VA’s Use of the Defense Logistics Agency’s Electronic Catalog for Medical Items

In October 2017, VA entered into an interagency agreement with the Defense Logistics Agency (DLA) to use its Electronic Catalog (ECAT) to order VA medical supplies and equipment not available through existing contracts. VA created the ECAT Ordering Guide to describe VA policies and procedures for placing orders and to outline the ordering officials’ responsibilities. As of April 1, 2021, VA had spent approximately $592 million on purchases through ECAT. The VA Office of Inspector General (OIG) conducted this review to determine whether VA’s procurements of medical supplies and equipment through ECAT complied with acquisition regulations, policies, and the terms of the interagency agreement. The OIG found that the Procurement and Logistics Office (P&LO) did not adequately govern the ECAT program. The ECAT Ordering Guide excludes the requirement for VA ordering officials to consider the Federal Supply Schedule (FSS) contracts for sales orders; purchasing through FSS could have saved VA up to $4.4 million. The guide also incorrectly describes how to apply the Rule of Two, potentially excluding veteran-owned businesses from contracting opportunities. Ordering officials did not follow documentation requirements in the ECAT Ordering Guide, and P&LO did not conduct required annual reviews of the interagency agreement. The OIG made six recommendations. The ECAT Ordering Guide should be updated to clarify the requirement that staff must consider FSS contracts before ordering through ECAT. VA should also monitor orders to identify recurring acquisitions that could be purchased through other contracts at lower prices and require justifications for ECAT orders if FSS contracts are available and not used. Additionally, P&LO should correct the Rule of Two diagram in the ordering guide and monitor compliance, establish a process to ensure documentation and audits of orders meet ordering guide requirements, and conduct and document annual reviews as required in the interagency agreement.