- VA has raised the Oracle Health EHR contract ceiling to $27 billion
- The modification adds nearly $17 billion in potential contract value
- The contract has been extended through May 2031 with additional option periods
The Department of Veterans Affairs has modified its electronic health record modernization, or EHRM, contract with Oracle Health Government Services, raising the contract ceiling by $16.94 billion, according to an award notice published Wednesday on SAM.gov.
What Does the EHRM Contract Modification Include?
The modification, awarded Tuesday, brings the EHRM contract’s total potential value from nearly $10 billion to $27 billion. The indefinite-delivery/indefinite-quantity contract was set to be completed by May 2028, but the modification extends the period of performance through May 16, 2031, with three additional one-year firm-fixed-price option periods. VA’s Technology Acquisition Center in Eatontown, New Jersey, oversaw the action.
The agency said the expanded scope will support enterprise-wide EHR deployment, training, testing, sustainment and related services until all VA medical centers and associated facilities have transitioned to the electronic health record system.
The VA’s EHR rollout highlights the scale of technology modernization underway in federal healthcare. The Potomac Officers Club’s 2026 Healthcare Summit on Dec. 3 will connect government and industry leaders to discuss digital tools, AI, data privacy and other FY27 health priorities. Save your seat today!
The new Federal EHR system has only been deployed to 14 of 164 VA medical centers as of July. The department is still scheduled to deploy the system to multiple VAMCs in 2026, including three in August at Fort Wayne VAMC in Fort Wayne, Indiana; Marion VAMC in Marion, Indiana; and Richard L. Roudebush VAMC in Indianapolis. The system is also set to be deployed at the Alaska VA Healthcare System in Anchorage and the Louis Stokes Cleveland VAMC in Cleveland in October.
Why Did VA Expand the Contract?
VA attributed the expanded ceiling to complexities encountered during deployment, including site-specific customizations, with the new value based on historical work, its standard deployment model and requirements for sustaining the EHR under an accelerated schedule.
The modification follows an earlier SAM.gov notice in which VA said it had reached the existing ceiling sooner than planned, prompting the agency to propose expanding the contract until all transitions are completed.
