Better Management and Price Negotiation Will Improve the VA Multiple Award Schedule Program
NSIAD-83-33
Published: Sep 20, 1983. Publicly Released: Sep 20, 1983.
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Highlights
GAO reviewed the Veterans Administration's (VA) procurement of drugs and pharmaceuticals, medical equipment, and subsistence products through the multiple award schedule (MAS) program, under which VA and other agencies procure certain supplies directly from vendors at a negotiated price.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Veterans Administration | The Administrator of Veterans Affairs should direct the Assistant Deputy Administrator for Procurement and Supply to develop and maintain a combined generic and brand name schedule with unit costs for drug and pharmaceutical products. |
Closed – Not Implemented
Costs, benefits, and the utility value of the combined schedule are all in question. VA has decided that the costs of the combined schedule exceed the benefits.
|
| Veterans Administration | The Administrator of Veterans Affairs should direct the VA Marketing Center to: (1) identify MAS products that can be procured competitively; (2) eliminate product groups that fall below established sales volume criteria; and (3) establish a negotiation objective that prevents awarding contracts that will not be cost effective. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Veterans Administration | The Administrator of Veterans Affairs should direct the VA Marketing Center to: (1) obtain specific product discount information from vendors who now provide only the range of discounts given to their most favored customers; (2) perform required price analyses utilizing all available information; (3) establish specific price or discount negotiation objectives; and (4) negotiate vendor offers, even though most favored customer status is the initial offer, when price analyses indicate that VA should obtain a lower price. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Topics
CompetitionCost analysisCost controlHealth care costsMedical equipmentMedical suppliesMultiple award procurementNegotiated procurementProcurement practicesVeterans hospitals