VA Awards $98.3M for Wave 3 Deployment of Oracle Health Systems to Alaska and Idaho Facilities

Contract Overview

Contract Amount: $98,331,838 ($98.3M)

Contractor: Oracle Health Government Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-08-04

End Date: 2025-03-02

Contract Duration: 1,671 days

Daily Burn Rate: $58.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: UNDER THIS TASK ORDER, THE CONTRACTOR SHALL CONDUCT WAVE 3 DEPLOYMENT ACTIVITIES FOR THE FOLLOWING VISN 20 SITES AND ASSOCIATED FACILITIES: ANCHORAGE VA MEDICAL CENTER (VAMC), AND BOISE VAMC.

Place of Performance

Location: KANSAS CITY, WYANDOTTE County, KANSAS, 66111

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $98.3 million to ORACLE HEALTH GOVERNMENT SERVICES, INC. for work described as: UNDER THIS TASK ORDER, THE CONTRACTOR SHALL CONDUCT WAVE 3 DEPLOYMENT ACTIVITIES FOR THE FOLLOWING VISN 20 SITES AND ASSOCIATED FACILITIES: ANCHORAGE VA MEDICAL CENTER (VAMC), AND BOISE VAMC. Key points: 1. Significant investment in critical healthcare IT infrastructure for Veterans. 2. Sole-source award to Oracle Health raises questions about competition and potential cost savings. 3. Long-term contract (2020-2025) indicates a substantial commitment to this system. 4. Focus on specific VISN 20 sites highlights targeted deployment strategy.

Value Assessment

Rating: questionable

The contract's value of $98.3M for computer systems design services is substantial. Without comparable sole-source contracts or detailed cost breakdowns, assessing its pricing against similar deployments is difficult. The lack of competition inherently limits price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This method can lead to higher prices as it bypasses the competitive bidding process that typically drives down costs.

Taxpayer Impact: The sole-source nature of this award may result in taxpayers paying a premium compared to a competitively bid contract, potentially impacting the overall value for money.

Public Impact

Improved healthcare delivery for Veterans at Anchorage and Boise VAMCs. Potential for enhanced efficiency and data integration within the VA healthcare system. Long-term reliance on Oracle Health for critical IT functions. Concerns about the lack of competitive pricing for a significant federal contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
High contract value
Long contract duration

Positive Signals

Supports critical VA healthcare infrastructure
Specific site deployment

Sector Analysis

This contract falls under Computer Systems Design Services (NAICS 541512), a sector crucial for modernizing government IT infrastructure. The benchmark for such services varies widely based on complexity and scope, but large-scale deployments like this represent significant investments.

Small Business Impact

The contract was not competed and there is no indication of small business participation in this specific task order. Further analysis would be needed to determine if subcontracting opportunities exist or were considered.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the contractor is meeting all performance requirements and that the pricing remains justified throughout the contract's duration, despite the lack of competition.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award lacks competitive pricing pressure.
High contract value requires robust justification and oversight.
Long duration may not reflect evolving technological needs.
Potential for vendor lock-in with Oracle Health systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $98.3 million to ORACLE HEALTH GOVERNMENT SERVICES, INC.. UNDER THIS TASK ORDER, THE CONTRACTOR SHALL CONDUCT WAVE 3 DEPLOYMENT ACTIVITIES FOR THE FOLLOWING VISN 20 SITES AND ASSOCIATED FACILITIES: ANCHORAGE VA MEDICAL CENTER (VAMC), AND BOISE VAMC.

Who is the contractor on this award?

The obligated recipient is ORACLE HEALTH GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $98.3 million.

What is the period of performance?

Start: 2020-08-04. End: 2025-03-02.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data indicates a sole-source award, suggesting a specific justification was likely made, possibly related to unique capabilities, existing system integration, or urgent needs. However, without further documentation, the exact rationale and whether alternatives were explored remain unclear. Agencies typically document sole-source justifications to ensure necessity and value.

How does the per-unit cost or overall pricing compare to similar large-scale healthcare IT deployments, especially those awarded competitively?

Direct comparison is challenging due to the sole-source nature and the specific scope of Wave 3 deployment. Competitively procured contracts often yield lower prices due to market forces. A detailed cost-benefit analysis or benchmarking against similar, albeit potentially different, VA IT projects would be necessary to assess value for money.

What are the key performance indicators (KPIs) for this task order, and how will their achievement be measured to ensure effectiveness and taxpayer value?

Specific KPIs are not detailed in the provided data. Effective oversight would require clearly defined metrics related to system deployment timelines, functionality, user adoption, and system performance at the specified VAMC sites. Regular performance reviews against these KPIs are essential to ensure the contractor delivers the expected outcomes and justifies the significant investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Oracle Health Government Services Inc.

Address: 10200 ABILITIES WAY, KANSAS CITY, KS, 66111

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $98,331,838

Exercised Options: $98,331,838

Current Obligation: $98,331,838

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $5,795,180

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10B18D5000

IDV Type: IDC

Timeline