Home Blog Competitive Bidders Receive Preliminary Bid Evaluation Notices

Competitive Bidders Receive Preliminary Bid Evaluation Notices

VGM is receiving several calls relating to today’s “Preliminary Bid Evaluation (PBE) Notices” being distributed to many DME suppliers that submitted bids for the 2021 program. We recognize some confusion exists with regard to issues including proof of licensing and bid bonds that were improper or otherwise not acceptable.

Mark Higley and Wayne van Halem are aware of the situation and are attending a regulatory council meeting today which will further analyze these concerns.

In the meantime, please email your issue(s) to Mark at [email protected]. Include any details/documentation as appropriate, and he will offer commentary and respond as soon as practicable.

Look to this blog for further information this week.

The article below—posted by Mark Higley last month—regards the Preliminary Bid Evaluation Notices:

The “preliminary bid evaluation” (PBE) is the final development notification. It will be posted in Connexion on Dec. 3 with a Dec. 17 due date. This is where the CBIC will evaluate to determine if bidders met the overall eligibility requirements. It is also likely the last time bidding entities will receive contact from the CBIC again until the single payment amounts are announced and Palmetto begins the contracting phase.

The CBIC will verify the enrollment data in PECOS to determine the following for each location on every bid received:

  • Active PTAN – PTAN has an active status (i.e., not inactive or revoked). Note: If there are PTAN issues, please contact the NSC as soon as possible.
  • Accreditation – PTAN is accredited by a CMS approved accrediting organization to furnish all items in the competitive bidding area and product category combination.  Note: If there are accreditation issues, please contact your accreditation organization.
  • Licensure – PTAN has all applicable state licenses required to furnish all items in the product category combination. Note: If there are licensure issues, please contact the NSC.

If you are exempt from a licensure requirement, bidders should upload a statement in Connexion explaining why the state’s licensure requirement does not apply to your location. Examples of potential exemptions are Repackager Prescription Drug License/Registration and Secondhand Registration and Disinfection Permit requirements where you do not transfill oxygen tanks or provide used mattresses.

  • Common Ownership/Control – PTAN is not commonly owned and/or commonly controlled by another bidder in the same competition. Note:  If there are common ownership/control issues, please contact the NSC.

Each bidder will receive a PBE notice informing them the CBIC was able to validate the eligibility requirements for each competition or identifying those competitions requiring action. Bidders that did not submit a valid bid, at least one bid surety for a CBA bid, or at least one required financial document will also be notified during this process.

Once all the development items are received, The CBIC begins processing the replies and proceeding through the bid evaluation process. During this time, they will also verify the bid surety bond requirements were met. The bid surety bond submitted must include at a minimum:

  • The bidding entity’s legal business name as the principal/obligor. This is the same company name in the Business Organization Information section of Form A in the DMEPOS Bidding System (DBidS);
  • The name and National Association of Insurance Commissioners number of the authorized surety;
  • CMS as the named obligee;
  • The CBA covered by the bond;
  • The bond number;
  • The date of issuance;
  • The bid surety bond value of $50,000; and
  • The conditions of the bond defining when the bond will be subject to forfeiture, as specified in 42 CFR §414.412(g)(3)(i)

The contractor then proceeds with the financial document review, calculates the financial standards, determines capacity and demand, performs the final licensure and valid PTAN check and finalizes the SPAs, begins contracting, reviews bidder inquiries, returns bid surety bonds, and implements Round 2021.

Final note:  The final licensure check ensures contracts are only offered to licensed suppliers. This process validates each bidder’s licenses are current at the time this step is performed. All other validations are based on current licenses at the close of the bid window.

Questions?  Concerns?  Contact me at [email protected] or 888.224.161 (o) 319-504-9515 (c).