Alleged Mismanagement of Contracts for Wheelchair-Accessible Transportation Services by the Health Administration Service at the Dallas VAMC in Texas

VA’s Veterans Transportation Program offers travel solutions for veterans to get to and from VA healthcare facilities at little or no cost to veterans. One travel option is transportation by wheelchair van. VA’s Health Administration Service is responsible for administering the contracts that provide wheelchair-accessible transportation services for veterans to access VA medical facilities in the healthcare system.The OIG conducted this review because of a hotline referral that alleged mismanagement of contracts for wheelchair transportation services at the Dallas VA Medical Center in VA’s North Texas Health Care System. The OIG substantiated the allegation that Health Administration Service officials mismanaged the contracts and found that staff overpaid the contractor approximately 30 percent, or $3.7 million, for mileage overcharges and duplicate invoices. Certifying officials did not verify invoices and relied on program assistants to approve or deny invoices for certification. In addition, a manager who plays a key role in the program’s operations did not ensure staff followed VA’s financial policy for reviewing and certifying invoices or provide certifying officials with the current contract rates or a standard operating procedure.The OIG recommended that the Dallas medical center director, with the Health Administration Service chief, develop local policy and standard operating procedures to ensure invoices are adequately reviewed before payment is made. The OIG also recommended that the Health Administration Service chief recover approximately $3.7 million in overpayments.