The Department of Veterans Affairs (VA) has shifted its primary information technology procurement strategy toward the Transformation Twenty-One Total Technology Next Generation 2 (T4NG2) vehicle. This transition marks a significant update for contractors seeking to participate in the $60.7 billion program. The agency said the new vehicle will serve as its flagship contract for IT and health-IT services over the next decade.
The original T4NG contract is scheduled to conclude its ordering period on June 30, 2026. Data shows the VA has obligated approximately $17.4 billion in task orders through the legacy system. The sunset of the original vehicle is currently driving a large volume of recompetes onto the T4NG2 platform. Industry analysts said the T4NG2 roster includes 33 prime contractors who will handle the majority of large-scale IT modernization efforts.
The Shift to T4NG2 and Enterprise Modernization
T4NG2 is a multiple-award, indefinite-delivery/indefinite-quantity (IDIQ) contract with a 10-year lifespan. The VA said the program includes a five-year base period followed by a five-year option. The Technology Acquisition Center (TAC) manages the vehicle to streamline the acquisition of software, IT services, and technical modernization solutions. The scope of work covers cybersecurity, data management, systems development, and enterprise operations.
The VA said the program is essential for maintaining veterans benefits systems and human capital infrastructure. Task orders on this vehicle typically range from $1 million to $1 billion. Most of these orders have performance periods between three and five years. Experts said the program is designed to provide the VA with agile access to emerging technologies like artificial intelligence and automated systems.
Strategies for SDVOSB Participation
The VA said it remains committed to meeting or exceeding its socio-economic goals for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). Approximately half of the 33 prime contractors on the T4NG2 vehicle are SDVOSB-eligible firms. The agency said these businesses are critical for providing niche expertise and fulfilling the "Vets First" mandate.
Small businesses that do not hold a prime position on T4NG2 must focus on teaming and subcontracting. Industry leaders said identifying prime partners with a strong track record is a primary path to entry. The SBA’s Veteran Certification (VetCert) portal is now the formal requirement for SDVOSB status. Firms must be certified through this portal to compete for set-aside or sole-source contracts.
The SBA said the certification process requires businesses to be at least 51% owned and controlled by one or more service-disabled veterans. These veterans must also manage day-to-day operations and long-term decision-making. The agency said active registration in SAM.gov remains a mandatory prerequisite for all contract awards.
Leveraging GSA Schedules and VETS 2
While T4NG2 is the primary vehicle, the VA also utilizes government-wide acquisition contracts (GWACs) and GSA schedules. The GSA Multiple Award Schedule (MAS) for IT is a frequently used alternative for smaller or specialized procurements. The GSA said the MAS program allows the VA to buy from pre-approved vendors at negotiated, most-favored-customer pricing.
The VETS 2 GWAC is another powerful tool specifically for SDVOSB IT firms. The GSA said VETS 2 is the only GWAC set aside exclusively for service-disabled veteran-owned small businesses. It provides a total IT solution platform that allows agencies to receive SDVOSB credit. Procurement officers said using VETS 2 simplifies the ordering process and ensures a pool of highly qualified veteran-led firms.
Obtaining a GSA Schedule can take between three and 12 months. The GSA said firms must demonstrate financial stability and a solid past performance record. Once on a schedule, companies must actively monitor GSA eBuy and the Acquisition Gateway. The VA said these platforms are used to release Requests for Quotes (RFQs) that may not appear on open-market portals.
Technical Priorities and Compliance Requirements
Modernization of the Electronic Health Record (EHR) remains a top technical priority for the VA in 2026. The agency said integrating the Oracle Cerner system with existing legacy data is a multi-year effort. This includes a focus on interoperability between VA facilities and community care providers. Technical leads said vendors must show proficiency in DevSecOps and cloud migration to be competitive.
Cybersecurity and Section 508 compliance have also received increased attention from lawmakers. A recent review by the VA found that many legacy IT systems were not fully compliant with disability accessibility standards. The VA said all new technology procurements must strictly adhere to Section 508 requirements. This ensures that veterans and employees with disabilities can access digital tools and information.
Furthermore, the VA said it is aligning its security protocols with NIST standards and Controlled Unclassified Information (CUI) regulations. Contractors must demonstrate a robust cybersecurity posture to handle sensitive veteran data. Failure to meet these security benchmarks can lead to disqualification from prime and subcontracting opportunities.
Forecast for 2026 VA IT Spending
The VA’s forecast for fiscal year 2026 highlights several large-scale recompetes as T4NG task orders expire. The agency said it will continue to publish these opportunities on its Forecast of Contracting Opportunities portal. This tool provides industry with advance visibility into anticipated IT and medical-related requirements. Most VA solicitations are valued under $10 million, though several marquee projects exceed $100 million.
The Office of Small and Disadvantaged Business Utilization (OSDBU) said it is modernizing its own systems. An RFI issued in June 2026 indicated a need for a new Contract Management System to streamline procurement operations. This modernization effort is expected to improve communication between the VA and its industry partners.
Contractors are encouraged to visit the USGov.News articles page for daily updates on federal procurement. The press releases section provides real-time information on contract awards and VA policy changes. Staying informed through the USGov.News newsletter is also recommended for tracking shifts in the 2026 political and regulatory landscape.
Conclusion
Winning a VA IT contract in 2026 requires a strategic focus on the T4NG2 vehicle and SDVOSB certification. The VA said its commitment to veteran-owned businesses remains a cornerstone of its acquisition strategy. Firms should align their offerings with the agency's goals of EHR modernization, cybersecurity, and accessibility. By leveraging GSA schedules and building strong teaming relationships, contractors can position themselves for success in the evolving federal marketplace.
