Defense Health Agency Outlines $2 Billion IT Transition Plan

The Defense Health Agency offered new details on a $2 billion initiative to consolidate information technology functions onto a single managed IT services contract, according to details listed in a slide presentation for a Dec. 10 industry day.

The DHA is in the midst of a multi-year effort to take on full ownership of the Military Health System and dozens of medical treatment facilities previously managed by the military services, per congressional mandate. To ease the transition, the DHA is seeking a single Enterprise IT Systems Integrator (EITSI) to assume responsibility for a number of key IT functions, as well as to help the agency standardize processes and run more efficiently.

DHA officials announced that the EITSI competition would be a single-award blanket purchase agreement (BPA) on the General Services Administration’s Multiple Award Schedule, according to an April 2020 notice. Now for the first time, DHA officials have put an official price tag on the EITSI BPA: $2 billion over ten years, according to the December industry day slides.

The briefing also sketched out the details of the first task order planned for the BPA, a $100 million effort to transition six legacy IT contracts onto a common managed services platform. The largest of the six is Perspecta Inc.‘s contract to provide customer support and network management through DHA’s Global Service Center, a task order on CIO-SP3 that has generated $150 million since November 2015. The other five contracts have generated a combined $62 million going as far back as September 2015.

DHA officials will post a draft request for quote through beta.SAM.gov on Dec. 14. Release of the final RFQ will only be to to Multiple Award Schedule holders via GSA’s eBuy portal in January 2021. The agency expects to make an award decision by the end of April 2021, according to a timeline included in the slides. Contracting officials plan to evaluate proposals according to a best value determination weighing bidders’ technical and management approach, strategy for organizational transformation, and pricing.

Using BGOV Tools

Companies interested in an upcoming bid can analyze spending on the predecessor contracts.

• Click here for Perspecta’s $159 million Global Service Center contract
• Click here for KSJ & Associates’ $68 million Program Management and Technical Managementcontract
• Click here for NetImpact Strategies’ $56 million MedCOI Program Management contract
• Click here for Leidos’s $21 million Performance and Planning Management contract
• Click here for STS Systems Integration’s $20 million Data Solutions Architecture SQL Support contract
• Click here for Tuknik Government Services’ $7 million MHS Circuit Management contract

To contact the analyst on this story: Chris Cornillie in Washington at ccornillie@bgov.com

To contact the editors responsible for this story: Daniel Snyder at dsnyder@bgov.com