Report Summary

Title: Review of Alleged Waste of Funds on a Cloud Brokerage Service Contract
Report Number: 15-02189-336 Download
Report
Issue Date: 1/31/2017
City/State:
VA Office: Office of Information and Technology (OIT)
Report Author: Office of Audits and Evaluations
Report Type: Audit
Release Type: Unrestricted
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.