VA Laundry Service

Consolidations and Competitive Sourcing Could Save Millions Gao ID: GAO-01-61 November 30, 2000

The Department of Veterans Affairs (VA) runs 67 laundries that serve patients in its hospitals, nursing homes, and domiciliaries. Most of the operating costs for these laundries are for labor. VA could reduce these costs by closing 13 of its 67 facilities and moving those workloads to its underused laundries. VA could make more efficient use of its existing facilities and save money by closing costly laundries that require expensive renovations and new equipment. In addition, VA could make greater use of competitive sourcing to keep costs down. GAO's review of current VA laundry contracts showed that labor costs were significantly reduced. Furthermore, competing VA in-house services with the private sector would ensure that VA would receive the most efficient and lowest-cost laundry service.

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