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Review of the Veterans Health Administration's Use of Reverse Auction Acquisitions

Report Information

Issue Date
Report Number
13-01408-294
VA Office
Veterans Health Administration (VHA)
Report Author
Office of Audits and Evaluations
Report Type
Audit
Recommendations
0
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
The VA Office of Inspector General (OIG) conducted a review of the Veterans Health Administration’s (VHA) use of commercial reverse auctions to procure products and services. The review determined that the methodology used to calculate and report savings by using reverse auctions greatly overstated any actual savings and did not comply with VHA’s Standard Operating Procedure (SOP). VHA’s mandatory requirement to use reverse auctions violated VA’s policy for using priority sources such as FSS contracts. Over 93 percent of the contract files reviewed did not contain proper documentation to validate the use of reverse auctions in accordance with VHA’s SOP. The review also determined that contracting officials run the risk of purchasing gray market items by using reverse auctions.
Recommendations (0)