Mr. Chairman, thank you for yielding.

Today’s hearing, entitled “Acquisition Deficiencies at the U.S. Department of Veterans Affairs” is important to this subcommittee, as it will help us as we move forward to assist the Department in guiding it through to better management of its procurement and acquisition processes.

The Department of Veterans Affairs (VA) is one of the largest procurement and supply agencies in the Federal government.  Its annual expenditures are more than $14.1 billion for supplies and services, including construction.  Drugs, medical supplies and equipment, IT equipment and services, and other critical patient care items must be procured and distributed to VA’s health care facilities in what is the largest health care delivery system in the country.  Over the past 12 years, the VA and the Office of Inspector General have detailed what can be considered the existence of serious long-term severe systemic procurement problems within the VA.

Last Congress, this subcommittee held a hearing on Miscellaneous Obligations which highlighted how difficult it is to track expenditures at the VA without proper oversight and guidance.  From reading the hearing report from that hearing, it was apparent the frustration felt by all members present with the brokenness of the acquisition process within the VA.  I understand that the Department followed this hearing by providing its acquisition workforce with new rules and procedures regarding the use of Miscellaneous Obligations.  I will be interested to hear from the Department how well these new rules are being implemented.  I hope that there is improvement in tracking these expenditures since the last hearing.

Additionally, the Government Accountability Office (GAO) issued a report showing “fraud and abuse” within the Service-Disabled Veteran-Owned Small Business program.   The findings are extremely disturbing, and I look forward to the testimony from GAO relating to this report, and to see if they have any further recommendations to fix these fraudulent practices, and make certain that contracting officials who knowingly allow this are held accountable.

I was pleased to join with Ranking Member Buyer last week in introducing H.R. 4221, the Department of Veterans Affairs Acquisition Reform Act of 2009.  I understand that Mr. Buyer will discuss his bill further this morning, and look forward to working with him and other members of this committee to help Secretary Shinseki fix the acquisition process at the Department of Veterans Affairs.  Holding this hearing is an important step in this direction.  Moving forward legislatively will also be an additional step we can take, and I look forward to working with you, Mr. Chairman in this effort.

Again, thank you for holding this hearing, and I yield back my time.