Review of the Major Construction Project for the New VA Medical Center in Louisville, Kentucky Inbox Veterans Affairs Office of Inspector General (OIG) Unsubscribe 10:04 AM (8 minutes ago) to me New Rebranded Header Review of the Major Construction Project for the New VA Medical Center in Louisville, Kentucky 9/24/2026 1:00 PM EDT The VA Office of Inspector General (OIG) is committed to providing independent oversight to VA. The OIG conducted this review to assess whether VA effectively governed the major medical center construction project in Louisville, Kentucky, specifically whether the project adhered to its initially authorized schedule and budget. Because federal law requires cost estimates but not schedules for authorization, the OIG evaluated schedule performance using Office of Management and Budget (OMB) Circular A 11 guidance, which calls for establishing and monitoring schedule baselines. The Louisville project is at least 13 years behind its initial plan and is expected to be completed in November 2027. Its projected cost has grown from the 2007 draft business case estimate of $418.8 million to more than $1.1 billion. The OIG found that VA did not implement the required acquisition governance framework, did not provide Congress a complete project cost estimate until FY 2016, and did not submit a business case to OMB. Because VA could not demonstrate compliance with OMB’s business case submission requirements, the OIG reported the over $1 billion authorized for the project as a questioned cost. Project delays and cost growth stemmed from ineffective planning, repeated scope changes, and failure to follow required acquisition and capital programming processes. VA did not effectively use advance planning funds, delayed initiating required environmental reviews, and used a phased environmental assessment dependent on external agencies. Uncertainty, public concern, and outdated traffic studies ultimately required a full environmental impact statement, which extended the review. VA also did not consistently apply change management controls, did not update business case submissions as required, and understated total project costs by nearly $160 million through unreported obligations and VA requested changes that are required before the new facility can open. VA concurred with the OIG’s seven recommendations to reinforce compliance with law, regulation, and policy. Click Here for Full Report

Review of the Major Construction Project for the New VA Medical Center in Louisville, Kentucky Inbox Veterans Affairs Office of Inspector General (OIG) Unsubscribe 10:04 AM (8 minutes ago) to me New Rebranded Header Review of the Major Construction Project for the New VA Medical Center in Louisville, Kentucky 9/24/2026 1:00 PM EDT The VA Office of Inspector General (OIG) is committed to providing independent oversight to VA. The OIG conducted this review to assess whether VA effectively governed the major medical center construction project in Louisville, Kentucky, specifically whether the project adhered to its initially authorized schedule and budget. Because federal law requires cost estimates but not schedules for authorization, the OIG evaluated schedule performance using Office of Management and Budget (OMB) Circular A 11 guidance, which calls for establishing and monitoring schedule baselines. The Louisville project is at least 13 years behind its initial plan and is expected to be completed in November 2027. Its projected cost has grown from the 2007 draft business case estimate of $418.8 million to more than $1.1 billion. The OIG found that VA did not implement the required acquisition governance framework, did not provide Congress a complete project cost estimate until FY 2016, and did not submit a business case to OMB. Because VA could not demonstrate compliance with OMB’s business case submission requirements, the OIG reported the over $1 billion authorized for the project as a questioned cost. Project delays and cost growth stemmed from ineffective planning, repeated scope changes, and failure to follow required acquisition and capital programming processes. VA did not effectively use advance planning funds, delayed initiating required environmental reviews, and used a phased environmental assessment dependent on external agencies. Uncertainty, public concern, and outdated traffic studies ultimately required a full environmental impact statement, which extended the review. VA also did not consistently apply change management controls, did not update business case submissions as required, and understated total project costs by nearly $160 million through unreported obligations and VA requested changes that are required before the new facility can open. VA concurred with the OIG’s seven recommendations to reinforce compliance with law, regulation, and policy. Click Here for Full Report