The Veterans Health Administration has increased purchase card use over the past five years but could save more by using the cards more often for purchases under $3,000, the VA inspector general has said.
It said the agency could decrease procurement-processing costs by about $20 million and receive additional rebates of about $4 million annually by maximizing purchase card use for micro purchases.
The IG found that VHA does not identify micro purchases and establish yearly goals for using purchase cards, and does not implement mechanisms to ensure purchase card use or establish policies and procedures requiring the Veterans Integrated Service Networks to perform oversight of non-purchase card micro-purchases.
As a result, VHA could miss opportunities to achieve procurement savings ranging from approximately $102 to $133 million over the next five years.
VHA management agreed with recommendations to regularly identify and evaluate micro-purchases, and establish goals to increase the percentage of VA medical facility purchase card micro-purchases. It further agreed to ensure purchasers and approvers adequately consider purchase card use for micro purchases, including requiring VISNs to perform oversight of non-purchase card micro purchases.