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November 8, 2013 By AMK

Payments to HealthCare.gov contractor questioned during Medicare.gov overhaul

Government contracts with a major vendor building HealthCare.gov drew scrutiny in the past, a 2007 audit shows.

In 2011, the Centers for Medicare and Medicaid Services awarded Canada-based CGI a $94 million contract to construct the public face of the Obamacare insurance marketplace. According to BusinessWeek, that contract has reached a value of roughly $277 million. The website hosting the marketplace, HealthCare.gov, has been barely functional at best since it launched on Oct. 1.

Six years ago, CGI’s compensation for work on another CMS website raised eyebrows.  The company received $2.6 million in “questionable payments” for a revamp of Medicare.gov and an existing claims appeals system to handle prescription drug benefits. CMS may have violated its own rules in some payments to CGI, and at least four of the company’s invoices contained suspicious charges, according to a government audit.

The fees, found among a $25.7 million sampling of bills, were questionable because they were potentially improper, unsubstantiated or wasteful, the audit said. Examiners identified questionable payments to CGI and about 15 other contractors implementing the 2003 Medicare Prescription Drug, Improvement, and Modernization Act.

Keep reading this article at: http://www.nextgov.com/health/2013/10/payments-healthcaregov-contractor-questioned-during-medicaregov-overhaul/72704

 

Filed Under: Government Contracting News Tagged With: Affordable Health Care Act, audit, CMS, contract payments, HHS, improper payment, labor rate, Medicare, Obamacare, R&D, research, technology

June 27, 2013 By AMK

Improper vendor payments of $1.1 billion made in FY 11, DoD has no corrective action plan

The Defense Department is falling down in its efforts to comply with laws requiring a crackdown on improper payments, producing estimates that are “neither reliable nor statistically valid” due to long-standing weaknesses in financial reporting, an audit found.

The Pentagon’s reported $1.1 billion in improper payments to contractors and vendors for fiscal 2011 is questionable, according to a Government Accountability Office report released June 6, 2013, in part because managers did not systematically identify the programs most vulnerable to bad payouts as required under the 2002 Improper Payments Information Act and the 2010 Improper Payments Elimination and Recovery Act.

“By not performing a risk assessment as required by IPERA, DoD did not reap the associated benefits, including the ability to better identify root causes and develop a comprehensive and effective corrective action plan to reduce improper payments, the audit said. “DoD’s lack of a detailed and effective corrective action plan also made it difficult for department officials to monitor and measure the extent of progress made to remediate causes, hold individuals responsible for implementing corrective actions, or communicate to DoD leadership and other key stakeholders the extent of the department’s progress in remediating the causes of improper payments.”

Keep reading this article at: http://www.govexec.com/management/2013/06/pentagon-still-doesnt-have-grasp-improper-payments-auditors-find/64490/?oref=govexec_today_nl 

Filed Under: Government Contracting News Tagged With: contract payments, DoD, GAO, improper payment, IRS, OMB, overpayment

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