Dive Brief:
- An Army Corps of Engineers report released Thursday found the Department of Veterans' Affairs mismanagement of several hospital projects in Colorado, Florida and Louisiana caused massive cost overruns and delays.
- After controversy erupted over the VA's most notable project failure — the half-finished Aurora, CO, hospital that is now estimated to cost three times its original budget — the department asked the Army Corps of Engineers to conduct the study.
- The report blamed constant design changes, poor control of budgets and mismanaged contracts for the project mishaps.
Dive Insight:
The Corps said that the VA's leadership and authority structure is inefficient and added that it is imperative for the department to change its construction management process in order to avoid similar problems in the future.
The U.S. Senate is now deciding whether to completely strip the VA of its authority over construction projects valued at more than $100 million. Some lawmakers want to completely turn over the responsibility for the larger projects to the Army Corps of Engineers.
In late May, Congress voted to raise the Colorado project’s spending cap by $100 million to avoid a work shutdown. The 182-bed hospital has been plagued by a decade of delays already, leading to several resignations and at least two internal investigations.
