January 23, 2015

The Government Accountability Office (GAO) released a report this week highlighting measures taken by the VA to correct substantial cost overruns and scheduling delays at several of the VA’s major medical facility construction projects since 2013.

The VA is currently managing medical facility construction projects at 50 major sites costing more than $12 billion.

A 2013 report focused on projects in four major metropolitan areas (Las Vegas, New Orleans, Denver, and Orlando) found that cost overruns ranged from 59 to 144 percent at a total cost increase of $1.5 billion or an average increase of $366 over budget million with delays of one to six years. 

As of January, the GAO found that project cost increases still ranged from 66 percent to 114 percent while project delays ranged from one to just over seven years compared to initial estimates.     

The VA implemented the GAO’s initial 2013 recommendations by issuing guidance to major medical facility projects, developing procedures on communication with contractors, and issuing a handbook on construction contract processing.

The GAO reports that this progress will take time to have an impact, especially with ongoing construction projects where contracts are already been in place.

MOAA remains concerned over substantial cost overruns and delays to VA health facility projects that may hinder access to care at these major medical centers.

The distribution of VA Choice Cards to 8.5 million veterans who may now be eligible for care outside the VA under specified conditions means that VA planners need to step up their game in construction oversight in order to serve all veterans’ health care needs.