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Cerner, Leidos, Accenture Awarded $9B DoD EHR Contract

by Fred Pennic 07/29/2015 Leave a Comment

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DoD EHR Modernization Project_IBM Partners with Epic to Bid on DoD HIM Contract

After an intense bidding war, the Department of Defense 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 winning team was selected over the the remaining finalist teams: Epic Systems and IBM and Allscripts aligned with Computer Sciences Corp. and Hewlett-Packard.

DoD EHR Contract Details

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. 

 

“We’re confident we made a good selection. We want to do minimum modification. We’ll have to discipline ourselves to not ask for modifications,” said Kendall in a statement. 

 

The project is expected to start with the deployment of eight military facilities in the Pacfic Northwest and is expected to go-live by the end of 2016. The entire implementation across the Military Health System is expected to take six or seven years.

 

“This is going to be an event-driven program, dependent on the availability of resources by the military and the contractors. We’re not going to take risks to meet a schedule,” said Kendall. 

 

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