CMS mostly followed bid rules, says OIG

Thursday, September 3, 2020

WASHINGTON – CMS consistently followed established procedures and applicable requirements for its competitive bidding program for the majority of winning suppliers, according to a new report from the Office of Inspector General. 

The OIG calculated a sample of 30 SPAs and audited CMS’s selection process for 225 suppliers between Jan. 1, 2014, to June 30, 2014. It found the agency followed procedures for 219 of the 225 winning suppliers but not for the other six.  

Specifically, CMS awarded contracts to five suppliers that did not meet financial statement requirements and one supplier that did not have the applicable state license in one competition.  

Additionally, CMS did not monitor suppliers in accordance with established procedures and federal requirements for another seven suppliers that did not maintain the applicable license, as required by their contracts, for the first six months of 2014. 

On that basis, the OIG estimates that CMS paid suppliers $24,054 more than they would have received without any errors. 

The OIG recommends that CMS take actions to ensure suppliers meet financial documentation and licensure requirements. 

CMS concurred.