Page:United States Statutes at Large Volume 124.djvu/2255

 124 STAT. 2229 PUBLIC LAW 111–204—JULY 22, 2010 (iii) may conduct recovery audits directly, by using other departments and agencies of the United States, or by procuring performance of recovery audits by pri- vate sector sources by contract (subject to the avail- ability of appropriations), or by any combination thereof. (C) RECOVERY AUDIT CONTRACTS.—With respect to recovery audits procured by an agency by contract— (i) subject to subparagraph (B)(iii), and except to the extent such actions are outside the agency’s authority, as defined by section 605(a) of the Contract Disputes Act of 1978 (41 U.S.C. 605(a)), the head of the agency may authorize the contractor to notify enti- ties (including persons) of potential overpayments made to such entities, respond to questions concerning potential overpayments, and take other administrative actions with respect to overpayment claims made or to be made by the agency; and (ii) such contractor shall have no authority to make final determinations relating to whether any overpay- ment occurred and whether to compromise, settle, or terminate overpayment claims. (D) CONTRACT TERMS AND CONDITIONS.— (i) IN GENERAL.—The agency shall include in each contract for procurement of performance of a recovery audit a requirement that the contractor shall— (I) provide to the agency periodic reports on conditions giving rise to overpayments identified by the contractor and any recommendations on how to mitigate such conditions; (II) notify the agency of any overpayments identified by the contractor pertaining to the agency or to any other agency or agencies that are beyond the scope of the contract; and (III) report to the agency credible evidence of fraud or vulnerabilities to fraud, and conduct appropriate training of personnel of the contractor on identification of fraud. (ii) REPORTS ON ACTIONS TAKEN.—Not later than November 1 of each year, each agency shall submit a report on actions taken by the agency during the preceding fiscal year to address the recommendations described under clause (i)(I) to— (I) the Office of Management and Budget; and (II) Congress. (E) AGENCY ACTION FOLLOWING NOTIFICATION.—An agency shall take prompt and appropriate action in response to a report or notification by a contractor under subparagraph (D)(i)(I) or (II), to collect overpayments and shall forward to other agencies any information that applies to such agencies. (3) DISPOSITION OF AMOUNTS RECOVERED.— (A) IN GENERAL.—Amounts collected by agencies each fiscal year through recovery audits conducted under this subsection shall be treated in accordance with this para- graph. The agency head shall determine the distribution of collected amounts, less amounts needed to fulfill the Determination. Notification. Reports.