VA cancels joint platform contract due to alleged conflict of interest: Report

The Veterans Affairs Department has terminated its first major contract for the joint digital health record system with the Defense Department due to a possible organizational conflict of interest, according to a Feb. 29 report by Bob Brewin in Nextgov.com.

The VA confirmed it had canceled the $102.6 million contract that had been awarded last month to ASM Research to develop key software for the new, integrated platform.

Industry sources told Nextgov that the VA ordered the abrupt termination because of concerns about potential organizational conflicts of interest and violations of federal contracting law. The sources alleged that one or more ASM subcontractors were believed to have had inside, non-public information about the procurement when it was put out for bid, Nextgov reported.

About the Author

Alice Lipowicz is a staff writer covering government 2.0, homeland security and other IT policies for Federal Computer Week.

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