VA's inability to process G.I. Bill payments on time forces agency to find private contractor to bail them out.

by Larry Scott, VA Watchdog dot Org

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In what can only be called an act of desperation, the VA is now admitting that they can't process claims for the New G.I. Bill in a timely manner and are seeking outside assistance. 

The VA is soliciting bids from an outside contractor to help clean up their mess.

In a press release issued on Wednesday October 28, 2009, the VA's Under Secretary for Benefits, Patrick W. Dunne, said:

“This contract will assist VA in delivering education benefits to our Veterans as quickly as possible. Veterans are depending on VA to provide the benefits they earned through their service to our nation. We will do everything in our power to minimize delays for our Veteran-students.”

The complete press release is posted at the bottom of the page.

The press release is a great piece of VA spin, never once mentioning the tens of thousands of veterans who are not getting their G.I. Bill payments on time.

So, how did the VA get into this mess?

In October of 2008, Keith M. Wilson, head of the VA's education service said of the New G.I. Bill:

"From our perspective it is pretty simple to administer."

Wilson went on to say that his goal to process benefits will be 10 days and most applications would be processed and approved in a day.  Complete article on this is here ...
http://www.vawatchdog.org/08/nf08/nfoct08/nf102508-2.htm

But, that optimism was predicated on a new computerized system being designed, tested and put online in less than a year.

That didn't happen.

The VA worked with the Navy Space Warfare Systems Command (SPAWAR) to build the new system.  That quickly turned into a nightmare.  More on that here ...
http://www.yourvabenefits.org/sessearch.php?q=spawar&op=and

By the time the SPAWAR deal fell apart, the VA finally had to admit that they would be processing the claims the old-fashioned way ... manually.

Then the GAO issued a report that said VA and SPAWAR were not complying with the terms of many contracts:

Review of Interagency Agreement between the Department of Veterans Affairs and Department of Navy, Space Naval and Warfare Systems Center (SPAWAR) -- Report Number 09-01213-142, 6/4/2009 | Summary | Report (PDF)

All along this treacherous route, Dunne and Wilson had to have known that they couldn't deliver New G.I. Bill benefits on time.  But, what did they do?  Put on a game face with no thought to what would happen to the veterans who didn't get their payments on time. 

VA had to set up a program to issue emergency checks to many veterans who weren't receiving their funds. 

Now, the situation is so bad that the VA had to make a public apology.  That here ...
http://www.vawatchdog.org/09/nf09/nfoct09/nf102809-1.htm

So now the VA is going to have an outside contractor help them.

Do you honestly believe this will solve the problems?  In reality, it is a disaster waiting to happen.

All we have to do is look at the retro-pay fiasco at DFAS. DFAS hired Lockheed to help them sort out the retro-pay issue and only dug a deeper hole ... with some vets not getting paid and others being paid too much.  More on that here ...
http://www.yourvabenefits.org/sessearch.php?q=dfas&op=and

It will be interesting to see who gets this contract.  If it's Lockheed ... say a prayer.

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VA Seeks Temporary Contractor to Help Process Education Claims

October 28, 2009

WASHINGTON – On Oct. 21, the Department of Veterans Affairs (VA) issued a solicitation for temporary contractor support to assist in processing the increased volume of education claims received since implementing the new Post-9/11 GI Bill.

“This contract will assist VA in delivering education benefits to our Veterans as quickly as possible,” said Under Secretary for Benefits Patrick W. Dunne. “Veterans are depending on VA to provide the benefits they earned through their service to our nation. We will do everything in our power to minimize delays for our Veteran-students.”

The Post-9/11 GI Bill, which went into effect on August 1, 2009, has generated an unprecedented number of new applications. When combined with the standard high volume of school enrollment claims in August and September (normally, the busiest months for education claims), the number of claims has exceeded anticipated levels.

The contractor will provide its own work site and personnel to perform claims processing tasks. Contract staff will validate enrollment information provided by schools and provide recommendations on claim status to VA personnel, who will finalize claims decisions and generate payments (if applicable).

All work will be reviewed and authorized by VA personnel. VA will provide training on security and claims processing procedures. The contract personnel will assist in handling the least complex cases, which allows for rapid implementation of this initiative.

Information about the Post-9/11 GI Bill, as well as VA’s other educational benefit programs, is available at VA’s Web site, www.gibill.va.gov , or by calling 1-888-GIBILL-1 (or 1-888-442-4551).

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TOPICS: veterans, veterans' benefits, VA, Department of Veterans' Affairs, G.I. Bill, private contractor, late payments