VA-Oracle EHRM contract ceiling raises to nearly $27 billion
An electronic health records modernization contract between the Department of Veterans Affairs and Oracle is getting a nearly $17 billion boost, according to an award notice posted Wednesday.
The massive contract to overhaul how the department tracks health information for veterans will raise its current almost $10 billion ceiling to nearly $27 billion, the notice said and the VA confirmed.
This new estimated value is “based on historical work executed to date, the standard deployment model, and all other requirements necessary to deploy and sustain the EHR under the approved accelerated deployment schedule, which is required to meet VA requirements and Veteran’s needs,” proposed contract modification documents released last week said.
“Due to unanticipated complexities in deploying this system, extensive site-specific customizations, as well as the other factors … VA has reached the current contract ceiling sooner than originally planned,” the documents said. “VA anticipates using the remaining ceiling by the first quarter of fiscal year 2027 and thus requires an increase.”
The modification would not make any changes to the nature of the work, the documents said, and would add three one-year firm-fixed-price optional ordering periods, allowing for the contract to extend to May 16, 2031. The contract includes the enterprise EHR system, training, testing, deployment, sustainment and other requirements.
“Building upon the Trump Administration’s successful deployment of VA’s new electronic health record system at several VA facilities, VA and Oracle Health agreed earlier this month to renew their collaboration,” VA spokesperson Quinn Slaven previously said in an emailed statement to FedScoop.
While not included in the continuing resolution passed by the Senate earlier this month, the House-passed fiscal 2027 Military Construction and Veterans Affairs appropriations bill would give $3.4 billion for EHRM.
