The seven renovation projects are intended to improve delivery of veterans’ health care at existing medical centers by correcting fire and safety deficiencies, improving patient environment, and increasing efficiency. Projects Would Not Correct All Deficiencies

Our analysis of VA documents shows that VA has identified major construction needs in addition to the proposed projects. Delaying the projects longer would extend the construction award dates. VA officials are concerned that delaying project funding could significantly affect construction award dates. Our observation that delaying project funding until fiscal year 1997 should have a negligible effect on construction award dates for projects if design schedules are met is based on the premise that design funds will be available for the projects in fiscal year 1996. It also provides the expected veterans’ health care benefits and VA costs, the relationship between the proposed project and VA’s planned reorganization, and the potential effects of delayed project funding on veterans’ health care and VA costs. VA did not consider all available options when developing the Brevard proposal. In December 1992, we reported that in selecting the replacement site for the closed Martinez medical center, VA should consider the construction cost, the time needed to complete construction, effects on veterans’ access to care, potential for affiliation with medical schools, environmental impact, capabilities of the replacement facility, and consistency with the long-range needs of VA and the Department of Defense beneficiaries in the target area. Cost estimates for funding delay have not been computed. Marion’s 5-year facility plan includes no additional major construction projects but includes $4.2 million for two minor projects. Expected Benefits and Costs

Veterans’ health care: The Lebanon medical center would not serve any new types of patients or provide any new services. Orders for 100 or more copies to be mailed to a single address are discounted 25 percent.
Why GAO Did This Study

Pursuant to a congressional staff request, GAO provided information on nine proposed Department of Veterans' Affairs (VA) construction projects, focusing on: (1) the projects' benefits to veterans; (2) VA efforts to realign all of its facilities into new service networks; and (3) the potential effects of funding delays an VA contract award dates and costs.

What GAO Found

GAO found that: (1) the nine proposed construction projects would primarily enhance VA inpatient care capacity within designated target areas; (2) the two new medical centers would improve veterans' access to quality care and attract new users; (3) the seven renovation projects at existing medical centers would benefit users by correcting fire and safety deficiencies and improving patient environment; (4) the medical centers undergoing renovation need an additional $308 million to correct all of their deficiencies; (5) VA has not considered all available alternatives to the construction projects, partially because planned realignment criteria have not been finalized; (6) the construction of new and renovated facilities will likely limit future VA realignment decisions, since the facilities have an expected useful life of 25 years or more; and (7) delaying funding until fiscal year (FY) 1997 is likely to have a minimal affect on VA contract award dates and costs, but longer delays could significantly increase costs and award date slippage.