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VA Health Care: Improved Planning Needed for Management of Excess Real Property

GAO-03-326 Published: Jan 29, 2003. Publicly Released: Jan 29, 2003.
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Highlights

The Department of Veterans Affairs (VA) has changed from a hospital-based system to primary reliance on outpatient care. As a result, VA expects that the number of unneeded buildings will increase. Veterans' needs could be better served if VA finds ways to minimize resources devoted to these buildings. VA must have an effective process to find alternate uses or dispose of unneeded property. In August 2002, VA completed a pilot test for realigning its health care system in the Great Lakes network. The pilot identified 30 buildings that are no longer needed to provide health care to veterans. VA is currently studying how to realign assets in its 20 remaining networks. GAO was asked to review VA's management of unneeded buildings in its Great Lakes network.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Veterans Affairs To ensure that the newly developed Capital Asset Realignment for Enhanced Services model for managing excess buildings will provide an effective decision-making tool that could be used in the other networks, the Secretary of Veterans Affairs should conduct a pilot test of the model in the Great Lakes network and make modifications, if needed.
Closed – Implemented
For CARES purposes, VA tested and implemented an improved systemwide model for managing excess property. Improvements to VA's capital asset model include (1) hiring new Capital Asset Managers in each of its health care networks to facilitate the disposal or leasing of excess property; (2) developing a score card to track vacant space, utilization, and condition of facilities; (3) participating in a federal effort to establish asset management principles and performance measures; and (4) creating a departmentwide information technology system for analyzing, monitoring, and managing its capital assets. Capital Asset Realignment for Enhanced Services (CARES) resulted in decisions regarding the continued use of VA's existing structures, such as whether to continue to use, renovate, lease, or dispose of buildings.

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Topics

Federal property managementFixed price contractsHealth care facilitiesIndefinite delivery contractsProperty disposalReal propertyVeterans hospitalsVeteransLakesFederal real property