Weeks after the Veterans Affairs Department began an extraordinary drive to boost small business contracting, lawmakers are suggesting the effort may be harming veterans care.

House members at a Sept. 20 hearing raised concerns that the VA’s recent push to increase small business awards may have resulted in a number of slowed-down orders for medical equipment and prosthetic repairs, according to a report in Stars & Stripes newspaper.

Members of the House Vetearns Affairs Committee discussed the Aug. 1 order from VA Deputy Secretary W. Scott Gould directing that meeting a VA small business contracting goal of 34% would be a top priority through Sept. 30 (Set-Aside Alert Sept. 14, 2012). Contract awards with large businesses need to get waivers under the order.

Documents obtained by the House committee indicate that in some cases, orders for heart stents, artificial limbs, eyeglasses and hearing aids are now taking weeks to process, instead of days, as a result of Gould’s order, Stars & Stripes reported.

“It appears the VA’s acquisition goals are negatively impacting veterans care and services,” Rep. Bill Johnson, R-OH, said at the hearing, according to Stars & Stripes. “I think our veterans deserve better.”

Sources told the newspaper the committee is investigating whether Gould’s order broke federal contracting rules. The committee did not officially release any statements to that effect.

Stars & Stripes also reported that the committee had obtained copies of emails from VA staffers about Gould’s order for small business priority.

The VA staff members “expressed confusion over the need for the change and concern that veterans would receive slower, less effective response from the new vendors,” the newspaper said. The staffers also worried that the new small-business contracts might be “duplicative” or “illegal at worst” or undercut other agreements.

A House committee spokeswoman did not respond to a request for comment.

VA officials were not immediately available for comment.

Gould, in the Aug. 1 memo, said the department was “well short” of its 34% target for small business contracts for fiscal 2012, which ends Sept. 30.

Larger awards would need to be reviewed by a central office team that would meet weekly, the memo said.

The Professional Services Council said the order has had a negative impact on mid-tier firms.

More information:
http://goo.gl/HKpyE