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Law360 (June 14, 2021, 11:12 PM EDT) -- Department of Veterans Affairs facilities did not take advantage of several emergency contingency plans created prior to the COVID-19 pandemic that lined up agreements with contractors that would ensure a stockpile of personal protective equipment, with many facilities unaware the plans even existed, according to a report issued Monday by the VA's Office of Inspector General.
The Veterans Health Administration did not use strategies in the All-Hazards Emergency Cache Program and its Pandemic Influenza Plan and ended up buying lots of PPE on the open market, paying millions of dollars more than had advance emergency plans been put in been place, the OIG found. Under the plans, the contractors were obligated to provide advance orders of PPE to the VA at no cost.
None of the 16 medical facilities examined took full advantage of the emergency plans put in place before the pandemic, the OIG said.
"Most facility leaders did not know those plans existed," and when the VA's main vendors were unable to fulfill orders, VA facilities ended up paying higher prices on the open market, the OIG said.
The report analyzed PPE purchase activity at 16 VA facilities from October 2019 through June 2020, spanning before COVID-19 swept through the country and after. According to the OIG, the VA's supply system showed that VA medical facilities used contracts with PPE vendors to complete more than 1.1 million transactions, purchasing medical or surgical goods and services totaling over $390 million over the time period.
The two emergency plans are intended for VA facilities to be prepared for catastrophic events likely in their area, including a mass influenza or coronavirus outbreak that humans have little to no immunity from, the OIG said.
All four Medical/Surgical Prime Vendor Program main vendors developed emergency contingency plans that included an advance-order list of PPE options for the advance purchase and storage of medical supplies, but the plans were not taken advantage of, the OIG said.
One facility did develop an advance-order list but did not use it because the vendor mostly met the facility's needs, but the facility bought some PPE items on the open market, the OIG said.
"Based on VHA's reporting, VA facilities' ability to obtain PPE under the MSPV contracts ultimately declined during the pandemic, and facilities paid a premium for the supplies they were able to obtain," the OIG said. "While VHA could not have prepared completely for a pandemic of COVID-19's magnitude, it should ensure facility managers are aware of plans and strategies offered by prime vendors."
During the examined time period, the facilities made about 38,300 PPE orders, and overall purchase prices increased by about $8.3 million from before the pandemic, the OIG said, adding that the amount does not include the potential storage costs prime vendors might have charged for stockpiling the items.
The OIG's recommendations included that chief logistics officers be given more guidance on supply strategies offered in prime vendors' contingency plans.
The VA did not immediately respond to a request for comment.
--Editing by Michael Watanabe.
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