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The Air Force's decision comes after the Veterans Affairs IG found alleged procurement fraud, intimidation and threats against a federal official. FedBid says it's cooperating with the Air Force and believes it took the necessary steps to fix the problems.
Reverse auction company FedBid is making some changes at the top. The company will split into federal and commercial entities. Joe Jordon will continue as leader of the federal portion. Federal News Radio Executive Editor Jason Miller tells In Depth with Francis Rose about what the new FedBid will look like.
The reverse auction vendor says its decision to split up its federal and commercial businesses has nothing to do with the critical Veterans Affairs inspector general report from September. Joe Jordan said FedBid has taken several steps to ensure any problems highlighted by the IG are resolved.
Reps. Jeff Miller (R-Fla.) and Sam Graves (R-Mo.), chairmen of the Veterans Affairs and Small Business committees, respectively, wrote to Anne Rung, OFPP administrator, saying agencies still are "misusing" reverse auctions to "evade competition and compliance with other procurement regulations."
Susan Taylor, the Veterans Health Administration deputy chief procurement officer, resigned and retired Oct. 14. She sent an email to staff announcing her decision as VA had started the process to fire her.
Sloan Gibson, VA's deputy secretary, said he's proposed the removal of Susan Taylor, the deputy chief procurement officer at the Veterans Health Administration. Gibson will use the new authorities provided by Congress and President Barack Obama in August under the Veterans' Access to Care through Choice, Accountability, and Transparency Act of 2014.
The Department of Energy's Office of Environmental Management planned to bring on Susan Taylor, the Veterans Health Administration's deputy chief procurement officer, but now has changed its mind. Taylor is accused by the VA inspector general of committing procurement fraud, lying to investigators and having a conflict of interest by promoting FedBid.
The chairman of the Veterans Affairs subcommittee on Oversight and Investigations wrote a letter to Veterans Affairs Department Secretary Bob McDonald wanting more details on the actions it will take in light of the inspector general report involving the deputy chief procurement officer at the Veterans Health Administration and FedBid.
The Veterans Affairs inspector general issued a report alleging the deputy chief procurement officer at the Veterans Health Administration used her position to promote and award a contract to FedBid, a reverse auction vendor, and improperly acted as an agent of the vendor, creating a conflict of interest.
Joe Jordan, the administrator of the Office of Federal Procurement Policy, is leaving the administration Friday after working five years in assorted senior contracting manager positions. He said agencies are using strategic sourcing, reducing spending and receiving more competition.
Joe Jordan will become the president of the public sector at FedBid. He's leaving OFPP after 18 months.
The Veterans Affairs Department's decision comes as lawmakers are putting this acquisition concept under more scrutiny. House Veterans Affairs and Small Business Committee lawmakers question whether agencies are getting the best prices and whether they are sacrificing competition. GAO, other experts say OFPP needs to develop a governmentwide policy for reverse auctions.
As the use of reverse auctions continues to rise, the Government Accountability Office says agencies need more clear cut guidance to realize a maximum amount of savings.
Larry Allen of Allen Federal joins host Mark Amtower to talk about changes in government procurement. June 11, 2012(Encore presentation June 25, 2012)