Overview
- The VA posted a $16.9 billion contract modification that raises the Oracle Health EHR ceiling from about $10 billion to roughly $26.9 billion and adds three one-year option periods.
- The modification does not change the work required but extends contract performance through May 16, 2031 to cover deployment, training, testing, hosting and sustainment costs.
- VA cited unanticipated deployment complexities and extensive site-specific customizations as the reason it reached the prior ceiling sooner than planned.
- Deployment progress remains limited with 14 sites live, 36 more scheduled to go live through January 2028, and about 120 VA sites not yet on the deployment schedule.
- Congressional funding for FY2027 is uncertain because the House bill would provide $3.4 billion for the program but that funding is not included in a Senate continuing resolution, which could affect future work and schedules.