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VETERANS AFFAIRS IN THE 112TH CONGRESS: REVIEWING VA’S PERFORMANCE AND ACCOUNTABILITY 

HEARING 

BEFORE THE

COMMITTEE ON VETERANS’ AFFAIRS 

U.S. HOUSE OF REPRESENTATIVES 

ONE HUNDRED TWELFTH CONGRESS 

SECOND SESSION 

THURSDAY, SEPTEMBER 20, 2012 

Serial No. 112–76 

Printed for the use of the Committee on Veterans’ Affairs 

( 

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ii 

COMMITTEE ON VETERANS’ AFFAIRS 

JEFF MILLER, Florida, Chairman 

CLIFF STEARNS, Florida 

DOUG LAMBORN, Colorado 

GUS M. BILIRAKIS, Florida 

DAVID P. ROE, Tennessee 

MARLIN A. STUTZMAN, Indiana 

BILL FLORES, Texas 

BILL JOHNSON, Ohio 

JEFF DENHAM, California 

JON RUNYAN, New Jersey 

DAN BENISHEK, Michigan 

ANN MARIE BUERKLE, New York 

TIM HUELSKAMP, Kansas 

MARK E. AMODEI, Nevada 

ROBERT L. TURNER, New York 

BOB FILNER, California, Ranking 

CORRINE BROWN, Florida 

SILVESTRE REYES, Texas 

MICHAEL H. MICHAUD, Maine 

LINDA T. SA ́ NCHEZ, California 

BRUCE L. BRALEY, Iowa 

JERRY McNERNEY, California 

JOE DONNELLY, Indiana 

TIMOTHY J. WALZ, Minnesota 

JOHN BARROW, Georgia 

RUSS CARNAHAN, Missouri 

HELEN W. TOLAR, Staff Director and Chief Counsel 

Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public hearing records 

of the Committee on Veterans’ Affairs are also published in electronic form. The printed 

hearing record remains the official version. Because electronic submissions are used to 

prepare both printed and electronic versions of the hearing record, the process of converting 

between various electronic formats may introduce unintentional errors or omissions. Such occurrences are inherent in the current publication process and should diminish as the process 

is further refined. 

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C O N T E N T S 

September 20, 2012 

Page 

Veterans Affairs In The 112th Congress: Reviewing VA’s Performance And 

Accountability ....................................................................................................... 1 

OPENING STATEMENTS 

Chairman Jeff Miller ............................................................................................... 1 

Prepared Statement of Chairman Miller ........................................................ 32 

Hon. Corrine Brown, Acting Ranking Democratic Member ................................. 3 

Prepared Statement of Hon. Brown ................................................................ 34 

Hon. Russ Carnahan, prepared statement only .................................................... 34 

WITNESSES 

Hon. W. Scott Gould, Deputy Secretary of Veterans Affairs, U.S. Department 

of Veterans Affairs ............................................................................................... 4 

Prepared Statement of Hon. Gould ................................................................. 35 

Accompanied by: 

W. Todd Grams, Executive in Charge, Office of Management, Chief 

Financial Officer, U.S. Department of Veterans Affairs 

QUESTIONS FOR THE RECORD 

Responses from the Department of Veterans’ Affairs ........................................... 42 

MATERIALS SUBMITTED FOR THE RECORD 

Setting Up an eBenefits Account ........................................................................... 61 

Claim Status Availability in eBenefits .................................................................. 62 

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(1) 

VETERANS AFFAIRS IN THE 112TH CONGRESS: REVIEWING VA’S PERFORMANCE 

AND ACCOUNTABILITY 

Thursday, September 20, 2012 

U.S. HOUSE OF REPRESENTATIVES, 

COMMITTEE ON VETERANS’ AFFAIRS, 

Washington, D.C. 

The Committee met, pursuant to notice, at 10:19 a.m., in Room 

334, Cannon House Office Building, Hon. Jeff Miller [Chairman of 

the Committee] presiding. 

Present: Representatives Miller, Roe, Stutzman, Flores, Johnson, 

Runyan, Benishek, Huelskamp, Turner, Brown, Michaud, 

McNerney, Walz, and Barrow. 

OPENING STATEMENT OF CHAIRMAN JEFF MILLER 

The CHAIRMAN. The Committee will come to order. 

Thank you, everybody, for being here for today’s Full Committee 

hearing entitled Veterans Affairs in the 112th Congress: Reviewing 

VA’s Performance and Accountability. 

Let me start by first saying VA is to be commended for some of 

the areas that we are going to be examining in this morning’s hearing. 

For example, the number of homeless veterans is declining and 

I know that that is something that the Secretary has been very focused on over the last number of years. 

VA reports that on any given night, the number of homeless veterans has fallen from 76,000 in 2009 to 67,500 in the latest report 

of 2011. 

We have to sustain that effort and address the root causes of 

homelessness. But at present, I am pleased that the goal of ending 

homelessness by 2015 is well within reach. 

Also on the positive side, the default rates on VA guaranteed 

loans continue to be lower than non-VA backed loans. Given the 

turmoil in the housing market, the success VA has had in keeping 

veterans in their homes is laudable. 

And, finally, I want to congratulate VA on the aggressive manner 

in which it prepared for and promoted the Veterans Retraining Assistance Program or VRAP, part of our effort to reduce veteran unemployment. 

With the VOW Act’s goal to retrain 99,000 veterans using the 

Montgomery GI Bill, as of today, VA had received 58,432 applications and I understand they have approved 45,205 and maybe more 

than that by this morning. 

So to VA today, we say thank you and keep up the good work. 

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Despite these successes, progress is not being made fast enough 

or in some cases any progress being made in other key areas. 

On the important issue of mental health care, too many veterans 

either do not seek assistance or are unable to get VA mental health 

care in a timely fashion. As a result, access to mental health care 

is in crisis. 

In April, the VA inspector general released a report finding that 

more than half of the veterans who seek mental health care 

through VA wait 50 days, that is five zero, 50 days to receive an 

evaluation. 

These are men and women who have taken the brave and difficult step of seeking help. They are waiting too long to receive that 

help. 

Interestingly, just days before the IG report was released, VA 

made a surprise announcement that it was going to be increasing 

mental health staff by 1,900 individuals. It is undoubtedly important to ensure proper staff are in place to meet the increasing demand for mental health care, but here is the problem. 

There is already almost 1,500 mental health professionals and 

vacancies within the system which means 1,900 new hires equates 

to a net gain of 400. As of mid July, VA had hired less than 900 

employees as part of this effort. 

Follow-up requests by Committee staff for additional information 

unfortunately has gone unanswered. Meanwhile data suggests that 

18 veterans per day commit suicide and five of those were receiving 

VA care at the time of their death. We have got to do better. I do 

not think anybody can question that. 

Another area of continued concern is the backlog of disability 

claims. Notwithstanding pledges by VA officials that we are about 

to turn the corner, the backlog has steadily increased throughout 

the past two years and at the beginning of this Congress, the number of pending claims was 764,476 with 39.4 percent pending for 

more than 125 days. 

As of this month, that total number of claims pending has increased to 897,767 and 66.4 percent are pending longer than 125 

days. 

The Department’s refrain has been that overall production is 

over one million claims annually and that the Agent Orange claims 

presented a challenge. But the simple fact remains that more 

claims continue to be filed than processed and there is no end in 

sight. 

Although this Administration has promised that the backlog will 

be eliminated by 2015 and that claims will be processed with 98 

percent accuracy by that time, quite frankly, many of us, myself included, are worried as to whether this goal remains realistic or not. 

In addition, the Committee has frequently been told that VBA’s 

transformation plan is the answer to all the problems. Although we 

certainly commend VA for realizing that comprehensive changes 

are required to bring VBA into the 21st century, the Committee 

has yet to see an actual plan. 

We need to see it in writing and we need to see clear benchmarks 

and deadlines. We have yet to see this plan despite making three 

separate requests both during hearings and in writing which have 

gone unanswered. 

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I would like to continue working with the department on bringing VA into the 21st century and we will be best able to do so by 

being provided with a written copy of the transformation plan. 

Finally, although VA has been more fortunate than other agencies in the resources it has received in this tight fiscal climate, the 

bureaucracy has helped itself to those resources rather than channeling them directly to services for the veteran. 

VA’s Senior Executive Service Bonus Program continues to average nearly $4 million in annual pay-outs with no apparent correlation between these bonuses and agency performance. The Committee is also addressing the lavish conference expenditures. I and 

Ranking Member Filner sent a letter to VA over a month ago asking for details as to how $100 million was spent in 2011 on conferences and to date, we have yet to receive a response. 

The government was on the verge of a shutdown and a default 

last year. Thus the fact that VA cannot describe how over $100 

million was spent to me is unconscionable. 

Despite promises of better fiscal stewardship from the Administration, these are glaring examples of serious shortcomings that 

have got to be fixed. 

There is more I could have touched on in this opening statement, 

but I will wait for our questioning. We have got a lot of ground to 

cover this morning. 

And I want to yield now to the Ranking Member, Ms. Brown, my 

colleague from Florida, for her opening statement. 

[THE PREPARED STATEMENT OF CHAIRMAN MILLER APPEARS IN THE

APPENDIX]

OPENING STATEMENT OF HON. CORRINE BROWN, 

ACTING RANKING DEMOCRATIC MEMBER 

Ms. BROWN. Thank you, Mr. Chairman, and I appreciate you 

holding this hearing on VA performance and accountability during 

the 112th Congress. 

I am looking forward to finding out from the VA the progress it 

has made in addressing concern raised by this Committee. 

I am also looking forward to hearing from the deputy secretary 

how, in his view, the VA has become able to meet its responsibilities and provide health care and benefits to our veterans. 

I believe that this is an important point that we should not forget. For all the faults we find with how the VA operates, at the end 

of the day, it is providing service and benefits to millions of veterans and their families. 

Because the VA generally does a good job, it makes it even more 

important that we are proactive addressing their problems. 

Sometimes it is easy for us to forget that our role is to provide 

needed oversight to the VA. In the final analysis, we are all in this 

together. As the army says, it is one team, one fight. 

I also want to say how disappointed I am with the Senate republicans in an almost party line vote to block the veterans’ job corps 

legislation. At a time when our veterans sorely need our help, they 

decided to play politics rather than being patriots. 

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The cost of the war is more than just airplanes, tanks, and bullets. It is the cost of our heroes, our veterans, and we owe them 

more than just being a political toy. 

So today I am introducing the Companion Bill in the House and 

I hope, Mr. Chairman, that I have your support in bringing this 

bill to the House floor as soon as possible. Veterans deserve all that 

we can do to help them and their families. 

We need to stand up for them as they are standing up for us. 

Veterans’ unemployment is 30 percent, so I think we should do all 

we can. As I said, the army motto is one team, one fight, working 

together in a bipartisan manner to make sure that we can address 

these needs. 

I am also looking forward to the deputy secretary’s update on 

how the oversight concerns raised by this Committee has been addressed, how the VA is better today than it was yesterday, and 

what improvements and actions we can look forward to in the future. 

Thank you, Mr. Chairman, and I yield back the balance of my 

time. 

[THE PREPARED STATEMENT OF HON. BROWN APPEARS IN THE APPENDIX]

The CHAIRMAN. I appreciate the gentlewoman’s comments. 

I would say that, this Committee has focused on veteran unemployment and if you take our bills that we have done here and compare them to the bill that was over in the Senate yesterday, the 

job corps bill was looking at costing some $50,000 a job where our 

VRAP bill was $16,000 a job. And we did not start a whole new 

bureaucracy in order to do what we needed to do. 

VRAP trains up to 99,000 veterans and the Job Corps Program 

only 20, so, yes, I commit to you to work as we work towards trying 

to find jobs for those unemployed veterans out there, not only those 

that are returning from Iraq and Afghanistan, but certainly those 

35 to 60-year-old individuals who are finding themselves in need to 

retrain. 

I want to welcome the panel today to the table. With us this 

morning is W. Scott Gould, the Deputy Secretary of Veterans Affairs for the Department of Veterans Affairs, and Mr. Gould is accompanied by W. Todd Grams, Executive in Charge for the Office 

of Management and the Chief Financial Officer for the U.S. Department of Veterans Affairs. 

I appreciate you both being here this morning. And, Secretary 

Gould, you are recognized to proceed. 

STATEMENT OF W. SCOTT GOULD, DEPUTY SECRETARY OF 

VETERANS AFFAIRS, U.S. DEPARTMENT OF VETERANS AFFAIRS ACCOMPANIED BY W. TODD GRAMS, EXECUTIVE IN 

CHARGE FOR THE OFFICE OF MANAGEMENT AND CHIEF FINANCIAL OFFICER, U.S. DEPARTMENT OF VETERANS AFFAIRS 

STATEMENT OF HON. W. SCOTT GOULD 

Mr. GOULD. Thank you, Chairman Miller, Ranking Member 

Brown, distinguished Members of the Veterans’ Affairs Committee. 

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Thank you for your unwavering commitment to veterans and for 

this opportunity to testify today. 

With me is Mr. Todd Grams, VA’s Chief Financial Officer. Let 

me also acknowledge some of the veteran service organizations 

here today. Their insights are always appreciated. 

And, Mr. Chairman, I ask that my written statement be included 

for the record. 

The CHAIRMAN. Without objection. 

Mr. GOULD. VA’s only agenda is to provide veterans the best care 

and benefits possible. We appreciate this Committee’s assistance in 

achieving this goal. 

Since 2009, we have accomplished many important achievements, yet we know we have more to do. 

Almost four years ago, we set three key priorities which remain 

unchanged today. First, increase veterans’ access to benefits and 

services; second, eliminate the backlog in compensation claims in 

2015; and, third, end veterans’ homelessness also in 2015. 

I will briefly update you on our major achievements in each of 

these three areas. 

First, we have made great strides in increasing veterans’ access 

to care and benefits. In our medical facilities, VA has handled more 

than 358 million medical encounters since 2009. Hundreds of thousands more veterans now receive care and benefits thanks to VA 

decisions on Agent Orange, Gulf War, traumatic brain injuries, and 

PTSD. 

Between 2008 and 2012, we increased the number of veterans receiving VA disability compensation by 21 percent, life insurance 

coverage for disabled veterans by 31 percent, the number of education beneficiaries by 63 percent, and those compensated for PTSD 

by 64 percent. 

Last month, we opened a state-of-the-art VA medical center in 

Las Vegas, the first new hospital in 17 years. Three more are 

under construction, Denver, Orlando, and New Orleans. 

We have also added 51 new community-based outpatient clinics, 

40 mobile health clinics, and a fifth polytrauma center. 

In 2011, we provided telehealth to more than 380,000 veterans. 

Since 2009, VA built an automated system for processing Post9/11 GI Bill payments and has issued over $21 billion in payments 

to over 800,000 recipients. 

Today we have over a million veterans and family members in 

our educational programs across this country. 

Since the start of this Congress, 756,000 families got a VA home 

loan guarantee. 

With Congress’ support and leadership, we implemented the 

Family Caregiver Program and now have over 5,900 primary family caregivers benefitting from this program. 

We are using technology to outreach to more veterans than ever 

before to provide easier access to benefits’ information through online tools such as Blue Button and eBenefits. 

Almost a million servicemembers and veterans have downloaded 

electronic copies of their personal health records to date. 

Since 2005, we have increased the number of mental health professionals from 13,000 to over 20,000 and recently announced, as 

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the Chairman just mentioned, our plans to hire an additional 1,600 

more clinical staff, 1,900 including support. 

Since its establishment in 2007, our veterans’ crisis line has rescued, rescued over 23,000 potential suicide victims. 

Since 2009, our National Cemetery Administration has opened 

six new national cemeteries, awarded grants to establish 15 state 

cemeteries and five tribal cemeteries. 

Second, VA is using every tool available to end veteran homelessness. We thank the Committee for its support and for the resources 

to drive these efforts. Homelessness among veterans has declined 

by nearly 12 percent since the January 2010 HUD count and we 

remain committed to ending veterans’ homelessness in 2015. 

In the last two years, VA has helped over 119,000, 82 and a half 

percent of VA borrowers who got in trouble, who were in default 

avoid foreclosure. 

Chairman Miller, thanks to the leadership of this Committee, the 

Administration joined with you to make the VOW to Hire Heroes 

Act of 2011 a reality. 

The VOW Act created the Veterans Retraining Assistance Program or VRAP, as you mentioned a moment ago, and over 55,000 

veterans have now applied. 

In fiscal year 2011, VA’s total award to small businesses was 

nearly $5.9 billion, 33.6 percent of all of VA’s procurements, far exceeding the national goals for veteran and service-disabled veteranowned businesses. 

Thirdly, eliminating the claims backlog is certainly our most 

complex challenge. VBA’s annual claims receipts increased 48 percent over the last four years and there has also been an increase 

in the average number of medical conditions each claimant files. 

This growth in demand is driven by a number of factors, but 

most importantly our decisions as advocates for veterans that I 

mentioned a moment ago on Agent Orange, PTSD, Gulf War. 

It is also exacerbated by increased survival rates, ten years of 

war, difficult economic conditions, and I would say successful VA 

outreach, getting more people to apply for the benefits they have 

earned. 

We are determined to eliminate the backlog. Secretary Shinseki 

and Panetta testified before you, Mr. Chairman, in an historic joint 

Committee hearing in July on the range of our VA/DoD collaboration and transition initiatives. These included IDES, the Integrated 

Disability Evaluation System, VA’s paperless processing system 

called the Veterans Benefits Management System, and the integrated electronic health record which you know as IEHR, an ambitious effort that we have committed to have in place no later than 

2017. 

Mr. Chairman, in 2009, President Obama charged Secretary 

Shinseki to transform VA into a high performing 21st century organization. Both the President and this Congress have afforded us 

the resources to make that transformation a reality. 

We have made significant progress, but we know that more remains to be done. I am grateful that Congress has been both our 

partner and our constructive critic as we have forged ahead. 

Mr. Chairman, I look forward to your questions. 

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[THE PREPARED STATEMENT OF HON. GOULD APPEARS IN THE APPENDIX]

The CHAIRMAN. Thank you very much for your testimony. 

We will have the first round of questions and then if we need to 

go with a second round, we would be more than happy to do that 

as well. 

I want to talk a little bit about mental health and where we are 

and ask your help. We had asked two months ago for information 

in regards to where we are with mental health issues. We asked 

for a status broken down by occupation and facility of those new 

hires. 

There is a concern that I have that some of the new hires may, 

in fact, be transfers from other VA facilities that may be getting 

hired and also be getting incentive bonuses to make a transfer. 

While they are being called a hire, they are leaving a gaping hole 

somewhere within the system from where they went. 

Like I said, we started the process of asking for this back in July 

and I am just trying to find out are we going to get an answer? 

Do you have an answer for us today or can we expect an answer 

any time in the near future? 

Mr. GOULD. Yes, sir, you certainly can. I would just like to place 

the interest that the Committee shares and that we are all very focused into a broader context. 

Mental health is obviously an area where we are addressing the 

hidden wounds of war. VA has an enormous integrated mental 

health system and we understand that link between mental health 

and physical health. The two are inextricably linked. 

The quality and size of our system is second to none. We have 

increased from 13,000 to over 20,000 mental health professionals in 

our system. We have a suicide prevention mechanism that is with 

our crisis hotline that has literally fielded 650,000 calls in the last 

three years, directed 99,000 veterans and active-duty 

servicemembers in crisis to help within our system, and lastly 

saved 29,000 individuals. It is really an extraordinary record. 

And we are a demand driven organization. More people have demanded services in mental health here. We identified that problem 

last year. The IG confirmed it for us and we have embarked at 

your direction, Mr. Chairman, on an aggressive effort to hire 1,900 

total mental health professionals and support staff, 1,600 mental 

health professionals. 

We are today hiring 75 a week. We are on track to meet the 

goals that we have set for hiring these individuals and, of course, 

our job one will be to train them, get them in place, and have them 

into the fight to join this extraordinarily large and high quality system that we have at VA. 

The CHAIRMAN. And I appreciate the numbers that you provided 

to the Committee. I would ask, if you could, provide for us, somebody provide for us a written report as to where we are in meeting 

the goals because I think this Committee and certainly VA itself 

share the same end result and that is to be able to provide care 

when the veterans need it, not some point down the road unfortunately when the veteran may have done something different than 

they may have wanted to do when they were reaching out for help. 

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Let’s talk a little bit about the backlog of claims that is out there. 

And I think, you know, probably the big question that a lot of people want answered right now is, is the goal of 2015 attainable? 

It looks like we are slipping every day because of the numbers 

of claims that are coming in, but I would like to get an update from 

you, if you will, as to where we are because we are hearing it from 

veteran service organizations all across the country. 

I did an on-line chat yesterday with DAV and that was one of 

the big questions obviously is where are we with the tremendous 

backlog that is out there. 

Mr. GOULD. Thank you for that opportunity to address the backlog. 

We are focused on it. It is a key area of endeavor for all of VA 

and specifically VBA. We are committed to make sure that our veterans receive the benefits that they have earned. We know that is 

our number one job. We are committed to make that happen. 

Mr. Chairman, as you mentioned, you know that we are swimming upstream on this. We have got a 50 percent growth in the 

number of claims since 2008. Think of that. Any business you have 

ever been in, 50 percent growth during that period of time. 

And as a consequence, the backlog which we define as any claim 

longer than 125 days has grown from about 180,000 to 576,000 in 

that three-year period. At the same time, also the complexity of the 

claims, the number of components in a claim has grown by 330 percent. 

We also recognize that that increased wave is the product of our 

own decision-making. Think about this, and I want to make sure 

that every Member of the Committee really appreciates what has 

happened here. 

There were some courageous decisions made to increase access. 

Agent Orange, PTSD, these were along with Gulf War Syndrome 

examples where VA knew that the consequence would be that we 

are going to grow the wave and it might have been in VA’s bureaucratic interest to say, no, no, no, let’s not approve, let’s not create 

that new access. 

Instead what we did is we made the right decision. The consequence of that Agent Orange, Gulf War, and PTSD was that 

more people have access to our system and the consequence of that 

is a bigger backlog. 

That story is laid out in pretty hard data. In 2009, we processed 

977,000 claims. We got a million. 2010, we processed a million. For 

the first time in the organization’s history, we get 1.2. In 2011, we 

processed a million claims again. We received 1.3 million claims. 

Sir, I am pleased to announce that this year, we will also hit a million claims. 

The consequence of that receipt outpacing our ability to produce 

places us at the beginning of a three-year run to end the backlog. 

And let me describe, if I might take a minute, how we are going 

to do that. 

At a very high level, our strategy to make this happen is we acknowledge the approximately 700,000 claims that we have in inventory and we project that we will receive another four million. 

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Our job in the next three years is to process 4.7 million claims. 

How are we going to do it? There are three elements to our strategy and approach to make that happen. 

One begins with our people. Any great organization has got to 

train, prepare. We are training our people in a new way, more effective training, more of it, designed around a new process. We borrowed from the Internal Revenue Service the segmented lanes 

model. We are segmenting our lanes so all of our receipts are now 

in three key areas and we are applying new technology. 

Let’s face it. VBA is the land that technology passed by for the 

last two decades. For whatever reason, there was not adequate investment there and there was not adequate leadership to make 

that happen. But today we have a plan. It is in place and we are 

executing it. 

And why am I confident that we can do it? For a couple of reasons. One is that the technology that we rely on in part is fielded 

in four pilot sites now and is going through user acceptance testing. 

We will know, this Committee will know. I look forward to come 

in reporting on our progress on the technology. 

We also have done the new training. It is at 18 locations now and 

last week, we are rolling it out across the country. The training 

works. Our training has improved quality by four points in the last 

year. And, finally, the new process elements working as well. 

Think for a minute of the success story I just mentioned a moment ago on GI Bill, Post-9/11 GI Bill payments. We have got 

800,000 people on that program now. When we started this journey 

three years ago, there was not a program for the new GI Bill. 

There was no technology to support it and there was not a process 

in place. 

The same team that designed and implemented that system, albeit smaller scaled than the claims that we are tackling, is the 

team that is doing this now. So I am reasonably confident, daunted 

but confident that we can do this and we will do it by processing 

4.7 million claims over the next three years with better people, 

process, and technology. 

The CHAIRMAN. Thank you. 

Ms. Brown. 

Ms. BROWN. I will yield to Mr. Michaud. 

The CHAIRMAN. Mr. Michaud. 

Mr. MICHAUD. Thank you very much, Mr. Chair and Ms. Ranking Member, for having this very important hearing. 

I also would like to thank our panelists as well and I want to 

thank you, Mr. Gould, and the VA employees for all the great work 

that you do providing services for our veterans. 

And I know the secretary has made a lot of improvements over 

the last few years, but we still have a long ways to go to make sure 

that we can provide the adequate services that our veterans have 

earned and deserve. 

I have got a couple questions. My first one is at the end of August, it came to my attention that the VA was moving forward with 

regulations to implement a fix to the state veterans home reimbursement rate issue. This has been an ongoing problem for the 

Committee. 

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We finally were able to pass legislation, the Senate. It went to 

the President. He signed it. And the VA started moving forward 

with these regulations without first consulting with the state veterans home and this clearly was not the intent of Congress. 

Secretary Shinseki received a letter from myself as well as the 

chair and Ranking Members of both the House Committee on Veterans’ Affairs as well as the Senate Committee, a joint letter from 

the four corners, stating the law and it is very clear. The secretary 

should consult with the homes and that is a big issue for me is the 

fact that that has not occurred. 

So my question is, can you assure me that the VA will in good 

faith meet with and negotiate with the state homes to develop an 

equitable provider agreement, number one? 

And the second issue is, when the VA meets with the state veterans home, to have someone in there that actually can make the 

decisions in that regard so they can hear firsthand some of the 

problems. 

This has been an ongoing issue since we originally passed the 

law back in 2006 and I do not want to get in the situation again 

where rules are implemented that will cause problems for our veterans’ homes throughout the country. 

Mr. GOULD. Mr. Michaud, I am glad you raise it. Very simply, 

I think that we at VA have an obligation to do two things under 

the Federal acquisition regulations. You know and I am sure we 

will hear more about areas where we need to do better in that 

score. 

But I think we have got two principal obligations, an obligation 

to transparency and an obligation to value. I cannot promise that 

we will not be very tough negotiators at the table looking to safeguard the expenditure of public funds, but I can assure you as in 

our discussion represented that the law was clear on that need to 

have a consultive process. And we will certainly commit to do that. 

And I look forward to that discussion. 

Mr. MICHAUD. Well, I hope you do because the law is very clear 

and that was a big concern not only of mine but the four corners 

of both the House and the Senate that the process was moving forward without that interaction which was required under the law. 

So I appreciate that. 

My second issue, and it is a frustration I know that both sides 

of the aisle have on this Committee and I know staff, republican 

staff and democratic staff has as well, is a lot of times when we 

ask for information from the VA, we do not get it. And it is not 

in the form that we asked the information and that is really frustrating. 

It is not because, I know myself anyway, but I am not sure about 

other Members, but it is not that we are going to try to get you 

by asking that information. It is because we have a reason for asking it. 

A good example is back in June when we were discussing the 

claims backlog within VBA, the concern in the inspector general’s 

report was that VA employees were rushing through the process to 

get a claim done, therefore the accuracy rate has not been anywhere near where it should be. 

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So taking that consideration with the employees feeling they 

have to rush through, my question to General Hickey at the time 

was, is there any benefit for an employee as far as how do you rate 

the employee as far as doing a good job or a bad job and how do 

you determine that. 

At that time, she stated that they do have a metric system, I 

cannot remember, that is a 93 or 98, you know, question metrics 

that they go through on how they evaluate the employee for accuracy, for timeliness getting claims done. 

So my question was, well, can the Committee see that metrics. 

Since that is how they are evaluating employees, it should be 

there, should be in place. We have not seen that 93 or 98 metric 

system that we asked for back in June. Instead we received some, 

you know—well, we received information that was not a 98 metric 

system. 

So I guess my concern is not getting the information that we 

asked for from the VA so we can do a better job in evaluating how 

the VA is doing. 

Mr. GOULD. And, Mr. Michaud, first of all, as Congressman 

Brown said, you know, one team, one mission here. Our number 

one job is to take care of our veterans. 

One of the roles that this oversight Committee plays is in bringing issues of poor performance to our attention and getting it done. 

I put your request in that category, informed by the notion that 

how you manage and rate your people and measure their performance is a critical part of improving our ability to process claims. 

I can say that this Committee has not been remiss in the level 

and vigor of its oversight. In the last three years, we have had 214 

hearings. We have had 1,400 a week came up and said, look, we 

have got an issue, we want to explain what is going on here. We 

have had 4,400 official requests for the record and 54,000 constituent requests. 

By any stretch, that is a great deal of work for a dedicated team 

of some 40 individuals who work at VA. I can only offer that we 

are challenged to get the volume of requests and the quality that 

you demand, that this Committee demands, to apologize for it and 

know that it has not fallen off the table. We will get that information here. 

And I personally know that the performance evaluation system, 

the performance metrics by which our employees are measured in 

VBA is changing. Labor and management have worked together to 

develop a new set of standards to willingly hold each other to a 

higher standard and to evaluate performance based on group productivity. 

So we look forward to share that information with you and I will 

go back to our team and renew with questions to get that information to you. 

Mr. MICHAUD. Well, thank you very much. 

And I just want to reiterate she said they had it, so it was not 

that they had to create anything new and just a matter of giving 

us what we asked for, not something that we did not ask for. 

Mr. GOULD. Yes, sir. 

Mr. MICHAUD. Thank you. 

Thank you, Mr. Chairman. 

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Mr. ROE. [Presiding] I thank the gentleman for yielding. 

Just a couple of short questions. One, 54,000 constituent requests 

sounds like a lot. And you have what, 300,000 employees in the VA 

system? I get a thousand requests every 90 days in my congressional office for services. And we had 2,000 the first six months of 

this year and we have got seven people doing that. 

So we do ten percent of what the VA does and that is in three 

years. We do 4,000 requests a year as every congressman and 

woman up here do, I think. Probably everybody has about that request. So that is not an overwhelming—it sounds like a lot, but we 

also see the same thing. 

Secondly, I want to start by thanking the VA. This Monday in 

a driving rainstorm in Sevierville, Tennessee, we opened a CBOC. 

Three hundred people showed up in the driving rain. That is the 

support that you get for veterans around the country. 

And I think that is one of the best programs that the VA has is 

to take its care to the people, not have them drive great distances 

to get this care. And I think it means a lot to the veterans. I think 

the quality of their care goes up because they will access it more. 

So we had a local mayor, county mayor who made available 

space for a dollar a year for the VA to lease, an extremely generous 

offer even the VA could not turn down. So I want to just put that 

plug in because that is a very positive thing. 

Mr. Walz and I yesterday co-chaired the Invisible Wounds Caucus together and we had a hearing yesterday. And one of the things 

that is counterintuitive is that the more people the VA has hired, 

the suicide rate has gone exactly the opposite direction we want it 

to. So hiring more people had not solved the problem. 

And we heard various solutions yesterday and I want to ask 

some questions. VA working with non-VA assets, for instance, not 

alone, other programs like that around the country because what 

we hear and what we heard yesterday was vet on vet is more effective. If you call up and talk to one—one veteran gets to speak to 

another veteran, that this is extremely effective. 

So are you all working with others outside the VA system? 

Mr. GOULD. We certainly are. And as a physician, as a doctor, 

I know you know the challenges that we are facing. 

I think the most interesting piece of data that we have is that 

since 2005, the veterans who are under our care, that suicide rate 

has actually gone down. So our approach is working when veterans 

get in care. 

At the same time in the last ten years in our country, how many 

people died of suicide, 350,000, the equivalent of the population of 

New Orleans, took their own lives. We have a national crisis afoot 

and it is no surprise that the military from which we draw those 

recruits is also challenged given the unique stress and strains that 

we have placed on them. 

We assert that our care is effective. We are hiring more to create 

more access and as we had recently with our suicide prevention 

line increased by 50 percent the number of people who were there 

to answer that critical call. 

Mr. ROE. Here’s what Dr. Rudd yesterday told us and we have 

heard this testimony before is that you clearly have the group, you 

just get a group of the population, there is an incidence, a backVACREP180 with DISTILLER

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ground incidence of suicide in that group. But then there are two 

other groups. There are groups of the number of deployments and 

multiple deployments. The rate skyrockets. 

Mr. GOULD. Yes. 

Mr. ROE. So that is where we need to look at a program and we 

know out here, we need to do better screening and getting mental 

health screening and getting people in the military. 

But once you have seen two and three and four deployments, 

that goes up. We know that number. And so that is where I think 

obviously with DoD and VA, that is sort of out of your purview, but 

we need to create programs with both of those to identify those 

folks and be proactive in that. I think that is very important. 

Secondly, I want to know is that in the backlog, the claim and 

backlogs of claims, when will a veteran like myself be able to go 

on-line, let’s say I have a claim, and can go on-line and look where 

my claim is, can find it, look at it, because I have been told ever 

since I have been here now for three years that was going to happen? When is that going to happen? 

Mr. GOULD. You have been to the Web site and seen eBenefits? 

Mr. ROE. No, I have not. I just want to know if I am a veteran 

and I have got a claim out there in claims land, wherever it may 

be, and I do not know where it is and when it is ever going to— 

and I have not heard from anybody in six months, when can I type 

in my information and find out why it is taking so long because we 

were told that was going to occur? 

Mr. GOULD. And correctly. It is in the eBenefits functional suite. 

Today there are 46 different things that you can do on the 

eBenefits Web site. And today I am happy to announce 1.9 million 

people have visited that site. So it is a web-based tool to be able 

to get information from VA including the status of claims. 

Mr. ROE. The question I am asking is, that is all good and fine 

and dandy, but the question I am asking is, am I going to hear 

something in 30 days because I have got a house payment to make 

or am I going to hear something in six months? When am I going 

to get some resolution for me? 

Mr. GOULD. Well, I will answer that on a couple of levels. I mentioned earlier that we have processed now at the end of this year 

almost four million claims. So there are four million people that 

have that answer. 

If your answer is prospectively when can I use the web to get 

that information in the future, that is part of our roll-out. 

Mr. ROE. That is the question I am asking. My questions have 

not been answered yet. My question is, when a veteran in my district or any of these districts that we represent goes on-line with 

this backlog, where am I in this process? Am I going to hear something in two months or three months or when am I going to hear 

something? 

Mr. GOULD. So a couple ways you can get that information. Call 

your VSO and they will enter the system or call a service provider. 

Mr. ROE. But what we were told was the veteran would be able 

to electronically go to their iPad or their computer and—— 

Mr. GOULD. Yes. 

Mr. ROE. —be able to find out the status of their claim. 

Mr. GOULD. Yes. 

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Mr. ROE. I mean, I know it is a tough situation. But is there in 

the foreseeable future, is that going to happen? 

Mr. GOULD. Yes. As I mentioned a moment ago, it is part of our 

transformation plan, the technology component, and the very system is already deployed called eBenefits. That will be the place 

that your member can go to find the status of their claim. 

And today 1.9 million people already do that, get information 

from the VA on the web. They can do it today. It is a deployed system. And we continue to add to it on natural basis every 60 to 90 

days new functionality. So we are eagerly anticipating growth in 

the use of that capability. 

We also have a new phone system in place, a veterans’ relationship management, and, of course, we have new people who are 

trained to take a phone call and answer that question by phone. 

A little bit more conventional, but, again, your member, your constituent can get that information through a variety of ways. 

You are specifically asking about eBenefits. I am here to tell you 

that capability is out there. There are 109 million people using it 

today. 

Mr. ROE. Okay. I am going to have to check that out. 

Mr. GOULD. Great. 

Mr. ROE. I yield now to Mr. McNerney. 

Mr. MCNERNEY. Thank you, Mr. Chairman. 

Mr. Gould, Secretary Gould, I was very impressed with the list 

of accomplishments that you gave at the beginning of your testimony. 

And when we are back in our districts, we do not hear that. 

What we hear are the complaints. And so that is what we bring 

forward. 

So I appreciate you making that list and I encourage you to 

make sure that that is known throughout the community because 

you have accomplished quite a bit. 

Mr. GOULD. Thank you. 

Mr. MCNERNEY. One of the things that I think is frustrating as 

a Committee Member, and I have heard this already this morning, 

is the quality of answers that we receive in Committee when we 

ask questions and when we submit questions to the Administration. 

It is often felt that we are not getting the question answered the 

way we wanted. The information is misleading or cloudy. So I 

would encourage you to work within the VA to try and get a culture where when we ask a question that the answer is straightforward and answers the intent of the question. And that might 

help with some of the tension that does exist between the Committee and the VA. 

Another area of frustration is the claims processing. I have the 

Oakland regional district. A regional office serves my district. And, 

as you know, there is problems. There has been problems in the 

past. I know that you are making a big effort to solve those problems. 

And one of the questions I have for you is, do you feel that there 

is sufficient oversight within the VA now moving forward because 

we are going to get through this one way or another? There may 

be some pain in between, but are we going to have to face this 

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15 

again in five years? Are regional offices going to fall behind again 

or is there a system in place to make sure that we do not get to 

this place again in the near future, five years or ten years from 

now? 

Mr. GOULD. Well, sir, thank you for the recognition of the accomplishments that VA has achieved over the last several years. We 

do not get to say it enough and we often have hearings around 

issues that feel like we are just looking at the missed blocks, the 

missed assignment, the dropped pass as opposed to the number of 

times that we put points on the board. 

And when I talk about that, I talk about the 800,000 additional 

people who are in school, the 20,000 people who are in a home 

today that would have been foreclosed if not but for our intervention, the half a million people receiving claims that is equivalent 

to the entire standing active-duty army today, and the increased 

access, that 800,000 veterans by being a part of this wonderful 

health care system. 

You know, I do not know how many of you saw the recent data 

from one of the top American medical commissions. We have 19 of 

the top hospitals in the country. There are 6,000 hospitals in America. We only have 152 and 19 of them are in the top hospitals in 

America. That is really amazing. 

To your point about clarifying and getting better at providing information to this Committee, sir, I will take that back and we will 

redouble our efforts to do that. 

One of the challenges is when we are asked for data, we deliver 

it with a forklift. It literally takes dozens of people to be able to 

go through. And, you know, we have got one instance where we are 

going through emails. There is a half million of them. You know, 

what do you do with a request like that? It is challenging. 

And, finally, our commitment to fixing this problem once and for 

all on claims processing, you are right, we want to build a system 

that is robust, that has got a strong management infrastructure, 

and that will be able to solve this problem and keep it solved. 

We are doing that. As I have articulated earlier, our plan has the 

three components, people, process, and technology. We are confident that we can do that because this team that is doing it is the 

one who successfully fielded the new GI Bill which has got over 

800,000 people in school today and has paid over $21 billion worth 

of tuition. Pretty significant accomplishments and we are confident 

that we are building the right kind of management infrastructure 

to make that possible in the future. 

Mr. MCNERNEY. Well, in the Oakland regional office, all the 

claims are being brokered at this point in order for them to catch 

up, but the brokered claims are not being—they are not being followed. There is not the oversight through the Star Program of the 

brokered claims. 

Wouldn’t that be important to know whether our brokered claims 

are being processed accurately or not? 

Mr. GOULD. Yes, sir, it would. And it is one of the reasons why 

the technology component of our transformation plan is so important. 

Imagine a world now where you want to broker a claim. And 

what this term means is very simple, is go find the labor that is 

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available and match the available labor in the queue to that claim 

so you can get it done more efficiently and what happens? Our veterans wait less time. So that is our objective. 

Today we do it by UPS and FedEx. Today we run the risk of having those folders lost. We have got to docket them in on a manual 

basis from, to, and so forth. With the VBMS System, we will be 

able to broker that electronically and with it an audit trail that 

gets generated so we know exactly where those claims are going, 

who they were assigned to, what the status of that is. 

Mr. MCNERNEY. And what is our timeline for that implementation? 

Mr. GOULD. We are in user acceptance testing now. We will have 

version 3.0 of that IT system by the end of this month, version 3.1 

by the end of October. It is delivering the functionality now and, 

of course, as the system matures, it gets better, it improves, we will 

be able to embrace more and more functionality over time. 

But it is out there. We are testing it now. This is not a hypothetical or theoretical statement. We are doing the work now in 

four locations. 

Mr. MCNERNEY. Thank you, Mr. Chairman. 

The CHAIRMAN. [Presiding] Mr. Johnson. 

Mr. JOHNSON. Thank you, Mr. Chairman. 

Deputy Secretary Gould, veterans are reporting delays in care 

and products like heart stents and prosthetics. 

Do you have any insight into why this might be true? 

Mr. GOULD. And the particular things were heart stents—— 

Mr. JOHNSON. Heart stents and prosthetics. 

Mr. GOULD. Mr. Johnson, I do not. I can tell you what we are 

doing to improve the quality of our acquisition system and logistics 

supply chain, but I’m not aware—— 

Mr. JOHNSON. Well, I have a memo that you signed, Mr. Secretary, on August 1st that explains VA’s inability to meet certain 

acquisition goals. And to that end, you have seemingly prohibited 

the use of VA’s national standardized contracts until the next fiscal 

year. 

This move has negatively impacted the care and services to veterans and requires that VA provide reasons why this is still occurring. 

Mr. GOULD. I disagree that that has. And the memo to which you 

are referring, I assume, I have not seen it, has to do with small 

business. 

Every single individual on this panel knows that one of our 

goals, our socioeconomic goals is to open up that $17 billion supply 

chain at VA and get small business in the middle of it. And we are 

firmly committed to seeing $34 of every $100 spent to our small 

businesses. It means in your districts. It means the business owners that some of you have been in your lives depending on that opportunity. We are committed to opening it up. 

Mr. JOHNSON. Well—— 

Mr. GOULD. So that letter—— 

Mr. JOHNSON. —the goals are not being met. Why would 

VA’s—— 

Mr. GOULD. Sorry, sir. 

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Mr. JOHNSON. —prosthetics and sensory aid service need a waiver for national contracts already vetted by the Small Business Administration, VA’s Office of Small and Disadvantaged Business Utilization, and VA Form 2268? Isn’t that a violation of VA’s contracts 

with these vendors? 

Mr. GOULD. No, it is not. Here is the goal that the secretary set for us a year ago. It is a simple one. It says $34 of every $100 in 

this massive VA system should be spent on small business. It 

should be done competitively. It should be done with an eye to 

value. One out of every three dollars. Over the year—— 

Mr. JOHNSON. Let me ask you a question then. How many con- tracts over $3,000—— 

Mr. GOULD. May I complete my answer? 

Mr. JOHNSON. How many contracts over—— 

Mr. GOULD. Mr. Johnson, may I complete my answer? 

Mr. JOHNSON. I have got your answer. 

Mr. GOULD. No. Actually, you do not have it. 

Mr. Chairman, may I complete the answer? 

Mr. JOHNSON. No. I have got five minutes—— 

Mr. GOULD. Sir—— 

Mr. JOHNSON. —to ask questions, Mr. Gould. 

Mr. GOULD. But, sir, I would like to answer the question and—— 

Mr. JOHNSON. No. We will get back to you if we have a chance 

for you to finish that up. 

Mr. GOULD. And at the end of the day—— 

Mr. JOHNSON. I have got another question for you. 

Mr. GOULD. —our goal is to—— 

Mr. JOHNSON. How many contracts over $3,000—Mr. Gould, I am 

asking the questions. Okay? I am asking the questions. I have limited time. I do not have time for you to sit here and debate this. 

Mr. GOULD. I am sorry. I thought you wanted a response. 

Mr. JOHNSON. Okay. Well, I got my response. 

Mr. GOULD. All right. 

Mr. JOHNSON. How many contracts over $3,000 were approved 

versus those same contract values that were actually executed? 

Mr. GOULD. We can provide that information for you in detail. 

Mr. JOHNSON. Okay. I would appreciate it if you do that. Of those total purchases over $3,000, how many went to small 

businesses and how many waivers were issued? 

Mr. GOULD. I would be happy to provide that information for the 

record. 

Mr. JOHNSON. Okay. So you do not know a whole lot about this 

program, Mr. Gould. You came here, you know, to answer these 

questions and you have got to go back and look them up. 

But I appreciate that. I thank you for that. 

I think our veterans deserve better, but you and I differ on that. 

Mr. GOULD. So do our small business owners. 

Mr. JOHNSON. Why did—— 

Mr. GOULD. They deserve an opportunity to participate—— 

Mr. JOHNSON. Why did the VA fulfill, Mr. Gould, why did the VA 

fulfill—— 

Mr. GOULD. —which they have not had adequately at VA. 

Mr. JOHNSON. Mr. Gould, I am asking the questions. Okay? 

Mr. GOULD. Go ahead. 

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Mr. JOHNSON. Why did the VA only fulfill three percent of its August 2012 single patient one to five day order contracts that cost 

between $3,000 and $24,999? You got any idea? 

Mr. GOULD. Perhaps, Mr. Johnson, you do. 

Mr. JOHNSON. No. I am asking the questions. You are supposed 

to have the answers. This is a program that you say is working so 

well. Why did VA only fulfill three percent of its August 2012 single patient one to five day order contracts that cost between $3,000 

and $24,999? 

Mr. GOULD. Mr. Johnson, our goal is to make small businesses—— 

Mr. JOHNSON. Do you have an answer? How many? 

Mr. GOULD. —have an opportunity—— 

Mr. JOHNSON. That is a number. 

Mr. GOULD. —to particulate. 

Mr. JOHNSON. How many? I am not worried about what your 

goal is. I know what your goal is. 

Mr. GOULD. We do—— 

Mr. JOHNSON. How many? 

Mr. GOULD. —$17 billion worth of transactions a year. 

Mr. JOHNSON. How many did you fulfill? 

Mr. GOULD. You would like to know specifically—— 

Mr. JOHNSON. Yeah. I want to know how—— 

Mr. GOULD. —how many transactions under $3,000 were—— 

Mr. JOHNSON. How many—— 

Mr. GOULD. —performed less than five—— 

Mr. JOHNSON. Why did the VA only fulfill three percent of its August 2012 single patient one to five day order contracts that cost 

$3,000—between $3,000 and $24,999? 

Now, I can only assume, Mr. Chairman, that he does not know. 

And with that, I yield back the balance of my time. 

The CHAIRMAN. And, Mr. Secretary, if you will take it just for the 

record. 

Mr. GOULD. We would be glad to. 

The CHAIRMAN. And we will move to Mr. Walz. 

Mr. Walz. 

Mr. WALZ. I will yield my time to the deputy secretary if he 

wanted to finish where he was at before. 

Mr. GOULD. Thank you so much, Mr. Walz. 

This is a commitment we have to open up a business opportunity 

at VA. It starts with a simple idea and a standard that small businesses and small businessmen and women across America have a 

challenge knocking down the door and doing business with the VA. 

So Secretary Shinseki established a goal early in the year, $34 

out of every $100. We saw over the course of the year slight underperformance. We were 33.6 percent last year, $5.9 billion. We 

wanted to be that good or better this year following a continuous 

improvement approach. 

And we issued memos and took action to make sure that our 

folks in the field knew and appreciated how much we were committed to achieving that goal. 

Thank you. 

Mr. WALZ. Yeah, I appreciate it. 

VACREP180 with DISTILLER

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And I would like to just follow-up on one thing. Dr. Roe, as he 

said, he initiated the Invisible Wounds Caucus and trying to bring 

all of us that we are all on the same team attitude. And it was very 

enlightening to me. 

And there was the clinician’s perspective with Dr. Rudd who has 

testified here before and has extensive knowledge, I thought 

brought up a really interesting point. And I say this more as a 

statement to all of us as a question. 

Talking about how we talk about the suicides and things as this 

incredibly complex issue that cannot be solved. He said, in fact, it 

is not all that complex from a clinical perspective at all. The issue 

is cultural. The issue is access to the care, of asking for it and getting it. 

Once you get someone in front of a clinician or in front of someone who is there, we have very high success rates in elimination 

of that. So I think all of us need to go back and take a look at this. 

Mr. Deputy Secretary, I thought you brought up a very good 

point on this. We need to keep in mind that mental health parity, 

the Wellstone-Domenici Bill that was passed five years ago, HHS 

has yet to implement the rules on that. 

We are not implementing that on the civilian sector side and if 

we really want to get at the heart of this, the complexity lies in 

the bureaucracy and the culture of the delivery to the warriors as 

much as it is in those clinicians being there. 

So somehow we need to help to figure this out. And I think it 

is a fair point to be said we may add as many clinicians as you can 

possibly hire and we might not get to where we are going because 

of that part. And that troubles me in terms of caring for the warriors, but it troubles me in the money that we are going to spend. 

Are we attacking it from the right way? And I do not necessarily 

expect you to—it is more of a comment, Mr. Deputy Secretary, but 

if you have any insights on to that, I—because all of our goal is 

very clearly here reduce the number of suicides and provide opportunities for our veterans. Whatever it takes to get there, I am on 

board. 

And so this one really troubles me that I am not sure the facts 

support the way we are heading. So—— 

Mr. GOULD. Mr. Walz, thank you. 

We all are seized by the notion that one single person that commits suicide is too many both in the military and among our veteran community and the civilian community as a whole. 

Secretary Shinseki and Secretary Gates held the first ever integrated mental health conference. Suicide was a component of that. 

We are working hard together, closer than we ever have before. 

What we have to get into the fight in my view is the highest 

quality mental health system, integrated mental health system in 

America with over 20,000 folks turning up every day, great people 

who want to figure this out. 

We do understand that we do not have all the answers to your 

point. We have got to embrace research and development in this 

area. We have committed funds to that. We have got to be open to 

new ideas and we have got to make sure that we are working with 

our private sector providers to be able to augment our own care 

and capability. 

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Mr. WALZ. I think that is a great point. I think part of our responsibility is, we got folks, our veteran service organizations are 

deeply concerned that the core mission of the VA is maintained. 

And so when we start talking about this, it gets to be a little bit 

of scary territory for all of us as we are starting to talk about 

reaching out in new ways. 

But I do not see that traditionally the way we are going that we 

are going to get to where we want to go without that. And I think 

this is a place where we lead the civilian sector. This is a place in 

many cases where we go forward and start to show them how to 

deal with this. 

And I would just leave again with one comment. Thank you for 

all you are doing. I think I have said it time and time again. You 

just said it, Mr. Secretary. This is a zero sum proposition to our 

veterans, very, very difficult. We are not talking Six Sigma here. 

We are talking infinity on it because we cannot have one mistake. 

And that is just the nature of it. 

And I thank all of you who do this. And I have said it time and 

again, I will be your staunchest advocate, but your harshest critic 

when the time is due. 

The one thing I would just say from my perspective on this, and 

I think you have heard it echoed, anything you can do to try and 

provide the information in a more timely manner is helpful to us. 

If there is anything in Congress, this Committee takes its oversight responsibility very seriously and we also, I think, guard that 

legislative pejorative away from the Executive Branch. That separation of power is very important to the Members that are here. 

And I think that intentions get misconstrued when the information is not here regardless of what turns out in that information. 

Just a thought because I know it is helpful to me when I get it. 

And I know that the people are working very hard over there, but 

anything you can do to help with that would be helpful to us. 

Mr. GOULD. Thank you, sir. I will do that. I appreciate that sentiment. 

I just want to comment personally that every day I come to this 

job, it is an honor and a privilege. I feel grateful for being in this 

role and grateful for 320,000 employees at VA who respond to those 

requests for information and are working hard to get it here. We 

have got to do better. We will. At the end of the day, it is our veterans that matter. That is why we are here. 

Mr. WALZ. Thank you. 

The CHAIRMAN. Dr. Benishek. 

Mr. BENISHEK. Thank you, Mr. Chairman. 

I am just a little bit concerned about this mental health problem 

and I just want to delve into it a little bit more. I do not quite understand some of the numbers. You mentioned that there was 

13,000 people in the mental health staff and now there is 20,000. 

But in looking through the numbers, it seems to me that the VA 

had decided to hire 1,900 new personnel for mental health above 

the 1,500 that there are already vacant staffing positions and that 

according to this IG report that there was 890 new mental health 

hires and there is still an estimated 3,800 existing mental health 

vacancies within the VA. 

VACREP180 with DISTILLER

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So what is the plan? I mean, is there an overall plan of hiring 

and, you know, is there a plan for, you know, finding places for 

these people to be at? 

And I wish you would just give me a quick overview of what the 

plan is because it seems to me that you have not achieved any of 

these goals. And, you know, you talk about all these goals, but not 

achieving them does not seem good. What’s the plan? 

Mr. GOULD. Thank you for that question. 

I am really pleased to be able to say that since that IG report 

came out, I do not dispute the facts, you know, that VA concurred 

in the recommendations and analysis. Based on that, our internal 

review and analysis supplemented by the IG’s analysis, we went 

out and put a plan in place. 

We are proceeding on plan to be able to hire those individuals. 

Mr. BENISHEK. All right. Okay. 

Mr. GOULD. And we also included the vacancies to which you are 

referring. 

Mr. BENISHEK. Could you please forward the plan to the Committee so we can take a look at it? 

Mr. GOULD. Sir, we would be happy to do that. 

Mr. BENISHEK. All right. I also have some other information here 

that recently there was a VA follow-up study of the national cohort 

of Gulf War and Gulf War era veterans that was done and apparently did not have a mental health professional on the survey 

team. And, you know, some people who are identified to have mental health problems, you know, they were not followed up upon. 

So I would like you to, and I am sure you do not know the answer to that today, but could you please provide us with that—— 

Mr. GOULD. Certainly. 

Mr. BENISHEK. —answer as well to the Committee? Do you have 

a time estimate to determine when you think you are going to have 

all these hires done? 

Mr. GOULD. Yes. As you have seen, the President’s Executive 

Order has come out, tasked us with additional hiring. We are on 

track to have these individuals hired by the end of the year. And 

so as we—— 

Mr. BENISHEK. There is 3,800 existing mental health vacancies 

that will be filled by the end of the year? 

Mr. GOULD. The 1,900 to which the Chairman referred, 1,600 

mental health and 300 support staff, those 1,900 will be hired by 

the end of the year. We are confident of that. We are on track. 

As I mentioned earlier, 75 people being hired per week. We think 

that that will happen. We are committed to that. We will report to 

this Committee on that issue. We are confident that we will meet 

that requirement. 

Mr. BENISHEK. So you think this number is adequate then because I understand that you have to evaluate a veteran within 14 

days? 

Mr. GOULD. As I said earlier, this is a demand driven system. So 

we have evaluated that demand has grown and we are adding additional people into the fight. 

Do I know if more people will show up and we will need more? 

We may. And we are prepared to make that investment and required. 

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What matters here most is making sure that our veterans get 

the mental health care that they need. 

Mr. BENISHEK. All right. What is the main obstacle to reducing 

veterans’ homelessness? 

Mr. GOULD. That is a great question. It is certainly true that the 

causes of veterans’ homelessness are many and intertwined. I 

would say that the biggest causes are substance abuse and a loss 

of a job. There are many, many other factors. 

Our homeless team has deployed in such a way that we are successfully reducing the amount of veteran homelessness in the country. Twelve points last year on the HUD point in time count clearly 

shows that we are heading in the right direction and we are deploying the enormous resources that we have to do two things. 

One is rescue people who are homeless now. That is terribly important. We see individuals on the street every day. We know. Our 

hearts go out to them. We want to rescue. But our role is to also 

prevent. 

And our system is such that when someone is on the edge, we 

have the ability with respect to health care, mental health, economic support, training and education, voc rehab to pull that person back from the brink. 

And that idea of preventing homelessness is foremost in our 

mind. We are going to continue to need to do it after we eliminate 

veterans’ homelessness in 2015. 

Mr. BENISHEK. Mr. Gould, I look forward to your future responses. Thank you. 

Mr. GOULD. Thank you very much. 

The CHAIRMAN. If I could ask one question because I am confused on the number of mental health providers. The number that 

the President referred to was 1,900 additional and you said, I 

think, 1,600 were clinicians, support 400 or whatever the number. 

Is that in addition to the 1,500 that were already vacant at the 

time because I was led to believe through testimony, and I am trying to find it now, that the answer was yes which would mean that 

we had a deficit at that point of 3,500 or whatever the number? So 

which is it? Is it 3,500 or less than that? 

Mr. GOULD. No, Mr. Chairman, your understanding is correct. It 

is two things happening at one time. There are vacancies in the 

system and this turn in the system, in fact, people transferring 

from one place to another. 

We obviously would not want to count that as a new hire. That 

is somebody moving from, you know, Massachusetts to Florida. All 

right? So it would be inappropriate for us to kind of double count 

those. 

And we have the specific positions that we published, listed, and 

are tracking on a spreadsheet. That is the 1,900, 300 administrative support, 1,600 mental health professionals. 

We want the time of those mental health professionals to be leveraged. They should not be doing the scheduling and admin support. So those two together comprise the 1,900. 

We are tracking the 1,900. We are going to fill those on time, on 

budget consistent with our commitment here, and we are also looking to hire and fill these additional positions. 

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Mr. Chairman, the net effect of that will be many more mental 

health professionals hired than just the 1,600 that I mentioned. 

But for tracking purposes, we want to keep those separate. 

The CHAIRMAN. So you are tracking the hires but not the vacancies or at least the numbers you are providing now are the hires? 

Mr. GOULD. We are tracking both and, sir, we thought your interest was focused on the 1,900. 

The CHAIRMAN. It is, but—— 

Mr. GOULD. So we are able to report on that. If you want us to 

report on the other—— 

The CHAIRMAN. Can you tell me? 

Mr. GOULD. —we can do that. 

The CHAIRMAN. Do you know what the vacancies are? I have a 

number here and it is a little staggering, but can you give me what 

your number is, see if it—— 

Mr. GOULD. Sir, I would be glad to provide you—— 

The CHAIRMAN. Here is the number that I have and let’s see if 

it matches, but 3,833 existing and new mental health vacancies. 

And, again, that is a number that I have. 

Can you help me quantify that number? And you do not have to 

do it now because Ms. Brown has some questions. But if you would 

take that for the record. 

Mr. GOULD. We will be glad to do that. 

The CHAIRMAN. We do have an idea because, I was concerned at 

one time there may be double counting, that you were counting 

new hires that were creating a vacancy. And, again, I do not know 

if that is occurring or not. 

But I think the important thing is that, if you are talking about 

75 persons a week, but if you have a natural attrition of, 20 a week 

or whatever that number is, we are sliding backwards again in our 

total number. So if you can just take that for the record. 

And let me go ahead and yield to Ms. Brown for her questions. 

Mr. GOULD. Sir, we will do that, provide the information. I think 

you will be happy to know the management team is focused on the 

combination of those two numbers, the 1,900 plus these vacancies 

together, a very big number, very aggressive. We will be pleased 

to provide that information to you. And as I said, we believe we are 

on track. 

The CHAIRMAN. All right. Thank you. 

Ms. BROWN. Mr. Gould, first of all, I want to thank you for your 

service and let you know that all the Members, if you have anything that you wanted to say, I want to give you an opportunity 

to say it before I ask my questions, when you were interrupted. 

Mr. GOULD. Ma’am, I so appreciate that. Again, I say, and I 

think, really, is coming out here at this hearing, an opportunity for 

a balanced presentation of our many accomplishments even as we 

acknowledge how much more work we need to do, just at a very 

high level how proud we are about the 800,000 new people who are 

in school. When you think about that, that is eight years of the student population of all the students at Florida State University, 

Ohio State University, Virginia Tech. It is an enormous number. It 

is $21 billion into the education industry. Pretty significant. 

Ms. BROWN. Sir, let me just tell you I want to thank you. 

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When we passed that program, I was so impressed. And then I 

was home and I was watching the television and the veterans was 

complaining about the program. I thought we were going to get all 

hugs and kisses, but we got that program up in operation and people are happy now. 

But initially we had not gotten our payment. We have not gotten 

our housing. But it was something that had to be worked out with 

the universities and the VA. 

And thank you so much for getting it done. 

Mr. GOULD. Yes, ma’am. Thank you. 

I think this is our next greatest generation. This package is like 

the World War II era and there is a million people in school, 

800,000 on GI Bill. They are going to be our future doctors and 

lawyers and engineers and accountants and they are going to make 

this country grow. 

Ms. BROWN. I have a letter. I went to California and I visited the 

units that we did jointly with California. It is four units, 100 per 

unit, 400 units of housing that is brand new, fabulous facility, and 

sitting there empty. And I have a real concern. I know that we 

built it. Sixty percent of our money. Taxpayers cannot figure out, 

well, this is not the Federal Government. This is the state. 

And in the letter that you sent me back or somebody sent me 

back saying, well, it is California. But if there is any way that we 

can work it out, if we need legislation, because basically 400 units 

should not be sitting a couple of years waiting for California to get 

money to operate it. It should be some way that we could partner 

with somebody to get—I mean, 400 brand new units and we are 

talking about the homeless. It does not make any sense to me. 

Mr. GOULD. Yes, ma’am. 

Ms. BROWN. And government should work for the people. It is all 

taxpayers’ dollars. 

Mr. GOULD. And just a pragmatic view about if you have got 400 

units of housing ready to go, let’s see how we can make that final, 

get that final yard. Often we find ourselves in a situation where 

we will have grant money and a state given the economic downturn 

will not be able to meet that. That is happening in several locations. 

There is also a program that this Committee knows well, the Enhanced Use Lease Program which we desperately want. You know 

that we lost that authority in the prior year. It created 4,000 beds 

for homeless. In the system, we would very much like the Committee to consider taking that up and working to make that happen. It was a wonderful tool and we have lost it. 

Ms. BROWN. Yes, sir. And the other question, one of the Members 

asked about being able to go on-line and get their information. As 

you develop a system, I know the safeguards we have to put in 

with the technology. I am not a technology person, but we have had 

some incidents where people have even gone into banking and stolen identities. 

So as we develop this complicated system, we have got to ensure 

that we protect our supporters, the people we are trying to get the 

information to. 

Mr. GOULD. Yes, ma’am. One of the key components of our IT architecture at VA is cyber security and being able to protect personVACREP180 with DISTILLER

25 

ally identified information. That system from various sources like 

all agencies in government is under attack. 

We now have visibility down to the desktop level and the device 

level to be able to prevent those kinds of intrusions. Our CIO, 

Roger Baker, is working hard on that and we are very committed 

to making sure that we protect our digital information. 

Ms. BROWN. And the last question pertaining to minority and 

women-owned businesses and you were talking a little bit about 

how you are going to make sure that minorities and female-owned 

businesses get included. In addition, when we put out that RFP, 

why don’t we make sure we include hiring of veterans? 

Mr. GOULD. Yes, ma’am. As I said earlier, we are trying to open 

up the number of people who can participate and that those dollars 

get right into the economy. They build small businesses where 50 

percent of the jobs are in America. Our secretary is committed to 

make that happen. 

The memo that I signed that Mr. Johnson mentioned was an effort to make sure we met our commitments. It does not prevent big 

business from doing business with VA. That is the other, you know, 

65 percent of the dollar flow, but it does make that concrete, measurable, and specific effort to welcome into our business opportunities small businesses, veteran-owned service-disabled. 

That is what we are about. We have just got to be able to do 

that. And that is why we have worked so hard in the final months 

of the fiscal year to make sure that we got every last step of the 

way. 

Ms. BROWN. Well, once again, thank you for your service and 

thank the VA for the job that they do. 

Mr. GOULD. Thank you, ma’am. 

The CHAIRMAN. Piggybacking on what Ms. Brown just asked, and 

you may have the answer, you may not, this is kind of outside a 

lot of what we are talking about today, but at Orlando, we know 

there are some delays with the construction of the hospital. But 

there are some buildings that are complete. 

When we did a field hearing down there a few weeks ago, questions were asked in regards to the ability to activate the domiciliary and the nursing home and the facilities that were ready to 

go. We were told that we would look at those. There was a way 

that it could be done. 

Do you have a status for the Committee and if you do not, if you 

could take that for the record too? 

Mr. GOULD. Mr. Chairman, I will take that for the record. I can 

tell you that we appreciate your leadership on this issue. 

One of our, you know, requirements is that we get value and we 

do it in a transparent way. We have worked hard with this vendor. 

We believe that we can still have that facility delivered by summer 

of 2013. Our third-party advisors tell us that that is possible. 

We just need to see hammers swinging and folks showing up to 

make this happen. It is incredibly important for our veterans in the 

Orlando area. We want to get it done. And I will be glad to provide 

additional information to you, Mr. Chairman, that can flush out 

where—— 

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The CHAIRMAN. I think this Committee would want to see any 

facility that is complete activated as quickly as possible. And I 

know that that would be a goal of yours too. 

I would ask in all respect for transparency that in regards to the 

timeline that you think that the facility can be completed, if you 

would share the information, how that was determined with the 

contractor that exists now. 

I have heard comments from them that they are not being afforded the ability to double check those numbers and see how they 

were made. I think everybody is trying to fix an existing situation 

and as long as communication lines remain open, I think that we 

are going to see a fabulous facility when it is finally completed. 

And, again, if you would do that as well. 

And with that, I would recognize Mr. Huelskamp. 

Mr. GOULD. Mr. Chairman—— 

The CHAIRMAN. Yes, sir. 

Mr. GOULD. —I will do that. And, sir, I would like to just qualify 

that. Since we have issued a cure notice, there are some set of legal 

restrictions that may impede my ability to share that with you immediately, but we will certainly do that and respect your request. 

The CHAIRMAN. Is that the original cure notice or an additional 

cure notice? 

Mr. GOULD. The original cure notice. 

The CHAIRMAN. Okay. That’s still hanging out there? 

Mr. GOULD. Well, once the cure notice is out, there are certain 

things that the vendor has a chance to do and/or produce. We have 

certain restrictions on what information we can share the other 

way. It gets a little bit of an arm’s length process. You can understand transparent focus—— 

The CHAIRMAN. But you do understand, and I thank you, but you 

are before this Committee making commitments that you feel like 

the facility can be finished by the summer of next year. 

Mr. GOULD. Yes. 

The CHAIRMAN. And, again, obviously the contractor is not here 

to be able to defend their position as well. We all want it to be finished as quickly as possible, but I think it is only fair that if you 

are going to make public statements regarding the completion of 

that project and you are going to say that the contractor should be 

able to finish it based on a timeline that they did not develop, now 

you are going off a third-party vendor. 

I understand the Army Corps is now looking at the timeline as 

well or were being asked to do that. And I understand. And, again, 

I am a little confused on the cure situation because I thought we 

were passed that. Obviously you are saying that we are not. 

But, Mr. Huelskamp. 

Mr. GOULD. Thank you, sir. 

Mr. HUELSKAMP. Thank you, Mr. Chairman. 

And, Mr. Gould, I would like to talk a little bit about VA spending. In your testimony, you did mention there has been at least one 

recent concern where it was called into question. Of course, there 

are a number of other instances as well beyond the HR conferences 

in Orlando last summer. 

You have got some of the issue about senior VA employees receiving thousands of dollars in bonuses, national golden games 

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issue in Hawaii last year which is more than double or triple the 

cost of games in previous years. 

And obviously when we are looking at our Nation and some pretty dire straits financially, we want to make certain every single 

spare dollar at the VA goes to veterans’ care and not some of these 

other spending issues. 

I did send you a request for some information about last year’s 

VA conferences more than five weeks ago. When do we expect a response on that? 

I know in your testimony, you talk about delivering data by the 

forklift. All we wanted is a very limited set of information from last 

year. When we will get a response? I know the Committee has 

asked for some information as well. 

Mr. GOULD. Sir, I would be glad to provide that information for 

the record. We have got your request and we will certainly respond 

to it. 

Mr. HUELSKAMP. The question is when? It has been five weeks. 

The data is over a year old. The data is spent. The money has gone 

out the door. The question is how much did you spend on those 

conferences and when will I expect a response? 

Mr. GOULD. If you will allow me to go back and find out the answer to your question, I will do that, sir, and get you a firm date. 

Mr. HUELSKAMP. And that is what bothers me is we do not have 

the information. We do not have a firm date. You have your CFO 

right there. This is dollars that were already spent. You have already put the dollars out the door. How much did we spend on that 

conference? 

And, Mr. Grams, maybe you can share what is the problem finding the data? Is there mismanagement? Is the data not there yet? 

Is it not in the system? And that is what is troubling. 

Mr. GOULD. And I do apologize. I am sorry. I thought you were 

asking me a question about—at one point, you asked about SES bonuses. But your question is actually to conferences at Orlando. And 

I agree with you that Mr. Grams would be a great resource to answer that question. 

Mr. GRAMS. Congressman, my understanding is that what you 

are talking about, the conference cost has been submitted to the 

Committee. So we have got a communication issue here. I need to 

go back and check on that. I came up here today believing you had 

that information. 

I know last year, we talked here at the Committee. We spent last year about $100 million on conferences. I believe you had asked for 

a further breakout of that figure. And as I said, we came here believing you had that information. But we will go back and find out 

where it is. 

Mr. HUELSKAMP. Well, in addition to the—— 

The CHAIRMAN. Will the gentleman yield? 

Mr. HUELSKAMP. Yes, Mr. Chairman. 

The CHAIRMAN. Real quickly because I asked. I wrote a letter to 

the Secretary along with the Ranking Member, Mr. Filner, in August, August 16th. We have not received a response from that particular inquiry. 

And, again, within that letter, there was the conflict between the original testimony of $20 million a year and then subsequent testiVACREP180 with DISTILLER

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mony that you provided that was $100 million. We were asking for, 

help us rectify those two numbers and bring them together. But we 

have not received that I am aware of any response in regards to 

those numbers. 

Mr. GRAMS. If it would help, can I explain that difference now? 

The CHAIRMAN. Yes. 

Mr. GRAMS. Okay. 

The CHAIRMAN. And if you would, freeze the clock. 

Mr. GRAMS. Sure. The difference between the $100 million and 

the—I mentioned the $100 million to you when I was up here last 

November. My understanding is you were then submitted a figure 

of $20 million a few months after that. 

As a general rule, it does not apply to every conference, but as 

a general rule in the VA, about 80 percent of the cost of an average 

conference is for travel to take the employees to that conference so 

that they can attend. The difference is that the $100 million figure I gave you is all 

inclusive. You asked me how much we spent, so I gave you a number that reflected what I believe was all the costs involved in the 

conferences that we did last year. The $20 million figure you were given was a different interpretation of the core costs of the conferences which excluded travel. And 

that is roughly that 80 percent difference for most conferences that 

goes to travel. 

Mr. HUELSKAMP. I appreciate that. I also had requested a list of 

all the attendees. Obviously that clearly has not been received of 

who attended that conference. 

I also asked you more recently some information about the golden games. It is interesting you mention 80 percent of the cost of 

events is travel. There is a $1 million expenditure for an event 

planner and for the golden games in Hawaii. It is interesting the 

golden games in Hawaii according to the information on a governmental Web site, it was double or triple the cost of previous golden 

games in the mainland. 

And when do I expect an answer for those questions, especially 

that $1 million cost for an event planner because I thought you did 

that in-house? So your response on that? 

Mr. GOULD. Sir, if I might, the issue to which the congressman 

is referring is the world’s largest rehabilitative event. I am sure 

some of you have been to see these before. You know what goes on 

there. They are extraordinary opportunities for rehabilitation. They 

are opportunities for individuals to demonstrate to others who 

thought they might never walk again or compete again to do so, 55 

and over. 

Several years ago in 2007, we received a request from the governor of Hawaii, Linda Lingle, and also Senator Akaka who had his 

last Chairman’s meeting just the other day in the Senate both 

wrote letters to VA, expressed a desire to hold the games there. 

What we saw was an opportunity since these are largely Vietnam 

veterans to bring them through the point of debarkation for the Pacific where they fought and served our country for—— 

Mr. HUELSKAMP. Mr. Gould, I am about out of time. When can 

I expect a response, especially given that—— 

Mr. GOULD. We certainly can—— 

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Mr. HUELSKAMP. —Hawaii golden games and then you hired somebody in Alaska for $1 million as the event planner? 

Mr. GOULD. Yes. 

Mr. HUELSKAMP. And so I appreciate a response. And quickly on 

that in reference, this is financial data that is over a year old in 

some of the questions from the Chairman. And that data should be 

readily available and should be made readily available, I think, to 

the Committee and to myself as well. 

So thank you, Mr. Chairman. I yield back. 

The CHAIRMAN. Thank you. Thank you very much. 

I have a couple more questions that we will just go ahead and 

submit for the record. Thank you for your time. 

I would like to briefly touch on the Haley Medical Center issue 

in regards to the taping of a patient and their family in a room 

without their consent using a covert camera. And it appears that 

we at the Committee are loggerheads now legally with the interpretations that are being provided. 

My question is, do you think that it is appropriate to videotape 

somebody in their private hospital room without their consent because that is what happened at Haley? 

I know what the background is, but this was not a camera that 

is like any of these cameras in this room. This was a camera that 

was disguised as a smoke detector. And so I would like to know if 

you have any information that you can provide in regards to where 

we are at this point. 

Mr. GOULD. Mr. Chairman, thank you. 

We obviously place the highest priority on delivering high-quality, safe medical care to our veterans. We have actually two kinds 

of observation systems in VA. One is a traditional surveillance system. We cover nurses leaving parking lots late at night to get their 

car, main areas—— 

The CHAIRMAN. I understand and the Committee understands. I 

want to talk specifically about a video camera that was hidden inside of a smoke detector. 

Mr. GOULD. We do not believe that the camera was hidden. We 

believe that the family was informed. A sign was placed in the 

room and posted. 

This patient who was comatose and on a ventilator had to be 

watched, a medical standard of direct line of sight. We could not 

have a nurse sit in the room with that individual. Imagine the impact on privacy there. 

What we had was a nurse monitoring a camera—— 

The CHAIRMAN. But you do—— 

Mr. GOULD. —in the room. 

The CHAIRMAN. Excuse me. You do do one-on-one patient monitoring; do you not? 

Mr. GOULD. Where it makes sense to do so, we do. 

The CHAIRMAN. Where does it make sense to do so? With a comatose patient, that would not make sense? 

Mr. GOULD. So imagine a comatose patient how unusual any 

movement would be. They are completely unable to communicate 

or talk with their care provider. What you need to see is a—— 

The CHAIRMAN. If the patient cannot communicate, then who 

does communicate, their family. Okay. 

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Mr. GOULD. That is correct. 

The CHAIRMAN. So here are the facts as I understand them. A 

covert camera, hidden inside of a smoke detector and that is not 

disputed, that is exactly what took place, was installed without notice or consent of the family of the patient. 

Now, claims have been made that notice was given after it was 

installed. That is what was told to me by the director herself of the 

center. But there was no requirement for consent. And subsequent 

to that, we have now found out that it was not just monitoring. It 

was also taping what was going on in the room. 

And so my question is, where are we now because I have been 

told that VA is now coming up with a policy how to deal with that? 

I also understand, and if it is your testimony that that is an appropriate way to monitor a patient, why was the camera taken 

down because it is not there? 

Mr. GOULD. Well, the patient has transferred to another facility 

at this point. 

The CHAIRMAN. I know they have been transferred, but prior to 

the transfer, the camera was removed. 

Mr. GOULD. There is no doubt in my mind that front-line staff 

were under extraordinary stress, that relationships between the 

family and the front-line medical staff were strained. 

I can imagine that all kinds of emotional content were involved 

in this set of decisions. But as physicians, as medical care providers, what our absolute number one priority is, is the security 

and safety of our patients. 

To accomplish that in this instance, we believe that having a 

camera placed on a comatose patient with a ventilator was the appropriate way to render care safely and securely in that environment. 

In my belief, it eliminates the possibility that a nurse is going 

to leave the room. It allows for that seven by 24 hour care. 

And, Mr. Chairman, I also understand that we have a large 

amount of information that has been delivered to your Committee, 

to the staff on this issue. We are ready to disclose, provide what 

information is needed to get to the bottom of this. 

But my position is here in testimony that our number one priority is safety and security of patients. We accomplished it with 

that camera. And that is how this patient was cared for during the 

time that they were comatose, unable to respond or communicate 

their desires to our staff other than having that seven by 24 hour 

observation device on them. 

The CHAIRMAN. Okay. We will agree to disagree because I guess 

common sense where I come from would say just put up a camera. 

If you are going to put a camera up, just put a camera up where 

people can see it. For some reason, somebody made the decision to 

hide the camera. It was installed without notice. It was installed 

without consent. 

What is interesting to me, and I am not an attorney, is that 

there is a claim that consent is not required within a VA facility. 

And, again, the family tried many times to draw attention to the 

fact that they did not give consent. 

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And while this is small in comparison to a $140 billion budget, 

it is not to the family nor to the patient. And we will continue to 

move forward. 

I just thank you for the update. I did receive the update that the 

patient had been transferred and I know that that was something 

that the family had desired to move him closer to their own home 

facility. 

And with that, Mr. Stutzman. 

Mr. STUTZMAN. Thank you, Mr. Chairman. 

And thank you, Mr. Gould, for being here and your service as 

deputy secretary. 

My question is regarding oversight of contractors. And my understanding is that the VA inspector general works to provide oversight with regard to these contractors and has reviewed hundreds 

of CBOC clinics resulting in important corrective actions. 

My question relates to the bad actors or contractors providing 

care to our veterans in a clinic who may have systematic deficiencies that result in poor care. 

What do VA contractor officers do in review of bids to determine 

if a bidder has these systematic problems? 

Mr. GOULD. Thank you. 

Obviously we reach out and get a lot of our services and products from the private sector, about $17 billion. One of the things that 

our contractors do is when they award on a competitive basis, they 

do something called evaluating prior performance. 

So in a folder, and they call folks when they evaluate prior performance and other agencies and say how did this person do, they 

look to evaluate electronically whether they performed their duties 

appropriately and that is a factor that goes into the qualification 

of a contractor in rendering services. 

We do not always get it right and sometimes contractors work to 

hide that information from the VA, but our folks are committed to 

making that kind of assessment and make sure we have got good 

quality providers working in VA. 

Mr. STUTZMAN. So if a bad actor seeks a bid in a new VISN 

where it is not currently operating, what steps, if any, does the VA 

contractor officers take to research the bidder against the inspector 

general’s reports, media reports, or VSO reports? Are contracting 

officers supposed to check to see if the VA IOG has significant concerns regarding the CBOC contractor? 

Mr. GOULD. We are working to make sure that that process 

works properly in several different ways. One is making sure that 

the individuals who are making that decision are trained and certified to do it. And we put an enormous amount of energy and effort in making sure that that has happened over the last three 

years. 

New technology, the Electronic Contract Management System, so 

called ECMS, and lastly an enterprise data system that allows us 

to for the first time understand who has purchased what for what 

purpose and where in our organization for 95 percent of our buy 

in a day’s time. 

So the monitoring systems that we have strengthened go directly 

to your issue of making sure that information is shared, that things 

like prior performance are known. 

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Mr. STUTZMAN. Do you have any report on the monitoring process or what results you are seeing? 

Mr. GOULD. I would be glad to provide that information for you 

on the record, sir. If you are aware of any report or additional information that you would like to bring to my attention, I would be 

pleased to—— 

Mr. STUTZMAN. Okay. If you could provide an update, that would 

be helpful. 

Mr. GOULD. Thank you. 

Mr. STUTZMAN. All right. With that, Mr. Chairman, I will yield 

back the balance of my time. 

The CHAIRMAN. Mr. Turner. 

Mr. TURNER. Thank you, Mr. Chairman. 

I can only say as a veteran and my brief work here on the Veterans’ Committee, I think the VA does a pretty good job. Our job 

here, as you know, is oversight and to find fault. And we will continue to do that. And you continue to do a good job and we will 

meet in between. 

Thank you. Yield back. 

The CHAIRMAN. Thank you very much. 

Mr. GOULD. Mr. Turner, on behalf of the 320,000 employees at 

VA, thank you for that comment. 

The CHAIRMAN. Ms. Brown, any questions? 

Ms. BROWN. No. I am finished for today. Thank you very much. 

The CHAIRMAN. Thank you very much. 

Mr. Gould, thank you. 

Mr. Grams, thank you very much for being here. 

All Members will have five legislative days to revise and extend 

their comments. 

And with that, this hearing is adjourned. 

Mr. GOULD. Thank you. 

[Whereupon, at 11:54 a.m., the Committee was adjourned.] 

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A P P E N D I X 

Prepared Statement of Chairman Jeff Miller 

Good morning, and welcome to today’s Full Committee hearing Entitled, ‘‘Veterans Affairs in the 112th Congress: Reviewing VA’s Performance and Accountability.’’ 

VA is to be commended for some of the areas we will examine today. For example, 

the number of homeless veterans is declining. VA reports that on any given night, 

the number of homeless veterans has fallen from 76,000 in 2009, to 67,500 in the 

latest report in 2011. We have to sustain that effort and address root causes of 

homelessness, but at present, I am pleased that the goal of ending homelessness by 

2015 is within reach. 

Also on the Positive side, the default rates on VA guaranteed loans continue to 

be lower than non-VA backed loans. Given the turmoil in the housing market, the 

success VA has had in keeping veterans in their homes is laudable. 

Finally, I would like to congratulate VA on the aggressive manner in which it prepared for and promoted the Veterans Retraining Assistance Program, or ‘‘VRAP,’’ 

part of our effort to reduce veteran unemployment. With the VOW Act’s goal to retrain 99,000 veterans using the Montgomery GI Bill, as of Tuesday, VA had received 

58,432 applications and approved 45,205. 

So, VA, keep up the good work. 

Despite these successes, progress isn’t being made fast enough, or at all, in other 

key areas. On the important issue of mental health care, too many veterans either 

do not seek assistance or are unable to get VA care in a timely manner. As a result, 

access to mental health care is in crisis. 

In April, the VA Inspector General released a report finding that more than half 

of the veterans who seek mental health care through VA wait fifty days – that’s 

five-zero days - on average - to receive an evaluation. These are men and women 

who have taken the brave and difficult step of seeking help - and they are waiting 

too long to receive it. 

Interestingly, just days before the IG report was released, VA made a surprise announcement that it would be increasing mental health staff by 1,900. It is undoubtedly important to ensure proper staff are in place to meet the increasing demand 

for mental health care. 

But, here’s the problem: there are already almost 1,500 mental health professional 

vacancies in the VA system which means that 1,900 new hires equates to a net gain 

of 400. As of mid-July, VA had hired less than 900 employees as part of this effort. 

Follow-up requests by Committee staff for additional information have gone unanswered. 

Meanwhile, data continues to show that eighteen veterans per day commit suicide, and five of those were receiving VA care at the time of their death. 

We must do much better. 

Another area of continued concern is the backlog of disability claims. Notwithstanding pledges by VA officials that we’re about to ‘‘turn the corner,’’ the backlog 

has steadily increased throughout the past two years. At the beginning of this Congress, the number of pending claims was 764, 476, with 39.4% pending for more 

than 125 days. As of this month, that total number of claims pending increased to 

897,767, with 66.4% pending over 125 days. 

The Department’s refrain has been that overall production is over one million 

claims annually, and that the Agent Orange claims presented a challenge, but the 

simple fact remains that more claims continue to be filed than processed with no 

end in sight. Although this administration has promised that the backlog will be 

eliminated by 2015 and that claims will be processed with 98% accuracy by that 

time, quite frankly, I am worried about whether this goal remains realistic. 

In addition, the Committee has frequently been told that VBA’s transformation 

plan is the answer to these problems. Although we certainly commend VA for realizing that comprehensive changes are required to bring VBA into the 21st century, 

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the Committee has yet to see an actual plan, in writing, with clear benchmarks and 

deadlines. We have yet to see this plan despite making three separate requests, 

both during hearings and in writing, which have all gone unanswered. I would like 

to continue working with the Department on bringing VA into the 21st century, and 

we will best be able to do so by being provided with a written copy of the transformation plan. 

Finally, although VA has been more fortunate than other agencies in the resources it has received in this tight economic climate, the bureaucracy has helped 

itself to those resources rather than channeling them to direct services for veterans. 

VA’s Senior Executive Service (SES) bonus program continues to average nearly $4 million in annual payouts, with no apparent correlation between these bonuses 

and agency performance. 

The Committee is also addressing the issue of lavish conference expenditures. I 

and Ranking Member Filner sent a letter to VA over a month ago asking for detail 

of how over $100 million dollars was spent in 2011 on conferences, and we’ve received no response. 

The government was on the verge of both a shutdown and default last year. Thus, the fact that VA cannot describe how over $100 million dollars was spent is outrageous. Despite promises of better fiscal stewardship from the administration, 

these are glaring examples of serious shortcomings that need to be fixed. 

There is more I could have touched on in this statement, but I’ll wait for questioning. We have a lot of ground to cover today, and we look forward to hearing from 

the VA panel on these important topics. 

f 

Prepared Statement of Hon. Corrine Brown, 

Acting Ranking Democratic Member 

Mr. Chairman, I appreciate you holding this hearing on the VA’s performance and 

accountability during the 112th Congress. 

I look forward to finding out from the VA the progress it has made in addressing 

concerns raised by this Committee. I also look forward to hearing from the Deputy 

Secretary how, in his view, the VA has become able to meet its responsibilities to 

provide health care and benefits to our veterans. 

I believe this is an important point that we should not forget: for all the faults 

we find with how the VA operates, at the end of the day it is providing services 

and benefits to millions of veterans and their families. Because the VA generally 

does a good job, it makes it even more important that it proactively address problems that arise the hinder the VA’s ability to assist veterans. 

Sometimes it is easy to forget that our role is to provide needed oversight to the 

VA. In the final analysis, we are all in this together, working hard to take care of 

our veterans. 

So I look forward to the Deputy Secretary’s update on how the oversight concerns 

raised by this Committee have been addressed, how the VA is better today than it 

was yesterday, and what improvements and actions we should look forward to in 

the future. 

f 

Prepared Statement of Hon. Russ Carnahan 

I would like to thank Chairman Miller, Ranking Member Filner, and Members 

of the Committee for holding this hearing. I want to begin by recognizing the efforts 

of the Department of Veterans Affairs (VA) and congratulating them on their successes in the past year. Two VA campaigns, The Veterans Crisis Line and Make the 

Connection, have been particularly noteworthy, consequently earning forty-three 

awards for excellence. Another case between the VA and the Department of Housing 

and Urban Development reduced veterans’ homelessness by 12% and won the distinguished Samuel J. Heyman Citizens Service Medal. The VA has even committed $28 

billion to finding homeless veterans homes that they have a chance at keeping, affecting 25 states across the Nation, including my home state, Missouri. 

In summary, we have done well for our veterans, but now, sixty years after the 

establishment of the VA, we must renew our commitment to provide the men and 

women who have served our country in uniform with the health care services they 

have earned. Our troops are committed to protecting our freedom, and our commitment to them does not end when they return home. 

The VA offers health care treatment and services to our Nation’s veterans who 

suffer from service-related physical or mental disabilities. While the diagnosis of 

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physical injuries typically is made before or shortly after separation from the military, mental illnesses may not manifest themselves until years later. As the United 

States military and the VA continue to improve treatment for those who have 

served, there remains a gap for veterans struggling with mental illnesses. 

The frequency of possible diagnosis for mental health disorders is estimated at 

43.7 percent of Operations Enduring Freedom and Iraqi Freedom veterans who have 

received Veterans Administration treatment. I encourage you to protect veterans’ 

rights to mental health care treatment and services by supporting the Veterans 

Mental Health Accessibility Act. 

Currently, Afghanistan and Iraq veterans face a five year window in which they 

must seek treatment for mental illnesses before losing their higher priority status. 

Veterans from previous wars face harsher bureaucratic obstacles. The Veterans 

Mental Health Accessibility Act, which I introduced last March, would eliminate the 

five year window and give veterans who served in combat from all military operations the ability to seek treatment for service-connected mental illnesses, regardless of when their conditions manifest themselves. This bill would make the services 

and treatments that are available to Afghanistan and Iraq veterans available to all 

veterans who have served in combat in previous military operations such as the Second World War, the Korean War, and Vietnam. I urge the members on this Committee who are not already cosponsors of the bill to take action now. 

It is our responsibility to care for the veterans who have defended our Nation, and 

our continuing duty to prepare for the return of our soldiers still abroad. 

I hope today’s hearing will shed some light on ways that we can work together 

to guarantee our service men and women have the support they need and deserve. 

f 

Prepared Statement of Hon. W. Scott Gould 

Chairman Miller, Ranking Member Filner, and Distinguished Members of the 

House Committee on Veterans’ Affairs: thank you for the opportunity to be with you 

today to discuss the Department of Veterans Affairs’ (VA) accomplishments and 

challenges. 

I am accompanied by W. Todd Grams, Executive in Charge for the Office of Management and Chief Financial Officer. I want to thank the Committee for its ongoing 

partnership in our common commitment to serve our Nation’s Veterans. We appreciate your support – especially the continued robust funding that is required to meet 

the growing needs of our Veterans. Our highest priority is to care for those who 

have borne the battle, their families, and their survivors. 

As the 112th Congress draws to a conclusion, we welcome the opportunity to report on the challenges we have faced, the lessons we have learned, and the great 

things that we have accomplished, all within context of the vast array of services 

and benefits we provide to Veterans across the globe, the number of Veterans we 

serve, and the complex nature of what we do. 

VA is second only to the Department of Defense (DoD) in personnel, with 320,000 

employees who directly touch the lives of nine million Veterans and their families. 

We have the largest integrated health care system in the country. It includes 152 

hospitals, over 800 clinics, 300 Vet Centers, more than 130 community living centers, and dozens of research facilities and more. Since the start of this Administration, VA has handled more than 358 million medical encounters. 

VA has issued over $21 billion in Post-9/11 GI Bill benefit payments to over 

802,000 individuals and their educational institutions since the program’s inception 

in August 2009. VA’s life insurance products help protect seven million clients. And, 

just since the start of this Congress, VA has guaranteed over 756,000 home loans 

for Veterans and Servicemembers. We are gratified that more Veterans are coming 

to us for the benefits they have earned. That success also creates the challenge of 

meeting increased demand. 

In 2009, we settled on three key priorities, which remain unchanged today: 

• A commitment to increase Veterans’ access to VA benefits and services; 

• A commitment to eliminate the benefits backlog in compensation claims—in 

2015; and 

• A commitment to end Veteran homelessness—also in 2015. 

My testimony today, consequently, will be organized around the challenges and 

achievements and challenges in these three areas: (1) increasing Veteran access, (2) 

improvements in claims processing; and (3) ending Veteran homelessness. 

VA is proud of the progress it has made in increasing access to quality health care 

for Veterans. Our goal is not just easier availability, but access to the highest qualVACREP180 with DISTILLER

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ity healthcare in the United States. We continue to innovate to provide better health 

care that is closer to the Veteran. VHA’s ASPIRE program offers Veterans, their 

families, and the public the opportunity to examine detailed data on any VA medical 

center’s performance in safety, effectiveness, efficiency, timeliness, and other areas. 

VA has taken this a step beyond the usual level of performance reporting, in that 

we do not simply accept being better than others in many metrics as satisfactory; 

rather, we aspire to the highest level of performance, especially when it comes to 

patient safety. The robustness of our performance measures allows VHA to identify 

practices that help improve outcomes versus those that do not, and to transfer these 

best practices across the system to improve the care we deliver as a whole. Awareness of performance inspires leaders at all levels to constantly improve by instilling 

a sense of excellence among peers, and providing the best possible care to Veterans 

is a powerful motivation for all VHA employees. 

Access also means more points of service. Since 2009, VHA has funded the opening of 51 new community-based outpatient clinics (CBOC) located in rural areas nationwide and supported the opening of 40 new outreach clinics that, at a minimum, 

provide primary care, on-site case management, and access to specialty mental 

health care. We will always do everything in our power to find ways to reach out 

to Veterans in need. 

VHA has dedicated great resources and innovative thinking to improving access 

to quality health care in rural areas. It is a national leader in establishing telehealth capabilities. In FY2011, clinical video telehealth, home telehealth, and storeand-forward telehealth provided care from more than 150 VA Medical Centers and 

750 CBOCs to more than 380,000 Veterans. We expect this number to increase by 

an additional 100,000 in FY2012. Telehealth provides access to more than 35 areas 

of specialty care, reduces the need for travel, and provides high levels of patient satisfaction. VA and Veterans further benefit by reducing the number of bed days of 

care and reducing travel costs. VA has established three regional centers for posttraumatic stress disorder (PTSD) telemental health to augment services among facilities and networks. VA has also been involved in the launch of the PTSD Coach 

smartphone application, the first in a suite of mental health applications for mobile 

devices. 

We are very proud of the VA Primary Family Caregiver Support Program, which 

has been accepting applications since May 9, 2011. Congress put forth a major effort 

to create this program, which is a significant new benefit for families who are sacrificing to provide seriously injured Veterans with care day-in and day-out. As of August 30, 2012, there are over 5,900 primary family caregivers - and the Veterans 

they care for - who are benefiting from this important new source of support. 

Access to quality mental health services is a vital priority. In 2005, at the height 

of operations in Iraq, we had 13,000 mental health professionals handling the 

health care needs of our Veterans. Today, there are more than 20,000, and we recently announced our plans to hire 1,600 more clinical staff, bringing our total mental health staff up to approximately 22,000 professionals - to address the growth in 

mental health requirements spawned by the burdens of a decade of combat deployments shouldered by our all-volunteer force and their families. 

One of our most successful outreach efforts is our Veterans’ Crisis Line. DoD 

knows it as the Military Crisis Line—using the same phone number and the same 

trained VA mental health professionals to respond to calls, with no cost to DoD. 

Since 2007, over 640,000 people have called in, including over 8,000 active-duty 

Servicemembers. We have made over 99,000 referrals for care and rescued over 

23,000 from potential suicide. Younger Veterans may be more comfortable with 

chatting and texting, so in 2009 we added on-line chat, and in 2011, a texting service. We know that when we diagnose and treat, people get better. Among the 8.6 

million Veterans enrolled in VA health care, the total number of Veterans receiving 

mental health treatment has increase from 897,643 in FY 2005 to 1,338,482 in FY 

2011. 

At the same time, for Veterans receiving VA treatment, suicide rates are down 

because treatment works. In FY 2009, the suicide rate among individuals with mental health or substance use disorder was 56.4 per 100,000, as compared to 23.5 

among patients without these disorders. This continues a steady trend of lowering 

rate ratios observed since FY 2001, when the rate among patients with mental 

health or substance use disorder diagnosis was 78.0 as compared to 24.7 among patients without these diagnoses. 

Vet Centers are a very successful way we are reaching Veterans and families with 

support and counseling. In FY 2011, Vet Centers provided 189,811 Veterans and 

families with 1,377,028 visits, a 9 percent increase in direct counseling services from 

fiscal year 2010. This included providing 18,553 Veteran families with 91,716 visits. 

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Another area of increasing progress is access to quality health-care that meets the 

needs of women Veterans. Women make up 15 percent of today’s active duty military forces, and about 337,000 are currently using the VA health care system. The 

population of women Veterans using VA is increasing at a rapid pace—doubling in 

the last decade. To meet the needs of this growing Veteran community, VA is enhancing care and access for women Veterans by implementing Comprehensive Primary Care and designating a staff member as the women’s health liaison at each 

CBOC. VA also applauds the Congress’ recent enactment of a measure that allows 

us to establish a child-care pilot that is serving as a great help to Veterans by onsite child-care at select VA medical centers, making use of their health care benefits 

that much easier. That law also allowed VA to provide a period of care for newborn 

children of Veterans receiving maternity care. 

Mr. Chairman, I believe that access includes to job opportunities, and to all the 

tools VA can offer to help those making the transition from military service. In August 2011, the President directed DoD and VA to lead the Veterans Employment 

Initiative (VEI) Task Force and provide recommendations to maximize the career 

readiness of all Servicemembers. 

I would like to applaud this Congress for passing the ‘‘VOW to Hire Heroes Act 

of 2011,’’ which included steps to improve the existing Transition Assistance Program (TAP) for Servicemembers. Among other things, the VOW Act made participation in several components of TAP mandatory for all Servicemembers. VA and DoD 

have made progress in implementing VEI Task Force recommendations and preparing for the requirements of this law. 

The VOW Act also created the Veterans Retraining Assistance Program (VRAP) 

for unemployed Veterans between the ages 35 and 60 years old. VRAP provides up 

to 12 months of training assistance towards an associate’s degree or certificate in 

a high-demand career field for up to 99,000 Veterans. As of September 7, 2012, over 

55,000 Veterans have applied for the program. It also provides tax incentives to 

companies that hire Veterans, and extended VA’s special employer incentives under 

our Vocational Rehabilitation and Employment program. 

VA is proud to have partnered with the First Lady’s ‘‘Joining Forces’’ initiative 

and the U.S. Chamber of Commerce’s ‘‘Hiring Our Heroes’’ campaign. The President 

challenged private companies to hire or train 100,000 Veterans and military spouses 

by the end of 2013. To date, 2,100 companies have committed to 175,000 hires, and 

125,000 Veterans and spouses have already been hired. VA held its own hiring fairs 

in Washington, DC, and Detroit, Michigan, earlier this year. Over 12,000 Veterans 

participated, and over 8,000 interviews were conducted. More than 1,700 job offers 

were made on the spot, and participants continue to receive offers. 

VA also conducted two Veteran-owned small-business training expositions in the 

past 12 months—our opportunity to educate Veteran small business owners on our 

procurement requirements and allow the 3,500 who showed up to demonstrate their 

capabilities and improve their preparation of competitive proposals for government 

contracts. The bottom line is this: Veterans hire Veterans. So the more successful 

Veteran entrepreneurs we cultivate, the better the opportunities for Veterans employment. 

Access also means affording Veterans opportunities in federal contracting. Under 

the Veterans First Contracting Program, VA greatly expanded opportunities for 

service-disabled Veteran-owned small business (SDVOSB) and Veteran-owned small 

business (VOSB). In FY 2011, preliminary data indicate that VA’s total award to 

small businesses was nearly $5.9 billion, or 33.3 percent of all VA procurements. 

This far exceeded the national goal of 23 percent for small business procurements. 

Additionally, VA surpassed the government minimum of 3 percent for SDVOSBs, 

and its own internal goal of 12 percent for VOSBs and 10 percent for SDVOSBs, 

with 20.5 percent going to VOSBs and 18.2 percent going to SDVOSBs. 

Access for VA also means ensuring that Veterans have every educational opportunity available they have earned through their service. As of September 10, 2012, 

VA issued over $21.4 billion in Post-9/11 GI Bill benefit payments to over 802,200 

individuals and their educational institutions since inception in August 2009. Since 

the program’s enactment, VA has implemented multiple legislative changes to the 

Post-9/11 GI Bill, without disrupting the flow of benefits to students. These changes 

included expanding Veterans’ educational options under the Post 9/11 GI Bill to include technical on-the-job training and apprenticeship programs. This expansion 

makes Post 9/11 GI Bill educational offerings consistent with those under other benefits programs and allows beneficiaries to pursue shorter-term training prior to entering the job market. VA has also developed a processing system that automates 

components of the education claims process and continues to focus on timely benefits delivery. Full automation of a subset of claims is expected this Fall. 

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VA also is taking steps to support Veterans on campus. The Vocational Rehabilitation and Employment (VR&E) VetSuccess on Campus (VSOC) program is designed to provide on-campus benefits assistance and adjustment counseling to Veterans. The program encourages Veteran-students to complete a college education 

and prepare to enter the labor market in viable careers. As of September 10, 2012, 

28 VSOC sites were established at campuses throughout the country that provide 

outreach, counseling, and benefits assistance to Veteran-students and their families. 

Access also means the honor of interment at one of VA’s 131 national cemeteries. 

NCA has opened six new national cemeteries since 2009, and lowered the Veteran 

population threshold to allow improved access for more Veteran families to better 

avail themselves of benefits those Veterans have earned. In addition, since 2009 VA 

has awarded grants to support the opening of 15 new State Veterans cemeteries and 

four tribal Veterans cemeteries. Since 2009, VA has helped expand existing State 

cemeteries and assisted them in achieving higher standards and appearance and 

service through $65.9 million in grants to 28 cemeteries. NCA continues its extraordinary record of customer service, receiving 94 points out of 100 on the American 

Customer Satisfaction Index in 2010– the highest in either the federal government 

or the private sector. NCA was also awarded the Achievement in Excellence Award 

by the State of Virginia, the highest award given by the state in 2011. 

A critical aspect of access is making VA and DoD work together as never before 

to serve those men and women making the transition from Servicemember to Veteran. Providing a ‘seamless’ transition between VA and DoD is a complex and multifaceted challenge, but it is vital to ensuring care for those who have served this Nation. As Secretary Shinseki and Secretary Panetta stated in testimony before this 

Committee in its joint hearing with the House Armed Services Committee in July, 

we have brought our Departments closer together than ever before. 

As we highlighted in that hearing, DoD and VA have increased the number of 

Servicemembers and Veterans whose electronic data is shared between the two Departments by 1.1 million. That 1.1 million increase includes the increased sharing 

of: 

• 23 million more laboratory results; • 3.6 million more radiology reports; and • 24 million more pharmacy records. 

As this Committee knows, the Integrated Electronic Health Record – or iEHR— 

is an ambitious effort that will take some time, but VA and DoD have committed 

to a fully operational iEHR no later than 2017, with clinical capabilities deployed 

in Hampton Roads and San Antonio in 2014—a significant challenge, but one that 

is critical to achieve for our Nation’s Veterans and Servicemembers. The result will 

be a single , standard open architecture and modular electronic health record system that will improve quality and lower total costs for VA and DoD. 

In the July joint hearing, VA highlighted progress in getting Veterans access to 

their benefits information through online tools such as Blue Button and eBenefits. 

The Blue Button is a joint program between the Department of Health and Human 

Services, DoD, and VA that provides Veterans on-demand access to personal health 

information at the click of a button, delivered in a format that is easy to read and 

accessible without any special software. President Obama announced this in the 

summer of 2010 and it was officially launched that October. Today, [nearly?] one 

million Servicemembers and Veterans have downloaded electronic copies of their 

personal health records. 

VA and DoD also have shown concrete results in the eBenefits portal, the joint 

VA/DoD client-services portal for life-long engagement with Servicemembers, Veterans, and their families. Thanks to DoD leadership, Servicemembers now automatically sign up for eBenefits when they enter service. eBenefits enrollment now exceeds 1.8 million users, and VA expects enrollment to exceed 2.5 million by the end 

of 2013. The eBenefits portal provides over 45 self-service features to check the status of a claim or appeal; review the history of VA payments; request and download 

military personnel records; secure a certificate of eligibility for a VA home loan; and 

numerous other benefit actions. We aggressively continue to expand and update online self-service and access capabilities. We are engaging our Veterans Service Organization partners in registering Veterans for eBenefits accounts. In the coming 

months, Servicemembers will be able to complete their Servicemembers’ Group Life 

Insurance applications and transactions through eBenefits. Recent enhancements 

allow Veterans to view their scheduled VA medical appointments. They will soon 

be able to file benefits claims online and upload supporting information that feeds 

our paperless process. 

VA and DoD completed implementation of the Integrated Disability Evaluation 

System (IDES) at 139 sites globally on September 30, 2011. IDES is aimed at 

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achieving an integrated process for wounded, ill, and injured Servicemembers who 

face potential medical separations. We have improved transparency and consistency 

of outcomes, while reducing processing times between a Servicemember’s referral for 

a fitness determination and receipt of VA benefits. As of August 26, 2012, we have 

reduced the processing time under the separate DoD and VA legacy processes from 

about 540 to 395 days. Our goal is 295 days. Total processing time for the month 

of August, as of August 26, was down to 375 days. VA’s portion of this goal is 100 

days, and we have been as low as 105 days before responding to surges in military 

departures. In the month of August, as of August 26, VA processing time was 114 

days. 

Turning from access to VA benefits and services to the second of VA’s three top 

priorities, eliminating the claims backlog is perhaps our largest and most complex 

challenge. We are aggressively tackling this challenge on multiple fronts. The disability claims workload from the newest generation of returning Veterans, as well 

as from Veterans of earlier periods, continues to increase. VBA’s annual claims receipts increased 48 percent over the last four years, from 888,000 in 2008 to 1.3 million in 2011. The growth in disability claims volume is driven by a number of factors, including: 

• Additional presumptive disabilities associated with Agent Orange exposure, 

• New regulations for processing certain claims related to Gulf War service, traumatic brain injuries, and post-traumatic stress disorder (PTSD); 

• Growth in the average number of medical conditions for which each claimant 

files; 

• Improved access to benefits through the joint VA and DoD pre-discharge programs such as the Integrated Disability Evaluation System (IDES); 

• Ten years of war with increased survival rates; 

• Successful extensive use of VA of outreach programs encouraging more Veterans to submit claims; and 

• Post-conflict downsizing of the military. 

Several of these factors, including the addition of presumptive disabilities associated with Agent Orange and regulatory changes, were the result of VA decisions to 

expand benefits during this Administration. These decisions – the right ones to 

make for our Veterans – dramatically expanded access to benefits and services. In 

the face of an increasing workload, VBA must deliver first-rate and timely benefits 

and services – and they must be delivered with greater efficiency. These decisions 

make it critical that we dedicate the right resources, technology, and innovation to 

eliminating the backlog. 

VA also is pursuing its Transformation Plan, a series of tightly integrated people, 

process, and technology initiatives designed to eliminate the claims backlog and 

achieve our goal of processing all claims within 125 days with 98 percent quality 

in 2015. 

Through people-focused initiatives, we are strengthening the expertise of our 

workforce by changing the way we are organized and trained to do the work. We 

are also increasing the productivity of our workforce and the quality of our decisions 

through national training programs and standards. We estimate that these ‘‘people’’ 

initiatives will contribute to a 15–20 percent improvement in productivity and four 

percent improvement in quality when fully implemented in all regional offices. 

Through process-improvement initiatives, we are rapidly developing and testing 

streamlined processes, focusing on eliminating repetition and rework in the claims 

process while delivering optimal service. We expect our process initiatives to contribute to a 15–20 percent increase in productivity and a minimum four percent improvement in claims quality when fully implemented nationwide. 

These increases in productivity cited above due to people, process, and technology 

improvements are additive. 

Through technology Initiatives, we are deploying solutions that improve access, 

drive automation, reduce variance, and enable faster and more efficient operations. 

Our new paperless claims processing solution, the Veterans Benefits Management 

System (VBMS) is a key component in eliminating the backlog. Our technology initiatives aim to improve access and increase efficiency, with goals to contribute to 

an additional 15–20 percent increase in productivity and a four to six percent improvement in claims quality. 

VBA has implemented the Transformation Organizational Model (TOM) at 18 regional offices to date. Thirty-eight regional offices will implement TOM by the end 

of December 2013. VBMS, a key component of our technology solutions, is currently 

being piloted at four regional offices and will be deployed to all stations by the end 

of 2013. 

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Our third top priority is to use all the tools at our disposal, including partnerships 

with other Federal agencies, States, community providers, and volunteers to end 

Veterans Homelessness. VA offers a comprehensive continuum of homelessness 

services which are coordinated with community efforts. We want to thank the Committee for its partnership and commitment in this effort – it is truly appreciated. 

When HUD, the Department of Housing and Urban Development, announces its 

2012 Point-in-Time estimate of homeless Veterans, we expect additional progress to 

be made and to stay on track to end Veterans’ homelessness in 2015. Between the 

2010 and the 2011 point in time counts, veteran homeless has decreased nearly 12 

percent. 

VA’s Loan Guaranty Program has also played a part in this effort. Since January 

2011, VA has helped over 119,000, or 82.5 percent of, defaulted VA borrowers avoid 

foreclosure. This foreclosure avoidance assistance translated into an average estimated $4.2 billion in foreclosure claim payments avoided. In many cases, VA intervened, working with Veterans’ financial institutions to lower interest rates and payments or modify loan repayment terms to keep Veterans and their families in their 

homes. 

In addition, VA’s National Cemetery Administration has implemented a new 

Homeless Veterans Apprenticeship Program in collaboration with VHA and VA 

Learning University. This program will create paid employment positions as Cemetery Caretakers – successful completion of twelve months of training will result in 

permanent full-time employment. 

Leadership 

We cannot talk about achievements and challenges without talking about the 

leadership, management, and organizational structures required to make change 

happen. Good will and dedication are not enough, and we owe it to Veterans and 

taxpayers to provide the best return on every dollar appropriated to meet the Nation’s debt to our Veterans. 

In 2009, the Department of Veterans Affairs faced significant internal and external challenges. Despite a cohort of dedicated, caring, and committed employees, the 

organization was experiencing problems. President Obama seized the opportunity to 

initiate a sweeping transformation of VA, with the goal of creating a more effective 

and efficient organization. He charged Secretary Shinseki to transform VA into a 

high-performing 21st century organization. VA launched a transformation effort 

that emphasized: 

• Cultural Change: This critical facet of the transformation binds all transformation initiatives together, enabling VA to change its relationship with Veterans fundamentally—treating them as clients and continually emphasizing 

new and better ways to serve them. To that end, Advocacy is a prominent value 

among the five core values that imbue our work at VA with purpose including: 

Integrity, Commitment, Advocacy, Respect, and Excellence. 

• Modernization and Innovation: VA facilities, systems, programs, and business 

processes required updating and cutting-edge technological solutions. 

• Integration and Collaboration: Critical to the transformation was the integration of disparate support services, including Information Technology (IT), 

Human Resources (HR), Acquisitions and Logistics, and Financial Management. 

Additionally, serving Veterans necessitated an enhanced collaborative relationship with the DoD and other federal entities. To that end, the Secretaries of 

VA and DoD have met an unprecedented 10 times since 2009, and for the first 

time ever, testified before a joint hearing of this Committee and the House 

Armed Services Committee in July 2012 to report on our collaborative efforts.. 

• Disciplined Decision Making Based Upon Data, Metrics, and Performance Monitoring: VA has developed and deployed a comprehensive performance management system. Program planning is informed by evaluation of program efficiency 

and effectiveness supported by new measures of critical success factors. 

• Access and Responsiveness: To become a more accessible and responsive organization, VA needed to expand and enhance its connections with Veterans, and 

emphasize accountability and transparency through improved outreach, use of 

new media as well as traditional field visits. 

VA’s transformation also required fundamental changes in management infrastructure to coordinate operations across business lines and hold managers accountable for effective delivery of services. This required closer integration of four major 

organizational components of VA: VBA, VHA, and NCA, as well as the VA Central 

Office (VACO) policy and program staffs. New and more robust business systems 

support unity of action through better oversight, consolidation of support services, 

and enterprise-level efforts aimed at serving Veterans in a more comprehensive and 

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holistic fashion. For example, eliminating Veteran homelessness required budget allocations and project management support from VACO, as well as health professionals from VHA; housing and employment specialists from VBA; and IT systems 

to integrate, track, and unify the effort. As an example of utilizing all of VA in this 

integrated effort, NCA is offering job apprenticeship opportunities for Veterans who 

are homeless or at risk of homelessness. 

Public outreach was coordinated with members of Congress, our Veterans Service 

Organizations, and the media. That outreach also helped galvanize the activities of 

State and local governments, as well as non-profit and faith-based organizations on 

whom our success depends. 

Tighter integration also requires leaders to work within a more transparent governance process so that senior leadership can achieve their respective transformation objectives by leveraging three resources: 

• People—Human resources for strategic management and staffing; 

• Money—Sufficient budgetary resources for the right programs; and 

• Things—Modern and innovative IT systems as well as our extended supply 

chain for goods and services, and other enabling technologies. 

As a result of the focus on these management drivers, VA has reduced the average time to hire VA employees from 102 to 87 days; trained 300,000 employees 

through the VA Learning University (VALU); implemented the Project Management 

Accountability System (PMAS), increasing VA’s accountability for IT projects with 

on-time delivery to over 80 percent; established the Strategic Acquisition Center 

(SAC) to leverage VA’s spending power and improve contracting and procurement 

activities; produced a long-term strategic investment plan to identify gaps and optimize utilization of capital resources; developed and deployed over 20 dynamic performance dashboard views to support executive decision making; and issued security 

access cards known as Personal Identity Verification (PIV) cards to nearly 100 percent of VA employees, contractors, and affiliates. These changes in internal capabilities have enabled more effective and efficient delivery of services and benefits to 

Veterans. 

I want to address the issue of training conferences, as there was one recent wellpublicized instance that called into question VA stewardship of taxpayer dollars. 

This particular conference occurred before VA had taken significant steps to establish tighter controls and more accountability for conference expenditures. I will 

make two points – first, that VA is redoubling its efforts to prevent instances of misuse of funds or wasteful spending. At the same time, we must be very cautious not 

to curtail conferences that have demonstrated value in training our employees and 

developing innovative approaches that ultimately save money and serve our Veterans better. Hopefully, you will see that VA’s transformation efforts are providing 

value to the Nation and profoundly changing our services to Veterans. 

These actions will ensure real lasting progress on the Secretary’s three priorities: 

better access to quality health care, services, and benefits, eliminating the claims 

backlog, and ending Veteran homelessness. 

Our team and our dedicated employees have achieved the following: 

• The number of Veterans receiving VA disability compensation has increased by 

21 percent from FY2008 to August FY2012; 

• Vocational Rehabilitation (Ch 31) participants increased by 15 percent from 

FY2008 to August of FY2012; 

• The number of Veterans compensated for PTSD increased by 64 percent from 

FY2008 to August of FY2012; 

• Created an automated system, provided GI Bill benefits to nearly 800,000 individuals since 2009– comprising nearly half of all Veterans (or their eligible family members) who have served since 9/11 – over 800,000 individuals. The number of education beneficiaries increased by 63 percent from FY2008 to August 

of FY2012; 

• Delivered average pensions of $11,000 into the hands of more than 300,000 Veterans living at the poverty level, and $6,500 per year to 250,000 of their survivors – caring for over half a million elderly Veterans who otherwise might be 

destitute and potentially homeless; 

• Through the VA Home Loan Homeless Prevention program, kept over 83,000 

Servicemembers, Veterans, and survivors in their homes in FY2011 alone; 

• Life Insurance coverage for disabled Veterans increased by 31 percent from 

FY2008 to August FY2012 ; 

• Created an internet eBenefits portal that is a ‘‘place to go’’ for Veterans and 

Servicemembers for health care, employment, insurance, disability compensation, and GI Bill information, and added over 45 new capabilities;. 

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• Built and piloted a paperless claims processing system that will be the core of 

our effort to eliminate the claims backlog and that lowered the average processing time from 250 to 115 days; 

• Expanded access to allow almost 700,00 more Veterans to enroll in VA health 

care; 

• Delivered high quality health care to an additional 600,000 Veterans between 

FY2008 and FY2012; 

• Recruited over 150,000 Veterans in a cutting-edge study evaluating genomic 

medicine; 

• Treated 12 percent more unique patients in VA Health Care facilities increased 

from FY2008 to FY2012; 

• Opened the first new state-of-the-art medical center in 17 years in Las Vegas, 

as well as more than fifty CBOCs to deliver high quality primary and mental 

health care to more than 215,000 Veterans closer to home; 

• Trained over 4,000 mental health providers in evidence-based psychotherapies 

for PTSD and other mental health conditions; 

• Identified locations for the development of five new national cemeteries that 

will provide burial access to an additional 500,000 Veterans and their eligible 

family members. In total, VA plans to provide 95 percent of the Veteran population – approximately 21 million individuals – with access to a burial option 

in a national or state Veterans cemetery within 75 miles of their homes by the 

end of FY 2015; 

• Identified locations for the development of five new national cemeteries and five 

new columbarium in urban locations; 

• Identified eight rural National Veterans Burial Grounds to serve low-density 

Veteran populations; and, 

• Began our work with DoD to create the single electronic medical record system 

that will serve over 15 million patients under VA and DoD health systems every 

year; 

As we have detailed here, these are big challenges that are requiring our best 

minds and most determined and talented employees to take on, and there is much 

work to do. I am grateful that Congress has been both our partner and our constructive critic as we’ve forged ahead. 

Mr. Chairman, I will be glad to answer any questions you or the other Members 

of the Committee have. 

f 

Questions For The Record 

Responses from the Department of Veterans’ Affairs 

Question 1. An explanation of why there are more than 98 metrics in the attachment for FY2012. 

Response: Performance metrics span all business lines and vary from year to 

year depending on current priorities. VBA issues Director Performance Plans at the 

beginning of each fiscal year (FY) that outline the performance metrics which they 

will be evaluated on at the end of the FY. Because priorities and business lines vary 

by RO, the number of metrics can change from year to year and be different from 

RO to RO. 

Question 2. The document/language that Diana mentioned explaining the EOY 

evaluation process. 

Response: Please see attached methodology for the FY2011 Director Performance 

Rankings. The Office of Field Operations is currently revising the methodology for 

FY2012. OFO is happy to have another call to discuss the methodology if more explanation is needed. 

Attachment 

FY11 DIRECTOR RANKING METHODOLOGY

OCTOBER 2011 

The FY11 Director Performance Ranking was done based on the Organizational 

Performance element. A weighted method was used, meaning each business line was 

assigned a specific weight within the performance element, and each performance 

metric was assigned a weight within its specific business line. Stations were rated 

on a five-point scale, and then ranked on the number of points earned out of the 

potential five points. 

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For example, Atlanta is a station with four business lines (Compensation, Vocational Rehabilitation, Loan Guaranty, and Education). Each of these business lines 

is weighted, and contributes to the potential five points Atlanta can earn as a station. 

Next, additional points were added to station totals based on that station having 

extenuating circumstances affecting their FY11 performance, such as a D1BC or 

DRAS. Lastly, stations were split into those having SES or GS–15 Directors, and 

ranked as ‘‘Outstanding’’, ‘‘Excellent’’, or ‘‘Fully Successful’’. 

Organizational Performance Element 

The Organizational Performance elements are weighted dependent upon how 

many business lines the station has. Compensation is given the largest weight, with 

the remaining weights being divided equally among the additional business lines. 

1 Business line = Compensation 100% 

2 Business lines = Compensation 75%, Second 25% 

3 Business lines = Compensation 65%, Second, Third 17.5% each 

4 Business lines = Compensation 55%, Second, Third, Fourth 15% each 

5 Business lines = Compensation 50%, Second, Third, Fourth, Fifth 12.5% each 

Business lines considered: Compensation, VR&E, Pension, Loan Guaranty, 

Education, Call Center, IRIS 

Element Point Values: 

1. Each performance metric has a maximum value of 5 points 

2. Points 1–5 are awarded based on the performance of each given metric, as follows: 

a. Outstanding (25% or better) = 5 points 

b. Excellent (15% or better) = 4 points 

c. Fully Successful (achieved target) = 3 points 

d. Minimally Successful (15% below target) = 2 points 

e. Unsatisfactory (25% below target) = 1 point 

3. A performance improvement factor is also considered for stations that were 

ranked below ‘‘excellent’’ 

a. Exceeding FY10 performance by 15% is awarded 1 point 

b. Exceeding FY10 performance by 25% is awarded 2 points 

4. A business line may not exceed 5 points total. 

Once a point value is awarded, the weighting of the specific performance metric 

within the business line is applied as follow: 

I. Organizational Performance Weight 

Compensation (1 Business Line) 100.0% 

Compensation (2 Business Lines) 75.0% 

Compensation (3 Business Lines) 65.0% 

Compensation (4 Business Lines) 55.0% 

Compensation (5 Business Lines) 50.0% 

Homeless ADP 5.0% 

Rating Inventory 3.0% 

Rating Production 12.5% 

Rating Accuracy 12.5% 

Authorization Accuracy 12.5% 

Fiduciary Accuracy 12.5% 

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I. Organizational Performance Weight 

DOC Accuracy 3.0% 

Backlog Inventory 3.0% 

Rating ADC (FYTD) 3.0% 

Rating ADP 3.0% 

Cycle Time Indicators 3.0% 

NOD ADP 3.0% 

Form 9 ADP 3.0% 

Remand Rate 3.0% 

NOD Inventory 3.0% 

Non-Rating ADP 3.0% 

FidBen Appt Pending 2.0% 

FidBen Appt Processed 2.0% 

IA Pending 2.0% 

IA Processed 2.0% 

Acct. Reviewed 2.0% 

Acct. Not Seriously Delinquent 2.0% 

Total Weight 100.0% 

VR&E (2 Business Lines) 25.0% 

VR&E (3 Business Lines) 17.5% 

VR&E (4 Business Lines) 15.0% 

VR&E (5 Business Lines) 12.5% 

Rehab Rate 20.0% 

SEH Rehab Rate 20.0% 

Outcome Accuracy 10.0% 

Days to Entitlement 6.0% 

Interrupted Status 6.0% 

Evaluation and Planning 6.0% 

Fiscal Accuracy 10.0% 

EPRSA Accuracy 15.0% 

Employment Rehab Rate 6.0% 

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MRG Accuracy 1.0% 

Total Weight 

Total Weight 100.0% 

Pension (3 Business Lines) 17.5% 

Pension (4 Business Lines) 15.0% 

Pension (5 Business Lines) 12.5% 

Rating Inventory 6.0% 

Rating Production 15.0% 

Rating ADP 10.0% 

Non-Income ADP 10.0% 

EP 155 ADC (FYTD) 5.0% 

EP 150 ADC (FYTD) 5.0% 

EP 190 ADC (FYTD) 5.0% 

IVM Completed/Controlled 5.0% 

Authorization Accuracy 15.0% 

Rating Accuracy 15.0% 

NOD ADP 3.0% 

Form 9 ADP 3.0% 

NOD Inventory 3.0% 

Total Weight 100.0% 

Loan Guaranty (3 Business Lines) 17.5% 

Loan Guaranty (4 Business Lines) 15.0% 

Loan Production Full Reviews 8.0% 

Loan Production Timely Reviews 8.0% 

LAPP Reviews 8.0% 

SAPP Reviews 8.0% 

C&V Field Reviews 8.0% 

Initial SAH Reviews 8.0% 

AOS Timely 8.0% 

Non-Routine ACQ Timely 8.0% 

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Loan Production Accuracy 9.0% 

C&V Accuracy 9.0% 

SAH Accuracy 9.0% 

Loan Administration Accuracy 9.0% 

Total Weight 100.0% 

Education (3 Business Lines) 17.5% 

Education (4 Business Lines) 15.0% 

Original ADC (month) 30.0% 

Supplemental ADC (month) 30.0% 

Payment Accuracy 40.0% 

Total Weight 100.0% 

IRIS (3 Business Lines) 17.5% 

Accuracy 0.0% 

Timeliness 100.0% 

Total Weight 100.0% 

Call Centers (3 Business Lines) 17.5% 

Call Centers (4 Business Lines) 15.0% 

Call Centers (5 Business Lines) 12.5% 

Quality Call Review 7.5% 

Average Wait Time 7.5% 

Client Satisfaction Index 50.0% 

Agent Availability Rate 35.0% 

Total Weight 100.0% 

Potential Number of Points Per Station: 

1. A station’s potential point value is determined by the number of business lines 

at that station, and the weights for those business lines. Stations ranged from a 

maximum of 10.03 points available to a minimum of 2.225. 

% of Points Earned: 

1. Once a total weighted point value is calculated, it is compared to the total potential point value for the station. 

2. Stations are ranked based on the percentage earned of the total available 

points. 

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Adjustment Points: 

1. Once stations were ranked on a % basis, point adjustments were made based 

on Area Director discretion, to account for extenuating circumstances that RO faced 

during the FY. 

a. Stations with D1BC = 3 points 

b. Station with partial year D1BC = 1 point 

c. Nehmer brokering support = 1 point 

d. DRAS stations = 2 points 

e. DRAS support = 1 point 

f. Quality Review Teams and Fully Integrated Teams implementation = 3 

points 

g. ILAB = 3 points 

h. Extensive brokering = 1 point 

i. Extensive involvement in mid-term bargaining = 1 point 

Final Ranking: 

Final ranking based on percentage of station points earned, with the Area Director adjustment factored in. Stations were split into those having SES or GS–15 Directors, and ranked as ‘‘Outstanding’’, ‘‘Excellent’’, or ‘‘Fully Successful’’. 

Prepared by the Office of Field Operations 

06/26/2013 

Regional Office Director 

SES and GS–15 

Performance Appraisal Plan 

October 1, 2011–September 30, 2012 

I. Organizational Performance – (Critical Element) 

Weight: 60% 

In support of Strategic Goals: 1, 2, 4 

In support of Integrated Strategies: 1a, 1b, 1c, 1e, 2c, 2d 

The Director leads his or her regional office in the pursuit of optimum performance in all applicable program areas. Appropriate emphasis is placed on the Secretary for Veterans Affairs and Under Secretary for Benefits’ priorities assuring 

that those priorities are reflected in the regional office’s performance. In addition, 

through efficient and effective management, ensures that benefits and services are 

provided in a timely, objective manner, with respect to speed, accuracy, customer 

satisfaction, and employee development. Evidence of this leadership will be observable in terms of performance against established targets and goals. The Director 

assures that national policy and procedural changes are expeditiously distributed, 

accurately communicated, and effectively implemented. Directs and documents actions taken to sustain sound quality assurance programs, workload management 

processes, and internal control systems to effectively oversee work accomplishments 

and minimize risks in all program areas. 

The Director is also responsible for ensuring that programs and policies are implemented, assessed through an effective internal control process, and adjusted as necessary to achieve appropriate results. Failure to meet any of the following sub-elements means that the Director will be required to submit compelling mitigating reasons why the sub-element was not met and to identify those actions that are being 

taken to achieve the standard set in the sub-element. The Rating Official will have 

the discretion to determine if the Director meets the sub-element based on management actions taken rather than on actual performance achieved. 

Note: Clients include Veterans and their families. Customers are defined as organizations inside VA such as administrations and staff offices. Stakeholders refer to 

organizations outside of VA such as VSOs, OMB, and Congress. 

Sub-element 1: Transformation 

Supports the implementation of VA’s Major Initiatives and Organization-Specific 

Initiatives, which execute the Department’s transformation in fiscal year 2012. 

Initiative/Action Performance Goal: Leads and manages the regional office which 

promotes a 21st century VA and ensures that organizational and individual performance are Veteran-centric, Results-Driven and Forward-Looking. 

Veteran-Centric - Services and products provided by the regional office are useful and beneficial as measured by achievement of service delivery targets as 

outlined in Sub-element 2. Uses feedback to continuously improve delivery of 

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services and products. Works to strengthen the relationship between the regional office and the veterans served. 

Results-Driven - Serves as an active participant in supporting the Department’s 

thirteen Major Initiatives and/or regional office Initiatives. Communicates the 

Department’s vision and holds self and subordinate employees accountable for 

accomplishments through shared goal setting. The leader works to strengthen 

the relationship between the organization and its customers and stakeholders. 

The leader supports a transformational approach by collaborating and 

partnering with other VA offices and offices outside of VA to accomplish goals. 

This approach results in achieving 60% of critical actions/designated goals specific to mission and organization operating plan accomplishment by the end of 

the fiscal year. 

Forward Looking - Anticipates future needs of Veterans and VA and encourages 

organizational and individual improvement. Demonstrates commitment to the 

21st century VA by ensuring that operating plans are aligned with VA’s Strategic Plan’s strategic goals, integrated objectives, and integrated strategies. 

Alignment is strong and evident when the Department’s strategic goals and objectives are cascaded down to the specific goals of the organization. Then, the 

goals of the organization must be clearly translated into objectives and performance standards for each employee. 

In support of Sub-element 1: Transformation, the Director actively supports, promotes and implements official VA and VBA policy as interpreted by VA and VBA 

leadership. The Director regularly participates in activities and projects intended to 

further the goals of VBA. These activities typically require the contribution of local 

resources. Examples include, but are not limited to: 

• Projects at the National Level • Special ad hoc efforts 

Evaluation Method: The Director’s actions and conduct in regards to policy will 

be observed. Any failures to actively support, promote and implement official policy 

will be documented and communicated to the Director. The Director may be assigned projects during the course of the performance year. The Director and Rating 

Official will agree on clear expectations for successful completion of the project at 

the time of assignment. The size and quantity of these projects will be considered 

in light of the size of the Director’s regional office. 

Fully Successful Performance Evaluation: Meets Performance Expectations 

Performance is acceptable if there is no documented failures to support, promote, 

or implement VA or VBA policy, and the Rating Official determines that completion 

of projects and innovations is substantially equal (or equivalent) to agreed upon expectations. 

Sub-element 2: Service Delivery 

The Director leads his/her regional office in appropriate workload and human resource management aimed at achieving national and regional office-specific performance goal/targets. 

The following end products will be removed from Veteran Service Center calculations for regional offices maintaining identified special missions. 

• Milwaukee, and St. Paul Regional Offices: 019, 119, 029, 180 series, 120 series, 

140 series, 160 series, 165, 190 series, 137, 150 series, 155, 297 • Philadelphia Regional Offices: 019, 119, 029, 180 series, 120 series, 147, 160 series, 165, 190 series, 137, 150 series, 155, 297 • Winston-Salem and Salt Lake City Regional Offices: 011, 111, 021 • Winston-Salem and San Diego Regional Offices: 017, 117, 027 • Jackson Regional Office: 012, 112, 142, 022 • Louisville Regional Office: Camp Lejeune Water Contamination claims • Baltimore, Providence, and Seattle Regional Offices: Disability Evaluations System claims (689) 

Evaluation Method: Sub-element 2: Service Delivery will be evaluated based on the 

Performance Scale for each individual Service Delivery performance measure. The 

Performance Scale indicates the performance level (Outstanding, Excellent, Fully 

Successful, Minimally Successful, Unsatisfactory) for each measure assigned within 

this sub-element. 

It is important to note that the Performance Scale is specific to each performance 

measure in Sub-element 2: Service Delivery, and is not an indication of the Director’s 

final overall performance rating, or the aggregate rating for this sub-element. 

In order to provide a mechanism that allows for recognizing regional offices making considerable improvements during the course of the fiscal year, an Improvement 

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Factor is included. The Improvement Factor provides for the increase of one performance level for each performance measure that achieves a 15% improvement from the 

previous fiscal year, and the increase of two performance levels for each performance measure that achieves a 25% improvement from the previous fiscal year. The 

Improvement Factor is applied to only to individual performance measures and allows for the Director to achieve a higher evaluation, should the regional office 

achieve considerable improvement. 

An example of the Improvement Factor is as follows: 

Regional office A achieved a rating ADP of 265.0 during FY11. During FY12, the 

regional office achieved a rating ADP of 198.6. Although the regional office did not 

achieve the FY12 rating ADP target of 180.0, the regional office did improve by over 

25%. Therefore, instead of achieving minimally satisfactory performance for rating 

ADP, the regional office will have achieved excellent performance for rating ADP, 

due to the application of the Improvement Factor, which increases by two, the performance level for regional offices attaining 25% improvement, per measure, from 

the previous fiscal year. Had Regional office A only achieved an FY12 rating ADP 

of 225.3, an improvement of 15% from the previous fiscal year, the Improvement 

Factor would result in Regional office A achieving fully successful performance for 

rating ADP. 

Although not included as a performance standard metric, for which Directors will 

be evaluated, regional office-specific rating inventory indicators are established, 

which lead to the national target of 840,000. 

Additionally, the impact of workload brokering will be considered as a mitigating 

factor for regional offices that broker work in to the Veterans Service Center to address national workload needs. 

VETERAN SERVICE CENTER COMPENSATION 

Performance Measure FY12 Target O E FS MS U 

eBenefits TBD 

Homeless ADP 75.0 Less than or 

equal to 56.3 

56.4 to 63.8 63.9 to 75.0 75.1 to 93.7 Greater than 

or equal to 

93.8 

Homeless ADC 

(FYTD) 

95.0 Less than or 

equal to 71.3 

71.4 to 80.8 80.9 to 95.0 95.1 to 118.7 Greater than 

or equal to 

118.8 

Rating ADP 180.0 Less than or 

equal to 

135.0 

135.1to 153.0 153.1 to 

180.0 

180.1 to 

224.9 

Greater than 

or equal to 

225.0 

Rating ADC (FYTD) 230.0 Less than or 

equal to 

172.5 

172.6 to 

195.5 

195.6 to 

230.0 

231.1 to 

287.4 

Greater than 

or equal to 

287.5 

Control Time 7.0 Less than or 

equal to 5.3 

5.4 to 6.0 6.1 to 7.0 7.1 to 8.7 Greater than 

or equal to 

8.8 

Awaiting Development 20.0 Less than or 

equal to 15.0 

15.1 to 17.0 17.1 to 20.0 20.1 to 24.9 Greater than 

or equal to 

25.0 

Awaiting Evidence 83.0 Less than or 

equal to 62.3 

62.4 to 70.6 70.7 to 83.0 83.1 to 103.7 Greater than 

or equal to 

103.8 

Rating Decision 15.0 Less than or 

equal to 11.3 

11.4 to 12.8 12.9 to 15.0 15.1 to 18.7 Greater than 

or equal to 

18.8 

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VETERAN SERVICE CENTER COMPENSATION—Continued 

Performance Measure FY12 Target O E FS MS U 

Awaiting Award 5.0 Less than or 

equal to 3.8 

3.7 to 4.3 4.2 to 5.0 5.1 to 6.2 Greater than 

or equal to 

6.3 

Awaiting Authorization 2.0 Less than or 

equal to 1.5 

1.6 to 1.7 1.8 to 2.0 2.1 to 2.4 Greater than 

or equal to 

2.5 

Rating Accuracy 92.0% Great than or 

equal to 

98.0% 

97.9% to 

94.8% 

94.7% to 

92.0% 

91.9% to 

89.2% 

Less than or 

equal to 

89.1% 

Rating Accuracy B2 

Errors 

Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

Authorization Accuracy 98.0% Great than or 

equal to 

98.0% 

N/A N/A 97.9% to 

95.1% 

Less than or 

equal to 

95.0% 

Fiduciary Accuracy 92.0% Great than or 

equal to 

98.0% 

97.9% to 

94.8% 

94.7% to 

92.0% 

91.9% to 

89.2% 

Less than or 

equal to 

89.1% 

Date of Claim Accuracy 98.0% Great than or 

equal to 

98.0% 

N/A N/A 97.9% to 

95.1% 

Less than or 

equal to 

95.0% 

Rating Production Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

Backlog Inventory Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

Non-Rating ADP 89.0 Less than or 

equal to 66.8 

66.9 to 75.7 75.8 to 89.0 89.1 to 111.2 Greater than 

or equal to 

111.3 

NOD Timeliness 182.0 Less than or 

equal to 

136.5 

136.6 to 

154.7 

154.8 to 

182.0 

182.1 to 

227.4 

Greater than 

or equal to 

227.5 

Form 9 Timeliness 320.0 Less than or 

equal to 

240.0 

240.1 to 

272.0 

272.1 to 

320.0 

320.1 to 

399.9 

Greater than 

or equal to 

400.0 

Appeal Control Time 7.0 Less than or 

equal to 5.3 

5.4 to 6.0 6.1 to 7.0 7.1 to 8.7 Greater than 

or equal to 

8.8 

Avoidable Remand 

Rate 

15.0% Less than or 

equal to 

11.3% 

11.2% to 

12.8% 

12.7% to 

15.0% 

15.1% to 

17.3% 

Greater than 

or equal to 

17.4% 

NOD Inventory Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

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SPECIAL MISSIONS COMPENSATION (IDES) 

Baltimore, Providence, Seattle Regional Offices 

Performance Measure FY12 Target O E FS MS U 

Claims Development 

ADC (FYTD) 

10.0 Less than or 

equal to 7.5 

7.6 to 8.5 8.6 to 10.0 10.1 to 12.5 Greater than 

or equal to 

12.6 

Preliminary Rating 

ADC (FYTD) 

15.0 Less than or 

equal to 11.3 

11.4 to 12.8 12.9 to 15.0 15.1 to 18.7 Greater than 

or equal to 

18.8 

Final Rating ADC 

(FYTD) 

20.0 Less than or 

equal to 15.0 

15.1 to 17.0 17.1 to 20.0 20.1 to 25.0 Greater than 

or equal to 

25.1 

Rating Production Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

Backlog Inventory Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

SPECIAL MISSIONS COMPENSATION (PRE–DISCHARGE) 

Winston-Salem, Salt Lake City, San Diego Regional Offices 

Performance Measure FY12 Target O E FS MS U 

BDD ADC (FYTD) 72.0 Less than or 

equal to 54.0 

54.1 to 61.2 61.3 to 72.0 72.1 to 89.9 Greater than 

or equal to 

90.0 

Quick Start ADC 

(FYTD) 

138.0 Less than or 

equal to 

103.5 

103.6 to 

117.3 

117.4 to 

138.0 

138.1 to 

172.4 

Greater than 

or equal to 

172.5 

Rating Production Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

Backlog Inventory Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

SPECIAL MISSIONS COMPENSATION (RADIATION) 

Jackson Regional Office 

Performance Measure FY12 Target O E FS MS U 

Rating ADP 272.0 Less than or 

equal to 

204.0 

204.1 to 

231.2 

231.3 to 

272.0 

272.1 to 

339.9 

Greater than 

or equal to 

340.0 

Rating Production Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

Backlog Inventory Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

VACREP180 with DISTILLER

52 

SPECIAL MISSIONS COMPENSATION (D1BC) 

Philadelphia, Togus, Columbia, Huntington, Roanoke, St. Petersburg, Lincoln, Muskogee, St. Louis, St. Paul, Waco, Phoenix, San Diego, Seattle 

Regional Offices 

Performance Measure FY12 Target O E FS MS U 

Rating Production Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

Backlog Inventory Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

SPECIAL MISSIONS PENSION 

Philadelphia, Milwaukee, St. Paul Regional Offices 

Performance Measure FY12 Target O E FS MS U 

Homeless ADP 75.0 Less than or 

equal to 56.3 

56.4 to 63.8 63.9 to 75.0 75.1 to 93.7 Greater than 

or equal to 

93.8 

Homeless ADC 

(FYTD) 

95.0 Less than or 

equal to 71.3 

71.4 to 80.8 80.9 to 95.0 95.1 to 118.7 Greater than 

or equal to 

118.8 

Rating ADP 99.0 Less than or 

equal to 74.3 

74.4 to 84.2 84.3 to 99.0 99.1 to 123.7 Greater than 

or equal to 

123.8 

Rating ADC (FYTD) 115.0 Less than or 

equal to 86.3 

86.4 to 97.8 97.9 to 115.0 115.1 to 

143.6 

Greater than 

or equal to 

143.7 

EP 140 ADC (FYTD) 105.0 Less than or 

equal to 78.8 

78.9 to 89.3 89.4 to 105.0 105.1 to 

131.1 

Greater than 

or equal to 

131.2 

EP 190 ADC (FYTD) 131.0 Less than or 

equal to 98.3 

98.4 to 111.4 111.5 to 

131.0 

131.1 to 

163.6 

Greater than 

or equal to 

163.7 

Rating Production Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

Backlog Inventory Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

Non-Income ADP 89.0 Less than or 

equal to 66.8 

66.9 to 75.7 75.8 to 89.0 89.1 to 111.2 Greater than 

or equal to 

111.3 

EP 155 ADC (FYTD) 46.0 Less than or 

equal to 34.5 

34.6 to 39.1 39.2 to 46.0 46.1 to 57.5 Greater than 

or equal to 

57.8 

EP 150 ADC (FYTD) 111.0 Less than or 

equal to 83.3 

83.4 to 94.4 94.5 to 111.0 111.1 to 

138.6 

Greater than 

or equal to 

138.7 

IVM Controlled/ 

Completed 

95.0% Great than or 

equal to 

100.0% 

99.9% to 

96.9% 

96.8% to 

95.0% 

94.9% to 

90.1% 

Less than or 

equal to 

90.0% 

VACREP180 with DISTILLER

53 

SPECIAL MISSIONS PENSION—Continued 

Philadelphia, Milwaukee, St. Paul Regional Offices 

Performance Measure FY12 Target O E FS MS U 

Entitlement Accuracy 98.0% Great than or 

equal to 

98.0% 

N/A N/A 97.9% to 

95.1% 

Less than or 

equal to 

95.0% 

Authorization Accuracy 98.0% Great than or 

equal to 

98.0% 

N/A N/A 97.9% to 

95.1% 

Less than or 

equal to 

95.0% 

Date of Claim Accuracy 98.0% Great than or 

equal to 

98.0% 

N/A N/A 97.9% to 

95.1% 

Less than or 

equal to 

95.0% 

NOD Timeliness 182.0 Less than or 

equal to 

136.5 

136.6 to 

154.7 

154.8 to 

182.0 

182.1 to 

227.4 

Greater than 

or equal to 

227.5 

Form 9 Timeliness 320.0 Less than or 

equal to 

240.0 

240.1 to 

272.0 

272.1 to 

320.0 

320.1 to 

399.9 

Greater than 

or equal to 

400.0 

Appeal Control Time 7.0 Less than or 

equal to 5.3 

5.4 to 6.0 6.1 to 7.0 7.1 to 8.7 Greater than 

or equal to 

8.8 

NOD Inventory Regional 

Office 

25.0% better 24.9% to 

15.0% better 

14.9% to 

Regional 

office Target 

14.8% to 

24.9% worse 

25.0% worse 

SPECIAL MISSIONS FIDUCIARY 

Indianapolis, Columbia, Louisville, Lincoln, Milwaukee, Salt Lake City Regional Offices 

Performance Measure FY12 Target O E FS MS U 

Fid-Ben Appts. 

Pending <= 120 

days 

90.0% Great than or 

equal to 

98.0% 

97.9% to 

94.5% 

94.6% to 

90.0% 

89.9% to 

82.1% 

Less than or 

equal to 

82.0% 

Fid-Ben Appts. Processed <= 120 days 

(FYTD) 

92.0% Great than or 

equal to 

98.0% 

97.9% to 

94.8% 

94.7% to 

92.0% 

91.9% to 

89.2% 

Less than or 

equal to 

89.1% 

Initial Appts. Pending <= 45 days 90.0% Great than or 

equal to 

98.0% 

97.9% to 

94.5% 

94.6% to 

90.0% 

89.9% to 

82.1% 

Less than or 

equal to 

82.0% 

Initial Appts. Processed <= 45 days 

(FYTD) 

92.0% Great than or 

equal to 

98.0% 

97.9% to 

94.8% 

94.7% to 

92.0% 

91.9% to 

89.2% 

Less than or 

equal to 

89.1% 

Accountings Reviewed within 14 

days 

94.0% Great than or 

equal to 

98.0% 

97.9% to 

96.0% 

95.9% to 

94.0% 

93.9% to 

90.1% 

Less than or 

equal to 

90.0% 

Accountings not Seriously Delinquent 95.0% Great than or 

equal to 

98.0% 

97.9% to 

96.5% 

96.6% to 

95.0% 

94.9% to 

92.1% 

Less than or 

equal to 

92.0% 

VACREP180 with DISTILLER

54 

SPECIAL MISSIONS NATIONAL CALL CENTER (NCC, PNCC, ECC) 

Cleveland, Philadelphia, Columbia, Nashville, Muskogee, St. Louis, Phoenix, Salt Lake City Regional Offices 

Performance Measure FY12 Target O E FS MS U 

Overall Call Quality 82.5% Great than or 

equal to 

90.8% 

90.7% to 

86.6% 

86.5% to 

82.5% 

82.1% to 

78.4% 

Less than or 

equal to 

78.3% 

Technical Quality 75.0% Great than or 

equal to 

82.5% 

82.4% to 

78.8% 

78.7% to 

75.0% 

74.9% to 

71.3% 

Less than or 

equal to 

71.2% 

Courtesy/ Professionalism 90.0% Great than or 

equal to 

98.0% 

97.9% to 

94.1% 

94.0% to 

90.0% 

89.9% to 

86.0% 

Less than or 

equal to 

85.9% 

Avg. Wait Time (seconds) 240.0 Less than or 

equal to 

180.0 

180.1 to 

204.0 

204.1 to 

240.0 

240.1 to 

299.8 

Greater than 

or equal to 

299.9 

Client Satisfaction 720.0 Great than or 

equal to 

900.0 

899.9 to 

828.0 

827.9 to 

720.0 

719.9 to 

612.0 

Less than or 

equal to 

611.9 

Agent Availability 

Rate 

70.0% Great than or 

equal to 

73.5% 

73.4% to 

71.8% 

71.7% to 

70.0% 

69.9% to 

68.3% 

Less than or 

equal to 

68.2% 

SPECIAL MISSIONS IRIS RESPONSE CENTER 

Salt Lake City Regional Offices 

Performance Measure FY12 Target O E FS MS U 

Accuracy 85.0% Great than or 

equal to 

98.0% 

97.9% to 

91.5% 

91.4% to 

85.0% 

84.9% to 

78.6% 

Less than or 

equal to 

78.5% 

Timeliness 5.0 Less than or 

equal to 3.8 

3.7 to 4.3 4.2 to 5.0 5.1 to 6.2 Greater than 

or equal to 

6.3 

VOCATIONAL REHABILITATION & EMPLOYMENT 

Performance Measure FY12 Target O E FS MS U 

Rehab Rate 77.0% Great than or 

equal to 

90.0% 

89.9% to 

83.2% 

83.1% to 

77.0% 

76.9% to 

70.8% 

Less than or 

equal to 

70.7% 

Rehab Rate (San 

Juan) 

70.0% Great than or 

equal to 

81.8% 

81.7% to 

75.6% 

75.5% to 

70.0% 

69.9% to 

64.4% 

Less than or 

equal to 

64.3% 

S.E.H. Rehab Rate 77.0% Great than or 

equal to 

90.0% 

89.9% to 

83.2% 

83.1% to 

77.0% 

76.9% to 

70.8% 

Less than or 

equal to 

70.7% 

S.E.H. Rehab Rate 

San Juan) 

70.0% Great than or 

equal to 

81.8% 

81.7% to 

75.6% 

75.5% to 

70.0% 

69.9% to 

64.4% 

Less than or 

equal to 

64.3% 

Actual Rehabs TBD 

VACREP180 with DISTILLER

55 

VOCATIONAL REHABILITATION & EMPLOYMENT—Continued 

Performance Measure FY12 Target O E FS MS U 

Outcome Accuracy 97.0% Great than or 

equal to 

98.0% 

97.9% to 

97.0% 

Less than or 

equal to 

96.0% 

Avg. Days to Entitlement 45.0 Less than or 

equal to 33.8 

33.9 to 38.3 38.4 to 45.0 45.1 to 56.2 Greater than 

or equal to 

56.3 

Interrupted Status 11.0% Less than or 

equal to 

9.9% 

10.0% to 

10.5% 

10.6% to 

11.0% 

11.1% to 

11.5% 

Greater than 

or equal to 

11.6% 

Avg. Days Evaluation 

& Planning Status 

105.0 Less than or 

equal to 78.8 

78.9 to 89.3 89.4 to 105.0 105.1 to 

131.1 

Greater than 

or equal to 

131.2 

Fiscal Accuracy 92.0% Great than or 

equal to 

98.0% 

97.9% to 

94.8% 

94.7% to 

92.0% 

91.9% to 

89.2% 

Less than or 

equal to 

84.6% 

EPRSA Accuracy 85.0% Great than or 

equal to 

93.5% 

93.4% to 

89.3% 

89.2% to 

85.0% 

84.9% to 

76.5% 

Less than or 

equal to 

76.4% 

MRG Accuracy 90.0% Great than or 

equal to 

98.0% 

97.9% to 

94.1% 

94.0% to 

90.0% 

89.9% to 

86.0% 

Less than or 

equal to 

85.9% 

Employment Rehab 

Rate 

75.0% Great than or 

equal to 

82.5% 

82.4% to 

78.8% 

78.7% to 

75.0% 

74.9% to 

71.3% 

Less than or 

equal to 

71.2% 

Employment Rehab 

Rate (San Juan) 

70.0% Great than or 

equal to 

77.0% 

76.9% to 

73.5% 

73.4% to 

70.0% 

69.9% to 

66.5% 

Less than or 

equal to 

66.4% 

EDUCATION 

Buffalo, Atlanta, Muskogee, St. Louis Regional Offices 

Performance Measure FY12 Target O E FS MS U 

ADC (FYTD) Originals 23.0 Less than or 

equal to 17.3 

17.4 to 19.6 19.7 to 23.0 23.1 to 28.7 Greater than 

or equal to 

28.8 

ADC (FYTD) 

Supplementals 

12.0 Less than or 

equal to 9.0 

9.1 to 10.2 10.3 to 12.0 12.1 to 15.0 Greater than 

or equal to 

15.1 

Payment Accuracy 97.0% Great than or 

equal to 

98.0% 

Great than or 

equal to 

97.5% 

97.4% to 

97.0% 

96.9% to 

95.1% 

Less than or 

equal to 

95.0% 

LOAN GUARANTY 

Cleveland, Manchester, Atlanta, Roanoke, St. Petersburg, Houston, St. Paul, Denver, Honolulu, Phoenix Regional Offices 

Performance Measure FY12 Target O E FS MS U 

Full Reviews 10.0% Great than or 

equal to 

12.5% 

12.4% to 

11.5% 

11.4% to 

10.0% 

10.1% to 

7.6% 

Less than or 

equal to 

7.5% 

VACREP180 with DISTILLER

56 

LOAN GUARANTY—Continued 

Cleveland, Manchester, Atlanta, Roanoke, St. Petersburg, Houston, St. Paul, Denver, Honolulu, Phoenix Regional Offices 

Performance Measure FY12 Target O E FS MS U 

Reviews Timely 95.0% Great than or 

equal to 

98.0% 

97.9% to 

96.5% 

96.6% to 

95.0% 

94.9% to 

92.1% 

Less than or 

equal to 

92.0% 

LAPP Reviews TBD Great than or 

equal to 

Less than or 

equal to 

SAPP Reviews TBD Great than or 

equal to 

Less than or 

equal to 

10% Field Reviews 95.0% Great than or 

equal to 

98.0% 

97.9% to 

96.5% 

96.6% to 

95.0% 

94.9% to 

92.1% 

Less than or 

equal to 

92.0% 

Initial SAH Reviews 90.0% Great than or 

equal to 

98.0% 

97.9% to 

94.1% 

94.0% to 

90.0% 

89.9% to 

86.0% 

Less than or 

equal to 

85.9% 

AOS Timely 95.0% Great than or 

equal to 

98.0% 

97.9% to 

96.5% 

96.6% to 

95.0% 

94.9% to 

92.1% 

Less than or 

equal to 

92.0% 

Non-Routine ACQ 

Timely 

95.0% Great than or 

equal to 

98.0% 

97.9% to 

96.5% 

96.6% to 

95.0% 

94.9% to 

92.1% 

Less than or 

equal to 

92.0% 

Loan Production 95.0% Great than or 

equal to 

98.0% 

97.9% to 

96.5% 

96.6% to 

95.0% 

94.9% to 

92.1% 

Less than or 

equal to 

92.0% 

Construction & Valuation 95.0% Great than or 

equal to 

98.0% 

97.9% to 

96.5% 

96.6% to 

95.0% 

94.9% to 

92.1% 

Less than or 

equal to 

92.0% 

Special Adapted 

Housing 

95.0% Great than or 

equal to 

98.0% 

97.9% to 

96.5% 

96.6% to 

95.0% 

94.9% to 

92.1% 

Less than or 

equal to 

92.0% 

Loan Administration 95.0% Great than or 

equal to 

98.0% 

97.9% to 

96.5% 

96.6% to 

95.0% 

94.9% to 

92.1% 

Less than or 

equal to 

92.0% 

INSURANCE 

Philadelphia Regional Office 

Performance Measure FY12 Target O E FS MS U 

Client Satisfaction 98.0% Great than or 

equal to 

98.0% 

N/A N/A 97.9% to 

95.1% 

Less than or 

equal to 

95.0% 

RECORDS MANAGEMENT CENTER 

Performance Measure FY12 Target O E FS MS U 

PIES Turnaround 

Time 

25.0 Less than or 

equal to 18.8 

18.9 to 21.3 21.4 to 25.0 25.1 to 31.2 Greater than 

or equal to 

31.3 

VACREP180 with DISTILLER

57 

RECORDS MANAGEMENT CENTER—Continued 

Performance Measure FY12 Target O E FS MS U 

PIES % over 180 

days 

5.0% Less than or 

equal to 

3.8% 

3.9% to 

4.3% 

4.4% to 

5.0% 

5.1% to 

6.2% 

Greater than 

or equal to 

6.3% 

APPEALS MANAGEMENT CENTER 

Performance Measure FY12 Target O E FS MS U 

Accuracy 90.0% Great than or 

equal to 

98.0% 

97.9% to 

94.5% 

94.6% to 

90.0% 

89.9% to 

82.1% 

Less than or 

equal to 

82.0% 

Homeless ADP 70.0 Less than or 

equal to 52.5 

52.6 to 59.5 59.6 to 70.0 70.1 to 87.4 Greater than 

or equal to 

87.5 

Inventory 17,500 Less than or 

equal to 

131,125 

13126 to 

14,875 

14,876 to 

17,500 

17,501 to 

21,857 

Greater than 

or equal to 

21,858 

% Pending > 2 

Years 

0.0% Great than or 

equal to 

0.0% 

N/A N/A 1.0% to 

1.9% 

Less than or 

equal to 

2.0% 

% Pending > 1 Year 10.0% Less than or 

equal to 

7.5% 

7.6% to 

8.5% 

8.6% to 

10.0% 

10.1% to 

11.5% 

Greater than 

or equal to 

11.6% 

% Past Due 8.0% Less than or 

equal to 

6.0% 

6.1% to 

6.8% 

6.9% to 

8.0% 

8.1% to 

9.2% 

Greater than 

or equal to 

9.3% 

ADP 160.0 Less than or 

equal to 

120.0 

120.1 to 

136.0 

136.1 to 

160.0 

160.1 to 

199.8 

Greater than 

or equal to 

199.9 

ADC (FYTD) 270.0 Less than or 

equal to 

202.5 

202.6 to 

229.5 

229.6 to 

270.0 

270.1 to 

337.2 

Greater than 

or equal to 

337.3 

Congressionals 

Pending 

10 Less than or 

equal to 7 

Less than or 

equal to 9 

10 Less than or 

equal to 11 

Greater than 

or equal to 

12 

Congressionals 

Pending > 30 days 

0 0 0 0 2 5 

Production 30,000 Less than or 

equal to 

22,500 

22,501 to 

25,500 

25,501 to 

30,000 

30,001 to 

37,470 

Greater than 

or equal to 

37,471 

% Control Time <= 

7 days 

85.0% Great than or 

equal to 

93.5% 

93.4% to 

89.3% 

89.1% to 

85.0% 

84.9% to 

80.8% 

Less than or 

equal to 

80.7% 

Remand Rate 10.0% Less than or 

equal to 

7.5% 

7.6% to 

8.5% 

8.6% to 

10.0% 

10.1% to 

12.5% 

Greater than 

or equal to 

12.6% 

B. Additional Priorities 

Additional priorities, not specifically identified in this document, which may be established by VA Leadership, will also be used to evaluate performance in Element 

I. 

VACREP180 with DISTILLER

58 

Fully Successful—Meets Performance Expectations 

II. Workplace Responsibilities (Critical Element) 

Weight: 15% 

In support of Strategic Goals: 1, 3, 4 

In support of Integrated Strategies: 1c, 3a, 3b, 3c, 3d 

Where appropriate, the Director promotes and maintains an effective labor-management relations program. Creates and maintains a working environment that is 

free of discrimination and one that assures diversity and inclusion in the workplace. 

Ensures that plans exist and are adequately implemented to recruit, select, train, 

coach, retain, motivate, empower, and advance employees; and promotes the needs 

and goals of the individual and the organization. Provides a safe, healthy work environment. Appropriately appraises, rewards and addresses employee performance 

and conduct deficiencies. The following performance indicators identify professional 

behavior and outcomes that may occur during the course of a rating cycle. The Rating Official may consider any combination of these indicators—or any other indicators as appropriate—to support the evaluation performance. 

1. Maintain a healthy and safe work environment; 

2. Ensure that the determination process used to identify the ‘‘Best Qualified’’ 

candidates is effective and that selections are made from this pool of candidates; 

3. Promote workforce diversity through their recruitment, coaching and developmental activities, consistent with merit system principles; 

4. Retain highly qualified employees; 

5. Implement and communicate the performance plans for each of their employees, and inform them as to their progress in relation to their individual performance plans; 

6. Use the performance recognition system to reward employees and improve 

productivity; 

7. Respond to employees who exhibit performance or conduct deficiencies; 

8. Ensure that the organization’s training requirements are met and that employees receive training that supports their professional growth; 

9. Implement professional developmental strategies that enhance the organization’s recruiting strategies or existing workforce. 

10. Provide employees with transitional, coaching or mentoring support that increase the employees’ likelihood of success; 

11. Maintain effective communications and working relationships with labor 

representatives, to include exploration and implementation of cooperative labor 

management forums as outlined under Director Order 13522. 

12. Participate in the organization’s workforce planning, innovative recruiting, 

or development of effective interviewing strategies, as applicable. 

Evaluation Method: EEO, Diversity and Inclusion 

(Ensures compliance with applicable equal employment opportunity (EEO) laws, 

regulations, Director Orders, Management Directives, and VA policies; promptly addresses allegations of discrimination and retaliation; engages in early conflict management and alternative dispute resolution (ADR); and advances the goals of the VA 

Diversity and Inclusion Strategic Plan, including meeting the Secretary’s two percent hiring goal for individuals with targeted disabilities.) 

Fully Successful Performance Evaluation: Meets expectations for EEO Compliance, and specifically, the actions addressed below: 

1. Within five business days of issuance, posts and disseminates VA’s EEO, Diversity, and No FEAR Policy Statement. Responds to requests for information 

related to EEO complaints within five business days. 

2. Processes and provides effective reasonable accommodations within 30 days 

from request and in accordance with VA Directive 5975.1. Within the performance cycle, at least 50 percent of the time, complaints are resolved at the informal stage. 

3. Complies promptly and effectively with EEO and ADR settlement agreements and corrective actions ordered by the Equal Employment Opportunity 

Commission and final agency decisions. 

4. By September 30, ensures compliance, as follows, for mandatory EEO-related 

training: 

• At least 90% of all employees complete the biennial No FEAR training requirement; new hires will complete training within 90 days of hire and every 

2 years thereafter; and 

VACREP180 with DISTILLER

59 

• At least 90 percent of supervisors/managers complete mandatory on-line 

EEO, Diversity, and Conflict Management training 

Performance is acceptable if there are no documented instances where, based on 

objective findings, the Director failed to meet the stated expectation and where no 

mitigating circumstance exists. 

Evaluation Method: Early Conflict Management and Alternative Dispute Resolution 

Fully Successful Performance Evaluation: Meets expectations, and specifically, the 

actions addressed below: 

1. By September 30, collaborates with key stakeholders, i.e., labor, human resources, general/regional counsel, and develops and implements an ADR program that is widely communicated and marketed to the workforce. If an ADR 

program exists, the program is marketed and communicated to the workforce 

on a quarterly basis. 

2. On a quarterly basis, evaluates the use of and satisfaction with the ADR program and monitors positive and negative trends impacting the program. Develops and implements action plans to address negative trends; i.e., low participation - below 48%, low ADR resolution - below 50%, high ADR processing time 

- more than 60 calendar days. 

Performance is acceptable if there are no documented instances where, based on 

objective findings, the Director failed to meet the stated expectation and where no 

mitigating circumstance exists. 

Evaluation Method: Workforce Diversity and Inclusion 

Fully Successful Performance Evaluation: Meets expectations, and specifically, the 

actions addressed below: 

1. Within agreed upon timeframes, submits Federally mandated EEO reports 

(e.g., MD 715, FEORP, DVAAP, etc.) that contain accurate, comprehensive, and 

meaningful accomplishments, along with measureable goals and objectives. 

2. By September 30, participates in at least two targeted outreach events to increase diversity in the applicant pool or two special emphasis programs to support workforce diversity and inclusion initiatives. 

3. On an ongoing basis, actively supports VA Diversity Council and implemented initiatives to support work/life balance. 

4. By September 30, meets Secretary’s two percent hiring goal and VA’s two 

percent on-board representation goal for individuals with targeted disabilities. 

5. By September 30, demonstrates measurable progress in implementing the 

goals of the VA Diversity and Inclusion Strategic Plan. 

Performance is acceptable if there are no documented instances where, based on 

objective findings, the Director failed to meet the stated expectation and where no 

mitigating circumstance exists. 

Evaluation Method: Hiring Reform 

Fully Successful Performance Evaluation: Meets expectations to support OPM’s 

Hiring Reform Initiative, and specifically, the action addressed below: 

Implements recruitment, retention, and developmental strategies that support organizational performance objectives, agency hiring goals, and successful transition 

of highly qualified employees into Federal service or new positions. 

Ensures subordinate supervisors (if applicable) meet all timeframes and deadlines 

established for supervisors in the Agency’s recruitment and hiring plan. 

III. Program Integrity (Critical element) 

Weight: 10% 

In support of Strategic Goals: 3 

In support of Integrated Strategies: 1a, 1c, 3a, 3e 

Sub-element 1: Compliance 

The Director will lead his or her regional office to ensure compliance with VBA’s 

program integrity directives. The Director is responsible to ensure that program integrity initiatives and policies are implemented, assessed through an effective internal control process, and adjusted as necessary to achieve appropriate results. 

Evaluation Method: Adherence to IG Recommendations applicable to VAROs as 

outlined in VBA Letter 20–99–68, Adherence to VBA Program Integrity Directives. 

Fully Successful Performance Evaluation: Meets Expectations 

Sub-element 2: Information Security 

Directors must exercise due diligence in their efforts to plan, develop, coordinate 

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tive information security procedures as identified by the Office of Management and 

Budget (OMB), the National Institute of Standards and Technology, VA policies, and 

VBA policy and guidance documents Directors must improve internal communications and information security requirements and reiterate responsibilities to employees. Fully Successful Performance Evaluation: Meets expectations to support Information Security, and specifically, the action addressed below: 

Performance will be satisfactory if all required program integrity safeguards are 

implemented, monitored and on-site reviews do not reveal critical flaws in oversight 

of program integrity issues. In addition, the Director is responsible for: 

1. Ensuring that Information System (IS) security plans that safeguard systems 

within their authority exist and are implemented in accordance with NIST and 

OMB guidelines. 

2. Ensuring that all operations under their authority prepare, document, test 

and maintain IT contingency plans (i.e. COOP, BCCP). 

3. Ensuring that annual risk assessments are conducted for each identified IS 

(applications, hardware, software, etc.) within their jurisdiction to ensure that 

the identified risks, vulnerabilities, and threats are adequately addressed by 

appropriate security controls. 

4. Ensuring that all employees comply with departmental training requirements and are trained to understand their information security responsibilities. 

5. Complying with established procedures for detecting, reporting and responding to information security incidents. 

6. Improve internal communications of privacy and information security requirements and policy adherence, and reiterate responsibilities to employees. 

7. By 30 September, 100% of employees receive Privacy training. New employees receive the training 90 days from their appointment date. This measure is 

tracked and reported by the CIO. 

8. By 30 September, 100% of employees receive Cyber Security training. This 

measure is tracked and reported by the CIO. 

Performance is acceptable if there are no documented instances where, based on 

objective findings, the Director failed to meet the stated expectation and where no 

mitigating circumstance exists 

Evaluation Method: Ensure accountability and control of government property. 

Fully Successful Performance Evaluation: Meets expectations to ensure sensitive 

data is neither mismanaged nor used for any unauthorized purpose, and specifically, 

the action addressed below: 

1. By 30 September, conducts annual risk assessments and inventory of property to ensure 95% accountability in accordance with VA policy. 

Performance is acceptable if there are no documented instances where, based on 

objective findings, the Director failed to meet the stated expectation and where no 

mitigating circumstance exists 

IV. External Relations (Non-critical element) 

Weight: 5% 

In support of Strategic Goals: 2 

In support of Integrated Strategies: 1e, 2a, 2b, 2d, 3a 

Evaluation Method: The director builds effective, productive relationships with organizations external to VBA in order to further VA’s goals and interests. Enhances 

external satisfaction by handling complaints effectively and promptly and ensures 

a veteran focus in direction and daily work. Uses veteran and other stakeholder 

feedback in planning and providing services and encourages subordinates to meet 

or exceed veteran and stakeholder needs and expectations. Examples of activities, 

include, but are not limited to the following. 

1. Work on a Federal Director Board project 

2. Participation in VISN meetings 

3. Relations with the media, congressional offices and service organizations 

4. Engage in ongoing outreach activities (i.e., stand-downs, POW outreach, etc.) 

to ensure targeted populations of veterans are appropriately served (Strategic 

Goal 3.2) 

Fully Successful Performance Evaluation: Meets expectations to maintain an effective means to receive, evaluate and resolve veteran and stakeholder feedback. 

Tracks data to identify and correct issues. Performance is acceptable if the rater receives no more than 2 sustained complaints based on failure to effectively and 

promptly address needs of external organizations. 

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V. Acquisition Process (Non-critical element) 

Weight: 5% 

In support of Strategic Goals: 1 

In support of Integrated Strategies: 1d, 3d, 3e 

Ensures the Department-wide Small Business Program Goals for Small Businesses, Small Disadvantaged Businesses, Women-Owned Small Businesses, ServiceDisabled Veteran-Owned Small Businesses, Veteran-Owned Small Businesses and 

Historically Underutilized Business (HUB) Zone Small Businesses, are considered in 

VBA acquisitions. 

Evaluation Method: Periodic review of acquisition packages. 

Fully Successful Performance Evaluation: Meets expectations to support the acquisitions process through Department-wide Small Business Program Goals by ensuring acquisitions are directed to appropriate sources. 

VI. Action Plans – All Employee Survey (Non-critical element) 

Weight: 5% 

Develops, implements and successfully completes an action plan methodology to 

address All-Employee Survey results, to include: 

• Identified issues • Actions • Target Dates • Responsible Parties • Expected Outcomes • Accomplishments since last update • Linkage to other organizational initiatives • Status 

Evaluation Method: Periodic review of progress towards goals outlined in action 

plan 

Fully Successful Performance Evaluation: Meets performance expectations expected outcomes and accomplishments since last update. 

Prepared by: Office of Field Operations 

Distributed: October 14, 2011 

f 

Materials Submitted For The Record 

Setting up an eBenefits Account 

eBenefits is a joint VA/DoD web portal that provides resources and self-service capabilities to Veterans, Servicemembers, and their families to research, access and 

manage their VA and military benefits and personal information. eBenefits uses secure credentials to allow access to personal information and gives users the ability 

to perform numerous self-service functions. It also provides links to other sites that 

provide information about military and Veterans benefits. Some of the self-service 

features in eBenefits allow users to: access official military personnel documents; 

view the status of a disability compensation claim; transfer entitlement of Post-9/ 

11 GI Bill to eligible dependents (Servicemembers only); and register for and update 

direct deposit information for certain benefits. 

eBenefits is located at www.ebenefits.va.gov. To register for an eBenefits account, 

users must be listed in the Defense Enrollment Eligibility Reporting System 

(DEERS) and first obtain a DoD Self-service (DS) Logon. A DS Logon is a secure 

identity (username and password) that is used by various DoD and VA web sites. 

If a user is already registered in DEERS, they are eligible for a DS Logon, which 

does not have an expiration date. If an individual attempts to register without a 

DEERS record, the Department of Veterans Affairs (VA) will first verify military 

service and add the individual to DEERS. This occurs most often among Veterans 

who served prior to 1982. Individuals should contact a VA regional office for assistance in being added to DEERS or call our National Call Center at 1–800–827–1000. 

Registration for an eBenefits account online can be done using the eBenefits DS 

Logon Account Self-Registration Wizard. There are two types of registration, Basic 

and Premium. Users will be walked through a series of questions to assist in obtaining a Premium eBenefits Account, which provides the highest level of access to 

eBenefits features. With a Premium Account, users can view personal data in VA 

and DoD systems, apply for benefits online, check the status of a claim, update address records, and complete other actions. 

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Servicemembers may register online by using their Common Access Card. Military 

retirees may verify their identity online using their Defense Finance and Accounting 

Service (DFAS) Logon. For those unable to verify their identity online, they will instantly receive a Basic Account, which allows users to customize the site and access 

information entered into eBenefits; however, personal information from VA and DoD 

systems cannot be viewed. 

Additionally, Veterans in receipt of VA benefits via direct deposit may have their 

identity verified by calling 1–800–827–1000 and selecting option 7. My HealtheVet 

users may use their secure My HealtheVet identity to obtain an eBenefits account. 

Others may need to visit a VA regional office or TriCare Service Center to have 

their identity verified in person. 

Benefits Assistance Service 

July 2012 

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Claim Status Availability in eBenefits 

Veterans have been able to view the status of claims within eBenefits since April 

2010. This is the most popular self-service feature within eBenefits, receiving over 

9.1 million views to date. 

Claim status is divided into specific phases that reflect where the claim is in the 

process, how long the Veteran can anticipate the claim should remain in each phase, 

and ultimately a timeframe for completion as shown below. Timeframes are calculated based on the type of claim filed and are specific to each regional office. 

Prepared by Benefits Assistance Service 

September 24, 2012 

Æ 

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