Herseth Sandlin Urges Stronger Management Oversight of VA Projects

Washington, D.C. – On Thursday, September 11, 2009, Economic Opportunity Subcommittee Chairwoman Stephanie Herseth Sandlin (D-SD) conducted a hearing to review the Interagency Agreement (IAA) between the Department of Veterans Affairs and the Department of Navy, Space and Naval Warfare Systems Center (SPAWAR). 

The hearing focused on a recent VA Office of Inspector General (IG) report that identified many contracting irregularities between SPAWAR and VA.  The IAA was entered into in November 2007 to provide government employee and contractor technical support for information technology initiatives, including a system to process claims for the Post-9/11 G.I. Bill.

“I am disappointed to learn that that neither VA nor SPAWAR is in compliance with the terms and conditions of the IAA,” said Chairwoman Herseth Sandlin. “The Subcommittee will continue to press the VA to improve this and future IAAs, while addressing the larger implication of the flawed acquisition operations process.  I expect the VA to put an end to the waste and mismanagement that plagues its contracting practices.”

The IG report found that VA was unaware that SPAWAR was charging management fees, unauthorized work was being performed on projects that were outside the scope of the IAA, 87 percent of the work performed under the IAA has been by SPAWAR contractors and subcontractors, and VA failed to properly review the agreement prior to entering it.  One recommendation in the report was to re-evaluate the IAA to determine whether it is the best interest of VA to continue obtaining services through this type of agreement.

“This agreement must be re-evaluated immediately,” said Bob Filner, Chairman of the House Committee on Veterans’ Affairs.  “SPAWAR has been contracted to replace the temporary G.I. Bill benefits system currently in use with a permanent updated technical program.  This is a leadership issue and the VA must take a more active role in managing projects going forward.  Our veterans and our taxpayers deserve much better.”   

Witness List

Panel 1

·       Maureen T. Regan, Counselor to the Inspector General, Office of Inspector General, U.S. Department of Veterans Affairs 

Accompanied By

o       Michael B. Grivnovics,  Director, Division B, Office of Inspector General, Office of Contract Review, U.S. Department of Veterans Affairs 

Panel 2

·       Captain Mark Krause (Ret.), Department of Veterans Affairs Program Manager, Space and Naval Warfare Systems Center Atlantic

·       The Honorable Roger W. Baker, Assistant Secretary for Information and Technology, U.S. Department of Veterans Affairs

Accompanied By

o       Stephen W. Warren, Principal Deputy Assistant Secretary for Information and Technology, U.S. Department of Veterans Affairs

·       The Honorable William A. Gunn, General Counsel, U.S. Department of Veterans Affairs

·       Glenn D. Haggstrom, Executive Director, Office of Acquisition, Logistics & Construction, U.S. Department of Veterans Affairs

·       Peter L. Levin, Ph.D., Senior Advisor to the Secretary, Chief Technology Officer, U.S. Department of Veterans Affairs

Prepared testimony and a link to a recording of the hearing are available on the internet at this link:  http://veterans.house.gov/hearings/hearing.aspx?newsid=463.