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The VA raised Oracle's contract ceiling from $10 billion to $27 billion.

The Department of Veterans Affairs raised the ceiling of its electronic health record contract with Oracle last month to about $27 billion, FedScoop reported.

ERP LEADERS news desk · · First reported by FedScoop · Edition no. 15
Photo: Will Maupin/Wikimedia, CC BY-SA 4.0 · original

The original contract, signed with Cerner in 2018, was $10 billion. Oracle bought Cerner in 2022.

FedScoop reports that in 2022, Mike Sicilia, now Oracle's co-CEO, told the Senate Veterans' Affairs Committee that Oracle would absorb costs above the original $10 billion ceiling if they came from performance or workflow issues.

The VA's own estimate for full deployment through 2031 is about $48 billion, including sustainment, according to FedScoop. Congress learned of the higher ceiling largely after the fact. The House Veterans' Affairs Committee voted unanimously to subpoena Sicilia and Larry Ellison. FedScoop says they are scheduled to testify in November and December.

Oracle and the VA did not respond to FedScoop's request for comment. In a statement for the record, Oracle Health's Seema Verma said: "Oracle remains committed to working closely with VA to deliver a modern and reliable Federal EHR that supports veterans and the teams who care for them."

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