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The Pentagon on Wednesday awarded a $4.3 billion contract to modernize its health-records system to a team led by Leidos Holdings Inc. and Cerner Corp., the biggest federal information-technology project since the troubled rollout of the HealthCare.gov insurance exchange in 2013. (Cameron, 7/29)

The award to the Leidos Partnership for Defense Health — which includes Cerner, an electronic-health-records manager; Accenture Federal; and Leidos, a government contractor based in Reston, Va. — was considered an upset among industry experts. Many had predicted that the bid anchored by Epic Systems, considered a titan in the medical-records field, would land the contract. (Brittain, 7/29)

Cerner Corp. is part of a team of health information companies that has snagged a coveted multibillion-dollar contract to overhaul the U.S. military’s electronic health records, the Pentagon announced Wednesday. The victory is a win for Cerner, Kansas City’s fastest-growing large company and one of the top health information technology firms in the country. Cerner partnered with defense technology contractor Leidos, Accenture Federal Services and Intermountain Healthcare in the bid for the $4.3 billion, 10-year defense contract. The Leidos-led team beat out two other partnerships, one of them including Cerner’s major rival, Epic, a Wisconsin-based health IT firm that also is a leading provider of electronic health records technology. (Rosen and Wise, 7/29)

Epic Systems Corp. and IBM Corp. on Wednesday lost their combined bid for a contract initially worth $4.3 billion from the Department of Defense for a new system for electronic health records. A team consisting of Cerner Corp. — Verona-based Epic's largest competitor — along with Leidos Inc., a military information technology contractor, and Accenture Federal Services was awarded the contract. (Boulton, 7/29)