Transferring Veterans Administration Records Center Activity to the General Services Administration

The Veterans Administration (VA) Records Processing Center in St. Louis, MO was reviewed. A General Services Administration (GSA) study team reported similar findings. About 1 million of the 14 million claims folders stored at the Center involved claims that were currently being paid. The remaining folders involved claims which had been denied or had expired. The question remains whether VA should continue to operate the St. Louis center for programmatic or other reasons. The principal activity on the inactive records is for updates, such as changes of addresses or requests for information. The Office of Management and Budget (OMB) did a cost analysis of transferring the records center to GSA. The OMB decision was not based on this analysis but on the contention by VA that its St. Louis records center performed claims adjudication functions. OMB concluded the GSA could store and service VA folders at less cost. However, there are valid programmatic reasons to continue to have VA operate its St. Louis center. Another important concern is whether dollars spent in providing needed services are spent in the most judicious manner possible. The transfer of VA records to GSA for storage and processing is an appropriate response to this concern.