Lawmakers press VA on slow construction, project costs and contract oversight; VA cites duplication and vows reforms

House members pressed the Department of Veterans Affairs on long-running construction delays and contract management problems, citing examples of projects years behind schedule and major cost overruns.

Representative Escobar and other members cited the William Beaumont Army Medical Center delay and the Bakersfield community-based outpatient clinic, raising concerns that procurement protests, litigation and contracting practices have left communities waiting for new facilities. "That preceded me," Escobar said of the cost overruns, and she asked for a commitment to a public dashboard and greater accountability for contractors.

Secretary Collins said VA contract and construction processes are broken in many places and pointed to contract duplication as a symptom: he said the VA had a $5.8 million contract to manage a small-business office that duplicated work performed by senior VA staff. He pledged to review major construction projects, enforce contractual penalties where appropriate, and explore ways to streamline project funding and oversight so projects do not stretch across decades.

Members also asked about third‑party administrators for community care — including TriWest and Optum — and the VA’s oversight of those contracts. Collins said the previous procurement groundwork for third‑party administrator contracts had not been completed on schedule and that the department will renegotiate and reissue contracts with stricter performance requirements.

Lawmakers said they will pursue statutory and oversight options to enforce competition, timely delivery and penalties for underperformance. The VA agreed to follow up with details and work with the committee on project-level accountability measures.