VA Health Care

The Department of Veterans Affairs (VA) fiscal year 1992 appropriation included funding for 12 new major construction projects, each estimated to cost $3 million or more. The appropriation law required that VA award (1) construction documents contracts for these projects by September 30, 1992, and (2) construction contracts by September 30, 1993. In addition, VA's appropriation for fiscal year 1991 contained funding for 11 other projects for which VA was to award construction contracts by September 30, 1992. This report reviews the contracting delays of reportable projects for impoundment implications under the Impoundment Control Act. GAO also assesses whether VA had reported all projects funded through these acts for which it had not awarded contracts by September 30, 1992.

GAO found that: (1) VA had not awarded 5 of 12 construction documents contracts for fiscal year (FY) 1992 or 4 of 11 FY 1991 construction contracts, as required; (2) VA had not awarded contracts for 9 other projects funded through FY 1984 through FY 1990 appropriation acts; (3) VA correctly identified 18 projects for which it did not meet the contract award time limits; (4) contracting delays did not constitute an impoundment of budget authority under the Impoundment Control Act, since VA intended to use the funds; (5) VA attributed the contracting delays to project scope and design changes, receipt of construction or construction documents appropriations before preliminary design work had been completed, and unexpected and extensive asbestos abatement projects; and (6) VA expected to award contracts for 12 of the 18 projects by the end of FY 1993.