Audit of VHA's Veterans Integrated System Network Contracts

This audit examined how well recent major acquisition process changes strengthened the quality of VHA’s contracts. The changes were not effective because new Integrated Oversight Processes (IOP) were not followed consistently and VA and VHA acquisition management did not provide adequate guidance and oversight needed to implement these processes. While the quality of contracts improved when the IOP was used, VHA did not perform IOP reviews for an estimated 3,000 contracts, valued at $1.58 billion awarded between June 2009 and May 2010. We also found that VHA needs management tools to effectively monitor contract workload and optimal staffing levels. Comparisons of Government cost estimates for noncompetitive contracts showed VA could have put about $2.9 million to better use through competitive procurements. Without these tools, VHA lacks the information needed to effectively manage its contracting activities.