Big Data in the Federal Health Sector

Published: October 17, 2024

Federal Market AnalysisBig DataBudgetDHAHHSHealth ITInformation TechnologySpending TrendsVA

Big data priorities in the federal health space include standardization, analytics and interoperability.

Health data modernization, standardization, and interoperability are top priorities for public health agencies. These agencies have long faced challenges in a lack of common data standards and interoperability of health data systems due to certain regulations and the lack of compatibility between propriety systems and modern software applications. The growth in medical devices and smartphone technologies is adding to the need for better data sharing and interoperability. The rise of public health analytics is also dependent on interoperability. The use of Fast Healthcare Interoperability Resources (FHIR)-based APIs and the adoption of Trusted Exchange Framework and Common Agreement (TEFCA) is helping agencies with standardization, though health care organizations and government agencies must continue to implement public health data modernization efforts.

Below is the snapshot of the public health data space in terms of big data contract spending, budget and programs.

FY 2025 Budget

Though the President’s federal budget and IT requests do not separately highlight big data-related programs for federal agencies, several references to data investments can be found within key federal public health organizations. For instance, the VA is requesting $570M for its Enterprise Data Services IT program in FY 2025, which is more than double the $279M in FY 2024.  The Enterprise Data Services program handles VA's information management, data quality strategy, and ensures authoritative source automation across various platforms, products, and regions to enhance system reliability and availability.

At HHS, the CDC requests $60M in FY 2025, a $38M increase over FY 2024 for the Response Ready Enterprise Data Integration Platform (RREDI). Formerly called HHS Protect, FY 2025 efforts for the RREDI platform include efforts to support data sharing between CDC and external partners, training for a data-savvy workforce to operate the platform, and integration with other CDC data, tools and platforms. 

Also at CDC, the agency is requesting $6M in FY 2025 under the Public Health Data Modernization initiative to build the infrastructure necessary to share standardized data across interoperable public and private health delivery systems.

Contract Spending: HHS, VA and DHA

Purchase of big data goods and services increased across all three primary federal health-mission organizations from FY 2021-2023. HHS grew 26% in the three-year period while the VA grew 47% and DHA grew 49% in that time frame. Note that the obligation figures listed below reflect all big data spending at the agencies and are not exclusive to health-IT related programs.

Additional observations:

  • Analytics-related transactions led spending under HHS with $1.5B in the three-year period. Data Management and Integration obligations led spending at the VA and DHA with $145M and $141M, respectively, from FY 2021-2023.
  • CMS and NIH led big data spending under HHS in the FY 2021-2023 time frame with $1.0B each, followed by FDA with $414M and CDC with $296M.
  • COVID-related big data obligations in the three-year period totaled $116M at HHS.
  • Small business awards in big data increased 46% and 43% at HHS and VA, respectively.  Top small business by spending in the three-year period at HHS was with RHO, Inc. Top small business by spending in the three-year period at the VA was with Swish Data Corporation.
  • SEWP V was the lead contract vehicle in big data spending at the VA from FY 2021-2023 with $486M.
  • Small business awards in big data jumped at the DHA, from $66M in FY 2021 to $134M in FY 2023. The increase in spending is driven by a task order with Aktarius, LLC to sustain the DHA database and task orders with Advancia Technologies for financial operations budget data modeling optimization.
  • The GSA Multiple Award Schedule (MAS) led spending under DHA from FY 2021-2023 with $27M, followed by OASIS SB with $21M and SEWP V with $21M.

Sample Programs

Moving forward, these federal public health agencies will continue with data modernization efforts. The following is a sampling of some of those programs.

  • Data and Analytics Integrated Modernization and Operations (DAIMO) at the VA: The DAIMO procurement requires the development of data management platforms to consolidate and support product engineering services for data and analytics programs.
  • Enhancing MHS Genesis at DHA: With the deployment of the MHS Genesis electronic health record system, DHA is now focused on optimizing capabilities on the system. The agency is focused on a care delivery platform to connect data and combat environments back to MHS Genesis for deployment next year, according to Dr. Yvette Weber at DHA.

For more information on the federal big data environment, refer to Deltek’s upcoming Federal Big Data Market, 2024-2028 report, set to publish at the end of this month.