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What You Should Know
- The Department of Veterans Affairs (VA) proposed a major contract modification to its Electronic Health Record Modernization (EHRM) agreement with Oracle Health, raising the contract ceiling by nearly $17B from almost $10B to approximately $27B, according to FedScoop.
- The contract modification documents cite “unanticipated complexities” and extensive site-specific customizations that depleted the initial contract ceiling ahead of schedule, with remaining funds projected to be exhausted by Q1 FY2027.
- The modification adds three one-year firm-fixed-price optional ordering periods, extending the potential period of performance from May 2028 through May 16, 2031, aligning with the VA’s target for enterprise-wide completion across all 164 VA Medical Centers.
- The contract scope remains focused on enterprise EHR software, deployment waves, data conversion, interface testing, clinical and role-based training, and ongoing post-go-live sustainment.
- On the legislative front, the House-passed FY2027 Military Construction and Veterans Affairs appropriations bill allocates $3.4 billion toward EHRM, following an agreed renewal of collaboration between the VA and Oracle Health.
