VA Health Care: Delays in Awarding Major Construction Contracts (Letter
Report, 06/17/94, GAO/HEHS-94-170).

For major construction projects costing $3 million or more, the
Department of Veterans Affairs (VA) is required to award (1)
construction document contracts by September 30 of the fiscal year in
which funds are appropriated and (2) construction contracts by September
30 of the following fiscal year. VA is required to report to Congress
and to GAO on the projects that did not meet these time limits. VA's
January 1994 letter to Congress and GAO correctly identifies 15 projects
that were required to but did not have construction documents contracts
or construction contracts awarded by September 30, 1993. GAO believes
that the contracting delays for these projects do not constitute
impoundments of budget authority under the Impoundment Control Act. In
GAO's view, VA has shown no intent to refrain from using the funds
appropriated. Information VA provided to GAO indicates that programmatic
considerations caused the contracting delays. The reason cited most
often for delays was changes in project scope or design. VA expects to
award 13 of the 17 required contracts for these 15 projects by September
30, 1994.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-94-170
     TITLE:  VA Health Care: Delays in Awarding Major Construction 
             Contracts
      DATE:  06/17/94
   SUBJECT:  Construction contracts
             Facility construction
             Reporting requirements
             Veterans
             Documentation
             Contract award
             Appropriated funds
             Impoundment
             Health care facilities

             
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