Review of Alleged Mismanagement of the Ambulette Services at the New York Harbor Healthcare System

On June 4, 2015, the Office of Inspector General received an allegation that Department of Veterans Affairs (VA) acquisition personnel mismanaged the award of the ambulette services task orders at the New York Harbor Healthcare System (NYHHS). There was also an allegation of contract steering for the re-solicited requirement. Our review focused on determining the merit of the allegations. We substantiated the allegation that Veterans Health Administration (VHA) acquisition personnel mismanaged the award of the ambulette services at NYHHS because they improperly awarded two task orders for ambulette services when the contractor’s Federal Supply Schedule contract did not offer these services. In addition, the contracting officer’s award determination for the re-solicited requirement was not clearly justified. Further, acquisition personnel did not document pertinent contracting actions in VA’s Electronic Contract Management System (eCMS). However, we did not substantiate the allegation of contract steering for the re-solicited requirement. The award mismanagement occurred because VA’s Integrated Oversight Process (IOP) reviews, designed to improve contract quality, were either not completed or not documented for the two task orders valued at $20 million. If performed, these reviews may have revealed the contractor did not offer ambulette services. Further, personnel turnover caused confusion as to who should ensure contract documentation was included in eCMS. As a result, acquisition personnel put the VA at risk for protests and payment to protesters for restitution. We recommended the Under Secretary for Health implement an oversight process to ensure IOP reviews are completed. We recommended the Head of Contracting Activity, VHA, Service Area Office (SAO) East, develop a mechanism to ensure effective coordination between acquisition personnel when transferring contracting responsibilities and implement a process to ensure eCMS is used to record contracting actions. The Under Secretary for Health and the Head of Contracting Activity, VHA, SAO East, concurred with our recommendations and provided action plans for correction action. We consider the plans acceptable and will follow up on their implementation.