Thank you Chairman Filner, and thanks to Secretary Shinseki for coming to participate in the hearing today.

The President and Secretary Shinseki have made a clear goal of transforming the VA into a 21st Century organization, and we are here today to move toward that goal.

I wish to highlight two of the many important issues that this Congress and Administration must address to meet that goal:

First, I believe, in order to transform the VA into a 21st Century Organization, we must ensure that the acquisition process within the VA is one that is fair, fiscally responsible, and effective.

Mr. Secretary, I know from my role as Chairman of the Oversight and Investigations Subcommittee some of the long-standing challenges in acquisitions. Recently, we held a hearing examining the extent of the reform needed in order to improve the acquisition process.

One recent report, produced by the U.S. Government Accountability Office revealed that Network and Medical Center staff within the Veterans Health Administration failed to use the Federal Supply Schedule, or FSS, due to a lack of information and the proper tools needed to use the FSS. This resulted in a lost savings of almost $8.2 million a year or $41 million over 5 years. 

This is simply unacceptable.

And I know you share this same concern, and I know you know how much work needs to be done to improve the acquisition and procurement process.

Additionally, I believe the VA needs to aggressively reduce the claims backlog. The VA must deliver these earned benefits in a timely manner.

As many have noted, there is a backlog of disability claims that stretches hundreds of thousands of veterans long.  I am pleased that the Administration has requested more than 4,000 new claims processors in their FY 2011 request. However, I believe that the VA needs more than additional manpower to reduce the backlog.

The VA needs a long term strategy and plan.

This will provide better services to our veterans and increase their morale and confidence in the VA.

Finally, I want to say that I am encouraged by Secretary Shinseki’s commitment to reform the VA, and I look forward to working with him, as well as with my colleagues on this Committee, to bring veterans the benefits and services that they have earned in an effective and efficient manner.

Thank you all again for attending today’s hearing, and I look forward to all the testimony being presented today.