Review of Alleged Hazardous Construction Conditions at the Jack C. Montgomery VA Medical Center, Muskogee, Oklahoma

The VA Office of Inspector General (OIG) received an allegation regarding noncompliance with contract and Occupational Safety and Health Administration (OSHA) requirements at the Jack C. Montgomery VA Medical Center, Muskogee, Oklahoma, during the installation of a Full Facility Standby Generator. The allegation also stated that VA staff moved excavated soil using VA equipment. The OIG reviewed the contract for the generator installation valued at $8.7 million and substantiated the allegation that VA officials contributed to hazardous construction conditions. The OIG did not substantiate that VA staff or equipment was used to move the excavated soil. The contracting officer’s representative (COR) did not comply with contract requirements for approval of excavation and shoring design prior to beginning excavation, and did not perform a proper assessment of a hillside before using it to dispose of excavated soil. Furthermore, the COR accepted an excavation and shoring design with errors. The Chief, Engineering Service, did not ensure the COR had the experience to provide oversight of the excavation. VA officials terminated the contract after paying nearly $5 million. An estimated additional $17.5 million will be spent to fix problems that arose for total expected costs of $22.5 million. The OIG also substantiated the allegation that VA officials provided inadequate assurance of contractor compliance with OSHA requirements at the excavation site. The construction safety officer did not follow VA policy on the frequency of safety inspections and did not effectively implement periodic safety inspections. The contracting officer, COR, or project engineer did not delegate safety responsibilities in accordance with VA policy. As a result, the contracting officer was not notified of OSHA violations and was unable to ensure a safe environment was maintained during the contract.