Summary

The Department of Veterans Affairs (VA) fiscal year 1991 appropriation included funding for 16 major construction projects, each estimated to cost $3 million or more. The law mandates that working drawings contracts and construction contracts be awarded by certain deadlines. In a March 1992 letter to Congress, VA pointed out 14 projects in which working drawings or construction contracts had not been awarded by the required deadlines. GAO does not believe that the contracting delays for the 14 projects constitute an impoundment of budget authority under the Impoundment Control Act. VA's actions, in GAO's view, show no intent to refrain from using the funds. The reasons most often cited by VA for the delays were (1) changes in the projects' scope or design, (2) receipt of bids exceeding the funds available, and (3) the fact that projects were funded before preliminary design work was completed. VA has awarded or expects to award contracts for 7 of the 14 projects by September 30, 1992.

GAO found that: (1) VA reported that, as of the end of fiscal year (FY) 1991, it had not awarded 4 of 6 working drawings contracts for FY 1991 or 2 of 11 FY 1990 construction contracts, as required; (2) VA reported that, as of the end of FY 1991, it had not awarded contracts for 8 other projects funded through appropriation acts for FY 1984 through FY 1990; (3) VA correctly identified the 14 projects for which it did not meet the contract award time limits; (4) those contracting delays do not constitute an impoundment of budget authority under the Impoundment Control Act, since VA shows no intent to refrain from using the funds; (5) VA attributed the contracting delays to such programmatic considerations as changes in project scope or design, receipt of bids that exceeded the available funds, and funding projects before the completion of preliminary design work; and (6) VA expects to award contracts for 7 of the 14 projects by the end of FY 1992.