VA Federal Supply Schedule Contracts

Using information from previous contract audits, the VA Office of Inspector General (OIG) identified ways to help ensure VA gets the best possible prices when buying medical supplies, equipment, pharmaceuticals, and services through the VA Federal Supply Schedule (VA FSS) program. The VA FSS program manages about $25 billion in annual purchases for VA and other federal agencies.

As part of its mission to prevent fraud, waste, and abuse, the OIG identified two key opportunities for improvement. First, VA FSS can strengthen guidance for vendors on how to track and adjust government prices to align with competitive commercial pricing. The current process relies on comparing government prices to a vendor identified commercial tracking customer. The OIG found that depending on a single tracking customer may not always give VA the strongest price protection. Clearer, updated guidance would help ensure vendors provide pricing information that better reflects the commercial marketplace.

Second, the VA FSS program could improve contract instructions for dealers and resellers without significant commercial sales. These vendors rely on manufacturers for pricing data, but they are not currently required to submit manufacturer disclosures. Updating the instructions would help VA verify pricing and avoid overpaying over the life of a contract.

A third issue, discussed with VA FSS officials in January 2026, has already been resolved.

VA FSS officials established a new vendor self-audit disclosure process in February 2026, allowing vendors to report their own pricing errors or noncompliance and propose refunds. This new process will support VA’s efforts to safeguard taxpayer dollars and recover funds when necessary. The OIG asked VA FSS officials to report back on actions taken to address the remaining issues and to continue improving pricing safeguards and prevent wasting taxpayer dollars.