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Status of Medical Equipment and Other Non-Construction Items Purchased for Primary Healthcare Centers

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Audit rept.

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In July 2006, the Special Inspector General for Iraq Reconstruction SIGIR issued a report on medical equipment purchased by Parsons Delaware, Inc., in support of a contract, also issued to Parsons, to construct 150 primary health care centers PHC throughout Iraq. The executing contractors name was changed to Parsons Global Services, Inc., hereafter Parsons by a contract amendment on April 8, 2005. In addition to the construction, Parsons was to purchase 150 sets of equipment for the clinics plus one set for a medical training facility for a total of 151 sets, install the equipment in each of the PHCs, provide training on the equipment, and provide a 12-month warranty, at a definitized cost of 70.4 million. However, between September 8, 2005, and March 3, 2006, the U.S. Government made a series of decisions to cease construction on many of the PHCs and the number of PHCs to be completed by Parsons was contractually reduced from 150 to 20 facilities. Although GRDs contract to construct PHC facilities through Parsons was significantly reduced, the overall PHC construction requirement remained. GRD procured medical equipment sets based on this overall requirement. To its credit, GRD did arrange to have the medical equipment sets, furniture, and consumables delivered to storage facilities, thus reducing an extremely high risk of pilferage and susceptibility to damage. In April 2006, we issued an interim audit report to alert management of concerns we had on how that medical equipment would be accepted, stored, secured, and used. Our July report also expressed concerns about the effect prolonged storage would have on the equipment warranty. This report updates the status of the medical equipment and discusses our review of controls over and use of medical consumables and other non-construction purchases for the PHC project, which has been subject to delay and de-scoping.

Subject Categories:

  • Administration and Management
  • Medical Facilities, Equipment and Supplies

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