VAOIG-statement-20211118-searight.pdf

"CONCLUSION
As of June 2021, VALOR had not ensured the implementation of any of the 40 unmet high-priority
business needs, and staff had to use 34 work-arounds to fill functional gaps. In its September 2021
response to the OIG’s report, OALC reported that corrective actions for some of the unmet capabilities
were under development or were developed and would be implemented during the next DMLSS system
update. VALOR leaders also expect future DMLSS system upgrades or the upgrade to LogiCole, a
cloud-based upgrade of the local server–based DMLSS, to address operational gaps discussed in the
OIG report. The stakes are high. Inefficient work-arounds, including the continued use of VHA legacy
systems, do not meet VA’s intent to modernize its supply chain system. Without prompt and decisive
action, the unresolved deficiencies identified at Lovell will likely occur at subsequent sites, setting off a
cascade of problems that could push back the recently accelerated rollout schedule developed after
Congress inquired about a faster deployment.15 Future sites would need to continue employing
work-arounds for unaddressed DMLSS system issues, increasing costs, workload, and reliance on aging
legacy systems. VHA program offices would also lack timely access to data needed for system-wide
decision-making. More importantly, supply chain management breakdowns can impede the delivery of
prompt, quality patient care and services and disrupt medical facility operations.
The OIG applauds the work of these Subcommittees and VA in continuing to raise as a priority the need
to improve VA’s supply and logistics systems. The work related to DMLSS discussed in this statement
reveals there are still considerable challenges for VA to modernize its systems. The OIG is committed to
providing practical recommendations that flow from its inspections, audits, reviews, and investigations
to help VA provide quality health care to veterans and safe working conditions for all VA personnel.
14 They also provided 12 technical comments, which can be found in Appendix C of OIG report, DMLSS Supply Chain
Management System Deployed with Operational Gaps That Risk National Delays. Where appropriate (and as indicated in the
report) the OIG included footnotes in response. A detailed OIG response to VA comments is provided on pages 29 and 30 of
the report as well.
15 VALOR had initially planned for the deployment of the system at all VA medical centers by late 2028, but in October
2020, it developed a proposed accelerated schedule for the end of 2025. As of July 2021, however, future deployments could
be delayed by litigation. The executive director of VALOR informed the OIG on June 29, 2021, that the DMLSS system
implementation had been paused until further notice due to litigation regarding VA’s engagement of the Defense Logistics
Agency. The DMLSS system is dependent on the Defense Logistics Agency to purchase medical and surgical supplies, so an
alternative is needed if VA is not given that support at future deployment sites."...