VA Acquisitions: Leadership Accountability and Savings Goals Needed to Improve Purchasing Efficiency
Fast Facts
The Department of Veterans Affairs and other federal agencies can buy goods and services in bulk across common categories, like medical and IT. This helps them use the buying power of the government to save taxpayer dollars.
But VA isn't getting the full benefit of this "category management" approach. For example, VA category management officials aren't required to take relevant training. There also isn't a way to hold them accountable for effectively implementing the approach. As a result, VA could be using it inconsistently and missing opportunities for more cost savings.
Our recommendations address these issues and more.
A VA Medical Center in Aurora, CO
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Highlights
What GAO Found
The Department of Veterans Affairs (VA) has a policy encouraging purchasers of common goods and services to leverage the government’s buying power and save taxpayer dollars. In 2020, VA assigned roles and responsibilities to implement an effort led by the Office of Management and Budget (OMB), called category management, designed to help federal agencies buy like a single enterprise. VA assigned officials to manage 10 common spending categories, such as medical and IT goods and services. Each category manager was also tasked with implementing five key responsibilities aligned with OMB guidance.
GAO found, however, that these officials and those assisting them—known as category leads—generally did not fulfill their responsibilities because senior leaders responsible for oversight did not take steps to ensure they did so. Until senior VA leaders hold these officials accountable, VA will struggle to consistently implement its category management policy and take important steps that could result in savings, reduced contract duplication, or other benefits.
Extent to Which Department of Veterans Affairs Category Management Leadership Met Key Responsibilities in Policy, as of February 2025
VA met most of its annual category management goals set by OMB from fiscal years 2020 to 2024. For example, 91.7 percent of VA’s $67.2 billion in contract obligations in fiscal year 2024 were on contracts considered to be managed according to category management principles, exceeding its goal of 90 percent. VA reported savings for governmentwide contracts that accounted for 7.6 percent of its fiscal year 2024 contract obligations. However, category leads told GAO that they did not set or manage toward category-specific savings goals. Doing so could help VA leverage its buying power to save taxpayer dollars and quantify the return on investment for a larger share of its category management efforts.
VA met annual goals set by OMB for training its workforce on category management principles. However, GAO found that key officials, including leads for seven of 10 spending categories, had not taken such training. Until VA ensures that key officials—including category managers and category leads—receive training that is relevant for their roles, the agency will struggle to fully implement its category management policy.
Why GAO Did This Study
According to the General Services Administration, the government achieved $58.3 billion in cost avoidance through OMB’s category management initiative from fiscal years 2021 through 2024. VA reportedly accounted for $14.3 billion of this amount. The government’s pursuit of additional savings and efficiency remains critical in the face of increasing budgetary pressures.
GAO was asked to review VA’s progress in implementing category management. Among other objectives, this report identifies the extent to which VA (1) implemented category management policies and processes, and (2) achieved intended category management outcomes.
GAO reviewed VA policies, procedures, and plans, and OMB’s category management guidance; analyzed VA contract and category management data between fiscal years 2019 and 2024 and assessed progress against established goals; and interviewed VA officials, including those responsible for managing VA’s 10 common spending categories and VA contracting activities.
Recommendations
GAO is making six recommendations to VA, including that VA (1) establish performance requirements to hold category managers accountable for their responsibilities, (2) establish category-specific savings goals, and (3) ensure that key category management officials take training relevant to their roles. VA concurred with all six recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Veterans Affairs | The Secretary of Veterans Affairs should ensure that the Deputy Secretary, as the category management senior accountable official, establishes performance requirements to hold category managers accountable for fulfilling their respective category management responsibilities established in VA policy. (Recommendation 1) |
In August 2025, VA concurred with this recommendation. VA reported that it would ensure the execution of category management is within the performance plan of the senior accountable official, and that responsibility for category management would cascade to other senior VA officials, as appropriate. Further, VA planned to have performance plans address specific requirements, such as the development of demand management and vendor management plans, and specific goals aligned to Office of Management and Budget-driven requirements. In April 2026, VA told us that the Chief Acquisition Officer approved a memorandum for the appointment and accountability of category managers and was collaborating with other VA offices to establish performance requirements for category managers. Specifically, VA planned to provide ratings for category manager performance based on the percentage of category spend under management and the extent to which they reduced duplicative contracting actions each year. However, as of September 2026, VA has yet to provide documentation that it has implemented these steps.
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| Department of Veterans Affairs | The Secretary of Veterans Affairs should ensure that the Deputy Secretary, as the category management senior accountable official, establishes the category management council, or designates an existing entity to perform the duties of the category management council, as described in VA policy to guide the implementation, coordination, and oversight of VA's category management initiative. (Recommendation 2) |
In August 2025, VA concurred with this recommendation and stated it planned to use an existing council comprised of senior leaders to provide guidance and approval of category management planning, strategies, and major acquisitions, among other related initiatives. In April 2026, VA told us that potential legislation, as well as internal VA reorganizations, has precluded it from establishing a target date for implementing this recommendation.
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| Department of Veterans Affairs | The Secretary of Veterans Affairs should ensure that the Deputy Secretary, as the category management senior accountable official, and in coordination with the Chief Acquisition Officer and Senior Procurement Executive, identifies the category management training required for specific roles, including category managers, category leads, and officials identified as having requirements responsibilities, and ensures those officials complete required training. (Recommendation 3) |
In August 2025, VA concurred with this recommendation. VA planned to have its Category Management Support Office, in collaboration with the VA Acquisition Academy, review VA-specific and government-wide category management training and modify training for specific groups, including category managers, category leads, heads of contracting activities, acquisition workforce members, and logistics and ordering personnel. VA planned for the training to focus on the tenets of category management as well as specific actions to be taken by members of each specific group during the acquisition process. However, as of September 2026, VA has yet to provide documentation that it has implemented these steps.
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| Department of Veterans Affairs |
Priority Rec.
The Secretary of Veterans Affairs should ensure that the Deputy Secretary and category managers establish category-specific goals for cost avoidance and budget savings, and track progress toward these goals. (Recommendation 4) |
In August 2025, VA concurred with this recommendation and reported that it planned to have each category manager develop category-specific goals. Such goals would then be presented and approved before the entity that will serve as the category management council. Further, VA planned to ensure linkage of VA financial payment, inventory reporting, and contract writing systems in a way that facilitates tracking and monitoring of contracting activities. In April 2026, VA reported completing these system linkages. However, as of September 2026, VA has yet to provide documentation that it has developed and approved category-specific goals or tracked progress toward these goals.
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| Department of Veterans Affairs | The Secretary of Veterans Affairs should ensure that category managers assess the availability of, or feasibility of making available, item-level data on prices paid, utilization, and cost avoidance to facilitate use of such data to track cost avoidance within the department's common spending categories. (Recommendation 5) |
In August 2025, VA concurred with this recommendation. VA stated that the Senior Procurement Executive and Category Management Support Office would be responsible for further enhancing VA processes and technology to increase the capture of data in the acquisition process, as well as improving analytics and data sharing. VA noted that it was able to review and monitor pricing at the contract line item level. In April 2026, VA reported that it continues to improve its ability to analyze pricing, utilization, and cost avoidance. VA stated that it plans to develop metrics and dashboards to capture cost avoidance and contract usage at the contract line item level. As of September 2026, VA has yet to provide documentation that it has implemented these steps.
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| Department of Veterans Affairs | The Secretary of Veterans Affairs should ensure that the Deputy Secretary, as the category management senior accountable official, ensures that category managers, in conjunction with heads of contracting activities, develop and maintain vendor management plans for their respective categories, that identify mission-critical functions and associated contractors and include strategies to address supply base risks. (Recommendation 6) |
In August 2025, VA concurred with this recommendation and stated that the Secretary would ensure the entity serving as the category management council reviews vendor management plans for the department and by category. VA expected these vendor management plans to include common metrics and that they would assist VA in ensuring supply chain diversity. In April 2026, VA reported that it will continue to improve its metrics on vendor contract actions to understand usage, spend, and other metrics. As of September 2026, VA has yet to provide documentation that it has implemented these steps.
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