From the U.S. Government Accountability Office, www.gao.gov

Transcript for: GAO Testimony: Veterans Affairs Need to Address
Continuing IT Management Challenges

Description: Opening Statements for Carol Harris, Director of GAO's
Information Technology & Cybersecurity Team to the House Subcommittee on
Technology Modernization during the oversight hearing titled:
"Modernizing VA: Lessons Learned in the 118th Congress." Veterans
Affairs relies on critical IT systems to manage benefits and provide
care to millions of veterans and their families. We testified about VA's
efforts to modernize and manage its IT. For example, after 3
unsuccessful attempts to modernize its health information system, the
department is trying again. We also reported that VA's IT contracts were
not always properly approved. We've made many recommendations to help VA
address these and other issues. We're monitoring its progress in making
these improvements. www.gao.gov/products/gao-25-107963

Related GAO Works: GAO-25-107963, Veterans Affairs: Action Needed to
Address Continuing IT Management Challenges

Released: December 2024


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GAO Testimony before Congress

Veterans Affairs: Action Needed to Address Continuing IT Management
Challenges

Opening Statement by Carol Harris, Director, GAO

December 12, 2024

House Subcommittee on Technology Modernization Oversight Hearing


[ Carol Harris: ]
Mr. Chairman. Ranking member Cherfilus McCormick and members of the
subcommittee. Thank you for inviting us to testify today on VA's IT
modernization, challenges and lessons learned. And I also want to take a
moment to thank your outstanding committee staff. And also wish best
wishes to Mr. Ellison as well. As requested, I'll briefly summarize our
prior work on the department's efforts to acquire and manage its IT, as
well as our work on critical factors leading to successful IT outcomes.

As you know,the use of IT is crucial to helping VA effectively serve our
nation's veterans. And the department's investment in IT is substantial.
Over the past two years, VA has obligated over $21 billion for a range
of IT products, systems and services. Unfortunately, the department's
management of its IT modernization efforts continues to be high risk.
This morning, I'll highlight two key points.

First, we've made a total of 20 recommendations in recent reports to
improve VA's IT acquisitions and management. And while VA has concurred,
none have been implemented thus far. These recommendations address
health care, financial management systems, IT governance, and IT
procurement. 

For example, VA has faced long standing challenges in its efforts to
deploy modern IT solutions in two critical areas. Its health information
system, as well as its financial and acquisition management systems.
After three unsuccessful attempts between 2001 and 2017 to modernize its
health information system, VA is now on its fourth attempt, known as
EHR.

However, in 2023, VA announced it was halting further deployments and
instead prioritizing making improvements at the five sites using the
system. At that time, about 79% of users strongly disagreed that the
system enabled quality care. In our 2023 report, we made ten
recommendations to VA in areas such as user satisfaction, system,
trouble reports, and change management. 

Similarly, in 2016, VA established its FMVT initiative, its third
attempt to replace aging financial and acquisition systems with one
integrated system. In 2021, we reported that full implementation of the
new system was not expected until 2027, at a ten year lifecycle cost of
nearly $3 billion. As of July 2024, full implementation was moved to
2030 and life cycle costs escalated to $7.7 billion. 

Our two reports made a total of three recommendations to VA on cost and
schedule estimating, and its efforts to manage risks. If VA implements
these 13 recommendations, along with the other seven we've made in the
areas of IT governance, software licenses, and cloud computing. The
Department will be in a stronger position to course correct the major IT
acquisitions it has underway. 

And now to my final point.

VA should consider all available opportunities to ensure that its IT
investments are acquired in the most effective manner possible. We had
previously reported on nine critical factors that have led to successful
IT acquisitions across the federal government.

These factors include ensuring end users and stakeholders are involved
in the development of requirements, and in the testing of system
functionality. That government and contractor staff are stable and
consistent, among other things. 

These factors are common sense, but they are also easier said than done.
All too often, we have found the absence of these factors, or the
partial implementation of them to be the root causes of cost, schedule
and performance issues found on troubled or failed IT programs.

Another set of leading practices applicable here is a use of iterative
development for complex IT acquisitions. Leading companies use this
approach to rapidly develop complex IT products that are relevant and
responsive to their users most critical needs. Iterative development
essentially breaks large, monolithic IT projects into smaller, more
manageable pieces so that you're delivering system functionality within
weeks or months versus years.

The critical factors and leading practices I mentioned serve as the
basis for many of our current recommendations to help improve federal IT
management. As such, VA can rely on them to help achieve successful IT
acquisitions. 

Moving forward in the two areas I noted, it will be critical for VA to
fully implement our recommendations as soon as possible. Doing so will
position the Department to more effectively deliver the systems and IT
operations that meet mission needs.

That concludes my statement. I look forward to addressing your
questions.

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For more info, check out our report GAO-25-107963 at: GAO.gov