Review of Alleged Mismanagement of Construction Projects at the VA Medical Center in Clarksburg, West Virginia

The OIG substantiated a Hotline allegation of improper management and oversight of minor, nonrecurring maintenance, and clinical specific initiative construction projects at the Louis A. Johnson VA Medical Center (VAMC) in Clarksburg, WV. The complainant alleged eight construction projects were mismanaged, which led to project cost overruns, delays, cancellations, unnecessary change orders, and additional work. Most significant was a parking garage planned for at a cost of approximately $9.7 million that was reduced from approximately 430 new spaces to approximately 25 new spaces before the project was canceled in March 2016. The VAMC also had to reduce other construction projects in scope because of inadequate planning, and delayed project completion. The VAMC has completed only three of the eight projects; all three cost significantly more than planned. This occurred because of inaccurate cost estimates, untimely performance of site surveys, and failure to ensure project designs were within funding limitations. In total, we identified approximately $2.8 million in unnecessary costs and delays in completing projects needed to serve veterans. Accordingly, we recommended the Veterans Integrated Service Network 5 Director ensure the Louis A. Johnson VAMC implements a plan to use or repurpose the heating and air conditioning system identified by this review; train staff on developing cost estimates and funding requests; and ensure timely performance of site surveys.