Common use of Internal Fraud and Abuse Prevention and Detection Clause in Contracts

Internal Fraud and Abuse Prevention and Detection. A. The Contractor shall establish and maintain an internal fraud and abuse, prevention and detection, preliminary investigation and reporting program. B. The Contractor shall report any indication of suspicious activity to HSD immediately. C. The Contractor shall promptly conduct a preliminary investigation and report the results of the investigation to HSD. A preliminary investigation entails the Contractor doing internal research to gather documentation that either substantiates or disproves the suspected activity. If, after this preliminary investigation, the activity still appears suspicious, the relevant documentation and information will be sent to HSD for a formal investigation. D. The Contractor shall not conduct a formal investigation, but the full cooperation of the Contractor during the investigation will be required.