Madam Chairwoman, Ranking Member, and members of the subcommittee, on behalf of Iraq and Afghanistan Veterans of America (IAVA), thank you for the opportunity to testify today regarding the VA’s plan to implement the Post-9/11 GI Bill. Servicemembers and veterans alike have been dreaming bigger dreams since the passage of this new GI Bill and I am pleased to see that this committee is working to ensure that those dreams are going to be realized on time.

When I was demobilizing from Iraq in 2005, I remember being told that I would qualify for a new GI Bill program called the Reserve Education Assistance Program (Chapter 1607 - REAP). I was promised $660/month in education benefits, an increase of almost $400/month. When I reenrolled in school I was depending on that money to pay for school/expenses. Unfortunately, what I did not know was that although I qualified for this new benefit at this point in time the VA did not have the capacity to start processing applications for nor distributing the new REAP benefits. I was counting on that money when I planned my budget for things like an apartment and not having those promised benefits put me in a tough bind financially. It took over a year for me to finally get my REAP benefits, which was almost 2 years after REAP was signed into law.

With that experience still fresh in my memory it is incumbent on all of us to ensure that veterans applying for their new GI Bill benefits actually receive an accurate and timely benefit. This subcommittee has requested our views on the following specific implementation issues:

1. Should the new information technology system be developed by an outside contractor or VA employees? If not, what are the advantages and disadvantages, if any, of developing the new information system by using VA employees, including whether current VA staffing is sufficient to complete development by August 1, 2009?

IAVA’s first and foremost concern with the implementation of the new GI Bill is that veterans depending on this new education benefit are able to apply for and receive Chapter 33 benefits no later then August 1st, 2009. IAVA is not opposed to VA contracting out its IT services for Chapter 33 implementation so long as final benefit determinations and direct interaction with veterans will continue to be done by VA employees.

Throughout the debate leading up to the passage of the Post 9/11 GI Bill there were a number of discussions with the VA about their capacity to implement the education benefit program. Keith Wilson, the head of education services at the VA, was very clear during those discussions that given the VA’s current outdated IT infrastructure that they needed at least 18-24 months to successfully implement the new program. A shorter deadline meant that the VA would need additional monetary resources and broad implementation authority in order to comply. Senator Webb and many of the supporting veterans groups, such as IAVA, felt that waiting up to 2 years to implement the new GI Bill would let too many veterans fall through the cracks and an August 2009 compromise deadline was set. These deliberations are important because IAVA feels that the VA has been very candid and frank about their incapacity to meet an August 2009 deadline without outside contracting.

Given my personal experience with the implementation of the REAP benefits and discussions with employees within the education services department, I concur with the VA’s assessment that they would not be able to internally develop a new IT system capable of dealing with the new benefit system by the August 2009.

2. How VA managed the proposal process that resulted in two requests to industry, including the industry response to the two requests.

IAVA has no relevant or useful comments on this issue.

3. The VA’s plan for restructuring the education service if there is outsourcing.

The need to outsource IT development, however, does not immunize the VA from some tough questions about the future restructuring of education service department. IAVA shares some of the concerns raised in the September 11th hearing, such as the potential lack of accountability, the challenge of coordinating VA and DOD technology, and the need for a back-up plan, should the private company selected by the VA fail to live up to their contract. 

In the past, a number of efforts to privatize benefits delivery and eligibility determination have been disastrous for the benefits recipients.  One recent report on efforts to automate benefits delivery in Texas and Indiana concluded,

“the use of private entities in determining eligibility raises very  troubling questions about  the appropriateness of private entities having a key role in benefits delivery and whether such privatization can be cost-effective and accountable.”[i]

IAVA strongly believes that any final determination of eligibility for benefits must made by VA employees to ensure both accountability and accuracy. VA employees have years of experience dealing with these types of issues, especially the minute intricacies in dealing with individual cases. However, this does not preclude the VA from outsourcing the creation of computer system that will follow a rules based model in making initial determinations of education benefits. Admittedly, while the Post 9/11 GI Bill is not the simplest benefit to understand by reading the statute, my personal experience developing an education benefits calculator for www.gibill2008.org has shown me that a well thought out benefits system technology can simplify the process for both the veteran and the approving employee at the VA. The benefits calculator on this website is actually a rough version of what the VA will be outsourcing and I recommend anyone interested in this subject to see why it is so helpful.

Historically, the VA has also had its share of serious contractor mishaps.  Among the common causes of failed IT privatization initiatives are the lack of a pilot program, and an inadequate opportunity for public input and oversight.  While a pilot program in this instance may not be possible, it is critical that the VA have its program up in running in enough time for beta testing and public comment. The Veterans Affairs Committees, the Veteran Service Organizations (VSO’s) and the VA Council on Education (VACOE) should be intimately involved in the development on this new system. Lastly, future beneficiaries should be able to take the program for a test run in order to make sure most of the technical issues are worked out. IAVA is willing to help whomever develops this system to ensure that it functions properly and is ready to go online by August 1st, 2009.

Above all, there must be clear and continued oversight from the Congress and the VA throughout the development of the benefits-delivery system, so that every Iraq and Afghanistan veteran gets the education benefits they have earned.  Thank you again for this opportunity to testify.

Respectfully submitted.

[i] Mannix et al, National Center for Law and Economic Justice, "Public Benefits Privatization and Modernization: Recent Developments and Advocacy," Clearing House Review: Journal of Poverty Law and Policy, May-June 2008.