In advance of replacement solution, DHA PEO DHMS awards ABACUS maintenance contract to GDIT

Notice ID: HT0038-25-R-XXXX
Department/Ind. Agency: DEPT OF DEFENSE | DEFENSE HEALTH AGENCY (DHA)

The Defense Health Agency Contracting Activity (DHACA), on behalf of the Program Executive Office, Defense Healthcare Management Systems (PEO DHMS), intends to issue a sole source order to General Dynamics Information Technology (GDIT) for the sustainment and decommissioning of the Armed Forces Billing and Collection Utilization Solution (ABACUS). ABACUS is a cloud-hosted Software as a Service (SaaS) providing billing and collection capabilities to Military Treatment Facilities (MTFs) in support of the Department of Defense (DoD)’s financial management and healthcare operations.

The replacement for ABACUS is currently in development, and the new task order will ensure the continued operation, maintenance, support, and transition to the new solution. The task order is planned for a six-month base period with two additional six-month option periods. GDIT, as the incumbent provider, is critically positioned to sustain essential billing functions during this transitional period, preventing significant disruptions to the Military Health System’s operations.

Please refer to the attached Justification & Approval for further details.

Primary Point of Contact: Sharjeel Javaid | sharjeel.j.javaid.civ@mail.mil


The ABACUS is a cloud- hosted Software as a Service (SaaS) that has been providing billing and collection capabilities to Military Treatment Facilities (MTFs) since its inception. Over the years, ABACUS has undergone various configuration, updates and enhancements to ensure its continued relevance and effectiveness in supporting the Department of Defense’s (DoD) financial management and healthcare operations. As part of the ongoing efforts to modernize and improve the DoD’s healthcare information technology infrastructure, the ABACUS replacement is being developed to succeed the existing solution. This background sets the stage for the continued operations, maintenance, and support of the existing ABACUS SaaS, as well as the phase-out and transition to the new solution, and ultimately, the decommissioning and sunset of the legacy system by February 2027.

ABACUS is Mission Essential Acquisition Category III Program within the DoD, developed to offer the Services’ Uniform Business Offices (UBOs) a standard, best practice approach for billing, collections, and reporting of medical services across DoD MTFs worldwide. ABACUS serves as the primary source of financial information for accounting Services’ UBO receivables within MTFs.

As a proprietary commercial off-the-shelf (COTS) software, ABACUS has been uniquely configured under the direction of UBO functional representatives to meet various DoD specific requirements, ranging from infrastructure, cybersecurity to integration. These configurations ensure ABACUS effectively addresses the financial management and healthcare operational needs of MTFs across the DoD.

Hence, maintaining the current ABACUS configuration through a sole-source task order with GDIT until its’ phase-out is crucial for avoiding service disruptions and managing costs effectively. The ABACUS solution will be phased out once the Outpatient Pharmacy Billing (OPPB) initiative is successfully integrated into the MHS GENESIS Revenue Cycle interface, which is currently being developed under the ‘Blueberry PIE’ task order HT003818F0001 of IDIQ N0003915D0044. GDIT is expected to continue providing ABACUS functionality, while efficiently planning and executing the phase-out and transition of ABACUS to OPPB.

With the current task order HT003824F0020 set to expire on July 31, 2025, the Government intends to issue a sole source Firm-Fixed-Price (FFP) General Services Administration (GSA) task order to GDIT for the sustainment and sunsetting of ABACUS. The new task order is planned for a six-month base period and two six-month optional periods to ensure sustainment and decommission activities occur by or before February 2027.




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