Medical/Surgical Prime Vendor Contract Emergency Supply Strategies Available Before the COVID-19 Pandemic

VA medical facilities’ demand for personal protective equipment (PPE) increased dramatically during the COVID-19 pandemic. The VA Office of Inspector General (OIG) reviewed how the Veterans Health Administration (VHA) ensured the Medical/Surgical Prime Vendor-Next Generation (MSPV-NG) program and its prime vendors met contract requirements by offering medical facilities a no-cost option to develop advance-order supply lists tailored to catastrophic events and contingency plans. The OIG also assessed whether facilities took advantage of those options and strategies and relied on the contracts to obtain PPE during the pandemic. All four MSPV-NG prime vendors developed contingency plans that included the advance-order list. Three of the four vendors also offered options to purchase and store medical supplies in advance. Though the prime vendors fulfilled their contract requirements, the OIG found none of 16 medical facilities assessed took advantage of those emergency strategies before the pandemic. Most facility leaders did not know those plans existed. Most medical facilities reported maintaining their own contingency stocks, which were at risk of quickly depleting. That risk increased when prime vendors were unable to fulfill orders, leading staff to purchase medical supplies on the open market where VHA’s data showed they paid higher prices. By not asking prime vendors to provide services established in contingency plans, VA medical facilities missed opportunities to receive certain needed medical supplies. VA can apply lessons learned during the pandemic by continuing to refine its contract requirements for prime vendors to address catastrophes. The OIG recommended educating chief logistics officers on the supply strategies offered in prime vendors’ contingency plans, and ensure they understand how those strategies can help mitigate supply shortages. The OIG also recommended clarifying for local facilities the intent of the emergency and continuous supply contract provisions.