⚡NIMITZ NEWS FLASH⚡

"Digital GI Bill in Disarray: Holding the Biden-Harris Administration Accountable for VA's Costly Mismanagement"

House Veterans Affairs Committee, Economic Opportunity Subcommittee Hearing

September 26, 2024 (recording here)

HEARING INFORMATION

Witnesses & Written Testimony (linked):

• Mr. Ronald Burke: Under Secretary for Policy and Oversight, U.S. Department of Veterans Affairs, Veterans Benefits Administration

• Mr. Robert Orifici: Executive Director, U.S. Department of Veterans Affairs, Veterans Benefits Administration

• Mr. Joseph Garcia: Executive Director, Education Services, U.S. Department of Veterans Affairs, Veterans Benefits Administration

• Mr. Nicholas Dahl: Deputy Assistant Inspector General, Management and Administration, U.S. Department of Veterans Affairs, Office of the Inspector General

• Mr. Justin Parke: Managing Director, DGIB Program Manager, Accenture Federal Services

Keywords mentioned:

• Digital GI Bill, modernization, automation, timeliness, accuracy, cost overruns, delays, planning, requirements, oversight, accountability, transparency

IN THEIR WORDS

OPENING STATEMENTS FROM THE SUBCOMMITTEE

• Chairman Derrick Van Orden called for a nonpartisan approach to addressing struggles with the Digital GI Bill (DGIB) project. He expressed concerns about mismanagement during the Biden administration, despite the project’s contract being signed under the previous administration. Referring to a July 2023 joint hearing, he reiterated concerns about the project’s design and execution, claiming it was floundering. The Chairman also mentioned that the recent VA Inspector General (OIG) report confirmed the project’s $1 billion cost increase and two-year delay. He pointed out that the project's failure negatively impacted veterans and taxpayers and claimed that in the private sector, such failures would result in terminations.

• Ranking Member Mike Levin agreed with the Chairman on the importance of delivering GI Bill benefits effectively. He added historical context, noting that the VA’s infrastructure issues dated back several decades and had not been adequately addressed by any administration. He recounted a 2019 visit to Muskogee, Oklahoma, where he observed the outdated systems in use. These systems were held together by temporary fixes, and the Ranking Member warned against rushing the modernization process. He then agreed that the Digital GI Bill faced significant problems, and he called for thoughtful improvements without repeating past mistakes.

SUMMARY OF KEY POINTS

• Mr. Ronald Burke reported on improvements made in the Digital GI Bill program. He noted that automation had sped up the processing of claims, reducing the time for original claims from 28 days to 10 and for supplemental claims from 14 days to four. Mr. Burke detailed successful implementation milestones, including the decommissioning of older systems and the transition to a modern payment platform. He then acknowledged challenges and mistakes in contract planning and vowed to continue working toward improving the system.

• Mr. Nicholas Dahl provided a critical assessment of the project’s management. He explained that the project had been delayed by 27 months and was now expected to be completed in July 2026. He cited unrealistic contract requirements, poor planning, and insufficient IT expertise as major factors contributing to the delays. Additionally, Mr. Dahl noted that the project’s cost had escalated from the original estimate of $453 million to $932 million due to numerous contract modifications. He noted failures to provide necessary test environments and expressed concerns about further cost overruns and delays. Mr. Dahl emphasized that the VA needed stronger contract management to ensure the project’s successful completion and decommissioning of legacy systems.

• Mr. Justin Parke mentioned that Accenture Federal had been managing the implementation of the DGIB system since March 2021. He provided statistics on the program's impact, stating it had processed over 11 million claims and delivered more than $28 billion in benefits to 1.5 million veterans. Mr. Parke noted that Accenture had deployed significant enhancements, achieving 99.99% uptime in benefit delivery. He acknowledged that additional scope and emerging agency priorities delayed the project and increased costs, but he reaffirmed Accenture’s commitment to deliver on time.

• Ranking Member Levin questioned Mr. Burke about the increase in contract costs, confirming that the original $453 million contract had ballooned to $932 million. Mr. Burke agreed that this increase was unacceptable, acknowledging the use of outdated systems in the VA and the planning failures that contributed to the cost hikes.

• The Ranking Member pressed the witnesses on how many systems had been replaced since modernization began, to which Mr. Burke responded that two systems had been replaced with more planned. He also admitted that the original contract had unrealistic requirements, which had since been corrected.

• Rep. Matt Rosendale questioned Mr. Parke about how much Accenture had been paid so far, which was $489 million. Rep. Rosendale expressed frustration about the potential for further cost increases due to unresolved dependencies and change orders. He voiced his concern that both the VA and contractors like Accenture were failing veterans by mismanaging the project, causing unnecessary delays and excessive costs. Rep. Rosendale claimed that such inefficiencies would not be tolerated in the private sector and accused both parties of either incompetence or dishonesty in the planning process.

• Chairman Van Orden asked Mr. Burke about the role of MITRE in planning the project, questioning why poor planning had led to significant delays and increased costs. Mr. Burke admitted that the individuals responsible for the initial planning were no longer with the organization but assured the Chairman that the current team was committed to making improvements. The Chairman continued pressing for accountability, stating that the mismanagement of the project was unacceptable. He reiterated his determination to continue the questioning until clear answers were provided.

• Ranking Member Levin resumed his line of questioning, focusing on the increased costs and asking if they were due to scope changes or inefficiencies. Mr. Burke explained that the increased complexity of the project had been underestimated, and additional performance metrics and intellectual property protections had contributed to the cost increases. Ranking Member Levin pointed out the drastic difference between the initial and current project costs and sought clarification on the changes.

• Chairman Van Orden expressed strong dissatisfaction with the absence of Under Secretary Josh Jacobs, who was invited but did not attend the hearing. He spoke again on the lack of accountability and voiced concern over the VA's approach to project management. The Chairman specifically criticized the initial decision to proceed with the Digital GI Bill project with only 25% confidence in its success. He then drew a parallel between poor planning and the loss of lives, stressing that the VA’s financial mismanagement had ballooned the project’s cost to nearly $1 billion. He stated that this directly impacted veterans' access to critical services, including mental health support, home care, and suicide prevention efforts.

• Mr. Burke acknowledged the poor planning and explained that good intentions had driven the decision to act quickly. The Chairman replied and pointed out that good intentions meant little when veterans were not receiving the care they needed. Chairman Van Orden reiterated that the decisions made had effectively wasted resources that could have been used to hire home healthcare workers, psychiatrists, and other essential personnel.

• Mr. Dahl was asked about his confidence in the project being completed on time and within the new budget. He noted that the VA had a history of delays and cost overruns in major IT projects, and while he remained hopeful that the VA could implement the OIG's recommendations, he hesitated to express confidence that the project would be completed by 2026.

• Chairman Van Orden then shifted his focus to Mr. Robert Orifici, asking whether the VA had explored existing successful models like the Department of Education’s Pell Grant system before embarking on the Digital GI Bill project. Mr. Orifici confirmed that the VA had consulted with the Department of Education but did not integrate those insights into their planning.

• Chairman Van Orden also brought up the VA’s Oracle-Cerner Electronic Health Record (EHR) system implementation, comparing it to the Digital GI Bill’s financial mismanagement. He criticized the VA for not utilizing proven commercial solutions like Epic, which could have bridged civilian and military health systems.

• When questioned about the oversight process, Mr. Parke from Accenture confirmed that regular meetings were held with the VA to ensure progress, but Under Secretary Jacobs had not been involved in these meetings. Mr. Joseph Garcia clarified that he was operationally involved in the oversight process, but Mr. Burke was ultimately accountable.

• Chairman Van Orden pointed out that despite automation improvements, no employees had been fired or removed. He referred to this as an example of inefficiency and corruption. The Chairman argued that the VA was wasting money that could have been better used to care for veterans. Mr. Burke defended the decision, stating that staff were being repurposed rather than fired.

• Mr. Dahl reiterated that while progress had been made, the VA still faced significant challenges in project execution. Chairman Van Orden then asked whether any VA officials would commit to resigning if the project’s budget exceeded its current scope. No one agreed to this.

• Ranking Member Levin also expressed frustration over the cost overruns but maintained hope that the VA could turn things around. He stressed the importance of avoiding further financial waste and ensuring that the Digital GI Bill system worked as intended for veterans. The Ranking Member underscored the need for accountability and good stewardship of taxpayer dollars while acknowledging the long-standing challenges of modernization within the VA.

SPECIAL TOPICS

ADD TO THE NIMITZ NETWORK

Know someone else who would enjoy our updates? Feel free to forward them this email and have them subscribe here.