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Department of Veterans Affairs, Office of Inspector General
Michael J. Missal, Inspector General

Report Summary

Title: Review of Enterprise Technology Solutions, LLC Compliance with Service-Disabled Veteran-Owned Small Business Program Subcontracting Limitations
Report Number: 12-01235-132 Download
Issue Date: 8/20/2012
VA Office: Veterans Health Administration (VHA)
Report Author: Office of Contract Review
Report Type: Audits, Reviews & Evaluations
Release Type: Unrestricted

We determined that ETS, LLC was not in compliance with the contract provisions limiting subcontracting. We found that ETS, LLC, an SDVOSB concern owned by a former VA employee, subcontracted the re-pricing requirements to Health Net, a large business for all five of its contracts. All five contracts were awarded as SDVOSB set-asides. The Undersecretary for Health and the Chief Procurement and Logistics Officer agreed with our recommendation to terminate ETS's five contracts and to conduct an assessment to determine the value, if any, of re-pricing claims from non-VA providers. VA also concurred with our recommendation that VA ensure requirements are written to ensure former VA employees are not given an unfair advantage and that competition is achieved to the maximum extent practicable.