The OIG receives requests from VA’s National Acquisition Center to validate vendors’ data and compliance with Federal Supply Schedule (FSS) contract terms and conditions. The VA FSS program supports the acquisition needs of VA and other government agencies for medical equipment, supplies, pharmaceuticals, and services by contracting with vendors that provide the items at a discount. The OIG reports its findings to the National Acquisition Center, but the reports are not published because they contain sensitive commercial information.
This report summarizes 20 reports the OIG issued to the National Acquisition Center in fiscal years (FYs) 2023 and 2024. The report presents overall findings in three areas: vendors’ compliance with FSS terms and conditions, noncompliance that could be pursued under the False Claims Act, and net overcharges to the government. In the 20 reports, the OIG identified overbillings and noncompliance with the price adjustment clause, the price reductions clause, the industrial funding fee and sales reporting clause, and the trade agreements clause, as well as with the Veterans Health Care Act of 1992 and shipping charges. The OIG issued two False Claims Act reports in FY 2023 and determined the impact to the government was $13,833,997 in overcharges, of which VA was able to recover about $13,418,977. Finally, the OIG calculated about $20.1 million in overall net overcharges to the government.
Federal agencies purchased about $18.9 billion in products and services through VA’s FSS program during FY 2023 and $21.4 billion in FY 2024. The OIG’s findings and recommendations helped VA collect about $19.5 million in net overcharges (97 percent of the about $20.1 million).
