Department of Defense Healthcare Management System Modernization

The Department of Defense Healthcare Management System Modernization (DHMSM) is a Priority Defense Business System acquisition program focused on modernizing the Military Health System's electronic health record capabilities. The program's centerpiece is MHS GENESIS, an integrated electronic health record system being deployed across military treatment facilities, including sites serving the Army, Air Force, Navy, Coast Guard, and National Guard/Reserve components. This enterprise-wide modernization effort aims to standardize healthcare delivery, improve interoperability, and enhance clinical capabilities across the Department of Defense's medical network.

Contract awards under this program typically range from small purchases of under $100,000 to large enterprise service delivery orders exceeding $300 million, with performance periods generally spanning 12-36 months. Leidos, Inc. serves as the primary systems integrator, receiving numerous fixed-price incentive and cost-plus delivery orders for deployment services, product improvement engineering, and enterprise sustainment. Other significant prime contractors include Cherokee Nation Operational Solutions for deployment support services and Katmai Health Services for clinical staffing. Major subcontractors frequently include Cerner Corporation, Accenture Federal Services, Henry Schein, and various specialized healthcare IT firms. The Defense Health Agency is the primary funding agency, with work typically performed in Herndon, Virginia, military treatment facilities nationwide, and contractor facilities. While most large awards have no set-aside designation, some smaller contracts utilize 8(a) and small business set-asides.