The Department of Veterans Affairs Office of Inspector General (VA OIG) found that Health Net encouraged a VA employee to set up a service-disabled veteran-owned small business in 2006 with the goal of enabling Health Net to increase its own business with the department. The VA OIG reviewed five contracts held by Enterprise Technology Solutions (ETS) worth $82 million to provide claims re-pricing services. The VA OIG found that ETS performed no work on the contracts, instead subcontracting the work to Health Net but still earning fees based on the amount of savings generated from re-pricing. The VA OIG also found that ETS and Health Net failed to deliver savings to the department. The VA OIG recommended terminating the ETS contracts but did not recommend any actions against Health Net.