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VA Health Care: Delays in Awarding Major Construction Contracts

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Report Type Reports and Testimonies
Report Date June 11, 1992
Report No. HRD-92-111
Subject
Summary:

The Department of Veterans Affairs (VA) fiscal year 1991 appropriation included funding for 16 major construction projects, each estimated to cost $3 million or more. The law mandates that working drawings contracts and construction contracts be awarded by certain deadlines. In a March 1992 letter to Congress, VA pointed out 14 projects in which working drawings or construction contracts had not been awarded by the required deadlines. GAO does not believe that the contracting delays for the 14 projects constitute an impoundment of budget authority under the Impoundment Control Act. VA's actions, in GAO's view, show no intent to refrain from using the funds. The reasons most often cited by VA for the delays were (1) changes in the projects' scope or design, (2) receipt of bids exceeding the funds available, and (3) the fact that projects were funded before preliminary design work was completed. VA has awarded or expects to award contracts for 7 of the 14 projects by September 30, 1992.

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