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Review of VA’s Alleged Improper Termination of the e Learning Task Order

Report Information

Issue Date
Report Number
15-02776-240
VISN
State
District of Columbia
District
VA Office
Acquisitions, Logistics, and Construction (OALC)
Report Author
Office of Audits and Evaluations
Report Type
Audit
Recommendations
1
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
In March 2015, U.S. Senator Mark Warner requested the Office of Inspector General evaluate an allegation that a task order to develop e-learning courses for the supply chain workforce was improperly terminated. We did not substantiate that VA’s decision to terminate the e-learning task order was improper, as the Federal Acquisition Regulation provides broad latitude for termination for convenience of the Government. In February 2014, VA awarded the e learning task order for approximately $2.8 million. In September 2014, Office of Logistics and Supply Chain Management (OLSCM) officials determined the development of the e learning training was not meeting its needs because the curriculum included courses not needed and did not include sufficient content. OLSCM officials decided to use existing VA online training. In February 2015, the task order was terminated for the convenience of the Government after paying the contractor approximately $1.9 million, which included settlement fees of approximately $56,000. According to the contracting officer’s representative, the $1.9 million was spent on various deliverables, including project management, quality assurance, curriculum, implementation and evaluation plans, a curriculum design document, a prototype, weekly progress reports, and eight courses in various stages of completion. The termination occurred because of the lack of coordination between Veterans Affairs Acquisition Academy (VAAA) and OLSCM to identify Office of Acquisition and Logistics’ e learning training needs and the best method to deliver that instruction. VAAA’s personnel developed the e learning requirement without coordinating the development with OLSCM. VA logistics policy and training is the responsibility of OLSCM. If the planning of the task order had been properly coordinated between VAAA and OLSCM, it might not have resulted in the termination of the task order and the payment of approximately $1.9 million for supply management courseware that was not completed. We recommended the Deputy Assistant Secretary for Acquisition and Logistics implement a mechanism to ensure proper coordination between VAAA and OLSCM when developing logistics training. The Principal Executive Director, Office of Acquisition, Logistics, and Construction concurred with our recommendation. The Principal Executive Director provided evidence of the agreement made to ensure proper coordination when developing logistics training. We consider the recommendation closed.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Deputy Assistant Secretary for Acquisition and Logistics implement a mechanism to ensure proper coordination between the Veterans Affairs Acquisition Academy and Office of Logistics and Supply Chain Management when developing logistics training.
Total Monetary Impact of All Recommendations
Open: $ 0.00
Closed: $ 1,862,856.00