Review of Hotline Allegations Related to Minor Construction and Nonrecurring Maintenance Projects at the Fayetteville VA Medical Center in Arkansas

Report Information

Issue Date
Report Number
24-03185-148
VISN
4
State
Arkansas
District
VA Office
Veterans Health Administration (VHA)
Report Author
Office of Audits and Evaluations
Report Type
Review
Report Topic
Maintenance and Construction
Major Management Challenges
Stewardship of Taxpayer Dollars
Recommendations
4
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary

The VA Office of Inspector General (OIG) examined how the Fayetteville VA Medical Center in Arkansas managed five minor construction and nonrecurring maintenance projects. These projects are intended to update facilities, improve safety, and ensure veterans receive care in modern, well‑maintained buildings.

The review was prompted by a hotline complaint in March 2024. The OIG found that the medical center’s contracting officer’s representatives—employees responsible for overseeing the projects—did not consistently provide complete design requirements, prepare detailed statements of work, or keep records of design reviews. They also had not received needed training. These gaps contributed to delays and higher costs across all five projects.

Three of the projects were still under construction as of January 2026. Delays ranged from one year to more than seven years, and combined project costs grew from an originally approved $34.5 million to about $100 million. The OIG determined that most of the $64.5 million increase could have been avoided through clearer communication and stronger project oversight. The delays also created additional costs for storing equipment, maintaining security, and providing laundry services.

The review confirmed that several awarded contracts exceeded the government’s cost estimates and that delays on one project affected the medical center’s ability to move forward with another. The OIG did not substantiate an allegation that the facility had more contract terminations than others in the region.

The OIG made four recommendations to help ensure timely completion of future projects, including better training and documentation practices. The medical center and regional leaders agreed with the findings. The OIG closed recommendation 1 and will monitor corrective actions and close the others once sufficient evidence of improvement is provided.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
Closure Date: 9/9/2026

In collaboration with the director of Veterans Integrated Service Network 16, verify engineering staff are complying with Veterans Health Administration policies and guidance associated with architectural and engineering design review and inspection procedures.

No. 2
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Verify that all engineering staff understand and are trained on VA design and physical security requirements related to minor and nonrecurring maintenance construction projects.

No. 3
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Verify that engineering staff who develop independent government cost estimates are sufficiently trained on developing a statement of work and how these documents affect the cost estimates.

No. 4
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Ensure engineering staff are documenting their review and acceptance of architectural and engineering designs as required by the Federal Acquisition Regulation before the solicitation of construction contracts.