Progress Limited in Implementing Key NAVSUP Recommendations

While VA agrees with the NAVSUP report’s recommendations, limited  progress has been made in implementing the seven key recommendations  of the report. Until VA establishes well-defined  procedures for completing action on the NAVSUP recommendations, the  benefits of this study may not be fully realized. Range of Actions on Recommendations

The status of the seven key recommendations we identified is summarized  in Table 1:  Action taken by VA on the seven key recommendations in the NAVSUP  report has varied from no action, to initial steps, to more advanced efforts  in specific areas. During the course of our review,  however, we found that no action has been taken to develop a long-term  improvement plan with established milestones for specific actions. Adequate management metrics. VA  had not revised the strategic plan by the time we finished our review. Process to review contract files at key acquisition milestones. NAVSUP recommended that AOS establish a contract review board to  improve management of the agency’s contract function. Postaward contract management. Customer relationships. VA has  taken several actions related to employee morale. Factors Contributing to Limited Progress

Discussions with VA officials indicate that the agency believes its limited  progress has largely been due to the absence of permanent leadership and  insufficient staffing levels. For example, positions for  two key VA acquisition managers—Associate Deputy Assistant Secretary  for Acquisitions and the Director for AOS—were unfilled for about 25  months and 15 months, respectively. Recommendations for Executive Action

We recommend that the Secretary of Veterans Affairs direct the Deputy  Assistant Secretary for Acquisition and Materiel Management to  identify specific time frames and milestones for completing actions on the  key NAVSUP recommendations, and   establish a method to measure progress in implementing the  recommendations. Appendix I: NAVSUP’s Report Recommendations

In September 2004, the Naval Supply System Command (NAVSUP) issued  a report, Procurement Performance Management Assessment Program  on its review of the Department of Veterans Affairs, Office of Acquisition  and Materiel Management, Acquisition Operations Service.
Why GAO Did This Study

The Department of Veterans Affairs (VA) is among the largest federal acquisition agencies, spending $7.3 billion on product and service acquisitions in 2004 alone. Recent reports by VA and other organizations identified weaknesses in the agency's acquisition function that could result in excess costs to the taxpayer. One report by the Naval Supply Systems Command (NAVSUP) made 24 recommendations to improve VA's acquisition function. VA has accepted these recommendations. GAO was asked to review the progress VA has made in implementing the key NAVSUP recommendations. GAO identified 7 of the 24 recommendations as key, based primarily on its professional judgment and prior experience.

What GAO Found

Progress made by the Department of Veterans Affairs in implementing the key recommendations from the NAVSUP report has been limited. In fact, a year after the report was issued, VA has not completed actions on any of the seven key recommendations GAO identified. While VA agrees implementation of the key recommendations is necessary, the steps it has taken range from no action to partial action. No action has been taken on three key recommendations: to develop a long-term improvement plan, adequate management metrics, and a supplement to the agency's strategic plan. No more than partial action has been taken on four others: establishment of a contract review board for reviewing files at key milestones along with improvement of postaward contract management, customer relationships, and employee morale. A lack of permanent leadership in key positions has contributed to the lack of further progress in revising acquisition policies, procedures, and management and oversight practices, according to VA officials. For example, two key VA acquisitions management positions were unfilled--one for 15 months and the other for 25 months. In addition, VA has neither set time frames for completing actions on the NAVSUP recommendations nor established a method to measure progress. Until VA establishes a process for completing action on the NAVSUP recommendations, the benefits of the study may not be fully realized.