In a contract modification issued in December 2015, the Defense Department added data-hosting services to its $4.3 billion electronic health record contract. DOD awarded Cerner, the health IT vendor on the winning team led by Leidos, a $50.7 million sole-source add-on to provide data hosting, despite objections from IBM, Computer Sciences Corp, Amazon and General Dynamics.
According to documents approved by Pentagon Contracting Officer Matthew Hudson, data from the new system must be hosted in Cerner’s data centers “to enable the full functionality” of the Defense Healthcare Management Systems Modernization EHR.