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PSAD-81-16 1 (1980-12-12)

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BY THE US GENERAL ACCOUNTING OFFICE

Report To The

Administrator Of Veterans Affairs






VA Needs Better Visibility And Control

Over Medical Center Purchases





The Veterans Administration (VA) has 172
medical centers and spends about $1 billion
annually for supplies and equipment. It hasthe
opportunity and incentive to implement a con-
sistent and efficient centralized purchasing
system.


However, individual VA medical centers select
the products they use. They are also independ-
ently buying $373 million (38 percent) of their
supplies and equipment on the open market,
rather than from centrally managed supply
channels. As a resu It, products are not standard-
ized and costs are high.
In addition, because descriptive information
is not reported, VA has no management visi-
bility for $426 million of medical center ex-
pendable supply purchases and cannot prop-
erly assess medical center procurement or
manage common supply items.


0 -3


113960


      PSAD-81-16
DECEMBER 12, 1980


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     I e.X.9(60. 0
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