Five Contracts Awarded by VA at the End of Fiscal Year 1979

Gao ID: HRD-80-101 July 31, 1980

As a result of hearings before the Subcommittee on Special Investigations, House Committee on Veterans' Affairs, a review was conducted of five Veterans Administration (VA) procurements for automatic data processing services and equipment. These contracts were included in a number of procurements entered into by VA at the end of fiscal year 1979 for which the Office of Management and Budget (OMB) recommended termination due to procurement irregularities.

About half of the OMB charges were confirmed. It was concluded that VA violated certain Federal Procurement Regulations or did not adhere to generally accepted good business practices in awarding the contracts. The VA officials responsible for the questionable actions relating to the procurements have been identified. In some cases, the contracting officer was cited as the responsible official, although many other officials involved in the procurements have also been identified. It was noted that VA is continuing to investigate the OBM observation of favoritism.



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