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Veterans Benefits: Redirected Modernization Shows Promise

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Report Type Reports and Testimonies
Report Date Dec. 9, 1993
Report No. AIMD-94-26
Subject
Summary:

In December 1992, the Department of Veterans Affairs (VA) awarded the first of its planned three-stage modernization procurements. This 8-year contract was awarded to Federal Data Corporation with a maximum value of $300 million. In response to congressional concerns about the benefits expected from this contract, this report discusses (1) the status of VA's business process redesign and its service improvement goals, (2) the validity of VA's cost estimates for the modernization, and (3) VA's contention that existing computer equipment failures were frequent and caused severe benefit service problems. In June 1993, VA and the Office of Management and Budget (OMB) agreed to redirect VA's modernization effort. This report also comments on the VA-OMB agreement.

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