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March 25, 2020 By cs

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.

Filed Under: Government Contracting News Tagged With: coronavirus, COVID-19, fraud, GSA, GSA Advantage, GSA Schedule, GSA Schedules, price gouging, scam, supply chain

August 5, 2019 By AMK

New DoD policy aims to crack down on alleged price gouging by TransDigm

Defense procurement officials have taken a step toward cracking down on what they have called price gouging within the military spare parts market. They issued a new edict that requires DoD contracting officers to gather cost and pricing data when they enter into agreements with TransDigm Group.

The memo, signed on Friday by Kim Herrington, DoD’s acting director for Defense Pricing and Contracting, tells contracting officers they must “require” that TransDigm turn over uncertified cost data to support the prices the company is charging the government. The mandate applies to situations where TransDigm or its subsidiaries are the only makers of a particular part, a scenario that applies to the vast majority of the company’s business.

The order also tells contracting officers to treat many of their contracts for parts the company makes as non-competitive — even when two or more resellers are bidding to supply the same item.

“The definition of adequate price competition does not address the fact that a sole manufacturer (such as TransDigm) participating in a competition can effectively control the competition by its ability to establish the material pricing for all other offerors,” Herrington wrote. “In these situations, the department does not consider such rigged competitions to be adequate price competition, based on independently submitted offers.”

The memo is highly unusual in that it targets one particular company, rather than laying out a broadly-applicable policy.

It was prompted by a February 2019 DoD inspector general report which found that TransDigm was routinely earning “excess profits” in its Defense contracts. For 17 of the 47 parts in a sample auditors examined, they calculated the company’s profit margins at 1,000% or more, and deemed all but one of the parts to have been marked up to unreasonable levels.

Keep reading article at: https://federalnewsnetwork.com/defense-main/2019/06/new-dod-policy-aims-to-crack-down-on-alleged-price-gouging-by-transdigm/

Filed Under: Government Contracting News Tagged With: adequate price competition, cost and pricing data, Defense Pricing and Contracting, DoD, policy, price gouging, spare parts, TINA, TransDigm

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