UCLA seeks pre-litigation resolution with Oracle

UCLA has entered pre-litigation discussions with Oracle, a supplier supporting a finance transformation initiative that has been delayed by nearly six years. The project has been paused since August 2024 while the university considers whether to continue using Oracle. A proposed settlement with Oracle America over an alleged contract breach appears on a Regents compliance and audit committee meeting agenda. UCLA faculty association member Dan Mitchell linked the item to the failed Ascend 2.0 finance and procurement system transformation. UCLA declined to comment on confidential pre-litigation matters and said it continues evaluating the most effective path forward for financial systems modernization. A prior report cited Oracle’s lack of responsiveness, including licensing costs and support, and showed budget reductions and spending to date.

"UCLA has entered pre-litigation discussions with Oracle, one of the suppliers underpinning its finance transformation project, which has been delayed by nearly six years. The project has been on pause since August 2024 while the giant US university considers its options, including whether to continue using the vendor. The Regents of the University of California's Compliance and Audit Committee recently listed a proposed settlement with Oracle America over an alleged contract breach as an action line on its meeting agenda."

"A report presented to the University Regents Finance and Capital Strategies Committee in March last year said that among the "Top Issues, Risks and Challenges" the UCLA project leadership faced was "Oracle's lack of responsiveness - particularly regarding licensing costs and support." The report, based on data from up to December 2024, listed it among issues under ongoing evaluation. It shows the project's original $120 million budget was revised down to $98.9 million, with $13.5 million spent to date."

"The project started in April 2018 and was originally expected to end in July 2020. It is a "comprehensive business transformation initiative designed to modernize the University financial, budgetary, and research administration operations by migrating to the Oracle Cloud SaaS solution," the document sa"

"UCLA does not comment on confidential pre-litigation matters or potential settlements. The university continues to evaluate the most effective path forward for financial systems modernization."

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