A Summary of OIG Preaward Contract Reports Issued in Fiscal Years 2022 and 2023 on VA Federal Supply Schedule Nonpharmaceutical Proposals

The OIG reviews nonpharmaceutical proposals submitted to the VA National Acquisition Center for Federal Supply Schedule (FSS) contracts to help VA negotiate fair and reasonable prices for the government and taxpayers. VA contracting officers can use OIG price recommendations on submitted proposals to negotiate better prices than those offered. This report summarizes the 43 preaward reports provided to VA contracting officers by the OIG during fiscal years (FYs) 2022 and 2023 on nonpharmaceutical FSS proposals. Altogether the reviewed proposals covered six supply schedules, had a cumulative estimated contract value of approximately $1.6 billion for FY 2022 and $1.2 billion for FY 2023, and involved 41,398 offered items. Contract negotiations for 40 of the 43 nonpharmaceutical proposals had been completed as of May l, 2024, and the OIG’s recommendations collectively assisted contracting officers in obtaining $49 million in contract savings for VA over the life of the contracts.

The OIG assessed the proposals to determine if they were accurate, complete, and current in terms of (1) commercial sales practice disclosures, (2) pricing based on the sales practices, and (3) identification of appropriate tracking customers, which serve as a benchmark for potential price reductions throughout the contract term: if tracking customers receive a price reduction, the government’s price should also be reduced. This report provides summary information about prior recommendations made to VA on the 43 proposals and does not propose any additional recommendations to VA.