The Department of Veterans Affairs may not be getting the full benefits of a program meant for buying goods, such as medical and IT products, in bulk, said the Government Accountability Office.
In a new report, the congressional watchdog revealed that VA officials lack the proper training to effectively implement the category management approach to acquisition.
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VA’s Category Management Challenge
In 2019, the Office of Management and Budget launched an effort to leverage the government’s purchasing power and save taxpayer money. Called category management, the acquisition approach encourages the purchase of common goods and services as an organized enterprise to reduce contracts, improve management of suppliers, and increase overall value and savings for federal agencies.
In 2020, the VA assigned category leads to oversee common purchases and implement key responsibilities in line with OMB’s category management guidance.
In its report, GAO revealed that the VA met its annual category management goals from fiscal years 2020 through 2024. The agency managed 91.7 percent of contract obligations in fiscal 2024 according to category management principles. VA savings also accounted for 7.6 percent of its contract obligations during the period.
However, GAO found that category leads did not set or manage toward category-specific savings goals. Although workforce training for implementing category management principles, some category leads admitted that they did not undergo such training.
GAO Recommendations for VA
The congressional watchdog urged VA officials to establish performance requirements to ensure that category leads are held accountable for fulfilling their responsibilities and receive training relevant to their roles. The VA must also identify category-specific savings goals and track progress.
VA concurred with the recommendations.
