If you want to submit a bid and be eligible for a contract under the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program (CBP), you must meet the following requirements.
1. Bid Surety Bond
- Pursuant to 42 CFR § 414.412(g), you must obtain a $100,000 bid surety bond for the nationwide Remote Item Delivery (RID) competitive bidding area (CBA). The bid surety bond must be purchased from an authorized surety on the Department of the Treasury’s List of Certified Companies.
- Upload proof of your bid surety bond in Connexion, the DMEPOS CBP’s secure portal, before the bid window closes.
- If there’s a problem with your bid surety bond, you’ll have 10 business days to obtain and submit a bid surety bond rider correcting the deficiencies on the bid surety bond.
- See the Bid Surety Bond fact sheet for more information.
2. Licensure
- You must have all current and required state/territory licenses for every item in the product category you're bidding on in the Medicare Provider Enrollment, Chain, and Ownership System (PECOS) before the bid window closes.
- The Centers for Medicare & Medicaid Services (CMS) cannot award contracts to bidders that don't meet state licensing requirements.
For more information about licensing requirements, please see the Licensure for Bidders Fact Sheet.
3. Up-to-Date Enrollment Records
- Your CMS-855S enrollment application must be current with the National Provider Enrollment (NPE) contractor and reflected in PECOS by the close of the bid window.
- By the close of the bid window, PECOS must show all states and products you currently provide – or plan to provide – if you are awarded a DMEPOS CBP contract.
- Keep your PECOS records accurate and up-to-date – they will be verified during registration, bidding, bid evaluation, and contracting for the DMEPOS CBP.
4. Accreditation
- You must be accredited by a CMS approved accrediting organization for the lead item and all non-lead items in each product category for which you submit a bid.
- CMS cannot award contracts to bidders that are not accredited.
- Accreditation exemptions do not apply to the Medicare DMEPOS CBP.
- A listing of CMS approved DMEPOS Accreditation Organizations is on the CMS website.
5. Credit Report and Score or Rating
- Under Social Security Act § 1847(b)(2)(ii) and 42 CFR § 414.414(d), you must submit a business credit report with a numerical credit score or rating. The credit report must be uploaded in Connexion before the close of the bid window and must be dated no earlier than 90 calendar days prior to the opening of the bid window.
- Business credit reports must come from one of four approved agencies: Dun & Bradstreet, Experian, Equifax, or S&P Global, each with specific acceptable numerical scores or ratings (e.g., Paydex, Intelliscore, Business Credit Risk Score, S&P Rating).
- If a business credit report is unavailable, a personal credit report from an authorized or delegated official is acceptable, sourced from Experian, Equifax, or TransUnion, using scores such as FICO, Vantage, or other applicable agency-specific scores.
- Refer to the Financial Standard Reporting fact sheet for additional information.
6. Ready to Serve on Day One
- If you win a DMEPOS CBP contract, you must be ready to provide items and services for the entire CBA on the first day of the contract performance period.
- Only locations listed on your contract can bill Medicare for competitively bid items.
- You can request to add or remove locations if you have a DMEPOS CBP contract by submitting a Change of Location (COL) request in Connexion.
- New locations cannot furnish or bill for DMEPOS items included in the DMEPOS CBP Contract until CMS confirms they meet all requirements and contracts are updated.
7. Subcontractors
- DMEPOS CBP suppliers (contract suppliers) may use a subcontractor, but only for these limited purposes:
- Purchasing of inventory
- Maintaining and repairing rented equipment
- Delivering a Medicare covered item
- Setting up and/or providing instructions on how to use a Medicare covered item
- Contract suppliers are fully responsible for all items and services furnished directly or through a subcontractor.
- This includes keeping proper documentation and ensuring correct delivery, setup, and instruction.
- See the Subcontracting of DMEPOS Services fact sheet for more details.