Leidos Wins $318 Million MHS GENESIS Bridge Contract with Defense Health Agency

Leidos has received a $318 million firm-fixed-price contract from the Defense Health Agency to continue system reintegration, software licensing and hosting for MHS GENESIS, the military’s electronic health record. The sole-source bridge is intended to keep the system operating as the agency transfers work to other contractors and establishes direct relationships with software providers. The stated performance period runs from July 29, 2026, through Jan. 28, 2028, with work performed in Reston, Virginia.

MHS GENESIS Bridge Details

Leidos will continue connecting and maintaining the software components and interfaces that allow MHS GENESIS to exchange data across its clinical systems. The agency’s bridge notice describes integration work spanning system engineering, testing, cybersecurity, database administration and technical optimization. That work supports an electronic health record used by military treatment facilities worldwide while the agency prepares to assign discrete capabilities to other contractors.

The bridge also covers access to the commercial software and subscriptions that make up MHS GENESIS, along with hosting services. Leidos currently manages enterprise software licenses under the existing arrangement; the agency plans to move certain licenses and subscriptions into direct agreements with their providers. Hosting spans on-premises and cloud environments, and the notice says Oracle cloud hosting will remain under the bridge until a direct government relationship can be established.

Leidos will document sustainment procedures, system configurations and interfaces so incoming contractors can assume responsibilities without interrupting operations. The planned handoff includes technical collaboration and knowledge transfer as new vendors come aboard. According to the agency’s sole-source justification, Leidos’ scope will decrease during the first 12 months as those transfers proceed.

MHS GENESIS Background

MHS GENESIS combines inpatient, outpatient and dental records in a common system intended to support care across military facilities and federal partners. The agency’s justification describes a platform with 12 major subsystems, more than 81 interfaces and over 1,000 endpoints, processing at least 20 million messages a day. It says the system serves more than 191,000 users and 9.6 million beneficiaries. A Defense Healthcare Management Systems fact sheet says deployment is complete, shifting the program’s emphasis toward operating and improving the system.

The agency is also changing how it buys that support. Rather than relying on one lead systems integrator, it plans to contract for separate capabilities and deal directly with solution providers. The bridge is meant to preserve operational continuity while the agency defines those requirements, transfers licenses and hosting responsibilities, and brings additional contractors into the MHS GENESIS environment.

Award and Contractor Background

The Defense Health Agency awarded the bridge on Sept. 28, 2026, after announcing its intent to negotiate with Leidos as the sole source. Its solicitation identified Leidos as the firm with which it intended to negotiate, and the agency cited the company’s knowledge of MHS GENESIS development, integration and sustainment as central to maintaining service during the handoff.

Leidos’ role dates to the July 2015 award to the Leidos Partnership for Defense Health to implement MHS GENESIS. That competitively awarded contract had an announced value of $4.3 billion, according to a Government Accountability Office review. The bridge follows that long-running deployment and support work, but is structured around transferring responsibilities away from Leidos as the agency adopts its new contracting approach.

This award was disclosed by the DoW in its daily press release. Additional contract details will be available on HigherGov in approximately 90 days under HT003826DE014 after the contract is formally disclosed by the government.