• VGM Gets Clarification on Credit Report Score for Competitive Bidding

    From: VGM


    Posted on: January 24th, 2012 by Mark Higley

    Many HMEs have been expressing concern over recent fax receipts from third party consultants and others, which have been picked up by several state associations and distributed to their memberships.  The issue is in regard to whether the Round 2 potential bidding companies must have a credit report dated before January 30.  Somewhat directly stated — this is NOT true.  A detailed explanation follows below. 

    But first, here is an example of the releases distributed during the past several days:


    Round 2 Bidders Must Have Credit Report Dated Before Jan 30, 2012 Or Bid Will Be Disqualified.

    CMS documentation on CBIC website requires bidding suppliers to have a credit report with a numerical score from one of the credit reporting agencies.  This report and score must be dated PRIOR to the opening of the bid window on January 30, 2012.  This leaves suppliers just over one week to receive this credit report.

    Many suppliers may have overlooked this requirement, which also states that if a credit report is not available for the company, then one for the principle owner is acceptable, provided it to is dated within 90 days PRIOR to the opening of the bid window.

    VGM reviewed CMS1207-F (the “final rule” with regard to competitive bidding) and cited this text applicable to the issue:  “…a copy of their current credit report, which must have been completed within 90 days prior to the date in which the supplier submits its bid and must have been prepared by one of the following…”. 

    Clearly the Rule is clear in that credit reports may be obtained up to the date of bid submission.  We believe the contractor’s Required Financial Documents Fact Sheet http://www.dmecompetitivebid.com/Palmetto/Cbic.Nsf/files/R2_Fact_Sheet_Required_Financial_Documents.pdf/$File/R2_Fact_Sheet_Required_Financial_Documents.pdf, which included under Item #3 (Credit Report with Numerical Score) the following text “…prepared  within 90 days prior to the opening of the bid window by one of the following…” was with the intent to suggest a target date such that potential bidders would not risk disqualification by obtaining a late report. 

    To ensure our interpretations were correct, VGM’s Alan Morris contacted Palmetto GBA’s Chief Ombudsman Elaine Hensley.  A copy of the correspondence follows below:

    From: <ELAINE.HENSLEY@palmettogba.com>
    Date: January 24, 2012 7:05:16 AM CST
    To: <Alan.Morris@vgm.com>
    Subject: RE: Concerns over Credit Report Requirements

    Good morning, Alan –

     This is the date established by CMS for Round 2 bidding.  Credit reports dated 90 days prior to the opening of the bid window are not valid.  Therefore, the credit report must be dated on or after that date.  Additionally, the credit report may be dated after the opening of the bid window.

     I hope this helps.


    I have further comments relative to the appropriate credit reporting agency; some HMEs are suggesting issues with Dun and Bradstreet.  With the exception of C corporations and certain other entities, there are options for personal credit score submittals.  I will detail these shortly in another post. 

    If you have questions, email me at mark.higley@vgm.com

    Thank you. 

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