Oracle Corp. has accused the state of Oregon of misleading the press and the public with a "false narrative" about who's at fault for the state's health exchange technology disaster.

Oracle President Safra Catz said in a letter to Cover Oregon that the state, and not Oracle, deserves blame. The state made the decision to serve as its own systems integrator. "This decision has been criticized frequently by many," Catz said. "Oracle's extensive documentation of this project supports the conclusion that OHA (Oregon Health Authority) and Cover Oregon lacked the skills, knowledge or ability to be successful as the systems integrator on an undertaking of this scope and complexity."

The state has paid $200 million on the massive exchange IT project. Oracle, while not the systems integrator, was clearly the lead technology contractor. It has been paid more than $130 million and wants more.

Oracle has maintained a steadfast silence during the long Cover Oregon PR nightmare. The letter, obtained by The Oregonian on Wednesday, gives one of the first glimpses at Oracle's position.

Catz claims Oracle "provided clear and repeated warnings" the exchange website would not be ready to go live by the first Oct. 1, 2013 deadline. "The state's current effort to deflect responsibility by claiming that Oracle failed to communicate the status of the project is demonstrably false," Catz said.

It's not just the state claiming Oracle bears responsibility for the exchange's problems. Maximus, hired by the state as its quality assurance contractor, has repeatedly warned the state about Oracle's performance and urged it to renegotiate the Oracle contract to get better, more timely work.

"Oracle's performance is clearly lacking," Maximus stated in its January report. "Their inability to adhere to industry standards and professional software and project management tenets warrants further review."

Oracle in late February threatened to walk off the project unless Oregon immediately paid about $69 million it claimed it was owed for work performed since September 2013. The state cut a deal, paying Oracle more than $43 million but also withholding the $25.5 million and reserving its rights to sue Oracle.

Despite the legal brinksmanship, Catz said Oracle is willing to continue to work with Cover Oregon. "We encourage Cover Oregon to immediately hire a systems integrator to lead the project, as it represented it would do in the first place," she said.

--Jeff Manning