It's called the GSA Supply Schedule or the Federal Supply Schedule Program. The online website for the FSSP is here.
The idea behind the program is that GSA (Government Services Agency) negotiates with contractors who apply to offer their goods and services. If approved, prices and terms are agreed, and any government agency (including many non-Federal "agencies") can purchase from any approved contractor without any other formal procurement methodology: the policy of competition is negated by the theory that the government, using its huge bargaining position, can get best available prices under the program without the need of competitive bids.
Key to making that theory effective is the additional requirement that contractors must agree to sell to the government on a "most favored customer" pricing basis.
The following InformationWeek.com article illustrates how the program is meant to work, and sometimes may not.
It also introduces the ancient common law "Qui Tam" remedy, a creature of US procurement law called the False Claims Act , going back to the US Civil War time.
Suit Alleges Oracle Bilked Feds Out Of Millions
The federal government has joined a lawsuit against Oracle that had been filed on its behalf, claiming that the software company bilked it out of "tens of millions of dollars."
The lawsuit, initially filed by former Oracle contract specialist Paul Frascella in May 2007, was under seal until recently, when the United States moved to intervene in the case.
Frascella brought the suit under the False Claims Act, which allows private citizens to sue a company on behalf of the federal government, and he's seeking 25% of all damages.
According to the complaint, federal regulations require that General Services Administration contractors negotiating Multiple Award Schedule contracts, which allow agencies to buy products from the GSA schedule without having to jump through some of the typical government procurement hoops, "obtain the best price given to the most favored customer" in order to decide whether to accept solicitations.
In addition, Frascella's complaint details a number of schemes he says were designed to give commercial customers deeper discounts than the government.
The suit accuses Oracle of using a "scheme to defraud the United States by failing to disclose deep discounts" that it offered to its most favored commercial customers, which, the suit says, ultimately lead to tens of millions of dollars worth of overcharges.
SEE also: Northrop Grumman settles whistleblower case
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