Senate Democrats have demanded that Oracle justify a roughly $17 billion increase in the VA's EHR contract ceiling, setting an Oct. 23 deadline for documents and explanations. VA officials told lawmakers they relied on internal estimates and acquisition negotiations but could not identify specific cost drivers. Lawmakers also pressed Oracle to detail its role in addressing 14 outstanding GAO recommendations and to provide cybersecurity performance metrics. The VA estimates total deployment costs of about $37 billion through 2031 plus roughly $11 billion for sustainment, while GAO says documentation and implementation gaps remain.
Senators Give Oracle Until Oct. 23 To Explain $17 Billion Spike In VA EHR Contract
The Oracle offices in Redwood City, California. The company is under contract to overhaul the Department of Veterans Affairs' electronic health record system. (David Paul Morris/Bloomberg via Getty Images)
Senate Democrats have demanded answers from Oracle after the Department of Veterans Affairs (VA) raised the ceiling on its electronic health record (EHR) modernization contract by about $17 billion, from roughly $10 billion to $27 billion. Lawmakers say VA officials were unable to explain the increase at a Sept. 2 congressional hearing, so they turned directly to Oracle for documentation and a detailed accounting.
Lawmakers Seek Documents And Explanations
On Sept. 23, Sen. Richard Blumenthal (D-Conn.), ranking member of the Senate Veterans' Affairs Committee, and six other Senate Democrats sent a letter to Oracle Executive Chairman Larry Ellison and CEO Mike Sicilia. The letter requests supporting documents, analyses and a full itemization of the 'unanticipated complexities' Oracle cited as the basis for the additional costs, and sets an Oct. 23 deadline for Oracle's response.
What VA Told Congress
At the Sept. 2 House Veterans' Affairs Committee hearing, VA Deputy Secretary Paul Lawrence said the department estimated what it would cost to finish deploying the EHR system through 2031, solicited a proposal from Oracle, and relied on VA's acquisition team to negotiate the contract. Lawrence said he was not personally involved in the negotiations and could not explain the specific basis for Oracle's proposal, how much of Oracle's initial request was negotiated away, or which cost drivers produced the $17 billion increase.
When asked whether the entire $17 billion would go directly to Oracle, Lawrence said some of the increase might reflect other program expenses rather than direct contractor payments.
Subpoenas And Congressional Pressure
Oracle initially accepted an invitation to testify at the Sept. 2 hearing but later declined. After Oracle's absence, the House committee voted 19-0 to subpoena Ellison and Sicilia. The Senate Democrats said they support the House subpoenas and urged Senate Veterans' Affairs Committee Chairman Jerry Moran (R-Kan.) to hold a full committee hearing examining the program's costs, delays and potential patient-safety concerns.
Outstanding GAO Recommendations And Cybersecurity Concerns
The senators also asked Oracle to explain what has changed since 2022, when Sicilia told the Senate Veterans' Affairs Committee that Oracle would deliver the VA system without exceeding the original $10 billion contract and would absorb costs to fix problems. Lawmakers requested documentation showing Oracle's role in addressing 14 outstanding Government Accountability Office (GAO) recommendations related to the EHR modernization effort, including 12 priority recommendations that have not been fully implemented.
In addition, the letter seeks records of cybersecurity performance measures and any steps Oracle has taken or plans to take to improve cyber protections for the VA EHR system, noting GAO's findings that the program currently lacks adequate cyber performance metrics.
Total Cost Estimates And Oversight Gaps
The $27 billion contract ceiling is separate from the VA's broader lifecycle estimate for the program. Lawrence told House members that VA estimates deployment through 2031 will cost about $37 billion, plus roughly $11 billion for sustainment, for a total near $48 billion. He acknowledged that those figures were not derived from an independent assessment.
The GAO told lawmakers that VA had not provided an updated, sufficiently detailed cost estimate or adequate documentation for the watchdog to verify whether VA's plans follow best practices. As of August, the GAO reported that VA had fully implemented 4 of 18 EHR modernization recommendations, leaving 14 not fully implemented, including 12 priority recommendations.
Bottom line: Senators want Oracle to justify the sudden $17 billion increase, provide a granular accounting of added costs and explain actions taken to address GAO recommendations and cybersecurity shortfalls. Oracle has until Oct. 23 to respond.
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