GPC | The Contracting Education Academy

March 31, 2016 By AMK

Former NIH employee gets 21 months in prison for unauthorized use of GPC

Francesca M. Daniele was sentenced to 21 months in prison plus three years of supervised release for wire fraud in connection with the misuse of her government purchase card (GPC). She also was ordered on March 25, 2016 to forfeit and pay restitution of $22,338.67, the amount of loss resulting from her conduct.

In July 2014, Daniele worked at the National Institutes of Health (NIH), purchasing equipment from vendors and administering contracts on behalf of NIH. According to her plea agreement, during the period of July 12 to 28, 2014, Daniele used her government-issued credit card to fraudulently make approximately $21,830.19 of personal purchases at retail stores. She used her cell phone to call the credit card’s customer service center to approve those purchases. In an attempt to conceal the scheme, Daniele falsely reported that her credit card had been lost.

Additionally, on October 15, 2014, Daniele opened a credit card account in the name of her minor child. She used the credit card to buy a laptop computer, video game console, a ring and other items, all of which were shipped to a hotel room she rented under an assumed name. Daniele did not pay for several of the items, resulting in a loss to the credit card company of approximately $508.48.

Source: https://www.justice.gov/usao-md/pr/former-nih-employee-sentenced-prison-using-her-government-credit-card-unauthorized

May 21, 2015 By AMK

VA official: Agency spent $5 billion on medical supplies without written contracts

The Veterans Affairs Department has procured billions of dollars worth of drugs, medical devices and other supplies without using written contracts or full and open competition.

VA Deputy Assistant Secretary for Acquisition and Logistics Jan Frye told the House Veterans Affairs subcommittee on oversight and investigations May 14 that agency leaders have wasted $5 billion on illegal medical procurements and made a “mockery” of federal acquisition laws.

Frye said VA spent about $1.2 billion on prosthetics bought using purchase cards without any written contracts. That happened over a year-and-a-half period concluding at the the end of last year.

This is all “due to our inexcusable failure to acquire a substantial quantity of goods and services in accordance with federal laws and regulations,” Frye said.

The purchase card abuse was particularly egregious to lawmakers on the subcommittee questioning Frye.

Edward Murray, VA’s acting assistant secretary for management, said the agency has about 25,000 purchase cards in circulation and they were used to make about $3.7 billion in purchases in 2014.

Keep reading this article at: http://www.fiercegovernment.com/story/va-official-agency-spent-5b-medical-supplies-without-written-contracts/2015-05-15

November 14, 2014 By AMK

Unauthorized commitments violate federal law

A rise in Army personnel entering into agreements on behalf of the government without the authority to do so is causing significant administrative burdens and costs to the service, according to Fort Campbell contracting officials.

Soldiers and civilians from the 922nd Contingency Contracting Battalion are ratifying eight unauthorized commitments valued at more than $123,000. Officials said the amount of hours worked and delayed payments to contractors on each unauthorized commitment are significant.

The Federal Acquisition Regulation defines an unauthorized commitment as “an agreement that is not binding solely because the government representative who made it lacked the authority to enter into that agreement on behalf of the government.”

Only Government Purchase Card holders and contracting officers have the authority to make purchases or award contracts for the Army.

“If you are not one of them, then you don’t have the authority to bind the government to a contract,” said Noryem Maldonado, a contracting officer with the 922nd CCBn.

Keep reading this article at: http://www.fortcampbellcourier.com/news/article_aa1b9a94-5561-11e4-8583-7f1d94bd0890.html

October 27, 2014 By AMK

Agencies must improve payment card security by year end

In the wake of massive data breaches involving consumer credit cards, President Barack Obama signed an executive order Friday to strengthen security measures on government credit, debit and payment cards and the readers that scan them.

The new order — part of the president’s BuySecure initiative — requires federal agencies to use chip-and-PIN security on all government-issued cards and update card readers to work with new technology.

“With over 100 million Americans falling victim to data breaches over the last year and millions suffering from credit card fraud and identity crimes, there is a need to act — and to move our economy toward stronger, more secure technologies that better secure transaction and safeguard sensitive date,” the White House said in a statement.

Keep reading this article at: http://www.federaltimes.com/article/20141017/IT/310170022/Agencies-must-improve-payment-card-security-by-year-end

The Veterans Affairs Department has procured billions of dollars worth of drugs, medical devices and other supplies without using written contracts or full and open competition.

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