Consolidating Procurements of Medical Equipment Could Save Money
NSIAD-85-125
Published: Aug 27, 1985. Publicly Released: Aug 27, 1985.
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Highlights
GAO conducted a review to determine whether medical equipment purchased locally by Department of Defense (DOD) and Veterans Administration (VA) medical facilities could have been more efficiently and economically procured in large quantities through consolidated procurement.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Veterans Administration | The Administrator of Veterans Affairs should: (1) develop procedures for systematically aggregating and analyzing data on medical equipment procured repetitively on a local basis by VA medical facilities; and (2) take steps to consolidate purchases of those equipment items when there is a reasonable basis to conclude that they would be more efficiently procured centrally using either definite quantity/definite delivery contracts or indefinite-type delivery contracts awarded competitively, whenever possible, and to single suppliers of an item whenever appropriate. |
Closed – Implemented
According to VA, procedures and guidance have been provided to ensure that, whenever possible, centralized procurements of medical equipment and supplies occur. The Director of Supply advised that he recently developed guidance for local activities to ensure that repetitive procurements are done centrally, on a shared basis with other agencies, if it makes sense. A copy of guidance was requested.
|
| Department of Defense | The Secretary of Defense should ensure that the DOD plan as described in its report, "Centralized/Consolidated Medical Equipment Procurement," is properly carried out. |
Closed – Not Implemented
DOD is monitoring implementation of its plan to accomplish the recommended action. It continues to attempt to consolidate purchases, but has met resistance from the medical community.
|
| Department of Defense | The Secretary of Defense and the Administrator of Veterans Affairs should give maximum consideration to identifying items for consolidated procurement from available records and implementing a more comprehensive system based on the needs of the agencies and the medical facilities and the cost versus the benefits attainable through centralized procurements. |
Closed – Implemented
According to the Office of the Secretary of Defense, all three services are now using available records to identify requests for consolidation under its CENPROME program.
|
| Veterans Administration | The Secretary of Defense and the Administrator of Veterans Affairs should give maximum consideration to identifying items for consolidated procurement from available records and implementing a more comprehensive system based on the needs of the agencies and the medical facilities and the cost versus the benefits attainable through centralized procurements. |
Closed – Implemented
VA agreed with this recommendation. In addition to actions being taken jointly with DOD, VA stated that it developed and implemented policies for consolidating and sharing procurements of medical equipment and supplies. DOD officials involved with the CENPROME program, and VA officials stated that they are using available records to identify requests for centralized procurements.
|
| Department of Defense | The Secretary of Defense and the Administrator of Veterans Affairs should consider beginning a program, similar to the program established for drugs and medical supplies, to share procurement of those common medical equipment items which can be procured more efficiently on this basis. |
Closed – Not Implemented
The DOD/VA Interagency Procurement Management Committee: (1) agreed to add medical equipment to the list of items procured jointly; and (2) established a subcommittee to select the items and carry out this recommendation. DOD conducted numerous shared procurements with VA and PHS, but only for high-value equipment. The medical community has resisted efforts to consolidate low-value purchases.
|
| Veterans Administration | The Secretary of Defense and the Administrator of Veterans Affairs should consider beginning a program, similar to the program established for drugs and medical supplies, to share procurement of those common medical equipment items which can be procured more efficiently on this basis. |
Closed – Not Implemented
The DOD/VA Interagency Procurement Management Committee: (1) agreed to add medical equipment items to the list of items procured jointly; and (2) established a subcommittee to select the items. VA conducted numerous shared procurements with DOD and PHS, most notably high-value procurements of radiology equipment. The medical community has resisted efforts to consolidate low-value procurements.
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Topics
Defense procurementDelivery termsFederal supply systemsHealth care cost controlMedical equipmentMilitary hospitalsVeterans hospitalsProcurementMilitary forcesGovernment procurement