H.R. 3494 — VA Hospital Inventory Management System Authorization Act

This section authorizes the Secretary of Veterans Affairs to purchase or develop for the Veterans Health Administration (VHA) a cloud-based information technology system for managing inventory, including expendable and nonexpendable items, and to implement such system. If the Secretary purchases or develops the system, the section requires a pilot program at one VHA facility—designed to assess system functions—prior to VHA-wide implementation and directs completion of implementation no later than three years after enactment. The section prohibits exercising this authority until the Secretary submits to the House and Senate Committees on Veterans’ Affairs a report including (1) a comprehensive supply chain strategy, as recommended in the March 24, 2021, GAO report titled “VA Acquisition Management: Comprehensive Supply Chain Management Strategy Key to Address Existing Challenges” (GAO–21–445T), with success metrics, a data standardization plan, and staffing models; (2) a cost estimate and implementation schedule for the VA supply chain modernization program; (3) a staffing assessment of the supply chain and IT modernization workforces, including monthly gains and losses since October 1, 2022, current levels as of enactment, and estimated future requirements disaggregated by workforce; and (4) an independent assessment of the Secretary’s review of the supply chain modernization program’s failures.