The government’s flex spending account for employees seems to be getting safer from fraudsters

Federal Newscast

In today's Federal Newscast, new instances of fraud in the government’s Flexible Spending Account program, FSAFEDS, are dwindling.

Eric White@FEDERALNEWSCAST

August 13, 2024 7:36 am

< a min read

New instances of fraud in the government’s Flexible Spending Account program, FSAFEDS, are dwindling. But the investigation into the issue remains ongoing. In total, fraudulent activity in the Office of Personnel Management benefits program has now cost more than $1 million. OPM has been working with FSAFEDS vendor HealthEquity to secure impacted federal employee accounts and add security measures to the program. OPM’s inspector general office is also working with the FBI to look into the issue further. But OPM said there’s so far no evidence of the FSAFEDS systems being compromised.
(FSAFEDS update - Administrative Resource Center)

Federal Employees Health Benefits participants and future Postal enrollees may soon see some changes in how they can file their health insurance claims. The Office of Personnel Management is soon planning to require health carriers to offer options for submitting out-of-network claims online. OPM will also require carriers to better clarify which providers are in network, and provide clearer information on appeal claim denials. OPM’s announcement is part of a new Biden administration initiative to “crack down on everyday headaches” in federal services. The exact timeline for implementing the benefits changes, though, is so far undetermined.
(OPM plans changes for FEHB, PSHB filing process - White House)

Technology challenges are hampering the Department of Homeland Security’s efforts to streamline personnel vetting. DHS has enrolled the majority of its employees in continuous vetting. But the department’s inspector general said challenges at other agencies have hamstrung DHS’s progress. Specifically, delays with a new IT system at the Defense Department have prevented DHS from enrolling more employees in the automatic background checks program. DHS officials told the inspector general that they can’t retire their legacy IT system until the DoD system fully comes online.
(NBIS delays, funding challenges cramp DHS progress on personnel vetting reform - Federal News Network )

The Cybersecurity and Infrastructure Security Agency said software customers should pay closer attention to security before signing that new contract. In a new “secure by demand” guide, CISA lays out the questions an organization should ask to better understand a software manufacturer’s cybersecurity approach. The guide is specifically intended to be used by those involved in procurement decisions. CISA has been pushing technology vendors to adopt stronger cybersecurity practices as part of its Secure by Design initiative.
(How software customers can drive a secure technology ecosystem - Cybersecurity and Infrastructure Security Agency)

The Environmental Protection Agency will implement a new labeling program to boost clean American manufacturing construction materials. Federal buyers will be able to find and buy cleaner, more climate-friendly products. EPA’s label program will prioritize steel, glass, asphalt and concrete. These products represent the vast majority of construction materials and products that agencies purchase with federal funds. EPA will continue to seek stakeholder input on the implementation of this program, including the draft conformity assessment system, which verifies a product or material has earned the label.
(Biden-Harris Administration Announces Label Program to Bolster U.S. Manufacturing of Cleaner Construction Materials - Environmental Protection Agency)

One of the longest serving agency chief information officers is heading out the door. Gundeep Ahluwalia, the Labor Department’s CIO, is leaving federal service after eight years in the role and more than 12 in the government. Ahluwalia told staff in an email, obtained by Federal News Network, that his last day would be Friday. Ahluwalia didn’t say where he was going next. Federal News Network has confirmed that Labor Department deputy CIO Louis Charlier will take over as acting CIO on an interim basis. During his tenure as CIO, Ahluwalia transformed Labor's IT infrastructure by tapping into the Technology Modernization Fund for six awards. He also closed 80 data centers, moved more than 80 applications to the cloud and reduced the amount of money spent on legacy technology.
(Labor CIO Ahluwalia to leave after 8 years - Federal News Network)

Service members living in privatized military housing now have a new tool to improve their living conditions. The Defense Department’s new Housing Feedback System lets active-duty members and their dependents provide public feedback on their housing experiences and receive responses directly from their landlords. The DHFS is part of DoD’s commitment to improving the overall quality of military housing, giving service members a transparent way to address housing complaints. DoD has been dealing with complaints from service members about poor infrastructure, toxic waste, pests, mold and more.
(DoD’s DHFS to help improve military living conditions - Department of Defense)

The Army made the consolidation of two large multiple award IT services contracts final. It will combine the follow-on contracts for the IT Enterprise Solutions 3 – Services (ITES-3S) vehicle and the Responsive Strategic Sourcing for Services (RS3) contract, into one called the Marketplace for the Acquisition of Professional Services (MAPS). Both ITES-3S and RS3 contracts are set to expire in 2027, which is when MAPS — a $50 billion dollar,10-year acquisition vehicle — will officially replace them. The Army signaled its desire to consolidate the contracts back in April when it released a RFI seeking industry feedback.
(Army to consolidate 2 contracts into its new Marketplace for the Acquisition of Professional Services (MAPS) vehicle - Army PEO-EIS)

New consequences are on the way for Army IT systems that are holding the service back from a clean financial audit. Policy guidance from the Army CIO’s office said systems that haven’t implemented a set of 44 priority security controls will lose their authority to operate and be taken offline until they’re fixed. Meanwhile, the CIO’s office is planning short-notice inspections to make sure Army organizations are complying with the rules. Army Chief Information Officer Leonel Garciga said the service is changing its risk posture for critical financial systems, partly because audits have found the same problems in the same systems for several years in a row.
(Denial of Authorization to Operate for Internal Controls Over Financial Reporting Systems that fail Cyber Audit Inspections - Department of the Army)