The Department of Defense has narrowed the bids for the $11B DoD EHR Modernization Project to three finalist teams, which include EHR vendors Allscripts, Cerner and Epic. PricewaterhouseCooper’s bid with Google, DSS, Inc., MedSphere Open Source EHR and systems integrator General Dynamics Information Technology was eliminated by the DoD, according to Politico. Also, the smaller team Intersystems Trak Care was eliminated from the competition.
A posting to FBO.gov, confirmed the DoD was informed the competing teams whether they’d made it to “competitive range,” the last stage of the bid competition. After sending notifications to the finalists, the DoD posted additional requirements online specifically for the teams who have made it to the “competitive range” to respond.
The three finalist teams left in the competition are:
– Allscripts, Computer Sciences Corporation (CSC), Hewlett-Packard (HP)
– Cerner, Accenture Federal Services, Leidos
– Epic, IBM Corp, Impact Advisors (with help from a 17 person advisory group with leading providers)
With 9.7 million beneficiaries, including active duty, retirees and their dependents, DHMSM will replace and modernize the Military Health System (MHS) clinical systems. The ten-year contract is expected to be awarded by this summer.
Update 7/29/15
On Wednesday afternoon, the Department of Defense announced it has awarded Cerner, Leidos and Accenture Federal Service with DoD EHR Modernization contract. The DoD EHR contract valued at over $4.33 billion will serve 55 hospitals and 600 clinics and must be interoperable with other EHRs.
The total cost of ownership is estimated at $9 billon over its projected 18-year life cycle, according to Frank Kendall, undersecretary of defense for acquisition, technology and logistics.The awarded EHR contract has an initial two-year ordering period, with a pair of three-year option periods, and a possible two-year award term. This could bring the total contract period to 10 years; however, only one-third of the contract will be for a fixed amount. The rest will be on a “cost plus” basis , which is typically common with the Department of Defense.
