The Air Force has lifted its suspension of reverse-auction company FedBid, and is no longer pursuing debarment, according to the company.
An administrative agreement signed by the two organizations addressed the Air Force’s outstanding concerns, and ensures the highest commitment to integrity, FedBid CEO Joe Jordan said in a statement.
“We look forward to continuing to provide an innovative online marketplace that helps both buyers and sellers achieve their goals through increased competition, transparency, and efficiency,” Jordan said.
The originally suspension action stemmed from a Sept. 26 Veterans Affairs Department inspector general report detailing efforts by FedBid to discredit a senior VA official and push Congress to launch investigations in order to secure a reverse-auction contract.
Susan Taylor, at the time the deputy chief procurement officer at the Veterans Health Administration at the VA, ended up stepping down over allegations she improperly tried to steer a contract to FedBid.
The original Air Force suspension notice — posted on SAM.gov — rested the action on a “lack of business honesty or integrity” as one of the reasons for possible debarment. An internal review found that while the company violated no laws, it needed to better enforce compliance.
Since then, FedBid has since instituted a stronger ethics compliance program and appointed a chief compliance officer, according to the company. To date, all FedBid employees and board members have signed a revised code of business ethics.
The administrative agreement will last for two years and gives the Air Force the discretion to take up debarment procedures again if FedBid fails to comply with its provisions, according to the agreement.
The agreement includes extensive training on ethics and compliance, as well as a self-governance program to help maintain high levels of integrity. The company must also maintain a 24-hour hotline for employees to anonymously report potential violations or abuse.
The company must also sever all ties to former CEO and former board chairman Ali Saadat, who resigned Feb. 5 according to the agreement. Saadat was one of the FedBid officials named in the VA IG report.
