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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Review of Enterprise Technology Solutions Compliance with Federal Small Business Program Contracting Rules

The Department of Veterans Affairs Office of Inspector General (VA OIG) found that Health Net encouraged a VA employee to set up a service-disabled veteran-owned small business in 2006 with the goal of enabling Health Net to increase its own business with the department. The VA OIG reviewed five contracts held by Enterprise Technology Solutions (ETS) worth $82 million to provide claims re-pricing services. The VA OIG found that ETS performed no work on the contracts, instead subcontracting the work to Health Net but still earning fees based on the amount of savings generated from re-pricing. The VA OIG also found that ETS and Health Net failed to deliver savings to the department. The VA OIG recommended terminating the ETS contracts but did not recommend any actions against Health Net.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Veterans Affairs
Contracting Party
Veterans Affairs
Court Type
N/A
Disposition
Investigative Finding
Date of IG Report
8/20/2012
Contractors Involved Penalty
Total
Health Net, Inc. $0
Further Information Released
Inspector General Report 8/20/2012

Federal Contractor Misconduct Database