First set of protests hit $2.4B Defense Health Agency IT contract

Gettyimages.com/Andriy Onufriyenko

Just shy of three dozen other bidders missed out on the multiple-award contract for enterprise IT services, so more protests could follow.

A pair of companies are the first to voice their objections after they were not selected for a $2.4 billion Defense Health Agency enterprise IT services contract vehicle.

In early July, DHA chose six small businesses for the 10-year program known as the Military Health System Enterprise IT Services Geographic Service Provider. DHA is using the multiple-award vehicle to standardize how it buys IT services, help desk and other related work in various geographic areas around the world.

Systems Plus Inc. filed its protest with the Government Accountability Office on July 10 and American Tech Solutions LLC followed on July 13.

Given that there were 39 bidders and only six winners, more protests could be filed as companies receive their debriefings from DHA.

While this is a new contract, it consolidates 111 predecessor contracts and that means there are likely many unhappy incumbents.

MHS EITS GSP is a companion to a $2 billion single-award contract that Peraton booked in mid-2021 after clearing a protest hurdle.

Peraton's award is known the Military Health System Enterprise IT Services blanket purchase agreement. DHA is also using that contract to consolidate IT services support and transition services to the agency's Global Service Center service desk.

DHA is using the contracts to modernize and streamline how it purchases IT products and services.

GAO is likely to decide on the Systems Plus and American Tech protests by around mid-October.