Medical Q-Coded Support and Services - Next Generation

The Defense Health Agency awarded Medical Q-Coded Support and Services - Next Generation (MQS2-NG), a Master IDIQ, on May 1, 2024, with ordering authority extending to May 31, 2029. The shared ceiling is $43 billion across an unrestricted, multiple-award vehicle serving medical staffing and support services for military medical treatment facilities.

The vehicle remains active with 2 years 10 months of ordering authority remaining. Ordering momentum has accelerated from 13 task orders in 2024 to 26 in 2025; one order has been awarded so far in 2026 (as of March). Of the $495.2 million combined task-order potential value across 40 awards, $153.1 million has been obligated (31%), indicating the vehicle is in mid-execution phase with significant capacity headroom.

Awarded work spans medical coding support (the largest single scope, with enterprise-wide regional backlog initiatives), nursing services (including registered nurses, pediatric ICU, and licensed practical nurses at Naval Medical Center Portsmouth and other Navy and Air Force bases), dental support (hygienists, assistants, and dentists), and specialized clinical roles including medical physicists, physical therapists, and pharmacy technicians. Task orders fund positions ranging from fractional FTE specialists to multi-person clinical teams, with firm fixed-price pricing and durations typically spanning two to five years.

Competition is concentrated. Decypher Health Services, LLC dominates by potential value with 6 orders worth $223.5 million combined; Matrix Providers Inc. and Luke & Associates, Inc. each hold 7 orders ($117.6 million and $72.7 million respectively). These three primes account for roughly 92% of combined potential value. Four additional firms (Dilligas Corp, Spectrum Healthcare Resources, Loyal Source Government Services, and others) hold the remainder.

Customer concentration is extreme: the Defense Health Agency placed 39 of 40 task orders valued at $494.4 million; the Department of the Air Force Air Education and Training Command placed one order for $834 thousand. Ordering is concentrated at Naval Medical Center Portsmouth and subordinate Navy and Air Force medical facilities across CONUS.

All 40 task orders are unrestricted (no set-aside), creating an open competitive environment. Task-order ceilings range from under $1 million for single-specialist roles to $68.3 million for the largest medical coding contract (HT001524D9001-HT940726FE013, awarded March 2026, firm fixed-price, completion November 2027).