Updated April 2, 2025
Award for Enterprise Software Services (ESS) Bridge at Defense Health Agency
Notice ID: DHA_04022025
Related Notice: DHA_02112025
The Defense Health Agency Contracting Activity (DHACA), on behalf of the Program Executive Office, Defense Healthcare Management Systems (PEO DHMS), has awarded a firm fixed-price contract to American Systems Corporation (ASC) for DevSecOps platform management, operation of the Medical Enterprise Test Innovation Center (METIC), test infrastructure management, and Software as a Service (SaaS) support. This work supports the development, testing, and deployment of essential software applications and medical devices for PEO DHMS, including MHS GENESIS, Theater Blood, and other critical products.
As the only vendor with the existing infrastructure and integration required to support critical PEO DHMS systems without interruption, ASC was awarded this contract on a sole-source basis. The period of performance for this contract is March 27, 2025 to December 26, 2025 (Base Period), with two 4-month option periods, extending the potential contract performance through August 25, 2026.
ESS Next (Follow-on Contract):
PEO DHMS is actively developing a follow-on contract to replace the existing ESS with a more advanced, agile, and scalable solution.
This follow-on effort is a key component of PEO DHMS’ strategic vision to modernize its enterprise architecture, ensuring that it meets evolving mission requirements while improving cost-efficiency, security, and operational effectiveness. The development of this contract is inherently complex, requiring detailed market research, rigorous requirements definition, and a competitive procurement process aligned with FAR Part 15 standards.
To lay the groundwork for the overall modernization effort, PEO DHMS has conducted market research and stakeholder engagement to evaluate current systems and identify critical gaps. As outlined in Section 8, this research has confirmed that transitioning to a future-state architecture is a multifaceted process requiring substantial time and resources. The updated architecture will focus on the Medical Enterprise Test Innovation Center METIC and the DDC, both of which are foundational to PEO DHMS’ ability to deliver mission-critical services. The future-state architecture is designed to address limitations of the existing on-premise infrastructure and enable a transition to a hybrid cloud-hosted environment, This strategic shift is essential to:
- Reduce Operational Costs: Avoiding expenses associated with underutilized, static infrastructure through scalable, cloud-based resource allocation.
- Enhance Responsiveness and Scalability: Enabling dynamic resource provisioning to handle peak demands while optimizing costs during low-demand periods.
- Ensure Robust Security Compliance: Aligning with DoD cybersecurity mandates mandates through t advanced, automated compliance features inherent in cloud-based systems.
- Streamline Operations through Automation: Achieving efficiency gains by automating provisioning, deployment, and maintenance tasks across the enterprise.
The limitations of the current infrastructure—including its lack of flexibility and high operational costs—are significant risks to PEO DHMS’ mission readiness. The transition to a hybrid cloud-hosted environment mitigates these risks and positions PEO DHMS to deliver services more effectively. PEO DHMS has set a detailed timeline to complete the competitive procurement process for the follow-on contract, known as ESS Next:
- June 2025: Release of the solicitation, including comprehensive performance-based requirements and evaluation criteria.
- July/August 2025: Proposal submission and evaluation, during which vendors will be assessed for their ability to meet detailed requirements.
- December 2025: Award of the ESS Next contract and notification of the selected vendor.
To inform the development of ESS Next, PEO DHMS conducted extensive market research to identify potential sources and shape the acquisition strategy, This research highlighted the necessity of a comprehensive future-state architecture for METIC and DDC, emphasizing a hybrid model for modernized, scalable, and efficient service delivery, The research encompassed the following:
- Expert Interviews (May 2024): PEO DHMS conducted four expert interviews with subject matter experts from leading healthcare organizations and technology companies experienced in large-scale digital transformations. Key findings reinforced the need for a hybrid-cloud approach, robust governance, and a managed service delivery model for successful cloud adoption.
- Site Visits (June 2024- September 2024): PEO DHMS conducted two site visits to Massachusetts General Hospital and Sentara Healthcare to learn best practices from organizations undergoing similar digital transformations and cloud migrations. These visits highlighted the importance of service standardization, dynamic scalability, and cross-functional stakeholder engagement.
Related Data
Defense Health Agency (DHA) ESS Next – Industry Day Announcement and RFI
Added March 26, 2025
American Systems Corp., who has been delivering IT and Engineering solutions to complex national priority programs since 1975, was awarded a $26.7M cost-plus-fixed-fee contract (HT0038-25-C-0005) to provide critical support services to Program Executive Office Defense Healthcare Management Systems (PEO DHMS) and its program offices.
These services encompass DevSecOps platform management, operation of the Medical Enterprise Test Innovation Center, test infrastructure management, and Software as a Service. These efforts directly support the development, testing, and deployment of essential software applications and medical devices for PEO DHMS, including MHS GENESIS, Theater Blood, and other critical products.
This contract was awarded using direct award procedures in accordance with Federal Acquisition Regulation 6.302-1, Circumstances permitting other than full and open competition. Work will be performed in the U.S. with a completion date of Aug. 26, 2026. This award will be funded by fiscal 2025 operations and maintenance funds. The Defense Health Agency, Defense Healthcare Management Systems Contracting Division, Arlington, Virginia, is the contracting activity.
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