Veterans' Dept. Cancels Plan to Outsource Benefits

The Department of Veterans Affairs has abandoned a controversial plan to outsource the processing of the new GI Bill education benefits, after some veterans' groups and members of Congress complained.

The department said it had decided to develop a claims-processing system in house because it had not received enough proposals from the private sector. James B. Peake, secretary of veterans affairs, blamed the shortage of bids on "external misconceptions as to the scope of the work

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