Medicare: The First Year of the Durable Medical Equipment Competitive Bidding Program Round 1 Rebid

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Testimony issued by the Government Accountability Office with an abstract that begins "Our work on the outcomes of the CBP round 1 rebid found that the number of bidding suppliers and the number of contracts awarded in the CBP round 1 rebid were very similar to the CBP round 1 and about a third of the 1,011 suppliers that bid in the rebid were awarded at least one CBP contract. CMS made improvements to the bidding process for the CBP round 1 rebid—such as providing additional information about disqualification reasons—and significantly fewer bids were disqualified than in round 1. However, ... continued below

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United States. Government Accountability Office. May 9, 2012.

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Testimony issued by the Government Accountability Office with an abstract that begins "Our work on the outcomes of the CBP round 1 rebid found that the number of bidding suppliers and the number of contracts awarded in the CBP round 1 rebid were very similar to the CBP round 1 and about a third of the 1,011 suppliers that bid in the rebid were awarded at least one CBP contract. CMS made improvements to the bidding process for the CBP round 1 rebid—such as providing additional information about disqualification reasons—and significantly fewer bids were disqualified than in round 1. However, many suppliers still had difficulty meeting bid requirements. Of the bids that were disqualified during the initial bid review, 73 percent were disqualified because suppliers failed to provide the required financial documentation or did not meet CMS’s minimum financial standard threshold for suppliers. The number of bids disqualified for missing financial documentation in the CBP round 1 rebid would have been higher if many suppliers had not benefited from a MIPPA provision that required that CMS provide suppliers the opportunity to be notified of and to submit missing required financial documentation—a process not available during CBP round 1. As a result, 93 of the 321 suppliers—about 29 percent—that were notified by CMS that they had missing financial documentation, and subsequently provided correct documentation, were ultimately awarded one or more CBP contracts. In the CBP round 1 rebid, as in CBP round 1, CMS determined that some suppliers’ bids had been disqualified incorrectly. CMS told us it received bid inquiries from 99 suppliers that had bids disqualified in the CBP round 1 rebid and subsequently extended contracts to 7 of those suppliers that were found to have incorrectly disqualified bids."

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Government Accountability Office Reports

The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for the U.S. Congress investigating how the federal government spends taxpayers' money. Its goal is to increase accountability and improve the performance of the federal government. The Government Accountability Office Reports Collection consists of over 13,000 documents on a variety of topics ranging from fiscal issues to international affairs.

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  • May 9, 2012

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  • June 12, 2014, 7:50 p.m.

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United States. Government Accountability Office. Medicare: The First Year of the Durable Medical Equipment Competitive Bidding Program Round 1 Rebid, text, May 9, 2012; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc299211/: accessed October 21, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.