VA-Oracle Health EHR contract ceiling hits $26.9B

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The U.S. Department of Veterans Affairs has raised the ceiling on its Oracle Health EHR contract to $26.9 billion, according to an award notice published Aug. 19 on SAM.gov.

The VA awarded the modification, valued at $16.9 billion, on Aug. 18. That amount is added to the contract’s original $9.99 billion ceiling, set when VA awarded the sole-source deal to Cerner Government Services, now Oracle Health Government Services, in May 2018.

Becker’s reported Aug. 12 that VA planned to expand the contract past its roughly $10 billion ceiling, citing a FedScoop report and contracting documents that did not disclose a specific dollar figure.

The modification adds three one-year optional ordering periods, extending the contract’s period of performance to May 16, 2031. It does not change the scope of work, which covers program management, EHR deployment, training, testing, hosting and sustainment.

VA has deployed the Oracle Health EHR to 14 sites as of July, with 36 more scheduled to go live through January 2028. The agency has said 120 sites remain outside the current deployment schedule.

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