www.va.govReport Summary
Review of Allegations of Mismanagement, Central Alabama Veterans Health Care System
Report Number 08-01866-61, 2/2/2009 | Full Report (PDF)
In response to correspondence from the Chairman, Senate Committee on Veterans Affairs and the Chairman, House Committee on Veterans Affairs,the Office of Inspector General referred eight allegations of mismanagement at the Central Alabama Health Care System to the Director, Veterans Integrated Systems Network 7 (VISN) for a response. The VISN did not substantiate three of the allegation and the conclusions were supported by the documentation provided. The VISN partially substantiated three of the allegations and took corrective action, which included issuing a bills of collection to Emergency Room nurses who were paid at the wrong rate and to a physician who was inappropriately paid a retention bonus. The remaining two allegations involved contracts awarded to purchase the services of two retired VA employees. Although the VISN did not substantiate the allegations, based on our review of the documentation, we concluded that both contracting actions violated Federal acquisition regulations. There was no justification for awarding these procurements without competition. The Statement of Work to procure the services of the Financial Manager was inadequate and the purchase order issued to procure the services for the Credentialing and Privileging office did not include a Statement of Work. The purchase order for the services of a Financial Manager was issued against a Federal Supply Schedule contract that was not authorized to sell the services requested. In addition, the services were personal services and the duties and responsibilities included inherently governmental functions. VA does not have authority to issue contracts for personal services and it is improper to contract for inherently governmental functions. The VISN Director concurred with our findings and recommendations and implemented a plan to take corrective action.