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VA Caught Red-Handed Wasting Tax Dollars on IT Contract That Could Be Done Cheaper In-house
April 03, 2015
Categories:
VA, Outsourcing
AFGE Local 1745 in Texas demanded that the Department of Veterans Affairs immediately end an illegal contract of information technology work in the Project Management Accountability System Business Office after it became clear from a VA inspector general report that the agency violated both sourcing law and policy and intentionally reduced the number of civilian workers in order to contract out the work.
In a letter to VA Secretary Bob McDonald, Local 1745 President Terry Lendo cited the IG report which said the VA awarded a contract worth $7.8 million with 14 contract employees doing the work when it could have hired 10 federal employees at $6.4 million to do the same work. The contract was also illegal as a federal law prohibits outsourcing work without first conducting a formal cost comparison.
“It is evidently ridiculous, self-defeating and wasteful for a department to assert that it has sufficiently-funded workload but must use contractors instead of federal employees because of a self-imposed constraint on the size of its in-house workforce,” LP Lendo wrote.
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