A Summary of OIG Preaward Contract Reports Issued in Fiscal Year 2025 on VA Federal Supply Schedule Nonpharmaceutical Proposals

The federal government spends billions of dollars annually on medical supplies and services through the VA Federal Supply Schedule (FSS) program. As part of ongoing oversight to combat fraud, waste, and abuse, the OIG examines individual nonpharmaceutical proposals submitted by commercial contractors for FSS contracts with an anticipated annual value of $3 million or more, with an anticipated annual value of $500,000 or more for dealers or resellers without significant sales to the general public, and when VA has requested a review. The OIG’s oversight helps VA contracting officers negotiate fair and reasonable prices for the government and taxpayers. While OIG price recommendations can inform negotiations, there is no guarantee the government will receive the recommended price. To promote transparency, this report summarizes the 12 preaward reports OIG provided to VA contracting officers in fiscal year 2025 for nonpharmaceutical FSS proposals. These reports covered three supply schedules, had a cumulative estimated contract value of about $814 million, and involved 12,246 offered items. OIG recommendations helped contracting officers obtain about $11.7 million in savings for eight proposals.

The OIG found most commercial sales practice disclosures were not accurate, complete, or current; only one of 12 proposals met these criteria. Tracking customers, used as benchmarks for price reductions, were suitable for seven proposals, not suitable for four, and not applicable for one due to lack of commercial sales.

This report details the proposals assessed for accuracy and completeness, summarizes pricing recommendations, and makes no additional recommendations requiring VA action. VA concurred with the report and provided no comments.