FAYETTEVILLE — A review by the U.S. Department of Veterans Affairs Office of Inspector General found construction and maintenance projects at the Fayetteville VA Medical Center exceeded cost estimates by $64.5 million and experienced delays of up to seven years
The office conducted a review of five minor construction and nonrecurring maintenance projects at the medical center after receiving a hotline complaint in March 2024, according to a report released Wednesday
“Minor construction includes projects with costs up to $30 million and typically involves expanding a facility’s square footage through new construction at specialty care buildings, clinics or parking structures,” the report states. “Nonrecurring maintenance focuses on renovation projects that address infrastructure deficiencies.”
The projects are listed in the report as:
• A new inpatient mental health building
• Renovation of the inpatient medical surgery unit
• Renovation of the logistics area and sterile processing service
• Renovation of a laundry facility
• A new water storage facility
The March 2024 complaint included concerns projects had been delayed several years; contracts exceeded independent government cost estimates; delays on projects created challenges in moving forward on new projects; and the medical center had more construction contract terminations than other facilities in the regional health care network, the report states
The review confirmed several awarded contracts exceeded the government’s cost estimates, and delays on one project affected the medical center’s ability to move forward with another, according to a news release from the Department of Veterans Affairs
However, the office did not substantiate an accusation the facility had more contract terminations than others in the region
The office found the medical center’s contracting officer’s representatives — employees responsible for overseeing the projects — did not consistently provide complete design requirements, prepare detailed statements of work or keep records of design reviews. Those employees also had not received needed training, according to the report
All five projects mentioned in the complaint had delays ranging from one year to more than seven years beyond the original completion estimate
These delays almost tripled the estimated costs from the approved $34.5 million to about $100 million, according to the report. Three of the five projects were still under construction in January
The office determined most of the $64.5 million increase could have been avoided through clearer communication and stronger project oversight. The delays also created additional costs for storing equipment, maintaining security and providing laundry services, according to the report
“The review team also found that delays with the construction of a new inpatient mental health building prevented the medical center from turning its old mental health building into an inpatient medical surgery unit as initially planned,” the report states
Given these findings, the office made recommendations to help ensure timely completion of future projects, including better training and documentation practices for engineering staff
The Fayetteville medical director and the South Central Veterans Health Care Network director agreed with the recommendations and submitted action plans to address the issues, according to the report
The inspector general reported one of the recommendations — to comply with Veterans Health Administration policies and guidance about the review of architectural and engineering designs — had been met and closed the first recommendation
However, the action plans submitted did not “sufficiently address” the training needs and documentation procedures noted in the remaining recommendations, according to the report. Therefore, the office plans to monitor implementation of the planned actions, “and will close them when VA provides sufficient evidence of progress addressing the issues identified,” the report states
Media relations representatives for the medical center did not provide comment on the report by publication deadline Wednesday
Grace Hurt can be reached by email at ghurt@nwaonline.com
