CMS: We’re Watching for Collusion

BALTIMORE — Warnings to avoid price fixing, bid rigging or
“other forms of collusion” during the competitive bidding process
kicked off a Dec. 2 Open Door Forum. Saying the agency had “heard
concerns about acts of collusion,” CMS’ Joel Kaiser, deputy
director of DMEPOS policy, made the point in no uncertain terms:
Violating federal anti-trust laws could lead to rejected bids or
worse.

“It is a very serious matter dealing with the violation of
federal anti-trust law … We would like to remind everyone
that competitive bidding requires bidders and contract suppliers to
comply with all applicable federal and state laws,” Kaiser said.
“For example, bidders must comply with federal anti-trust law. We
take these all very seriously, and will not tolerate violations.
Suppliers suspected of violating federal anti-trust law by engaging
in practices such as price-fixing, bid rigging or other forms of
collusion will be referred to the Department of Justice for
investigation and will be subject to having their bid
rejected.”

Continued Kaiser, “I feel the need to repeat this today because
we have heard concerns about acts of collusion that may be
occurring during this round of bidding … I can’t stress
enough how important it is for everyone to realize that if you are
participating in such an act, there is real and serious risk that
you will have your bid rejected, and maybe possibly more serious
repercussions.”

CMS “will be monitoring the situation,” Kaiser said, “and there
could possibly be bids rejected as a result.” He encouraged bidders
to “read up” on acts that could be categorized as collusion on a
fact sheet on the CBIC Web site.

Kaiser also reminded providers:

• If hard copy financial documents were submitted by the Nov. 21
  covered document review date, CMS will be sending notices by Jan.
  5, 2010, if any documents are missing. Bidders will then have 10
  business days to submit missing financial documents.

• There are less than 20 days left in the bidding window, and all
  bids must be submitted via dBIDs (the online bidding system) no
  later than 9 p.m. ET on Dec. 21. “If your documents do not meet all
  requirements, all of your bids will be disqualified and you will
  not be eligible for a contract,” said Kaiser. “The way to make sure
  that your financial documents are accessible is to read Appendix B
  of the [Request for Bids] instructions and sample financial
  statement, then carefully check your documents to make sure that
  they comply.”

• All required hard copy documents must be postmarked by 11:59
  p.m. ET on Dec. 21.

• Log on to dBIDs no later than Dec. 7 to ensure that you have
  plenty of time to complete your bid, because it may take longer
  than you anticipate to submit.

View more competitive bidding
stories.