(a) If the contracting officer suspects fraud or other criminal conduct related to the settlement of a terminated contract, the contracting officer must do the following:
(1) Immediately discontinue all negotiations.
(2) Submit all of the pertinent facts necessary to support the suspicions to either of the following:
(i) The DSPE.
(ii) The Director, Office of Construction and Facilities Management, in the case of contracting officers from the Office of Construction and Facilities Management.
(3) Follow procedures as provided in 809.406-3 and 809.407-3.
(b) The DSPE or the Director, Office of Construction and Facilities Management, must review the submission and fully develop the facts.
(c) If the evidence indicates fraud or other criminal conduct, the DSPE or the Director, Office of Construction and Facilities Management, must forward the submission with recommendations through channels (to include OGC, if appropriate), to the Office of the Inspector General (OIG) for referral to the Department of Justice.
(d) The DSPE or the Director, Office of Construction and Facilities Management, will advise the contracting officer as to any further action to be taken. Pending receipt of this advice, no VA employee may discuss the matter with the contractor.
(e) VA will not initiate a collection, recovery or other settlement action while the matter is in the hands of the Department of Justice without first obtaining the concurrence of the U.S. Attorney concerned, through OIG.
(f) If the contractor makes an inquiry, the contracting officer will advise only that the proposal has been forwarded to higher authority.
