Financial Standard Reporting

In accordance with the Social Security Act § 1847(b)(2)(ii), as implemented under 42 CFR § 414.414(d), bidders are required to meet financial standards to be awarded a Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program (CBP) Contract.  

For Round 2028, bidders are required to submit a credit report with a numerical credit score or rating, for the DMEPOS CBP.  

What Must the Credit Report Include? 

Your business credit report must be from the bidding entity (the entity whose legal business name is identified in the “Form A: Business Organization Information” section of your bid) and show: 

• An approved crediting agency (Table 1) 
• An approved credit report and numerical credit score or rating (Table 2) 
  • Any other forms of gauging credit (such as arrows indicating relative value of credit or the number of days beyond term) are not acceptable. The only exception is an alpha score from S&P Global. All of the other acceptable credit scores or ratings yield a numerical score. 
  • A credit summary or business report does not qualify as an acceptable credit report. 
• Your company's name  
• The date the report was prepared (no more than 90 days before the bid window opens) 

If your business's credit report is not available, you are required to submit a business credit report showing no data or insufficient information to generate a credit score and a personal credit report for a business’s authorized official or delegated official. If you upload a personal credit report, the authorized or delegated official's name and the date the report was generated (no more than 90 days before the bid window opens) must appear on the same page as the numerical credit score or rating.  
 
Note: If the numerical score or rating is generated separately from the report, it must still be accompanied by your company's name and preparation date. 

How and when do I submit my credit report? 

As a bidder, you must upload the credit report through Connexion, the DMEPOS CBP's secure portal, before the bid window closes. However, if you upload it by the covered document review date (CDRD), it will be included in the process for reviewing covered documents. As defined in 42 CFR § 414.414(d)(2), this process provides bidders the opportunity to be notified of missing required financial documents and additional time to provide the missing financial documents. 

For DMEPOS CBP Round 2028, the CDRD process allows bidders to be notified within 90 days after the CDRD if a credit report is missing and the date that all missing documents must be uploaded in Connexion. The process for reviewing covered documents is only to determine if any required financial document is missing. It is not a review of whether the document is accurate, acceptable, and complete.  

All bidders participating in Round 2028 are urged to take advantage of the process by uploading their financial documents by the CDRD. The CDRD is either the date that is 30 days before the final date of the closing of the bid window or 30 days after the opening of the bid window, whichever is later.  

For Round 2028, a covered document means a credit report and credit score or rating required to be submitted by a bidder in order to meet the required financial standards. Other required documents (i.e., bid surety bonds and non-financial documents) are not covered documents and, therefore, not included in the process for reviewing covered documents as set forth in section 1847(a)(1)(F) of the Social Security Act.  

If you do not upload your required financial documents in Connexion by the CDRD, you will not be included in the process for reviewing covered documents and will not be notified of any missing documents. Only bidders that are notified of missing financial documents may upload specific missing documents. You may not upload revised versions of previously uploaded documents after the close of the bid window.

How will I be scored?  

CMS uses a five-tier scoring system for evaluating a bidding entity’s credit report and numerical credit score or rating, which aligns with the various approved credit reporting agencies’ evaluation criteria. See Table 2 below for more information on the scoring system.  

A bidding entity can receive a maximum of 20 points for their credit report and numerical credit score or rating. A bidding entity that receives a minimum score of 12 points or higher as would be deemed as passing—meets the financial sustainability threshold. If deemed as passing, the bidding entity will continue to be evaluated for a potential DMEPOS CBP Contract offer. 

Important: Credit scores and ratings provided by credit reporting agencies are subject to change and may not reflect the most current information available. Such information can be updated or revised at any time without notice. CMS may adjust the naming of acceptable credit reports and its scores or ratings accordingly to reflect any updates by credit agencies. 

Special Instructions  

Networks and Commonly Owned or Commonly Controlled Suppliers

Networks and commonly owned or commonly controlled bidding entities must register to bid one time with one primary Provider Transaction Access Number (PTAN). The PTAN designates the primary location and identifies the bidding entity. When the bid window opens, the bidding entity must submit one bid that includes all network or commonly owned and/or commonly controlled locations that would furnish the lead item and all non-lead items for the product category and competitive bidding area combination (competition). The legal business name (LBN) for the primary location will auto-populate in the bidding system on the Business Organization Information section of Form A. This LBN must be the same LBN on your bid surety bond(s) and for the submitted credit report and credit score or rating. Only one credit report and credit score or rating should be submitted for a bidding entity, including networks or commonly owned or commonly controlled suppliers.

New Businesses 

For bidders whose business has not been in operation long enough to generate a credit report with a numerical score or rating, submit the following: 

• A business credit report showing no data or insufficient information to generate a credit score or rating. 
• A personal credit report with a numerical credit score or rating from the bidding supplier’s authorized official or delegated official in CMS’s Provider Enrollment, Chain, and Ownership System (PECOS). If the individual’s name on the personal credit report is not a current authorized official or delegated official listed in PECOS, CMS will deem the personal credit report with a numerical credit score or rating unacceptable, and the bidder will not be eligible for a DMEPOS CBP Contract. 

Note: Both the business and personal credit reports are not required to use the same approved credit agency.

Table 1: Approved Agencies, Credit Reports, and Descriptions

Table 2:  Credit Report Scoring