VA Awards $423M for WAVES H, J, and J Deployments to Oracle Health Government Services

Contract Overview

Contract Amount: $423,192,138 ($423.2M)

Contractor: Oracle Health Government Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-15

End Date: 2026-11-30

Contract Duration: 1,568 days

Daily Burn Rate: $269.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWARD FOR WAVES H, J, AND J DEPLOYMENTS.

Place of Performance

Location: KANSAS CITY, WYANDOTTE County, KANSAS, 66111

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $423.2 million to ORACLE HEALTH GOVERNMENT SERVICES, INC. for work described as: AWARD FOR WAVES H, J, AND J DEPLOYMENTS. Key points: 1. Significant contract value of over $423 million. 2. Sole-source award to Oracle Health Government Services, Inc. 3. Potential risk due to lack of competition. 4. Contract falls under Computer Systems Design Services (NAICS 541512).

Value Assessment

Rating: questionable

The $423 million award for computer systems design services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar deployments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no competition. This limits price discovery and may result in a higher cost to taxpayers than a competed contract.

Taxpayer Impact: The lack of competition raises concerns about the potential for overspending, impacting taxpayer value.

Public Impact

Veterans may experience improvements in healthcare system functionalities through the WAVES H, J, and J deployments. The sole-source nature of the award could lead to public scrutiny regarding procurement practices. Dependence on a single vendor for critical health system deployments poses a potential risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Potential for improved healthcare delivery for veterans

Sector Analysis

This contract is within the IT sector, specifically computer systems design services. The benchmark for similar contracts can vary widely based on scope and complexity, but large sole-source awards warrant close examination.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The sole-source nature of this award suggests a need for robust oversight to ensure the VA is receiving fair value and that the services are delivered effectively.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
High contract value
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $423.2 million to ORACLE HEALTH GOVERNMENT SERVICES, INC.. AWARD FOR WAVES H, J, AND J DEPLOYMENTS.

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 $423.2 million.

What is the period of performance?

Start: 2022-08-15. End: 2026-11-30.

What is the justification for the sole-source award, and how does it ensure best value for the VA?

The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. For this contract, the VA would need to demonstrate why Oracle Health Government Services, Inc. was the only viable option. Ensuring best value in such cases relies heavily on pre-award market research, negotiation strategies, and post-award performance monitoring to mitigate the risks associated with a lack of competition.

What are the risks associated with a sole-source award of this magnitude for critical healthcare IT systems?

A sole-source award of this magnitude for critical healthcare IT systems carries significant risks. These include potential overpricing due to the absence of competitive pressure, vendor lock-in, and a reduced incentive for the vendor to innovate or provide exceptional service. Furthermore, if the vendor fails to perform or faces financial instability, the VA has limited alternatives, potentially disrupting essential healthcare services for veterans.

How will the effectiveness of the WAVES H, J, and J deployments be measured and ensured under this sole-source contract?

The effectiveness of the deployments will be measured through defined performance metrics and service level agreements (SLAs) within the contract. The VA's program office will be responsible for monitoring Oracle Health Government Services, Inc.'s performance against these benchmarks. Regular reviews, milestone assessments, and user feedback mechanisms are crucial for ensuring the deployed systems meet the intended operational requirements and deliver value to the agency and its beneficiaries.

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: $469,669,099

Exercised Options: $423,192,138

Current Obligation: $423,192,138

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $27,253,575

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