities in response to this synopsis within 14 calendar days of publication.
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