# Presentation: 282625

## VA OIG’s Voluntary Disclosure and Pre-Award Review Process

- Presented by:
- Michael Grivnovics
- Mark Myers
- VA Office of Inspector General
- Office of Contract Review

## Topics	

- Office of Contract Review’s current structure
- Voluntary Disclosure process
- Pre-Award Review process

## Office of Contract Review

## Office of Contract Review

**Express Mailing Address**:
- Office of Contract Review (55)
- 801 I Street, NW, Room 1171
- Washington, DC 20001
- 	Point of Contact: Michelle Nelson 202-461-4632

## Office of Contract Review

- Types of Reviews
- Pre-Award Reviews
- Post-Award Reviews
- Voluntary Disclosure Reviews
- Public Law 102-585 Reviews
- Qui Tam Reviews
- Special Reviews
- Advisory role to Contracting Officer

## Voluntary Disclosures 

- Topics for discussion
- Informal versus formal program
- Information to be provided
- OIG review process
- Common issues
- Conclusion

## Informal v. Formal Program

- Initiated by contractor based on compliance review or due diligence
- Reviews conducted are performed independently by OCR
- No DOJ involvement unless referred by OIG
- No agreements are signed when the disclosure is made
- Many disclosures are submitted via outside counsel

## Information to be Provided

- The reason(s) for the disclosure, e.g., defective pricing, price reductions, federal ceiling price (FCP) errors, overcharges, etc.
- The nature and extent of the problem(s) that caused the disclosure
- Are current contract prices correct
- Statement of corrective action and implementation plans

## Information to be Provided

- Identification and access to individuals involved in the disclosure and contract award and administration
- Pertinent contract documents
- Internal/external data analysis files
- Methodology used to compute overcharges
- Sales data used to determine overcharges (no exclusions)

## OIG Review Process	

- Meet with contractor/counsel to obtain an understanding and extent of the problems
- Review contractor’s computations & supporting documentation
- Determine the scope of the review
- Full post-award
- Limited scope
- Acquire complete set of sale transactions based on sale prices not contract prices

## OIG Review Process	

- Ensure disclosure considered all discounts/concessions
- Develop IG’s position
- Discuss IG’s recommendation with the Contracting Officer
- Reach agreement with contractor on facts and amount due
- Disposition

## Common Issues

- Sampling techniques
- Interpretation of contract terms and conditions
- 2-year limitation of defective pricing does not apply
- Limiting timeframe of review
- Old data systems

## Voluntary DisclosureConclusion

- Refer to DOJ if appropriate
- Voluntary Disclosures do not relieve the contractor’s liability under the false claims act
- Finalize review
- Recommend Bill of Collection
- Issue report
- Settlement Agreement

## Pre-Award Process

- Topics for Discussion
- Purpose of Reviews
- OIG Pre-Award Review Process
- Common Issues
- Conclusion

## Purpose of Pre-Award Reviews	

- Verify the disclosed commercial sales practices (CSPs) are accurate, complete, and current
- Provide Contracting Officer with recommendation on pricing
- Recommend an appropriate tracking customer

## Purpose of Pre-Award Reviews	

- When:
- Pre-awards are automatically referred if:
- Projected sales greater than $3 million per year
- 	$5 million for pharmaceuticals
- Can also be requested by Contracting Officer when sales are under the thresholds
- Can be requested for product additions regardless of value

## OIG Pre-Award ReviewProcess

- Return CPS if outdated.
- Review the offer and discuss CSP disclosures with contractor
- Request sales data (generally 6 months) and commercial contracts
- Obtain all data relating to discounts, concessions, rebates, including policies

## OIG Pre-Award ReviewProcess

- Perform data analysis and review commercial contracts to verify that the CSP is accurate, current, and complete
- Follow-up with contractor on any questions/open issues
- Develop recommendations on pricing and tracking customer
- Issue report to Contracting Officer

## Common Issues

- CSP incomplete
- Failure to provide adequate CSP with offer
- Questions not answered completely or properly
- Discounts, concessions, and/or rebates not identified
- Most Favored Customer not identified or incomplete listing of prices better than offered price
- Contracts not provided for IG review
- Timeliness of contractor responses

## Pre-Award Review Conclusion

- Full disclosure equals faster review and lessens the risk of future defective pricing claims
- Cooperation makes the process easier
- No monetary impact on current contract prices - impacts future prices