VA IG Faults National Cemetery Administration Contracting

The National Cemetery Administration does not have effective internal controls, or existing controls were not followed in a number of cases, to ensure adequate development, award, and administration of contracts, the Department of Veterans Affairs inspector general has said. The NCA’s Office of Management Contracting Services administered 574 contracts during 2012 with an estimated contract value of about $382 million, but in a statistical sample of 50 competitive contracts and all 32 noncompetitive contracts, the IG said it found one or more contract deficiencies in each of the 82 contracts it reviewed. For example, contract files did not always have sufficient evidence of acquisition-planning, market research, and vendor past performance, and the NCA improperly awarded 16 of the 32 noncompetitive contracts, as opposed to competitively bid small business set-asides, according to the IG. It said deficiencies occurred because the NCA did not have sufficient management staff in place to lead and manage the newly established organization, and as a result the NCA could not ensure internal controls were working properly, and as planned, when developing and awarding contracts. VA agreed with recommendations to strengthen contracting processes and controls by enforcing the proper use of competition requirements, make full use of eCMS, and fully implement IOP reviews.