[Congressional Record Volume 161, Number 89 (Thursday, June 4, 2015)]
[Senate]
[Pages S3763-S3764]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
WASTEFUL SPENDING
Mr. COATS. Mr. President, it is ``Waste of the Week'' time again, and
the waste of the Federal Government's spending just keeps piling up.
Today, I am taking a look at the U.S. Department of Veterans Affairs.
We all have a stake in this. I am a veteran, but even those of us who
are not veterans have a stake in making sure our veterans are getting
the use of taxpayer dollars for their benefit for the sacrifices they
made.
Over the past year, we have been hearing on the floor and continue to
see story after story of mismanagement that is plaguing the VA. Many of
these news articles tell the story of our Nation's heroes not receiving
the care or the resources they have earned and that they deserve. Last
month--just last month--I read yet another frightening headline,
frustrating. ``Veterans Affairs improperly spent $6 Billion annually,
senior VA official says''--improperly spent $6 billion annually.
According to an internal memo written by the VA's senior official for
procurement, the VA has been wasting taxpayer money by violating
Federal contracting rules to pay for medical care and expenses. Under
law, VA purchases require competitive bidding and proper contracts, but
testimony from Deputy Assistant Secretary for Acquisition and Logistics
Jan Frye, before Congress last month revealed that just the opposite is
occurring.
So the medical care and supplies our veterans need for their medical
needs are being compromised at a cost of $6 billion a year. Mr. Frye
wrote:
Over the past five years, some senior VA acquisition and
finance officials have willfully violated the public trust
while Federal procurement and financial laws were debased.
Their overt actions and dereliction of duties combined have
resulted in billions of taxpayer dollars being spent without
regard to Federal laws and regulations, making a mockery of
Federal statutes.
An example of this violation is found with VA purchase cards.
Typically, VA uses these cards for smaller purchases of up to $3,000,
according to the rules and regulations. But they were inappropriately
used to buy billions of dollars' worth of medical supplies without
contracts or oversight. Mr. Frye continued:
In addition, doors are flung wide open for fraud, waste and
abuse when contracts are not executed. For example, by law,
prices paid for goods or services subject to contract can
only be determined to be fair and reasonable by duly
appointed contracting officers. I can state without
reservation that VA has and continues to waste millions of
dollars by paying excessive prices for goods and services due
to breaches of Federal procurement laws.
According to reports, the VA has failed to engage in a competitive
bidding or signing contract process ensuring a good deal for the
services they are unable to provide in house, such as specialized tests
and surgeries and other procedures. In fact, the VA has paid at least
$5 billion in such fees in violation of Federal rules.
This is yet but another example of what the White House has
recognized--as--and I quote--``corrosive culture'' at the Veterans'
Administration. I think we all agree our 8.7 million American veterans
and our more than 130 million taxpayers deserve a lot better. Given the
large scale of purchases made by the VA, proper procurement procedures
ensure the best products for veterans and the best value for taxpayers.
Aside from higher prices, a lack of contracts can result in a lack of
oversight. The VA, just like Congress, is accountable and must be
accountable for what it spends. Now, I understand the incredible
pressure the VA has been under with the recent influx of new
[[Page S3764]]
veterans. I appreciate the good work of many people who work at the VA.
Still, no matter the growth in need, it is never in order to violate
Federal law. This kind of reckless spending cannot and must not be
tolerated.
Each year, Congress sends billions of dollars to the VA to care for
our veterans. With those funds, comes an obligation to use every dollar
of those funds properly. By simply requiring the VA to comply with
Federal law, we can save $6 billion. This is a simple fix with large
results and we should take it.
Today, I am adding an additional $6 billion to our ever-increasing
gauge of taxpayer money that comes to Washington and is spent for
improper and unnecessary purposes. We are now two-thirds of the way to
our goal of $100 billion. We are going to be doing this every week as
long as the Senate is in session this year. I hope we have to add an
additional attachment to this gauge because, folks, there is no end to
discovering the kind of waste of taxpayers' money for unnecessary
programs, violating the law, violating regulations, mismanaging the
spending at the Federal level. We are going to continue to point out
these issues week after week. Hopefully, we can get the attention of
our colleagues and the American people, and they will demand that we do
something about this.
While we have not been able--no thanks to the administration--to come
up with a sensible, long-term fix to our deficit spending and
continuing plunge into debt, we can at least look at these programs
that have been identified by the inspector generals, by the Government
Accountability Office, and by the Office of Management and Budget as
wasting taxpayer dollars.
So there is much we can do while we are trying to get to the point
where we have an administration that allows us to address the larger
issue; that is, a government out of control, spending taxpayers' money
and wasting money, which we will point out every week. Tune in again
next week for the next ``Waste of the Week.''
I thank my colleague from Nebraska for generously yielding me the
time to do this. I have somewhat of a schedule hitch. She was gracious
enough to allow me the time.
The PRESIDING OFFICER. The Senator from Nebraska.
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