HT003826SC00X ESSNext CSO DRAFT.pdf

1. Agency Name

Defense Health Agency (DHA)

2. Issuing Acquisition Office

Defense Health Agency, Defense Healthcare Management Systems - Contracting Division (DHMS-CD) in support of the Program Executive Office (PEO) – Defense Healthcare Management Systems (DHMS).

3. CSO Title

Enterprise Support Services (ESS) Next

4. Announcement Type

Commercial Solutions Opening (CSO)

This announcement establishes the general competitive procedures the Government will utilize to award FAR-based contracts to deliver innovative commercial solutions pertaining to the General Scope and Areas of Interest defined below.

5. CSO Number

HT003826SC00#

6. Overview

Program Executive Office Defense Healthcare Management Systems (PEO DHMS) Architecture and Service Excellence team currently manages a test infrastructure that utilizes a combination of an on-premises data center and an offsite lab facility. This environment provides the infrastructure and physical lab space necessary to support a range of programmatic and enterprise needs, including:

Development, integration, and test environments, as needed, for Defense Health Agency (DHA) programs and interests.

A software testing pipeline for three client products for a key program.

Physical lab space for hands-on testing of several dozen client devices and peripherals for 2 of our 3 major programs.

Hosting and infrastructure support for enterprise-wide project management and systems engineering management tools.

Problem Statement

A recent current state analysis of operational use cases, facility utilization, and resource footprint has identified significant opportunities to reduce cost and improve efficiency across PEO DHMS's test infrastructure (see the Current State Analysis [Attachment 1]).

The current contract provides operational support, but no single entity is accountable for the performance, cost efficiency, or optimization of the environment as a whole. The government relied on a decentralized model in which individual programs were allocated infrastructure resources and assumed responsibility for their own configuration and management. While this provided initial flexibility, the absence of centralized governance led to uncoordinated growth that now significantly exceeds operational demand. The government also deferred several hardware refresh cycles, resulting in aging infrastructure with increasing maintenance burden.

The result is an environment where the government is paying for capacity it does not use, programs are diverting technical personnel from product delivery toward infrastructure administration, and costs are disproportionate to the value delivered. The government lacks the transparent utilization and cost data needed to validate that spending is aligned with mission requirements.

These inefficiencies are structural and cannot be resolved through improved management of the existing contract alone. Therefore, the purpose of this CSO is to acquire innovative commercial solutions to solve the problem statement. The solutions must introduce new technologies, processes, or methods to improve efficiencies.

This CSO is authorized under 10 U.S.C. § 3458 as implemented through Revolutionary DFARS Overhaul Subpart 212.70 to facilitate the acquisition of innovative commercial items, technologies, or services through a general solicitation process. "Innovative" is defined in Revolutionary DFARS Overhaul Subpart 212.7001 as:

1. Any technology, process, or method, including research and development, that is new as of the date of submission of a proposal; or

2. Any application that is new as of the date of submission of a proposal of a technology, process, or method existing as of such date.

7. General Scope

The primary purpose of this CSO is to solicit proposals for innovative commercial solutions that introduce new processes, methods, or technologies to address the problem statement. Proposed solutions must represent a new or significantly improved way of performing functions.

8. Solutions

Proposed innovative solutions must contribute to the mission of PEO DHMS or its subordinate program offices in one or more of the following areas:

1. Operations: Introducing novel processes or implementing new technologies designed to enhance operational efficiency and effectiveness.

9. Goals

This CSO seeks innovative solutions that achieve one or more of the following goals, which align with the mission of PEO DHMS:

1. Optimized and Consolidated Infrastructure and Facilities

Delivery of modernized infrastructure and consolidated physical facilities (if needed) that are secure and efficient. The solution should address challenges posed by aging hardware, inefficiencies, and an oversized physical and virtual footprint.

The approach must account for the distinct operational requirements across the PEO DHMS enterprise:

JOMIS: Preserving the high-fidelity, hardware in the loop capabilities required to simulate Disconnected, Intermittent, and Low-bandwidth (DIL) tactical environments. This includes preserving the ability to test physical device handshakes and determining whether these capabilities should remain in a centralized on-premises lab or be migrated to specialized edge-testing nodes.

DHMSM: Exploring innovative options to reduce centralized lab space currently required for testing enterprise medical devices and peripherals. The solution should explore shifting these physical workloads to alternative, cost effective hosting and testing methodologies such as virtualized environments, Medical Treatment Facilities (MTFs), or other innovative approaches that achieve a measurable footprint reduction.

The approach should evaluate and implement the appropriate mix of on-premises, cloud-native, or hybrid architectures to achieve a right-sized environment.

2. Enterprise Platform Governance and Cost-Effective Service

The service delivery model is transformed from providing a digital workspace that tenants configure to delivering a governed, cost-effective platform service. This platform supports the standardization, consistency, scaling, and cost-effectiveness of development, integration, test, and pre-production environments.

To enhance tenant experience and reduce wait times, the solution should prioritize automated provisioning and self-service capabilities governed by strict enterprise architectural and security guardrails. Licensing across the ESS portfolio, including both enterprise and program-level tools, is continuously rationalized to eliminate redundancy and optimize cost at each renewal or procurement decision. The solution should provide stakeholders with clear visibility of how environments are managed and optimized. The end-state includes Total Cost of Ownership (TCO) reduction, consistent service quality, and operational transparency. Note on TCO: Offerors must account for the total Government cost impact when proposing solutions, as TCO includes the contractor’s Firm Fixed Price cost, Government funded Life Cycle Cost Estimate (LCCE) components, and Government funded Amazon Web Services (AWS) infrastructure costs.

3. Cybersecurity and Authorization Accountability

The environment maintains continuous authorization status across all associated security packages, with demonstrable progression toward Zero Trust maturity.

The offeror is accountable for the cybersecurity posture of the environment, including security control implementation, vulnerability management, incident response, and active coordination with the Cyber Security Service Provider (CSSP) and the DHA Cyber Operations Center (CyOC). The end-state includes continuous authorization currency, timely vulnerability remediation, and Zero Trust milestone achievement.

*NOTE: The following two outcomes are included as options to be exercised after contract. The timing of these outcomes is dependent on other contracts ending to ensure uninterrupted operations. Unpredictable schedule shifts on other contracts make it impossible to determine when these services will be incorporated via an optional line item.

4. Integrated and Efficient Testing and Validation Services

Developmental Testing and Evaluation (DT&E) and Independent Verification and Validation (IV&V) services are provided to ensure the delivery of high-quality products that meet mission requirements. The solution features a 'Shift-Left' testing methodology, integrating testing oversight directly into the agile sprint.

Testing services establish the framework to expand and validate complex, cross-program data integration (e.g., ensuring interoperability between DHMSM, JOMIS, and EIDS). The solution establishes robust Test Data Management (TDM) processes, utilizing anonymized sensitive clinical data and synthetic data governed by clear business rules, to deliver fully staged, production-representative test environments on demand. Furthermore, the approach includes specific, achievable automation targets designed to progressively increase the percentage of automated test execution from the current baseline.

During the Modernization phase, the platform provides the capability and operational framework necessary to potentially expand this governance into Development and Integration environments.

5. Enterprise Tooling and Operational Support to Enable Product Delivery

Enterprise development, test management, and collaboration platforms within the ESS environment are operationally managed and continuously optimized to support program delivery. Redundant tooling capabilities are rationalized, separately-managed instances are consolidated, and program-managed tooling are migrated to Software Development Lifecycle Next (SDLCNext) as the enterprise standard. SDLCNext is fully operational and consistently managed across its complete scope, supporting standardized processes, integrated workflows, and unified reporting across all programs. Rationalization, consolidation, and migration of separately-managed tooling instances are concentrated in the early periods of performance; SDLCNext operations and continuous optimization span the full period of performance. Enterprise tooling is conformed to Government-owned, open-standard, or successor-portable forms during the base period; conformance is sustained throughout the period of performance.

10. Evaluation Process and Methodology

This is not a Request for Information (RFI). Submissions responding to this CSO will be evaluated in accordance with the competitive procedures established herein.

The Government will utilize an interactive, multi-phase evaluation process to seek, assess, and award contracts for innovative solutions. This CSO process is conducted under the authority of 10 U.S.C. § 3458 as implemented through DFARS Subpart

212.70 and will leverage the flexible, simplified procedures appropriate for acquiring commercial products and services. Communication is encouraged throughout the process.

There are no restrictions on who may submit a response. One, multiple, or no awards may result from this CSO.

Evaluation Factors for Award

The Government will evaluate the following factors, which are of equal importance:

Factor 1: Advancement: The proposed solution must be creative and forward-thinking. The Government desires more than the status quo; solutions that do not represent a meaningful improvement will be ineligible for award.

Factor 2: Solution Efficacy and Outcomes: The proposed solution delineates specific, measurable outcomes that define success. The proposal clearly links these outcomes to the proposed pricing structure.

Factor 3: Technical Approach and Adaptability: The credibility of the proposed technical approach for achieving the stated outcomes. The solution must include a clear mechanism for adjusting to unfavorable circumstances in real time without requiring additional Government funding, demonstrating an understanding that continuous adjustment is a necessary part of performance.

Factor 4: Price (Phase 2 Only): The Government will, at a minimum, evaluate the proposed price to determine whether the awarded price is fair and reasonable.

11. Submission and Evaluation Phases

Our process is a rapid, competitive funnel designed to accelerate a path to award. We anticipate many initial submissions but will only invite a select few offerors to subsequent phases.

a. Phase 1: Solution Paper

The entry point is a concise written solution paper. The solution paper shall not exceed five (5) written pages. Alternatively, the solution paper may take the form of briefing slides which should not exceed (15) slides. The Government is not providing detailed limitations on formatting, but Offerors should consider that to review slides the Government may print them on standard 8 ½ x 11 pages. Text that is difficult to read in that format may not be reviewed. The Government does not have to review any pages beyond these limitations but may if it is in the best interest of the Government.

Content shall include the following:

1. Cover Page (does not count against page limit)

Company Name, System for Award Management (SAM) Unique Entity Identifier (UEI) Number, Commercial and Government Entity (CAGE) number, Title, Date, Point of Contact Name, E-Mail Address, Phone, and Address. Specifically identify the Individual Program Requirement Notice for which the proposal is submitted.

2. Solution Concept

Describe the solution, including but not limited to, how the solution addresses the goals found in Section 9.

Explain how the proposed solution is creative, forward-thinking, and will be a meaningful improvement over the status quo.

Describe the proposed solution’s specific, measurable outcomes that define success. Identify what tangible results, and recommended deliverables, will be delivered and how the outcomes will be linked to the pricing structure (although note that a pricing proposal is not requested at this stage).

Explain how the solution will continually adjust to unfavorable circumstances in real time.

Include a Rough Order of Magnitude (cost) for the solution.

Note: The Government anticipates acquiring the technical data customarily provided with a commercial product, service or process except for data described in DFARS 227.7102.

4. Attachment: Terms and Conditions (does not count against page limit)

To the extent the solution will be subject to terms and conditions, include those as an attachment. These may include, for example, software licenses (e.g., end user license agreements) or commercial services agreements.

5. Attachment: Organizational Conflict of Interest (OCI) Mitigation Plan (does not count against page limit)

To the extent your organization or any organization you contemplate as a subcontractor in your proposal has an actual or apparent OCI, attach the description of the OCI and the OCI mitigation plan.

The Government may ask questions concerning the solution papers at any point during this Phase.

Submissions for Phase 1 are due NLT XXXXCST on XXXXXX 2026 to the Contracting Office via email at j.r.oliver.civ@health.mil and krystal.m.mason2.civ@health.mil. The Government is under no obligation to timely review submissions that arrive after this date and time.

b. Phase 2: Proposal

If the Government is interested in the proposed solution, the Government may select any number of offerors and request a proposal to include at a minimum, a contractor drafted Performance Work Statement and pricing. Details on the content and format will be provided as part of the request. Note that the Government is only authorized to make fixed-priced type contracts; no level of effort or labor hour contract awards will be made.

The Government anticipates at least one collaborative session with selectees at this phase to address questions, assumptions, etc. The Government may ask questions concerning proposals at any point during this Phase. This is not a formal presentation, but collaboration to refine project specifics, metrics, outcomes, pricing, terms and conditions, and contract structure. This phase serves as mutual due diligence to de-risk the project.

Phase 1 and 2 selections are made under broad agency discretion.

The due date and time for Phase 2 proposals will be given to offerors who are selected for Phase 2.

c. Phase 3: Award

Offerors whose proposals successfully align with the Government's objectives during Phase 2 may be selected for a contract award. For those not selected, the Government will provide feedback where possible. Awards will be fixed-priced type contracts based on the delivery of tangible results, not levels of effort or labor hours. Contracting Officers (COs) shall treat items, technologies, and services acquired using this CSO as commercial items.

12. Overarching Terms and Conditions

1. FAR/DFARS requirements pertaining to Organizational Conflicts of Interest will apply to awards issued under this CSO. Offerors are directed to Revolutionary FAR Overhaul Subpart 9.5 for information pertaining to Organizational Conflicts of Interest.

2. Successful offerors under this CSO will be required to cooperate as part of the larger DHMS team, including with a diverse array of other contractors.

3. Contractors under this CSO will be required to submit the appropriate cost data reporting and performance monitoring data as delineated in any award document. This will likely require disclosure of sensitive data to other support contractors. These support contractors have strict non-disclosure and non-compete clauses with the Government and are required to execute the same with CSO awardees at their request.

4. Contractors under this CSO are likely to require privileged IT and security clearance access.

5. Contractors under this CSO are likely to be subject to “no foreign nationals” restrictions in certain roles.

6. Personally Identifiable Information and Protected Health Information are likely to be encountered, and the appropriate HIPAA compliance, training, and Business Associate Agreements will be required as applicable.

7. As is standard commercial practice for competitive opportunities, all costs associated with proposal preparation and submission are the sole responsibility of the offeror.

13. Potential Awards

Under the authority of 10 U.S.C. § 3458 as implemented through Revolutionary DFARS Overhaul Subpart 212.70 contracts awarded under this authority are considered competitive awards because this CSO’s procedures are the general competitive procedures required under 10 U.S.C. § 3458(b).

14. Anticipated Awards: Multiple awards may be issued resulting from this solicitation.

15. Contracting Points of Contact: The CO is the sole point of contact for this acquisition. Offerors shall address any questions or concerns they may have to the CO.

Written requests for clarification may be sent to the CO and Contract Specialist at the e-mail addresses listed below:

Contracting Officer: J.R. Oliver, j.r.oliver.civ@health.mil

Contracting Specialist: Krystal Mason, krystal.m.mason2.civ@health.mil