Capture Intelligence:
FY2027 Federal Health Budget
Two issues. Every row in the summary table is expanded below with sourced, decision-level intelligence: what the funding actually buys, what changed, who holds incumbent position, and what the action window requires. Every material claim carries a confidence label.
Full Capture Sheet — FY2027
24 signals · 10 agencies · Updated April 2026
| Agency | Program | FY2027 Signal | Confidence | Window |
|---|---|---|---|---|
| VA | CCN Next Gen (36C10G26R0003) | $56.2B community care (+17%); VBP models and utilization management enter new contract — neither exists in current CCN | Verified | Proposals due April 17 |
| VA | CCN Dental (36C10G26R0004) | ~$47M companion dental network vehicle | Verified | Closed March 16 · Awards pending |
| VA | EHRM: EHR Contract | $2.768B; Oracle Health sustainment of 19 live sites plus 26 new FY2027 go-lives | Verified | Michigan go-live April 11 · June 1 withhold gate |
| VA | EHRM: Infrastructure Support | $745M; devices, cloud, interfaces, identity management for next deployment wave | Verified | Active · Watch FY2028 site list |
| VA | EHRM: PMO Support | $727M; 313 FTE authorized, ~250 filled; 24 additional losses in early 2026 | Verified | Staffing gap is open now |
| VA | IT Systems (non-EHRM) | $7.36B; cybersecurity remediation, scheduling, community care billing, financial modernization | Verified | Ambient scribe closed April 3 · Cyber remediation active |
| VA | Medical Services | $95.2B (+2.8%); clinical AI, diagnostics, ambient documentation | Verified | Clinical AI pipeline active |
| VA | Medical Facilities | $13.1B (+6.7%); construction and infrastructure pipeline | Verified | Long-cycle; plan against FY2028 advance appropriations |
| DHA | Care Reattraction Mandate | 7% of private sector care (~$2.9B) shifting to MTFs by Dec 31, 2026; TriWest and Humana Military utilization decreases | Directional | MTF scheduling, telehealth, ambient listening, staffing |
| DHA | Consulting Terminations | $1.8B in DHA consulting cuts; Booz Allen ($345M), Deloitte ($264M), Accenture ($66M) in prior 3-year obligations | Verified | Support gap active across DHA IT and EHRM portfolio |
| HHS/ONC | TEFCA Interoperability | ~500M records; governance authority moved to HHS OCIO April 1, 2026; HTI-5 rule moving | Verified | Update contact maps · Watch HTI-5 on next contract cycle |
| ARPA-H | ADVOCATE (Agentic AI, CVD) | Awards expected June 2026 from FY2026 appropriations; executing regardless of FY2027 budget outcome | Awards Pending | Window closed April 1 · Position for follow-on and down-select |
| HHS | HRSA/SAMHSA Consolidation | 28-to-15 division consolidation proposed; single-agency vehicles at collapse risk | Proposed | Model recompete scenarios now · Congress unlikely to pass as proposed |
| DoD / VA | Anti-DEI Contract Clause | EO 14398 (March 26, 2026): mandatory FCA-enforceable clause enters all new contracts and modifications; flows to all subcontractor tiers | Verified | Audit required before April 25 |
| Issue 2 — Combat & Operational Medicine + MHS GENESIS | ||||
| DHA / PEO DHMS | HCDS EHR Follow-on (HT003826X0000) | $4.37B; prime SI model gone, direct FAR-based vendor contracts, OCI hosting constraint lifted | Verified | Deployment Solutions due April 15 · Industry input closes Aug 30 |
| NIWC Atlantic / DHA | CIMPLE Recompete (N6523625R3032) | $250M; enterprise app and desktop virtualization lifecycle, MHS footprint; small business set-aside | Verified | RFP expected April 2026 · Award Nov 2026 |
| PEO DHMS | CSO FY2026 IPR #3 (HT003826SC001) | OT prototype awards $1.5M-$2.2M each; enterprise technology planning and risk management | Verified | Proposals due April 16 |
| DHA CDAO | Enterprise Data Catalog (HT001126RE011) | $34M; inventory of up to 80 DHA data systems, VAULTIS framework, automated ML metadata harvesting; WOSB | Verified | Active · Check SAM.gov for deadline |
| DHA / PEO DHMS | EIDS PMO Consolidation | 1+ petabyte AWS GovCloud, 10 active contracts, manpower assessment underway; SpinSys-Dinè bridge expiring | Corroborated | No RFP posted · Position now |
| CDMRP / USAMRAA | PRMRP ($370M, 52 condition areas) | Platform Clinical Translation Award up to $15M/award; pre-application window closes before full FOA | Verified | Pre-application open now · Full FOA pending |
| CDMRP / USAMRAA | PRCRP + 14 Additional CDMRP Programs | $165M PRCRP across 20 cancer types; 14 additional programs with live pre-announcements; CDMRP cut 57% in FY2025, partially restored FY2026 | Verified | Pre-announcements live · Check per program |
| USAMRAA | USAMRAA BAA — Operational Medicine | Open BAA through Sept 30, 2027; blood products, deployed diagnostics, CPG implementation, force health protection | Verified | Open · Continuous submissions |
| NIWC Atlantic / DHA | DHIT Engineering Support Recompete | $129.6M; infrastructure engineering support task order expiring FY2026 | Corroborated | No solicitation posted · Watch NIWC Atlantic |
| DHA / DHP | FY2027 DHA Military Construction | $491.5M across 8 projects; first INDOPACOM DHA MILCON entry (Kunsan AB); Bethesda $142.3M concurrent | Verified | Active · Varies by project |
Deep Dive: All 24 Signals
Click any row to expand sourced intelligence. Every material claim carries a confidence label and primary source attribution.
01
CCN Next Gen — Medical (36C10G26R0003)
What it funds
The vehicle through which VA pays for veteran care delivered in the private sector. The FY2027 Medical Community Care account sits at $56.2 billion — up $8.1 billion (17%) from FY2026 enacted. That single account now represents approximately 44% of all VA care delivery. The IDIQ ceiling of approximately $700 billion over ten years is the statutory maximum required to hold projected volume legally — not a spending projection. Verified — VA FY2027 Budget in Brief, April 3, 2026; GAO-26-108943
What changed
Two new mechanisms enter the contract that do not exist in the current CCN:
- Value-based payments. Episode-based payments begin with lower-extremity joint replacements (hips and knees). VA CFO Richard Topping testified before the House VA Committee (January 2026) that at least three additional VBP models will be added over the performance period. Critically: future alternative payment model designs will be proposed by TOPR awardees. The organization that proposes the next cardiac or oncology episode model shapes the contract's economics for its full run. Verified — House VA Committee testimony, January 2026
- Utilization management. New oversight requirements cover ED visits, inpatient admissions, concurrent hospital reviews, and high-cost drug administration. Requires clinical decision support at the point of authorization. The current contract has no such requirement. Any organization operating in care navigation or utilization review under the existing CCN is operating under different rules on day one of the new contract.
Competitive landscape
Incumbents: Optum Health (East and South regions), TriWest Healthcare Alliance (West region). Neither position is automatic — this is a new contract with new capability requirements that the current structure does not require incumbents to hold.
The Corporate Experience gating factor. Up to three references are permitted. Across all three references, the proposal must collectively demonstrate all three of the following or it is rated Unacceptable:
- Implementation of a network across multiple states
- Program management of a service across multiple states
- IT Integration with a client system across multiple states
Missing any single factor across all three references = Unacceptable rating. Binary. This structure forces teaming between traditional healthcare payers (Implementation strength) and systems integrators (IT Integration strength). Solo proposals from either category are exposed.
MOSA structure with No-Bid provision. A No-Bid is a compliant response to a task order. A specialized firm in network analytics, utilization review, rural telehealth, or clinical AI can win a bench position and wait for the matching task order without being penalized for passing on full-region awards.
Proposals due April 17, 2026. If you do not have a complete team and proposal in progress, this window is closed. Post-award: VBP model design task orders are where the long-game positioning happens. Watch for early task order releases — the organizations that propose the next payment models shape the contract's economics across the performance period.
02
CCN Dental (36C10G26R0004)
What it funds
A companion dental network management vehicle to the medical IDIQ. Separate procurement, same structural logic: multiple-award IDIQ for nationwide dental network coordination for veterans using community care. Approximately $47 million. This vehicle is new — there was no standalone dental companion in prior CCN generations. Verified — SAM.gov
Competitive landscape
Proposals closed March 16. Awards are pending. Given that this solicitation has received considerably less scrutiny than the medical vehicle, it is more likely to contain evaluation inconsistencies that could support a protest.
The actionable window is the protest period. Organizations that submitted and were not selected should assess whether the Corporate Experience matrix was applied consistently before the protest window closes. GAO protests must be filed within 10 calendar days of the date a debriefing is requested, or within 10 days of the debriefing if held.
03
EHRM: EHR Contract — Oracle Health
What it funds
Oracle Health's prime contract for EHRM. The $2.768 billion covers sustainment of 19 currently live VA sites; 26 new go-lives planned in FY2027; help desk, training, and data hosting; and preparation of 28 FY2028-targeted sites. Verified — VA FY2027 Budget in Brief
The Michigan go-live
Four sites go live simultaneously in April 2026: Ann Arbor, Battle Creek, Detroit, and Saginaw. Ann Arbor and Detroit are Level 1A complex facilities — the highest classification in the VA system. No Oracle EHR deployment has previously attempted this complexity level. This is the first multi-site simultaneous deployment in the program's history. Verified — VA press releases; Healthcare IT News December 2025; Congress.gov hearing record
On March 4, 2026 — three weeks before the Michigan window — the Oracle federal EHR went down from 8:37 AM to 2:05 PM Eastern (nearly six hours) across all six live VA sites, 26 community clinics, and installations serving DoD and the Coast Guard. Cause: database performance issue. Verified — Fierce Healthcare, March 2026
The June 1 withhold
Congress withheld 30% of EHRM's FY2026 appropriation — approximately $1.02 billion — pending three conditions by June 1, 2026:
- An updated lifecycle cost estimate
- A facility-by-facility deployment schedule through full deployment
- The Secretary's certification of four or more consecutive successful go-lives without delays or patient harm
Structural problem with the cost estimate condition. Three lifecycle estimates exist: VA 2019 ($16.1B — GAO called it severely incomplete), IDA October 2022 ($49.8B: $32.7B implementation + $17.1B sustainment), and VA September 2025 ($37.2B, delivered by Deputy Secretary Paul Lawrence to Congress December 15, 2025). GAO's position as of December 2025: all three are outdated. GAO had not received the VA's September 2025 revision at the time of the hearing. GAO Director Carol Harris stated: "We have not received that estimate, so I would ask the department to provide that to us so we can review it." Verified — GAO-26-108812; House VA Subcommittee, December 15, 2025
Definitional problem with the go-live condition. The withhold language requires certification of deployments "without delays or patient harm." No quantitative threshold defines delay. No threshold defines patient harm. Certification rests on the Secretary's judgment. Context: VA OIG found 149 instances of patient harm at Spokane, 826 major performance incidents across the first five live sites, and a veteran's death linked to scheduling failures at Columbus. All of those sites were certified as go-lives. Verified — VA OIG reports July 2022, September 2024, March 2024
The program picture
Total EHRM obligations through Q2 FY2025: $13.84 billion. After Michigan completes, fewer than one in six VA medical centers will be live (~23 of 170). GAO-26-108812 (December 2025): 16 of 18 prior recommendations unimplemented. Twelve carry priority status. GAO Director Harris told Congress completing all remaining sites on the contract timeline is "impossible." Contract expires May 2028. Full deployment runs to end of FY2031. Verified — GAO-26-108812
GAO-25-108091 user survey (September 2024): 75% of current EHRM users disagree the system enables efficient care. 13% believe it makes the VA efficient. 58% say it increased patient safety risks. These numbers come from sites already live. Verified — GAO-25-108091
The June 1 withhold release determines FY2027 deployment pace. If Congress does not release the $1.02B on schedule, the deployment timeline slows and support contract structures shift. Monitor committee correspondence in May — that is where the withhold condition evaluation happens. Oracle's subcontractor and support ecosystem is the primary addressable market for most organizations outside the Oracle prime.
04
EHRM: Infrastructure Support
What it funds
Devices, cloud infrastructure, network interfaces, and identity management supporting the active deployment wave. This account is separate from the Oracle EHR prime contract and flows through independent contracting vehicles. Covers current live sites and 26 new FY2027 go-lives, with positioning for 28 FY2028-targeted sites. Verified — VA FY2027 Budget in Brief
What changed
Scale. As the deployment accelerates from 19 live sites to approximately 45 by end of FY2027, infrastructure requirements scale with every wave. Each new go-live requires device provisioning, network configuration, identity management integration, and data migration support that the Oracle prime contract does not cover.
Verify that your existing VA vehicles (SEWP, existing BPAs) remain viable through FY2027. The facility-by-facility deployment schedule required as a condition of the June 1 withhold will show the FY2028 wave. Obtain that schedule when published. Infrastructure contractors embedded in current deployments carry site-specific configuration knowledge that transfers — and gives them a head start on follow-on waves.
05
EHRM: PMO Support
What it funds
The EHRM Integration Office (EHRM-IO) program management office — the entity responsible for overseeing 170 total VA medical centers, a $37–49 billion lifecycle cost range, and an active GAO high-risk designation. Verified — VA FY2027 Budget in Brief
The staffing gap
313 positions authorized. Approximately 250 filled. The program then lost 24 additional staff to probationary firings and deferred resignation offers in early 2026. The functional vacancy rate heading into the most intensive deployment phase in the program's history exceeds 20% — at the precise moment the PMO is simultaneously managing the June 1 Congressional deadline, a four-site simultaneous go-live at the highest complexity level ever attempted, and 16 open GAO recommendations. Verified — Congressional testimony, February 2025 and early 2026 (note: 250 filled and 24 losses are from separate testimony timepoints; current fill rate is lower than 250)
What this means operationally
Program management functions the PMO cannot staff internally become contractor work. Michigan goes live this month and the PMO is demonstrably understaffed for it. Functions most likely to be contracted: acquisition support, data governance, quality assurance, deployment coordination, and Congressional reporting support.
Identify existing vehicles that allow program management support work at EHRM-IO or VA OIT. Monitor USAJobs for position reclassifications (a signal that functions are being re-categorized to contractor work) and SAM.gov for EHRM-IO support actions. The support gap is active now.
06
VA IT Systems — Non-EHRM
What it funds
VA's total FY2027 IT request is $12.2 billion — a 62% increase over FY2026 per Federal News Network analysis. Of that, $4.24 billion is EHRM. The remaining non-EHRM IT covers cybersecurity, financial management modernization, scheduling systems, community care billing, interoperable health records, and digital mental health platforms. The budget specifically allocates $1.3 billion targeting high-impact healthcare delivery capabilities: scheduling and referral processes, community care billing expansion, and interoperable health records. Verified — Federal News Network April 6, 2026; VA FY2027 Budget in Brief
Active programs within this account
Ambient Scribe IDIQ (36C10B26R0006). A five-year IDIQ for ambient AI documentation at VA. Proposals closed April 3, 2026. Awards pending. The prior contract (36C10B26C0025) went to Rise8 and Thoughtworks at $4.9 million. Foreign influence concerns related to Thoughtworks were flagged; VA OIG was actively soliciting outside input on this question at time of publication. Verified — SAM.gov; contract record 36C10B26C0025
Cybersecurity — MITRE Assessment Remediation. Under the Strengthening VA Cybersecurity Act of 2022, VA contracted MITRE to assess five key VA systems. GAO-26-107980 (December 2025) confirmed the assessment addressed requirements and VA's remediation plan generally met the standard. The plan includes a cost estimate and implementation timelines. Remediation work is active across identity management, zero trust architecture, and incident response. Verified — GAO-26-107980
Community care billing. With $8.1 billion routed outside the VA system in FY2027, billing infrastructure is under volume pressure the system was not built for. The budget explicitly calls out billing expansion. Organizations with network billing, payment integrity, or claims processing capability should be tracking this.
Pull VA Volume 5 (IT Programs and EHRM) from the FY2027 budget submission for account-level program detail. If you submitted on 36C10B26R0006, monitor for award. If you did not, the protest window is the secondary entry point if the award is contestable. For cybersecurity remediation: the remediation plan and timeline are published — map your capabilities against it.
07
VA Medical Services
What it funds
The largest single account in the VA budget. Covers direct care delivery at VA medical facilities — the clinical environment where AI tools, diagnostics, and scheduling systems operate. The FY2027 request explicitly names ambient scribe, clinical AI, and diagnostics as priority investment areas. Verified — VA FY2027 Budget in Brief
What's happening inside this account
The 17% growth in community care creates a knock-on effect on Medical Services: VA facilities see increased clinical complexity among patients who remain in direct care (lower-acuity patients route to community care more readily), while the referral authorization and triage function — 39.6 million referrals since the June 2019 MISSION Act launch — requires clinical decision support infrastructure to manage at volume. Verified — VA BiB for referral count, attributed to MISSION Act community care program
The Ambient Scribe IDIQ (36C10B26R0006) funded through this account closed April 3. Awards pending. Mental health residential rehabilitation (MHRRTP) expansion — a figure flagged for verification — will be addressed in Part 2 of this budget series.
For organizations in clinical AI, ambient documentation, or care navigation: track the post-award landscape on 36C10B26R0006. Watch for RFIs and sources sought tied to authorization support and clinical decision infrastructure as community care volume grows. The next clinical AI vehicle in this account is the longer-game opportunity.
08
VA Medical Facilities
What it funds
Construction, renovation, and infrastructure at VA medical facilities. Covers major and minor construction, non-recurring maintenance, and leases. Up 6.7% over FY2026. Verified — VA FY2027 Budget in Brief
The strategic dynamic
The community care workforce-substitution model creates a counterintuitive facility investment pattern. Patients routed to community care are largely those where VA capacity was the constraint — meaning the remaining VA direct care volume skews toward higher complexity, specialty, and behavioral health cases that the community network cannot readily absorb. Facility investment will prioritize modernization, specialty capacity, and right-sizing over general expansion.
The FY2028 advance appropriations request ($138.2 billion in medical programs + $53.8 billion in Toxic Exposures Fund advances) is what long-cycle contractors are planning against — not FY2027. Verified — VA FY2027 Budget in Brief
Long-cycle opportunity. Pull VA Volume 4 (Construction and Long Range Capital Plan) from the FY2027 budget submission and map your vehicle structure against the four-year construction pipeline. The FY2028 advance appropriations are your planning baseline.
09
DHA Care Reattraction Mandate
What it is
In December 2023, then-Deputy Secretary of Defense Kathleen Hicks issued a memorandum directing DHA to reattract at least 7% of available care from the private sector back to MTFs by December 31, 2026. The FY2025 NDAA (P.L. 118-159) subsequently encoded the staffing requirements to support the mandate, requiring each MTF to establish medical personnel requirements capable of achieving that shift. Verified — CRS IN12595; CRS IF13108; P.L. 118-159
The operational context
The Military Health System currently purchases more than 65% of total care for its 9.4 million beneficiaries through private sector contracts — primarily TriWest Healthcare Alliance (West Region, effective January 1, 2025) and Humana Military (East Region). Applied against the FY2026 MHS budget of approximately $64 billion, a 7% shift in private sector volume represents a directional signal of roughly $2.9 billion redirecting from managed care support contractors to MTF direct delivery. Analytical — MMT calculation from CRS data
The mandate is a reversal of a decade-long policy that reduced MTF staffing. GAO found that DHA "didn't have the staff to meet its estimated needs" for its management construct and "still doesn't know how many staff it needs." MTFs are chronically understaffed heading into a mandate to absorb more volume. Verified — CRS IN12595
The T-5 TRICARE transition (HealthNet to TriWest, effective January 1, 2025) has been complicated by referral delays, call center backlogs, and portal failures affecting over 1.5 million beneficiaries who moved from East to West Region. DHA has issued multiple policy waivers to manage access. An Inspector General review of the transition was directed by the FY2026 NDAA House report. Corroborated — MOAA documentation; Military.com
What MTFs need to absorb volume
To achieve 7% reattraction, MTFs need capacity they currently lack: scheduling systems that can handle increased appointment volume, telehealth infrastructure to extend clinical reach beyond facility walls, ambient documentation to make provider time more efficient, and clinical staffing to see patients. These are contractor opportunities.
December 31, 2026, is the statutory deadline. DHA is running short on time to implement the required staffing and capacity changes. Organizations with scheduling modernization, telehealth delivery, ambient documentation, or clinical staffing capabilities should be tracking DHA solicitations in those categories. Monitor Defense Health Network contracting activity on SAM.gov.
10
DHA Consulting Contract Terminations
What happened
On April 10–11, 2025, Defense Secretary Pete Hegseth signed a memorandum terminating $5.1 billion in DoD contracts. Within that total, he specifically cited: "DHA contracts for consulting services from Accenture, Deloitte, Booz Allen, and other firms that can be performed by our civilian workforce" — saving the department $1.8 billion. Verified — Washington Technology April 12, 2025; Nextgov/FCW April 12, 2025; Hegseth memorandum
GovTribe three-year prior obligation data at DHA: Booz Allen Hamilton, $345 million; Deloitte, $264 million; Accenture, $66 million. These are prior obligation figures across a three-year window — not the terminated contract values. Corroborated — GovTribe data via Washington Technology and Nextgov/FCW
What "in-sourcing" actually means
The Hegseth memo directed DoD and DOGE to prepare within 30 days a plan to in-source IT consulting and management services to the civilian workforce. The practical constraint: the federal civilian workforce available to absorb this work was simultaneously subject to reduction-in-force actions across the department. Work that cannot be absorbed internally will be re-competed — most likely in smaller, more performance-specific statements of work than the broad advisory vehicles that were terminated.
The support gap
Programs covered by the terminated DHA consulting contracts include EHRM program management support, MHS GENESIS sustainment advisory, and DHA IT portfolio management. Those programs are still running. The gap creates demand for specialized task orders rather than broad management consulting capability. Organizations with specific DHA program knowledge and documented performance metrics are better positioned for the replacement work than generalist consulting shops.
Monitor SAM.gov for DHA sources sought and RFIs in IT program management, EHRM advisory, and MHS GENESIS support categories. The replacement procurement actions have not been uniformly published. Firms that can demonstrate specific program-level expertise with measurable performance outcomes are better positioned under the administration's stated requirements framework.
11
HHS/ONC — TEFCA Interoperability
What changed on April 1
Federal Register 2026-06284 (April 1, 2026) transferred ONC's AI, data, and CTO functions to HHS OCIO. ONC's standalone name was restored. ONC confirmed its programs and priorities are unchanged. The structural change: where governance authority sits is different. That change is already in effect. Verified — Federal Register 2026-06284
The scale of what TEFCA now manages
As of February 2026, TEFCA exchanged nearly 500 million health records across 14,214 organizations through 81,000 unique connections across eight QHINs. In January 2025, the exchange volume was 10 million records. That is a 50-fold increase in thirteen months. This infrastructure is not theoretical — it is running at scale. Verified — ONC/healthit.gov
Before April 1, the policy authority governing information blocking and the IT contract authority governing QHIN operations reported to different principals. They now report to the same principal — the HHS CIO. This matters for contracts: the authority writing QHIN technical requirements and the authority holding QHIN contracts are now unified.
The HTI-5 rule
The proposed HTI-5 rule, published December 29, 2025, proposes removing 34 of 60 health IT certification criteria and revising seven more. Comment period closed February 27, 2026. That rule is now moving under OCIO authority. Organizations holding QHIN certifications or operating as TEFCA Participants or Sub-Participants should assume their certification baseline may shift on the next contract cycle. Verified — Federal Register, December 29, 2025
HHS consolidated from more than 40 separate IT departments under this reorganization. The OCIO is now the single decision-making authority for health IT standards, QHIN contracts, and information blocking enforcement. Corroborated — Federal News Network
Update your contact maps — the decision-maker chain changed. Map your current TEFCA certifications against the HTI-5 proposed removals to identify which criteria your system relies on that may be modified or eliminated. If your QHIN contract or TEFCA participation agreement comes up for renewal in the next 18 months, the technical framework it will be competed under is not the same as the framework under which it was awarded.
12
ARPA-H — ADVOCATE (Agentic AI, Cardiovascular)
What it is
The Agentic AI-Enabled Cardiovascular Care Transformation (ADVOCATE) program aims to produce the first FDA-authorized clinical agentic AI providing 24/7 specialty care for cardiovascular disease — the leading cause of death in the U.S., responsible for more than 200,000 preventable deaths annually. Nearly half of U.S. counties have no practicing cardiologist. Full proposals were due April 1, 2026 — the window is closed. Awards expected June 2026. Verified — ARPA-H.gov; STAT News January 2026
Three Technical Areas
- TA1: Patient-facing CVD agent. Autonomous AI for clinical reasoning, care navigation, and autonomous medical actions (medication adjustments, appointment scheduling). Connects to EHR, integrates with wearables. Available 24/7. Designed for FDA authorization for a specific intended use (heart failure management). Will almost certainly be proprietary technology.
- TA2: Supervisory agent. Disease-agnostic. Real-time monitoring, auditability, and control of clinical AI agents. ARPA-H has explicitly noted it would prefer this to be open source. This is the oversight architecture — it can scale beyond cardiovascular AI to any clinical agentic deployment. The organization that wins TA2 owns the oversight layer for every subsequent clinical agentic AI in healthcare, including potential DoD and VA deployments.
- TA3: Health system integration. Recruiting and partnering with health systems that will co-develop and deploy the technology in real clinical settings. These are deployment partners, not technology developers.
Program structure
Phase 1A: 12 months (development and prototype validation). Phase 1B: 12 months (independent V&V). Down-select. Phase 2: 15 months (large-scale real-world scalability). Total: 39 months. ARPA-H funds through Other Transaction Agreements — not contracts, grants, or cooperative agreements. Teaming is expected to be necessary. Solo proposals from a single organization are unlikely to cover all three TAs. ARPA-H is piloting secure LLMs to assist with initial solution summary review — a signal about how the agency intends to scale evaluation capacity going forward. Verified — ARPA-H.gov; STAT News January 2026; Fierce Healthcare January 2026
No clinical agentic AI has received FDA authorization as of this writing. ADVOCATE is designed to create that authorization pathway. The organization that first navigates it — and the health systems that deploy it — establish the clinical, regulatory, and reimbursement precedent for every agentic AI deployment in healthcare that follows.
The ADVOCATE submission window is closed. Three follow-on positions: (1) Track the June award announcement — identify which health systems partnered for TA3 deployment, as those health systems are the access point for Phase 2 work and post-program commercialization. (2) If you hold VA or DHA clinical AI vehicles, monitor the TA2 supervisory architecture as it develops — it will likely influence DoD and VA clinical AI governance requirements. (3) The down-select after Phase 1A (~June 2027) is the next direct entry point.
13
HHS — HRSA/SAMHSA Consolidation
What is proposed
The FY2027 HHS discretionary request proposes collapsing 28 HHS divisions to 15 through a new Administration for a Healthy America (AHA). The AHA would absorb: OASH, HRSA, SAMHSA, ATSDR, and NIOSH. The proposal also calls for a $5 billion reduction to NIH and elimination of NIMHD, the Fogarty International Center, and NCCIH. ARPA-H is zeroed in the proposal. Verified as proposed — HHS FY2027 Budget in Brief
Congressional history
Senator Susan Collins (April 3, 2026): Congress had "decisively rejected these particular cuts last year." The record supports her. For FY2026, Congress enacted approximately FY2025 funding levels across most contested HHS lines. NIH remained whole. ARPA-H was funded. Defense received $10.6 billion above the Pentagon's own request. The same Congress is now voting on FY2027. Full consolidation as proposed is unlikely to pass. Verified — CRS R48891; Collins statement April 3, 2026
Why act now regardless
Partial restructuring, administrative consolidation without full legislative action, and de facto priority shifts within agencies are possible without a statutory vote. HRSA and SAMHSA program funding and contracting authority can shift even if the organizational chart does not change. Organizations holding vehicles scoped to individual agencies need to model what happens to those vehicles if the reporting structure changes — that is a contract language question, not a legislative one.
Pull your current vehicles. Identify which are scoped to individual agencies (HRSA, SAMHSA, OASH, ATSDR, NIOSH) versus HHS enterprise. For any vehicle under a target agency: (1) Ask your CO whether vehicle continuity guidance exists for a consolidation scenario. (2) Model the recompete timeline if the vehicle does not transfer automatically. (3) Watch SAM.gov for pre-decisional RFIs or planning actions that signal the acquisition strategy is moving before legislative action completes.
14
Anti-DEI Contract Clause — EO 14398
The executive order
President Trump signed Executive Order 14398, "Addressing DEI Discrimination by Federal Contractors," on March 26, 2026. This is categorically different from prior anti-DEI executive actions. Earlier orders (EO 14151 and EO 14173, January 2025) were policy directives. This one creates an enforceable contract clause with direct legal consequences for contractors and all subcontractor tiers. Verified — EO 14398; DLA Piper; Morgan Lewis; Holland & Knight
The mandatory clause — six binding elements
By April 25, 2026, all federal agencies must insert the following clause into all covered contracts, modifications, and subcontracts at every tier:
- The contractor will not engage in any racially discriminatory DEI activities.
- The contractor will furnish all information and reports, including access to books, records, and accounts, for compliance verification.
- In the event of noncompliance, the contract may be canceled, terminated, or suspended in whole or in part.
- The contractor or subcontractor may be declared ineligible for further government contracts.
- The contractor will report any subcontractor's "known or reasonably knowable" violations and take remedial action directed by the agency.
- The contractor recognizes that compliance is material to the Government's payment decisions for purposes of section 3729(b)(4) of title 31, United States Code (False Claims Act).
Verified — EO 14398 clause text
What "racially discriminatory DEI activities" means
The EO defines the term as: disparate treatment based on race or ethnicity in recruitment, employment (hiring, promotions), contracting (vendor agreements), program participation, or allocation of resources. "Program participation" includes membership in or access to training programs, mentoring, leadership development, educational opportunities, clubs, and associations sponsored by the contractor. The EO does not address sex-based discrimination. Verified — EO 14398
The False Claims Act exposure
The clause's explicit statement that compliance is "material to the Government's payment decisions" eliminates one of the most common FCA defenses — that the violated requirement was not material to the government's decision to pay. A contractor that submits a payment claim while knowingly maintaining a prohibited program faces treble damages (three times the contract value), civil penalties, and potential debarment. DOJ has stated its intent to aggressively pursue FCA enforcement. Qui tam whistleblowers — including employees — can initiate actions independently. Verified — Winston & Strawn; DLA Piper; EO 14398
Implementation deadlines
| April 25, 2026 | Mandatory clause must appear in all covered contracts, modifications, and subcontractor flow-downs |
| May 25, 2026 | FAR Council must issue interim deviation guidance |
| July 24, 2026 | Agency heads must report implementation to the White House |
Note: There is a timing gap — agencies must insert the clause before the FAR Council issues interim guidance. Consult legal counsel on how your specific contracting agency is interpreting the April 25 requirement.
What to do before April 25
- Audit internal programs under legal privilege. Review mentorship programs, ERGs, leadership development tracks, supplier diversity initiatives, and hiring processes for any eligibility criteria based on race or ethnicity.
- Update subcontractor agreements. The clause flows to every tier. Begin incorporating the clause into subcontractor agreements now and establish a monitoring system for "known or reasonably knowable" violations.
- Check for jurisdictional conflicts. Some state equal opportunity laws may conflict with the federal clause. Assess the compliance conflict before April 25.
- Document any program changes. If you modify or terminate any program in response to this EO, document the basis and process. FCA qui tam actions frequently originate from employees who observed the change.
April 25 is 19 days from publication of this sheet. Every invoice submitted to the federal government after that date is an implicit statement that your organization is in full compliance. This applies to primes and all subcontractor tiers.
Issue 2 of 2
Combat & Operational Medicine + MHS GENESIS
Published April 10, 2026. All figures in thousands unless noted. Confidence levels: Verified (primary source confirmed) / Corroborated (secondary sources, consistent with known pattern) / Single Source (flagged) / Analytical (reasoned beyond evidence, labeled).
15
HCDS EHR Follow-on (HT003826X0000)
Signal
The prime systems integrator model is gone. The DHMSM Program Office retains direct decision authority, supported by three separately contracted functions: Technical Integration, Product Management, and Human-Centered Design. None carries the authority over program direction and vendor management a prime SI would have held.
Solution vendors now hold direct FAR-based contracts. Oracle Health Millennium, Health Data Intelligence, and Patient Portal are Best of Suite. Philips eCare and Amwell are Best of Breed. Converge, Solventum Health Information Systems, and Henry Schein Dentrix complete the current vendor portfolio. OCI hosting constraint lifted — solution vendors can now host in their own cloud environments provided they meet DHA performance, security, and cost standards. Verified
Immediate action
Deployment Solutions RFP (HT003826RE001) posted April 6, 2026. Proposals due April 15, 2026, 12:00 PM EDT. Multiple-award IDIQ, $300 million shared ceiling. Price is not an evaluation factor. Government awards to every technically acceptable offeror.
OCI lockout clause locks awardees out of all DHMS work for the duration of the contract plus 12 months. Read the OCI clause before you bid. Firms that want task order access without foreclosing HCDS must make that decision now. Verified
Industry input on HCDS follow-on closes August 30, 2026. This is the last formal window to shape the requirement before the solicitation issues. The Deployment Solutions IDIQ deadline is April 15 — if you have not started, this window is effectively closed.
16
CIMPLE Recompete (N6523625R3032)
What it funds
Enterprise application and desktop virtualization lifecycle support across the MHS footprint. CPFF, 1 base + 4 option years. $250 million. Verified
Competitive landscape
SPINVI is the confirmed incumbent — an 8(a) firm acquired by Core4ce in January 2023. Recompete is expected April 2026 with award November 2026. SeaPort-NxG vehicle required. Small business set-aside — teaming decisions and 8(a) positioning should be finalized now. Verified
RFP expected April 2026. Award November 2026. Small business set-aside. If you need SeaPort-NxG access and do not have it, the teaming window is now. 8(a) firms with MHS desktop virtualization experience are the primary teaming targets.
17
CSO FY2026 IPR #3 (HT003826SC001)
What it is
Enterprise technology planning and risk management. OT prototype mechanism — 10 U.S.C. § 4022, not a traditional FAR acquisition. Each award valued $1.5-2.2 million. Verified
Proposals due April 16, 2026. This window has effectively closed if not already submitted. Track future IPR cycles on SAM.gov under PEO DHMS.
18
Enterprise Data Catalog (HT001126RE011)
What it funds
Inventory of up to 80 DHA data systems. VAULTIS framework. Automated ML metadata harvesting. Part of DHA Data and Innovation Strategy launched March 2026. $34 million, WOSB set-aside. Posted December 22, 2025. Verified
Active solicitation. Check SAM.gov for current status and response deadline. WOSB set-aside — positioning and teaming decisions should account for the small business requirement.
19
EIDS PMO Consolidation
What it is
MHS Information Platform currently runs on a 1+ petabyte AWS GovCloud environment. EIDS PMO managing 10 active contracts; manpower assessment underway to consolidate. SpinSys-Dinè bridge contract expiring. This is the highest-growth functional area in DHA IT. No RFP posted as of publication date. Corroborated
Track SAM.gov under DHA and PEO DHMS. Position capability now before solicitation issues. The SpinSys-Dinè bridge expiration creates an opening — organizations with AWS GovCloud and large-scale health data platform experience should be monitoring this space.
20
PRMRP — Peer Reviewed Medical Research Program
What it funds
$370 million across 52 condition areas. Pre-announcement March 5, 2026. Access through eBRAP, then Grants.gov CFDA 12.420. Platform Clinical Translation Award funds up to $15 million per award (with $8 million guaranteed from FY2026 funds). Requires preproposal followed by invitation-only full application. Verified
The timing trap
The pre-application window closes before the full FOA publishes. For some mechanisms, the submission calendar has already begun. Do not wait for the FOA — the eBRAP pre-application is the mandatory gating step and some mechanisms close that window first.
FY2027 funding context
The FY2027 CDMRP total will be set by House appropriators in mid-April markup, not by this budget. The FY2026 award cycle is running now. Verified
Pre-application open now. Full FOA pending. The eBRAP pre-application is the mandatory gating step — do not wait for the FOA to begin positioning.
21
PRCRP + 14 Additional CDMRP Programs
What it funds
$165 million across 20 cancer types. Pre-announcement February 20, 2026. All 14 additional programs have live pre-announcements at cdmrp.health.mil. Each program has its own timeline and mechanism structure. Full FOAs have not yet posted to eBRAP. There is no single deadline to plan against. Verified
Additional programs
- TBI/PH — Traumatic Brain Injury / Psychological Health
- Combat Readiness — Military medical readiness research
- Joint Warfighter — Joint operational medicine
- Military Burn — Burn treatment and recovery
- Toxic Exposures — Environmental and occupational exposures
- Breast Cancer, Ovarian Cancer, MS, Parkinson's, ALS, Lupus — Disease-specific research
- Spinal Cord Injury, Hearing Restoration, Vision — Injury rehabilitation
The funding context you need
P.L. 119-4 cut CDMRP by 57% in FY2025 — from $1.51 billion to $650 million. FY2026 restored it to $1.27 billion. That level is still 16% below FY2024. Research timelines interrupted by a one-year cut cannot be recovered by a funding restoration alone. Congressional advocacy during the FY2027 markup (mid-April) is the only mechanism to restore the FY2024 funding level. Verified
Do not wait for the FOA. Check cdmrp.health.mil per program. eBRAP pre-application is the mandatory gating step for all CDMRP submissions — some mechanisms close the pre-application window before the FOA publishes.
22
USAMRAA BAA — Operational Medicine (HT9425-23-S-BAA1)
What it covers
Primary acquisition pathway for all OPMED PMO programs. Covers blood products (cryopreserved platelets, cold-stored plasma), deployed diagnostics (man-portable molecular systems), CPG implementation requirements, and force health protection programs. Continuous submissions accepted through September 30, 2027. Verified
Active programs in pipeline
- CLPH-511 (Cellphire Therapeutics): $29.25M contract W81XWH20C0030. FDA Fast Track granted March 2025. CRYPTICS Phase 2/3 trial stopped early for efficacy April 2025. Five-year shelf life at ≤-65°C. Procurement requirements follow.
- Man-Portable Diagnostic System: Cepheid GeneXpert Omni validated at Balikatan 25 in Philippines. Tropical fever panel tested in field conditions.
- En-route blood delivery: Updated operational guidance published December 2025 covering aerial delivery of fresh and stored blood products. Requirement generation underway.
Open. Continuous submissions. Contact USAMRAA directly. Also track OT agreements through MTEC and existing IDIQ vehicles for OPMED work. The CLPH-511 FDA pathway and Cepheid field validation create downstream procurement signals — position against those requirements now.
23
DHIT Engineering Support Recompete
What it is
Infrastructure engineering support task order through NIWC Atlantic. $129.6 million. Six original bidders on current vehicle. Expiring FY2026. Recompete expected to draw significant interest given scope. No solicitation posted as of publication date. Corroborated
Watch NIWC Atlantic on SAM.gov. Begin teaming and capability alignment now. Six original bidders sets the competitive benchmark — organizations without prior DHA infrastructure engineering work should identify teaming partners with that past performance.
24
FY2027 DHA Military Construction
Portfolio breakdown
| Kunsan AB, Korea | Ambulatory Care Center Replacement — $65.0M |
| Bethesda Naval Hospital, MD | MEDCEN Addition/Alteration Increment 10 — $87.3M |
| Bethesda Naval Hospital, MD | Support Facilities Replacement — $55.0M |
| Rhine Ordnance Barracks, Germany | Hospital Replacement Increment 13 — $95.0M |
| RAF Lakenheath, UK | Hospital Replacement Phase 2 — $78.0M |
| Jacksonville, FL | SARP Facility Replacement — $40.0M |
| Fort Wainwright, AK | Hospital Addition (Phased) — $45.8M |
| Creech AFB, NV | Ambulatory Care Addition — $25.4M |
What the portfolio reveals
Kunsan AB is the first INDOPACOM DHA MILCON entry — there was no INDOPACOM DHA medical construction in FY2026. Geographic pivot confirmed. Lakenheath and Rhine ORB are continuing increments on multi-year authorized builds — no reduction in commitment, natural increment progression. Fort Wainwright follows ARCTIC EDGE 26 exercise validation. Jacksonville SARP signals behavioral health and addiction treatment are inside the lethality framework. Verified — C-1 FY2027 confirmed
Construction timelines vary by project. AE firms should position against Bethesda ($142.3M concurrent), Kunsan ($65M), and Rhine ORB ($95M) as the largest active opportunities. Lakenheath Phase 2 ($78M) and Fort Wainwright ($45.8M) follow active authorization sequences.
Strategic Context: The $3.139B Mandatory Injection
This is not in any capture table because it is not a solicitation. It is the structural condition every solicitation in this issue will operate inside.
The entire $3.139 billion FY2027 mandatory COMP request lands in a single subaccount: Base Operations and Communications. Every other COMP line — In-House Care, Information Management, RDT&E, procurement — shows zero in the mandatory column. This subaccount reaches $5.602 billion in FY2027, more than double its discretionary level.
For comparison: the entire $192.2 billion FY2027 military personnel request — every dollar of basic pay, housing allowances, and subsistence across all services — carries zero mandatory funding. Congress appropriates the pay through standard discretionary channels. Reconciliation funds the health data infrastructure. Those two tracks do not operate through the same vehicles and are not visible in the same budget documents.
The contract vehicles connected to the mandatory infrastructure investment are not the traditional DHP procurement channels. Teams building FY2027 pipeline entirely from the discretionary O-1 exhibit are working from part of the picture.
Source: FY2027 O-1 Exhibit, comptroller.war.gov. FY2027 M-1 Exhibit. CRS Report IF10349.
Confidence Key
Confirmed by primary government source: budget documents, GAO reports, statutory text, SAM.gov, Federal Register, or congressional testimony.
Direction confirmed from primary sources; specific dollar figure is MMT analysis derived from primary data.
Requires legislative or regulatory action to take effect. Not yet enacted or in force.
MMT calculation from primary source data. Sourcing and methodology shown in the deep dive.
Confirmed by secondary sources consistent with the pattern; no single definitive primary source.
Primary Sources Consulted
Department of Veterans Affairs
- VA FY2027 Budget in Brief, April 3, 2026
- VA FY2027 Budget Submission Volume 2 — Medical Programs
- VA FY2027 Budget Submission Volume 5 — IT and EHRM
- SAM.gov: 36C10G26R0003, 36C10G26R0004, 36C10B26R0006
- VA OIG: July 2022 (Spokane), September 2024 (first five sites), March 2024 (Columbus)
Government Accountability Office
- GAO-26-108812, December 2025 — EHRM lifecycle costs and recommendations
- GAO-25-108091, September 2024 — EHRM user survey
- GAO-26-107980, December 2025 — VA cybersecurity MITRE assessment
- GAO-26-108943, March 2026 — community care, 3.1M veterans
Congressional Sources
- House VA Subcommittee, December 15, 2025 — EHRM readiness hearing
- CRS IN12595 — MTF staffing and care reattraction
- CRS IF13108 — FY2026 MHS budget
- CRS R48891 — FY2026 enacted appropriations
- P.L. 118-159, FY2025 NDAA — MTF staffing mandate
Federal Register and Executive
- Federal Register 2026-06284, April 1, 2026 — ONC restructuring
- EO 14398, March 26, 2026 — DEI contractor clause
- Section 232 Pharmaceutical Tariff Proclamation, April 2, 2026
- Hegseth memorandum, April 10, 2025
HHS and ARPA-H
- HHS FY2027 Budget in Brief, April 2026
- ARPA-H ADVOCATE program — arpa-h.gov
- Federal Register: HTI-5 proposed rule, December 29, 2025
- ONC/healthit.gov — TEFCA exchange volume data
DHA / PEO DHMS
- SAM.gov: HT003826X0000, HT003826RE001, HT003826SC001, HT001126RE011
- SAM.gov: N6523625R3032 (CIMPLE), HT9425-23-S-BAA1 (USAMRAA BAA)
- FY2027 O-1 Exhibit, comptroller.war.gov
- FY2027 M-1 Exhibit
- FY2027 C-1 Military Construction Exhibit
- CRS Report IF10349
CDMRP / USAMRAA
- cdmrp.health.mil — PRMRP pre-announcement March 5, 2026
- cdmrp.health.mil — PRCRP pre-announcement February 20, 2026
- Grants.gov CFDA 12.420
- eBRAP pre-application portal
- P.L. 119-4 — FY2025 CDMRP funding
- jts.health.mil — en-route blood delivery guidance, December 2025
The views expressed are those of the author and do not represent the official position of any organization. This content is for informational purposes only. Verify current solicitation status directly on SAM.gov before making procurement decisions. Confidence levels reflect the author's assessment of sourcing quality — not legal or investment advice.