Attachment 2 Redacted Oracle Health Server Relocation J and A_Redacted.pdf

Relocation of Oracle Health FDSS Server Racks

JUSTIFICATION FOR A SOLE SOURCE AWARD

FOR CERTAIN COMMERCIAL ITEMS

1. Contracting Activity: Department of Veterans Affairs Office of Procurement, Acquisition, and Logistics

Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724

2. Description of Action:

The proposed sole source action is for a firm-fixed price (FFP) contract to provide support with moving Oracle Health Forward Deployed Solution Set (FDSS) server racks in VHA Medical Centers, through Oracle Health Headquarters, 2800 Rock Creek Parkway, Kansas City, MO 64117 during on-going construction projects.

3. Description of Supplies or Services:

The proposed action is to provide on-site relocation/move services to VA Medical Centers throughout VHA. The Oracle Health FDSS racks and equipment must move to a new location in support of various construction activities throughout the entire Electronic Health Record Modernization (EHRM) initiative at the Department of Veteran Affairs. The Contractor shall provide services including consultation, planning, and coordination with each site as required. The Contractor shall communicate, and coordinate move activities with the VA Medical Center Facilities Management Service (FMS), Office of Information Technology (OIT), and Contracting Officer Representative (COR). The Contractor shall coordinate and assist with the disconnect and disassembly of the FDSS at the specified location, and rack/stack, connect, test, and operationalize the FDSS at the new location during ongoing construction.

The FDSS is a set of managed service hardware and software deployed to Veterans Administration Medical Centers (VAMCs) to support the VA Electronic Health Record Modinerization (EHRM) effort. The FDSS equipment is owned and managed by Oracle Health.

The period of performance will be a base period of twelve (12) months, four (4) twelve-month option periods, and an up to six month extension pursuant to FAR 52.217-8. The total estimated price of this action, including all options is .

4. Statutory Authority:

The statutory authority permitting other than full and open competition is 41 U.S.C. 1903 as implemented by the Federal Acquisition Regulation (FAR) 13.501, entitled “Special Documentation Requirements”.

5. Rationale Supporting Use of Authority Cited Above:

The proposed source is Oracle Health which has an existing contract with the Department of Veterans Affairs. The existing contract disallows relocation of the FDSS racks by other white glove moving vendors and does not allow for sustainment activities, such as this requirement, to be be executed under it.

Oracle Health Inc (previously Cerner) was the awardee in May 2018 to provide VA with a new Electronic Health Record (EHR) Platform. Oracle Health is responsible for the on-premises infrastructure required to support the EHR. The use of their services for equipment relocation is necessary to ensure responsibility for these Oracle servers and equipment remain within their agreement. Lastly, it should be noted that Oracle Health Inc owns the equipment being moved and is responsible for maintenance throughout the VHA deployment. The VA Technology Acquisiton Center (TAC) contracting office confirmed on 25 March 2025that that the movement of the existing servers/racks can only be done by Oracle Health in order to maintain current warranties and support.

In consultation with Electronic Health Record Modernization-Integration Office, it was verified that Oracle Health indicated that the FDSS must be moved by Oracle Health to keep them supportable by Oracle Health. The FDSS requires shutdown and start-up before and after the move which must be done by Oracle Health.

If another vendor moves the FDSS and Oracle Health discontinues sustainment of the EHR servers, it could result in an EHR server failure. An EHR server failure would be catastrophic for the Medical Center because the providers would be unable to access patient records. An inability to access patient records would result in an extremely high patient safety risk with a high probability of occurrence. Providers would be forced to use paper records for immediate documentation which would cause patient access and clinical productivity to plummet. For example, a level 1A facility such as Minneapolis, has 950,000+ outpatient visits per year and 4,787 employees. A failure of the EHR would impact each and every patient and provider. When fully deployed, EHR servers will support all 170 VA Medical Centers. A loss of support for the EHR servers would be disastrous for the 9 million Veterans who rely on VA health care.

Additionally, the cost impact of using another vendor for relocations would be significant. The current cost of Oracle Health EHR contract is $8 billion. If another vendor is used to relocate Oracle Health FDSS servers, Oracle Health could nullify any of the completed and ongoing work under the larger modernization contract. Lastly, the contracting office confirmed all equipment in the FDSS racks is owned and managed by Oracle Health. .

6. Efforts to Obtain Competition:

Market research was conducted, details of which are in the market research section of this document. This effort did not yield any additional sources that can meet the Government’s requirements. Additionally, the proposed action will be synopsized on the Contracting Opportunities Page in accordance with FAR 5.201. Any proposals that are received shall be evaluated.

7. Actions to Increase Competition:

The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future actions to be competed.

8. Market Research:

The Government’s technical experts conducted market research on 7/26/2024 by reviewing the existing Oracle Health Modernization contract, meeting with all parties involved and determing options to move Oracle’s equipment during VA construction projects without jeopardizing continued sustainment, warranties and support of the EHR servers and equipment.

The Technology Acquisition Center (TAC) also issued a Request for Information (RFI) on February 6, 2025 via a RFI posting in NASA SEWP (#334796) and the Contracting Opportunities page to ascertain if there were any other sources that could meet the Government’s requirements. Responses were received from twelve

(12) sources. While all twelve (12) vendors could technically provide for relocation services, none of the sources were able to meet the relocation services for the Oracle owned servers/racks without nullifying VA’s maintenance support and warranty to the servers.

9. Other Facts:

None