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Review of Alleged Waste of Funds on a Cloud Brokerage Service Contract

Report Information

Issue Date
Report Number
15-02189-336
VA Office
Information and Technology (OIT)
Report Author
Office of Audits and Evaluations
Report Type
Audit
Recommendations
3
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
In January 2015, the VA Office of Inspector General (OIG) received an anonymous Hotline complaint alleging that the Office of Information and Technology (OI&T) spent over $2 million on a cloud brokerage service contract that provided only limited brokerage functionality and that VA’s actions did not ensure adequate system performance or return on investment. We substantiated that OI&T spent over $2 million on a cloud brokerage service contract that provided limited brokerage functionality and that VA’s actions did not ensure adequate system performance or return on investment. We determined total project costs exceeded $5 million and the system’s limited brokerage service functionality prevented it from being used in a production environment. The project manager did not ensure that formal testing and acceptance were conducted on project deliverables. Project management was not performed in accordance with established procedures and the Project Management Accountability System (PMAS) was not used to hold project managers accountable for meeting project goals. These deficiencies occurred because of a lack of executive oversight and ineffective project management. Without enforcement of oversight controls, project leadership cannot ensure the value of contract deliverables or demonstrate an adequate return on investment for the project. We recommended that the Assistant Secretary for Information and Technology implement improved controls to ensure effective oversight of information technology projects and compliance with information technology project management procedures. Additionally, the Assistant Secretary should enforce the use of the Veteran-focused Integration Process on all software development projects and ensure all VA developed software costs are funded with Information Technology Systems appropriations.

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 Information and Technology (OIT)
We recommended the Assistant Secretary for Information and Technology implement improved controls to ensure the effective oversight of information technology projects and compliance with information technology project management procedures in order to ensure delivery of value.
No. 2
Closed and Implemented Recommendation Image, Checkmark
to Information and Technology (OIT)
We recommended the Assistant Secretary for Information and Technology enforce the use of the Project Management Accountability System or Veteran-focused Integration Process on all Office of Information and Technology software development projects to ensure that such efforts will provide an adequate return on investment.
No. 3
Closed and Implemented Recommendation Image, Checkmark
to Information and Technology (OIT)
We recommended the Assistant Secretary for Information and Technology establish oversight mechanisms to ensure all VA-developed software costs are funded with Information Technology Systems appropriations.
Total Monetary Impact of All Recommendations
Open: $ 0.00
Closed: $ 5,300,000.00