Audit of Oversight of Patient Transportation Contracts

The Office of Inspector General (OIG) performed an audit that assessed the adequacy of contract development, award, and oversight processes for patient transportation contracts. We also assessed if Contracting Officer’s Technical Representatives (COTRs) adequately reviewed and certified the accuracy of invoice payments for patient transportation services in accordance with contract terms. Veterans Integrated Service Network contract managers did not effectively provide the oversight needed to develop, administer, award, and monitor patient transportation contracts. VHA missed opportunities to provide full and open competition in soliciting offers and awarding patient transportation contracts. Because Contracting Officers (COs) did not always award transportation services competitively, and instead, extended or awarded sole-source contracts, VA cannot be assured of obtaining the best price for the services. We found COTRs did not adequately review invoices before certifying payments. We recommended the Under Secretary for Health ensure the appropriate use and oversight of sole-source awards and contract extensions, recover overpayments and reimburse underpayments, and automate patient transportation billing information. In addition, we recommended COs be required to properly plan and solicit new contracts and held accountable through the establishment of controls to provide oversight. We also recommended the implementation of policies that allow only designated and trained COTRs to certify invoices, require quality assurance reviews to evaluate a COTR’s performance, and ensure the COs written assessment of the COTR’s performance is included in the COTR’s annual performance appraisal. The Under Secretary for Health agreed with our findings and recommendations and plans to complete all corrective actions by September 30, 2010. We consider these planned actions acceptable, and will follow up with their implementation.