VA | The Contracting Education Academy

September 21, 2018 By cs

VA official charged with taking bribes to help associates rig federal contracting process

Three men were arrested in Colorado on Wednesday of this week pursuant to warrants issued in connection with an indictment charging them with conspiring to pay and receive bribes in exchange for creating an opportunity to commit a fraud against the U.S. Department of Veterans Affairs (VA).

The defendants are also charged with paying and receiving bribes, or aiding and abetting the payment of bribes.

Dwane Nevins, a VA contracting official at the time of the alleged crimes, was separately charged in another count with extortion under color of official right and in two counts with violating the federal conflict of interest statute.

The following is alleged in the indictment:

Dwane Nevins — a small business specialist at the VA’s Network Contracting Office in Colorado — agreed to take bribes offered by Robert Revis, Anthony Bueno and an undercover FBI agent to help them manipulate the process for bidding on federal contracts with the VA.
Revis and Bueno, working with Nevins, agreed to submit fraudulent bids from service-disabled-veteran-owned small businesses under contract with their consulting company so that federal contracts would be set aside for only those companies. As Bueno allegedly explained, they would then “own all the dogs on the track.”
Nevins, Bueno and Revis worked to conceal the nature of the bribe payments by either kicking back to Nevins a portion of the payments made to their consulting company, or by asking their consulting company’s clients to pay Nevins for sham training classes related to federal contracting.

The indictment also alleges that, after complaining about not being paid by Revis and Bueno for his participation in the scheme, Nevins used his official position at the VA to extort approximately $10,000 from an undercover FBI agent, telling the agent that “the train don’t go without me. You know what I mean? I’m the engine. I’m the caboose. I’m the engine room.” Nevins also allegedly told the undercover FBI agent: “This is a business and businessmen need to get paid . . . . so I can have my Christmas, you know what I’m saying?”

The indictment alleges that the conspirators attempted to rig the process related to two particular contracts, both of which related to medical equipment and not to the construction of any VA facilities. The first contract related to the procurement of LC bead particle embolization products by a VA hospital in Salt Lake City, and the second contract related to the procurement of durable medical equipment for VA facilities located throughout the region.

The case was jointly investigated by the Federal Bureau of Investigation, the U.S. Department of Veterans Affairs Office of Inspector General, and the U.S. Small Business Administration Office of Inspector General.

Readers are reminded that the defendants are presumed innocent unless and until proven guilty in a court of law.

April 3, 2018 By cs

Lax oversight of VA project caused $17.7M overrun, construction collapse

The Office of Inspector General for the U.S. Department of Veterans Affairs issued a report that found both a contractor and VA hospital officials demonstrated “shoddy planning” and poor oversight of an $8.7 million generator project that is $17.5 million over budget.

The VA in June 2014 hired Florida-based BCI Construction for $8.7 million to install a generator system and accompanying structure to house the unit at the Jack C. Montgomery VA Medical Center in Muskogee, Oklahoma. According to the inspector general, the VA did not submit an excavation plan for approval before beginning work. Subsequently, a hillside and parking lot collapsed, and the damage will cost $17.5 million to fix.

**Photos show noticeable deterioration of parking lot before collapse.** (photos by VA Medical Center employee)

In addition to supervisory and procedural errors, the inspector general also found that BCI’s worksite to be unsafe. Safety inspections were sporadic, and 49 safety violations were never reported to the government contracting officer, which is a violation of VA policy.

The inspector general recommended requiring contracting officer representatives are qualified and follow VA regulations and mandating that employees follow safety inspection guidelines. The current Muskogee hospital director, hired after the collapse, said the facility has implemented the recommendations.

Keep reading this article at: https://www.constructiondive.com/news/report-lax-oversight-of-va-project-caused-177m-overrun-construction-col/520242/

Read the article in The Oklahoman newspaper on this subject at: http://newsok.com/article/5588662/construction-collapse-at-muskogee-va-hospital-will-cost-17.5-million-to-repair-and-was-the-result-of-poor-planning-federal-report-finds

Read the VA’s full OIG report at: https://www.oversight.gov/sites/default/files/oig-reports/VAOIG-15-04678-114.pdf

February 23, 2018 By cs

VA secretary on $10 billion health records contract: ‘We have to get this one right’

Embroiled in allegations that taxpayers improperly paid for his wife’s travels, Veterans Affairs Secretary David Shulkin promised to Congress that the agency responsible for caring for more than 9 million veterans would be better stewards of taxpayer dollars.

Shulkin, testifying before the House Committee on Veterans Affairs Thursday, told lawmakers he would follow recommendations made by the VA inspector general and personally reimburse the Treasury for several thousand dollars’ worth of expenses accumulated by his wife, who accompanied him on a trip to Europe last year.

Shulkin had been slated to appear before the House committee before the IG report went public to provide insight regarding President Donald Trump’s fiscal 2019 budget proposal, which seeks $198 billion for the department. That budget, however, includes a reduction of 27 full-time positions within the department’s office of inspector general, “leaving OIG far short of their desired staffing level,” said Rep. Tim Walz, D-Minnesota.

Keep reading this article at: http://www.nextgov.com/it-modernization/2018/02/va-secretary-10b-health-records-contract-we-have-get-one-right/146026/

February 14, 2018 By cs

Veterans Affairs wasted close to $2 billion on failed IT projects

The Veterans Affairs Department blew almost $2 billion over three attempts to modernize the electronic health records system it uses to provide care to 9 million veterans.

A recent audit by the Government Accountability Office identified $1.1 billion in wasted spending on two VA projects from 2011 to 2016, the Integrated Electronic Health Record and Veterans Health Information Systems and Technology Architecture.

Nextgov identified another $600 million VA spent on a third program, the HealtheVet initiative, which began in 2001 but was deemed a “failed” project, according to the audit, and canceled in 2010. The HealtheVet spending was not included in GAO’s audit because VA said it no longer possessed spending records. Agencies are required by the Federal Acquisition Regulation to keep contract records for six years after final payment, the audit notes.

Keep reading this article at: http://www.nextgov.com/it-modernization/2018/01/veterans-affairs-wasted-almost-2-billion-failed-it-projects/145626/

December 11, 2017 By cs

Lawmakers to VA: “We’ve got your back” on $10 billion IT contract

Officials from the Veterans Affairs Department last Thursday defended their decision to scrap previous plans and begin a fourth, and hopefully final, attempt to modernize the agency’s electronic health records system.

In June, VA Secretary David Shulkin announced his plan to award Cerner Corp. a single-source contract to put the agency on the same electronic health records platform as the Defense Department. At a price-tag of about $10 billion, it would be one of the biggest health IT implementations in history, said VA Chief Information Officer Scott Blackburn.

Blackburn highlighted the differences between the Cerner plan and previous failed attempts at achieving interoperability between VA and DoD medical records before a House Oversight and Government Reform subcommittee. Unlike previous attempts to modernize a motley crue of decades-old IT systems, the new plan would put every VA facility on a single, uniform platform over the next 10 years.

Keep reading this article at: http://www.nextgov.com/health/health-it/2017/12/lawmakers-va-weve-got-your-back-10b-it-contract/144399/

Three men were arrested in Colorado on Wednesday of this week pursuant to warrants issued in connection with an indictment charging them with conspiring to pay and receive bribes in exchange for creating an opportunity to commit a fraud against the U.S. Department of Veterans Affairs (VA).

The Office of Inspector General for the U.S. Department of Veterans Affairs issued a report that found both a contractor and VA hospital officials demonstrated “shoddy planning” and poor oversight of an $8.7 million generator project that is $17.5 million over budget.

The Veterans Affairs Department blew almost $2 billion over three attempts to modernize the electronic health records system it uses to provide care to 9 million veterans.

Officials from the Veterans Affairs Department last Thursday defended their decision to scrap previous plans and begin a fourth, and hopefully final, attempt to modernize the agency’s electronic health records system.

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