Mrvan Opening Statement for Joint Oversight and Investigations and Technology Modernization Subcommittee Hearing on VA Contracting

Washington, DC – Last month, Ranking Member Frank J. Mrvan participated in the House Veterans’ Affairs Committee joint oversight hearing with the Subcommittees on Oversight and Investigations and Technology Modernization on Department of Veterans Affairs (VA) contracting. 

A video of the hearing is available here, and the Congressman’s opening statement as prepared for delivery is below: 

As the Chairman of the Technology Modernization Subcommittee last Congress, and as the Ranking Member of the Oversight and Investigations Subcommittee this Congress, I have seen how large an impact contracting has on the VA.

Myself and the staff has heard of competition and conflict of interest issues with acquisition across the department.  A major concern is with the lack of oversight and controls of the Medical Surgical Prime Vendor (MSPV) contracts.  MSPV is a collection of contract vehicles that enable VA to streamline supply chain management for an array of medical supplies.  

We have heard that certain large companies awarded contracts for distributing these supplies have historically been granted conflict of interest waivers.  These waivers would allow a company to not only distribute supplies but also sell their own supplies at the expense, and in place of, certain Service-Disabled Veteran Owned Small Businesses that have contracts to provide supplies for the VA.

VA has assured our Committee that these waivers are no longer a part of MSPV contracts, but that has not remedied all issues that veteran owned small businesses are experiencing.  We all know on this Committee that VA needs work to develop a sophisticated and well-equipped acquisition structure and workforce.  Committee members all know that VA does not have the requisite employees to thoroughly oversee these complex matters.  

That does not absolve acquisition leadership from doing better.  Today is an opportunity to voice to members of this Committee your needs to ensure that competition is a priority of the department, and what exactly is needed to remedy the issues of conflicts of interest.

I look forward to hearing from our witnesses this morning and I yield back.

###