SAP protests Medicare unified accounting plans

SAP protests Medicare unified accounting plans

SAP America Inc. has protested the Health and Human Services Department's planned acquisition of Oracle Federal Financials software that could be part of the $328 million Healthcare Integrated General Ledger Accounting System [see story at].

SAP of Newtown Square, Pa., said in a statement last week that its protest to the General Accounting Office challenged the 'cart before the horse' procurement sequence under which the National Institutes of Health is buying implementation services for the Oracle Corp. software before licenses are procured. Reversing that order might have resulted in selection of another database vendor, SAP said.

The company also said HHS has no legal basis for making a sole-source award for Oracle licenses through an existing NIH Business Systems contract or from the General Services Administration schedule.

SAP's statement said that NIH 'has projected that it will take 3.5 years and $102.5 million including in-house costs to implement Oracle Federal Financials at NIH.' That, according to SAP, could raise the department's cost for the database portion of the integrated accounting system to a half-billion dollars or more.

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