Veterans Affairs Contracting: Improved Oversight Needed for Certain Contractual Arrangements

Abstract : VA spent about $19 billion to buy goods and services in fiscal year 2014 partly through agreements where other agencies award contracts on VA s behalf. VA also uses FFRDCs government-funded entities that have relationships with federal agencies to perform certain tasks. These arrangements can help VA meet its needs and take advantage of unique expertise. In light of questions about VA s use of interagency agreements and FFRDCs, GAO was asked to look at how VA uses and manages these methods of procuring goods and services. This report assesses (1) the extent of use and effectiveness of VA s award and oversight of interagency agreements for fiscal years 2012 through 2014, and (2) the extent of use and effectiveness of VA s management of FFRDCs during this same period. GAO reviewed VA procurement policies, federal acquisition regulations, VA contract data, a sample of 21 interagency agreements and 10 FFRDC task orders, chosen, in part, based on obligation amounts; and interviewed officials from VA, other agencies, and MITRE, the primary FFRDC with which VA does business. GAO recommends, among other things, that VA revise its policies on interagency agreements so that it can better record and track them; provide training on their use; and ensure that all FFRDC actions are centrally reviewed and appropriately documented. VA agreed with GAO s recommendations.