The Contracting Education Academy

Contracting Academy Logo
  • Home
  • Training & Education
  • Services
  • Contact Us
You are here: Home / Government Contracting News / VHA could save $24M with wider use of purchase cards

August 30, 2013 By AMK

VHA could save $24M with wider use of purchase cards

Wider use of purchase cards could save the Veterans Health Administration $24  million annually, a report from the Veterans Affairs Department office of  inspector general says.

Using purchase cards saves money because writing  purchase orders is more time-consuming and complex. The banks that provide  purchase cards also offer rebates, around 2 percent, for money spent on the  cards, says the OIG report, dated Aug. 9. The VHA spent about $3 billion on purchases worth $3,000 or less  in fiscal 2012, earning it more than $65 million in rebates.

From April  2011 through March 2012, VA medical facilities did not use purchase cards for $432 million worth of purchases under $3,000. For $244 million of that spending,  the OIG found they had acceptable reasons not to use the cards. Some vendors  don’t accept purchase cards, and the VA can’t use them to pay veterans for  pharmacy copayments or tort claims.

For the remaining $188 million, spent on medical supplies, office equipment, patient transportation, employee  training and more, the VA could have used purchase cards, the report says.  The  OIG estimated that it could’ve saved $20 million in processing costs and  could’ve earned about $4 million in rebates.

Keep reading this article at: http://www.fiercegovernment.com/story/vha-could-save-24m-wider-use-purchase-cards/2013-08-13

Filed Under: Government Contracting News Tagged With: IG, Pcard, purchase card, VA, Veterans Health Administration

Popular Topics

abuse acquisition reform acquisition strategy acquisition training acquisition workforce Air Force Army AT&L bid protest budget budget cuts competition cybersecurity DAU DFARS DHS DoD DOJ FAR fraud GAO Georgia Tech GSA GSA Schedule GSA Schedules IG industrial base information technology innovation IT Justice Dept. Navy NDAA OFPP OMB OTA Pentagon procurement reform protest SBA sequestration small business spending technology VA
Contracting Academy Logo
75 Fifth Street, NW, Suite 300
Atlanta, GA 30308
info@ContractingAcademy.gatech.edu
Phone: 404-894-6109
Fax: 404-410-6885

RSS Twitter

Search this Website

Copyright © 2022 · Georgia Tech - Enterprise Innovation Institute