The Veterans Administration (VA) has expressed concern about the effect of a GAO decision on its mutual-use and exchange-of-use medical services contracts. VA is authorized to secure mutual-use and exchange-of-use specialized medical resources when the Administrator determines it to be in the best interest of the prevailing standards of a VA medical care program. VA is further authorized to enter...

DIGEST: GAO WILL NOT OBJECT TO SOLE-SOURCE AWARD OF CONTRACTS FOR "MUTUAL USE" OF MEDICAL SERVICES BY THE VETERANS ADMINISTRATION UNDER 38 U.S.C. SEC. 5053 ONCE APPROPRIATE CHANGES ARE MADE TO AGENCY REGULATIONS REMOVING SUCH CONTRACT AWARDS FROM COMPETITION REQUIREMENTS OF FEDERAL PROCUREMENT REGULATIONS. IS AUTHORIZED TO SECURE "MUTUAL USE" AND "EXCHANGE OF USE" SPECIALIZED MEDICAL RESOURCES. SE...