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Educational Information

If you intend to bid in Round 2 Recompete and/or the national mail-order recompete of the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program, please carefully read the following bidding reminders:


  1. Bona Fide Bid for Each Item: The Competitive Bidding Program regulations require each bidder to submit a bona fide bid that complies with all the terms and conditions specified in the Request for Bids (RFB) instructions. The RFB instructions define a bid as an offer to furnish an item for a particular price and time period that includes, as appropriate, any services that are directly related to the furnishing of the item. It is also important for you to consider and include your costs to purchase the item, overhead, and profit when determining a bid amount for an item—Healthcare Common Procedure Coding System (HCPCS) code.

    Remember, a number of competitively bid HCPCS codes  require coding verification by the Medicare Pricing, Data Analysis and Coding (PDAC) contractor. When determining a bona fide bid amount for these HCPCS codes, bidders must consider the cost for the products that have been classified by the PDAC. You may be asked to submit a rationale and documentation for these HCPCS codes to verify that you can furnish products that have been classified by the PDAC at your submitted bid amount. Product information for a HCPCS code(s) can be located by using the PDAC HCPCS code search tool.

    It’s also important to keep in mind the following when determining your bid amount:

         • You must not submit a bid for an item at a loss in order to improve your chances of winning a

         • If we identify a bid as potentially non-bona fide, we will ask for documentation - such as a bill of
            sale, store receipt, signed written vendor quote, or invoices – and a rationale to support that bid

         • If a potential non-bona fide bid amount cannot be supported by some type of documentation, then
            the bid for that entire product category in the competitive bidding area will be disqualified.

  2. State License on File with National Supplier Clearinghouse (NSC) and in the Provider Enrollment, Chain, and Ownership System (PECOS) by March 25, 2015: The RFB instructions also state that you must have a current copy of the applicable state license(s) on file with the NSC and in PECOS by the close of the bid window, which is March 25, 2015. Please carefully review each state’s requirements for which you intend to submit a bid. You can find a guide of the states’ licensing requirements and the state licensing agency contact information on the NSC website, at www.palmettogba.com/nsc. Licensing regulations change periodically, so it’s very important you know the current requirements. For example, if you plan to bid in a competitive bidding area in Colorado, you should know that a new law took effect on December 31, 2014. Go to the NSC DMEPOS State License Directory, select Colorado, review the note at the bottom of the page, and find the agency contact information. In this case, you would call the Colorado Secretary of State at 303-894-2200 for information on the law’s requirements.

The Competitive Bidding Implementation Contractor (CBIC) is the official information source for bidders. All suppliers interested in bidding are urged to sign up for “E-mail Updates” on the home page of the CBIC website, www.dmecompetitivebid.com. For information about Round 2 Recompete and the national mail-order recompete, please refer to the bidder education materials located under Round 2 & National Mail-Order Recompete > Bidding Suppliers on the CBIC website. The CBIC participates in numerous educational events to assist stakeholders in understanding the rules that govern the DMEPOS Competitive Bidding Program. Visit the CBIC website for a listing and schedule of educational events under the Educational Information section of the Round 2 & National Mail-Order Recompete page.

You may call the CBIC customer service center toll-free at 877-577-5331 from 9 a.m. to 9 p.m. prevailing Eastern Time during registration and bidding periods. For more information about licensing requirements, you may consult the appropriate license issuing agency listed on the NSC DMEPOS State License Directory or call the NSC at 866-238-9652 from 9 a.m. to 5 p.m. prevailing Eastern Time.

last updated on 01/15/2015


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