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Home Acquisition & Procurement

VA Says Incumbency No Longer Guarantees Contract Renewals

by Kristen Smith
June 19, 2026
in Acquisition & Procurement, Artificial Intelligence, Digital Modernization, News
Zack Schwartz. The VA IT leader said incumbency alone will not secure future work with the agency.

Zack Schwartz, VA's principal deputy assistant secretary for IT, said incumbency alone will not secure future work with the agency.

  • VA’s continued IT partnerships will hinge on whether contractors can support modernization, AI integration and shifting mission needs
  • Zack Schwartz, the agency’s principal deputy assistant secretary for IT, said incumbency alone will not secure future work
  • AI is becoming a core expectation in VA procurement

VA Says Incumbency No Longer Guarantees Contract RenewalsContinued IT partnerships with the Department of Veterans Affairs will depend heavily on contractors’ ability to support system modernization, artificial intelligence integration and shifting mission demands, FedScoop reported Thursday.

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  • How Are VA IT Contractors Being Evaluated?
  • How Is AI Shaping VA Technology Modernization?
  • What VA EHR Modernization Contract Opportunities Are Open?
  • Why Do VA Contractor Expectations Matter for Industry?

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Zack Schwartz, principal deputy assistant secretary in VA’s Office of Information and Technology, said incumbency will not guarantee future work as the department changes how it evaluates contractor performance and technology delivery.

VA’s heightened contractor evaluation standards reflect a broader shift across federal health agencies. The Potomac Officers Club’s 2026 Healthcare Summit on Dec. 3 will bring together leadership from the Veterans Health Administration, the Department of Health and Human Services, and the Defense Health Agency to discuss how federal health contractors can support modernization and AI integration in FY27. Register now.

How Are VA IT Contractors Being Evaluated?

According to Schwartz, VA expects vendors to demonstrate they can support the department’s modernization agenda and deliver results for veteran services.

The agency is reviewing contractor performance throughout the life of agreements, including multiyear deals, to determine whether existing work remains aligned with current VA needs. Schwartz noted that requirements may change over time as the department accelerates technology modernization and AI adoption.

How Is AI Shaping VA Technology Modernization?

AI is becoming a core expectation throughout VA technology efforts and procurement planning.

The department is looking for contractors that can help integrate AI responsibly while supporting governance, mission outcomes and service delivery for veterans, Schwartz said.

The message comes as VA continues major modernization efforts, including its accelerated federal electronic health record, or EHR, rollout. Earlier this month, the department completed its second 2026 EHR deployment wave at facilities in Ohio and Kentucky, expanding the system to more than 107,000 veterans and 7,200 clinicians and staff.

What VA EHR Modernization Contract Opportunities Are Open?

VA currently has several open solicitations tied to EHR modernization infrastructure upgrades across medical facilities, according to federal contracting notices.

Recent opportunities include EHRM infrastructure work at sites in North Carolina, Maine, Pennsylvania, New York, Minnesota and other locations. The activity reflects continued investment in facility and IT upgrades needed to support the department’s broader health record modernization program.

Why Do VA Contractor Expectations Matter for Industry?

Schwartz said the VA’s size as a federal technology buyer gives the agency significant leverage with vendors.

“We are the largest customer for nearly all of our technology vendors, through and through,” he told FedScoop. “We are the VIP.”

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