An audit of Veterans Health Administration (VHA)'s imaging and radiation therapy equipment service and maintenance contract management has revealed some potentially costly gaps, according to a May 6 Government Accounting Office (GAO) report.
The report highlights the complexity of high-tech medical equipment (HTME) procurement and costs likely to be incurred beyond the purchase without mechanisms to ensure contract pricing and clarity.
HTME referenced in the report refers to imaging and radiation therapy equipment, including their systems, subsystems, and components along with maintenance services, training, and incidental services related to the purchase of the imaging and radiology and radiation therapy equipment, according to the GAO. The group analyzed VA’s HTME strategic sourcing contracts and data for federal procurement, contract performance, and equipment maintenance from fiscal years 2022 through 2024.
During the period, VA used the base contracts to obligate over $1.1 billion for purchases of HTME overall and $504 million for related services, including an estimated $308 million for maintenance, the GAO noted. The VA also spent over $138 million on separate contracts with vendors that had HTME base contracts during fiscal years 2022 through 2024.
The review examined 16 selected maintenance orders and contracts representing almost $11 million in obligations in fiscal years 2022 through 2024.
Overpayment or lack of clarity about services raised concern about whether medical centers were getting services they intended to buy and at base contract prices across the VHA, the report explained.
"GAO also found instances where regional contracting officials were not efficiently purchasing maintenance services," the report stated, adding that the VA has an opportunity to use the base contract prices for a larger portion of HTME maintenance purchases.
VA acquisition management has been on GAO’s "high-risk" list since 2019, the report noted. Some changes are expected to be made by September 2026. The GAO made three recommendations, including that the VA clarify guidance and resources for using agencywide contracts to purchase HTME maintenance services.
Find the complete report here.
