VA Subsystems Modernization Contract Exceeds $155M with Oracle Health

Contract Overview

Contract Amount: $155,361,306 ($155.4M)

Contractor: Oracle Health Government Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-30

End Date: 2025-12-31

Contract Duration: 1,553 days

Daily Burn Rate: $100.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VA SUBSYSTEMS MODERNIZATION

Place of Performance

Location: KANSAS CITY, WYANDOTTE County, KANSAS, 66111

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $155.4 million to ORACLE HEALTH GOVERNMENT SERVICES, INC. for work described as: VA SUBSYSTEMS MODERNIZATION Key points: 1. Significant investment in IT modernization for the VA. 2. Sole-source award to Oracle Health raises competition concerns. 3. Long-term contract duration (2021-2025) suggests substantial project scope. 4. Focus on computer systems design services indicates core IT infrastructure work.

Value Assessment

Rating: questionable

The contract value of $155.3M for computer systems design services is substantial. Without specific per-unit cost data or benchmarks for similar VA subsystem modernization efforts, it's difficult to definitively assess its value against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Oracle Health Government Services, Inc. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition in this large contract may result in suboptimal pricing, impacting taxpayer value.

Public Impact

Modernization of VA subsystems could improve services for veterans. Reliance on a single vendor may create long-term dependency. Potential for cost overruns due to lack of competitive pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Potential for improved VA systems
Long-term engagement

Sector Analysis

This contract falls under Computer Systems Design Services, a broad category within the IT sector. The spending benchmark for this NAICS code can vary widely based on project complexity and scope, making direct comparison challenging without more detail.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this sole-source agreement.

Oversight & Accountability

The Department of Veterans Affairs is the contracting agency. Oversight mechanisms should be robust to ensure the modernization project stays on track, within budget, and delivers the intended benefits, especially given the sole-source nature.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for cost overruns due to lack of competitive pressure.
Long contract duration may increase risk of scope creep.
Dependency on a single vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $155.4 million to ORACLE HEALTH GOVERNMENT SERVICES, INC.. VA SUBSYSTEMS MODERNIZATION

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 $155.4 million.

What is the period of performance?

Start: 2021-09-30. End: 2025-12-31.

What specific subsystems are being modernized, and what are the expected performance improvements?

The specific subsystems being modernized are not detailed in the provided data. However, the objective is likely to enhance the efficiency, security, and functionality of critical VA IT infrastructure. Expected improvements could include faster processing times, better data integration, reduced system downtime, and enhanced user experience for both VA staff and veterans accessing services.

What is the justification for awarding this contract on a sole-source basis?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For Oracle Health, this might be due to proprietary technology, existing system integration, or unique expertise essential for the VA's specific subsystems. A thorough justification should be documented by the agency.

How will the VA ensure effective project management and accountability for this large, sole-source contract?

Effective project management will require strong contract oversight, regular performance reviews, and clear communication channels between the VA and Oracle Health. Accountability can be ensured through defined milestones, performance metrics, and penalties for non-compliance. Independent technical reviews and audits may also be beneficial.

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 › IT AND TELECOM - APLLICATIONS

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: $155,617,058

Exercised Options: $155,361,306

Current Obligation: $155,361,306

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $7,335,332

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