JA - FAR Part 6 - EHRM IDIQ Expanded Scope_redacted.pdf

This document is a Justification for Other Than Full and Open Competition for a contract modification to expand the scope of the VA Electronic Health Record Modernization (EHRM) Indefinite Delivery Indefinite Quantity (IDIQ) contract.

The modification is being pursued as a sole-source action with Oracle Health Government Services, Inc. (formerly Cerner Government Services, Inc.), the original IDIQ contract awardee since May 17, 2018. The original contract number is 36C10B18D5000, with a total ceiling value of $9,996,557,385.06. This modification will add three one-year firm-fixed-price optional ordering periods, extending the period of performance through May 16, 2031, and increasing the contract ceiling by an undisclosed amount. The modification is necessary to continue EHRM deployment activities supporting enterprise-wide EHR deployment to Veterans Affairs Medical Centers (VAMCs) and associated facilities. As of July 2026, VA has successfully deployed to 14 sites and developed a standard deployment model. The remaining 120 of 170 scheduled sites cannot be completed within the existing contract ceiling due to unanticipated complexities in system deployment, technical issues, and site-specific customizations.

The justification for sole-source award cites 41 U.S.C. 3304(a)(1) under RFAR 6.103-1, asserting that only Oracle can meet VA's requirements for seamless interoperability with the Department of Defense EHR system, maintain shared federal hosting environment benefits, avoid extensive duplication of costs and delivery delays estimated at six years, sustain legacy system maintenance, and leverage enterprise knowledge of VA's complex clinical environment. Market research conducted in July 2026 evaluated competing commercial EHR solutions including Epic, Veradigm, Athenahealth, and Meditech, but determined none could meet all VA functional requirements without significant rework of VA-specific customizations related to revenue cycle, pharmacy operations, optimization processes, and interface requirements. The government anticipates utilizing the remaining ceiling by the first quarter of fiscal year 2027.