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GSA reports coronavirus-related fraud and price gouging

The General Services Administration (GSA) says it has received reports of companies fraudulently claiming to be GSA vendors attempting to exploit legitimate COVID-19 concerns to mislead Federal consumers into paying exorbitant prices for products associated with COVID-19. 

If a supplier claims to be a GSA vendor, GSA advises buyers to verify their status by checking prices and details on GSA Advantage or validate the contract number and supplier details on GSA eLibrary vendor database.

In a bulletin posted on March 19, 2020, GSA advises: “Even if information seems credible, take a moment to verify.”

In addition to worries about possible scams, there are product availability issues.  Evidence of this is the recent message posted on the GSA Advantage website: “Due to current heightened demand for products which could be associated with COVID-19, please contact the vendor(s) prior to placing your order to confirm availability.”

Questions or reports of suspect fraudulent activity or price gouging with companies claiming to be GSA vendors, can be directed to GSA’s National Customer Service Center at (800) 488-3111 or via email to NCSCcustomer.service@gsa.gov.

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Urban Myths: Are GSA’s prices fair and reasonable?

Over the years, some have questioned whether GSA Schedule prices are fair and reasonable, and such concerns have led to the General Services Administration launching efforts, such as Transactional Data Reporting and horizontal pricing analysis, to demonstrate that it is dedicated to offering its customers “competitive” (however defined) prices.

Now comes an MBA Professional Report published by the Naval Postgraduate School, which provides a business case analysis comparing GSA Advantage to Amazon Business from the standpoint of prices and processes. The study was completed in response to a request from the Air Force, which is considering entering into a pilot with Amazon Business in order to strategically source micro-purchases using an online platform.

The results of the study may be surprising in light of the recent legislative activity and discussions surrounding online acquisition options for government. They also might inform those who cast a skeptical eye toward the value and vitality of the GSA Schedules Program. The authors gathered data on the top 60 commercially available items purchased by the Air Force using government purchase cards (GPCs) and compared the acquisition outcomes on GSA Advantage and Amazon Business.

Keep reading this article at: https://federalnewsradio.com/commentary/2018/01/urban-myths-are-gsas-prices-fair-and-reasonable/

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Defense bill would privatize the way the federal government buys everyday staples

New legislation working its way through Congress could significantly alter the way commercial companies sell everyday products and services to the U.S. military and federal agencies, opening the door for online retailers to reach a massive new customer.

The defense bill passed by the House of Representatives earlier this year contains language that would allow the Pentagon and other government agencies to buy directly from commercially run online marketplaces, bypassing a highly regulated purchasing process managed by the General Services Administration.

High-tech weaponry such as jets, guns and missiles would still be developed and sold through traditional government contracts. But the effort would allow companies like Amazon.com, OfficeMax and Home Depot to set up marketplaces for agencies to buy basic supplies.

Currently, agencies buy commercial goods through GSA schedules — essentially pre-negotiated agreements to provide products and services to the government at volume discount pricing.

Keep reading this article at: https://www.washingtonpost.com/business/economy/defense-bill-would-privatize-the-way-the-federal-government-buys-everyday-staples/2017/09/01/cf20aee2-8e84-11e7-84c0-02cc069f2c37_story.html

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Former DoD chief sentenced to 33 months in prison for selling GSA Schedule products on eBay

Former Defense Department official Roy E. Friend of Virginia has been sentenced to 33 months in prison for stealing government property.

fort-eustisFriend was sentenced on Dec. 20, 2016, based on his Mar. 24th guilty plea.

According to a statement of facts filed with the plea agreement, Friend, a civilian employee of the Department of Defense (DoD) who worked as the Chief of Logistics and Program Management, Aviation and Missile Command at Fort Eustis, admitted to fraudulently obtaining goods through the General Services Administration (GSA) Advantage website. The GSA Advantage system is an e-business website designed to facilitate on-line purchasing and GSA Schedules contract research by federal employees and local government entities.  GSA Advantage gives various government agencies access to millions of commercial products and services.  From in or about Aug. 19, 2010, to about mid-2015, Friend made approximately 666 orders totaling approximately $2.3 million using his GSA Advantage account

According to court documents, an investigation conducted by the GSA’s Office of Inspector General (OIG), the DoD’s OIG, and the FBI determined that many of the items purchased by Friend were taken for personal use, and that Friend would take certain items to an outside business where he and/or another conspirator would remove GSA shipping labels and resell the items for private financial gain.  The investigation revealed that certain items were sold over the eBay auction website.

Beyond Friend’s fraudulent use of GSA Advantage, law enforcement also determined that Friend fraudulently obtained $228,685.55 worth of equipment for Fort Lee through the U.S. Falcon contract.  In total, Friend fraudulently obtained goods valued at approximately $905,035.82.

Friend was also sentenced to three years of supervised release and ordered to pay restitution in the amount of $715,829 as well as criminal forfeiture.  Friend previously forfeited property valued at $189,206.

Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-24

Source: https://www.justice.gov/usao-edva/pr/former-dod-employee-sentenced-stealing-government-property

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Scam targets GSA schedule holders using spoofed federal email addresses

The General Services Administration’s schedules program has been victimized by spear phishing attacks costing vendors more than $1.5 million, and law enforcement officials say, is increasing.

GSA alerted Schedule 70 and 75 vendors Wednesday that since July 2012 the FBI, the Environmental Protection Agency and GSA inspectors general have been investigating a series of fraudulent orders placed online to GSA vendors from criminals posing as federal contracting officials, according to an email to Schedule-70 and 75 vendors, which Federal News Radio obtained.

The hackers ordered HP printer toner cartridges using official federal employee email credentials but fake phone telephone numbers and stolen credit cards.

Law enforcement officials now say scammers are targeting orders for laptop computers, though it’s unclear if these two cases are related. But GSA said “there are some significant similarities and we’re following up on investigative leads to make further determinations.”

Keep reading this article at: http://www.federalnewsradio.com/490/3595717/Scam-targets-GSA-schedule-holders-using-spoofed-federal-email-addresses 

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