Improper Use of Title 38 Section 8153 Contracts to Fund Educational Costs of the Graduate Medical Education Programs of Affiliated Schools of Medicine

The Office of Inspector General conducted a review of contracts awarded sole-source to affiliated Schools of Medicine (SOM) for education costs pursuant to Veterans Health Administration (VHA) Handbook 1400.10. The review determined that the contracts do not meet the requirements of the FAR and that the authority cited by VHA Handbook 1400.10, 38 U.S.C. § 8153, does not authorize the funding of physician resident training costs of VA's affiliated SOMs. The review also concluded that the provisions in VA Handbook 1400.10 were inconsistent with the provisions in VA Handbook 1400.05, which establishes policy for payment relating to resident training programs that are authorized under 38 U.S.C. Section 7604(c). VHA, based on advice from the Office of General Counsel, did not concur with our findings.