R408--FRAUD PREVENTION SERVICES PROCUREMENT STATUS UPDATE

The Department of Veterans Affairs, Veterans Benefits Administration, is pursuing a procurement for Fraud, Waste, and Abuse Prevention Services through the GSA Alliant 2 Government Wide Acquisition Contract, with the Request for Quote anticipated in the first quarter of Fiscal Year 2027. The acquisition is informed by a comprehensive Statement of Objectives that outlines the need for advanced analytics, AI/ML-driven fraud detection, and robust incident case management to support the Benefits Delivery Protection & Remediation Directorate in safeguarding veteran benefits. Vendors are expected to deliver comprehensive services including data analysis, risk management, education and outreach, performance reporting, and secure system integration, all aligned with federal standards such as FedRAMP, NIST, HIPAA, and Section 508 compliance. The contract will require full ownership transfer of all developed software, including source code, hyperparameters, and performance metrics, and mandates strict adherence to VA-specific security protocols, including FIPS 140-2 encryption, Bluetooth disablement on VA data devices, and one-hour incident reporting. All work must be performed within the Continental United States, with no data co-mingling allowed without explicit approval. The procurement process has involved extensive industry engagement through multiple Requests for Information and an Industry Day, resulting in 48 vendor responses and detailed government clarifications on data access, AI model deployment, integration with existing VA systems, and performance dashboard expectations. Vendors are encouraged to identify as small businesses, particularly those certified as Service-Disabled Veteran-Owned Small Businesses or Veteran-Owned Small Businesses, as subcontracting opportunities are a priority. Key personnel must include roles such as Project Manager, Data Engineer, and Fraud, Waste, and Abuse Subject Matter Expert, with all staff required to undergo annual VA privacy training and submit to security tiered background investigations. Contract administration is managed by Contracting Officer Gregory Stevens, with no named COR or COTR designated at this stage. The final contract structure remains undetermined, with the government evaluating potential award types and pricing methodologies; however, no CLINs, funding details, or estimated values are available until the RFQ is issued. Security, privacy, and data integrity remain paramount, with unannounced audits permitted, and contractors held to strict accountability for personnel actions, system access controls, and prompt reporting of any security or compliance deviations.