Audit of VA Electronic Contract Management System

The Office of Inspector General (OIG) performed an audit to evaluate the effectiveness of the Electronic Contract Management System (eCMS), which was designed to improve VA’s contract management. The audit objective was to determine if information in eCMS enables VA to use the system as a comprehensive management tool to improve the procurement process and the effectiveness of the system for oversight of VA procurements. The audit revealed that eCMS is not used effectively and procurement information in eCMS is incomplete. VA cannot achieve the expected benefits of eCMS, including the ability to integrate and standardize procurement processes, reduce workload, and improve communications without complete information. In addition, because procurement information in eCMS is incomplete, reports generated by the system cannot be relied upon when making procurement management decisions. VA expends about $10 billion annually on supplies and services. Until management enforces compliance for the mandatory use of the system, VA cannot benefit from the full capabilities of the system including the ability to integrate and standardize procurement processes, reduce workload, and improve communications. Integrating eCMS with IFCAP or FMS would provide VA with improved acquisition efficiency, reporting, and control over spending. This will help ensure increased management visibility and transparency needed to manage acquisitions nationwide and make good procurement decisions. The VA Management agreed with the findings and recommendations in the report and provided acceptable implementation plans. Adopting these recommendations is expected to improve the transparency and accountability expected by the Administration for VA’s management of its American Recovery and Reinvestment Act (ARRA) funded projects. We consider the planned actions acceptable, and we will follow up on their implementation until all proposed actions are completed.