70-63000-26-EM093_63000 HCA_Approved Emergeny Procurement_FY27-002_Xomad_8.31.2026.pdf.PDF

2022 Emergency Form

STATE OF NEW MEXICO

EMERGENCY DETERMINATION FORM

The emergency procurement method (NMSA 1978, Section 13-1-127) may only be used when the service, construction or item of tangible personal property procured:

1. is needed immediately to:

a. control a serious threat to public health, welfare, safety or property caused by a flood, fire, epidemic, riot, act of terrorism, equipment failure or similar event; or

b. plan or prepare for the response to a serious threat to public health, welfare, safety or property caused by a flood, fire, epidemic, riot, act of terrorism, equipment failure or similar event; and

2. cannot be acquired through normal procurement methods.

a. The agency entering into an emergency procurement should employ a competitive process to the extent practicable under circumstances.

The purchase or lease of heavy road equipment is not allowed under the emergency procurement statute.

The state purchasing agent or a central purchasing office that makes an emergency procurement shall outline its determination of the basis for the procurement and its selection of the contractor in writing and include the writing in the procurement file. (That writing can be made on this form.) Promptly thereafter:

• the state purchasing agent shall post notice of the procurement on its website; or

• the central purchasing office shall post notice of the procurement on its website, if it maintains one, and shall transmit the notice to the state purchasing agent for posting on the state purchasing agent's website.

NOTE: the state purchasing agent or a central purchasing office that makes an emergency procurement to plan or prepare for the response to a serious threat to public health, welfare, safety or property caused by a flood, fire, epidemic, riot, act of terrorism, equipment failure or similar event shall account for the money spent in making the procurement and report on that accounting to the legislative finance committee and the department of finance and administration within sixty days after the end of the fiscal year in which the procurement was made.

I. Name of Agency: New Mexico Health Care Authority

Agency Chief Procurement Officer: Andrea Sisneros

Telephone Number: 505-479-1369. Andrea.Sisneros2@hca.nm.gov

Docusign Envelope ID: 7C060A48-1C65-8924-833F-7175B6789D15

II. Name of Contractor: XOMAD, LLC

Address of Contractor: 3616 B The Strand, Manhattan Beach, CA 90266

Amount of prospective contract: $250,000

Term of prospective contract: 08/25/2026 – 11/25/2026, not to exceed 90 days

III. Thoroughly list the services (scope of work), construction or items of tangible personal property being procured:

The New Mexico Health Care Authority (HCA) is initiating this second, narrowly scoped emergency procurement with XOMAD, LLC to provide rapid-response digital outreach through trusted local messengers to Medicaid members affected by new federal community engagement requirements.

XOMAD's role is distinct from HCA's traditional communications functions. XOMAD recruits, coordinates and deploys New Mexico-based trusted messengers and local digital creators who deliver

HCA-approved information through their own established community networks and social media audiences. This approach is designed to reach Medicaid members who may not see, open or act on government notices, email, text messages, websites or traditional paid media alone.

Services are limited to the immediate Medicaid implementation need and include identifying and activating trusted messengers; adapting HCA-approved work-requirement, exemption and reporting information for digital delivery; producing and distributing short-form social content; directing members to official HCA resources; monitoring engagement and audience response; and rapidly adjusting outreach based on performance and emerging customer questions. XOMAD will not establish Medicaid policy or independently determine eligibility information. HCA will provide and approve all substantive policy messaging.

The procurement is limited to $250,000 and a period not to exceed 90 days. It is intended solely as a temporary bridge while HCA completes an appropriate competitive procurement for any continuing trusted-messenger or digital outreach services.

IV. Provide an explanation for the justification of the procurement including a description of the emergency condition(s) requiring use of emergency procurement and the practicable competition utilized in compliance with NMSA 1978, Section

13-1-127.

New or changed circumstances since the initial XOMAD emergency procurement.

On June 1, 2026, the Centers for Medicare & Medicaid Services (CMS) issued an Interim Final Rule with Comment Period implementing the new federal Medicaid community engagement requirement. The rule established detailed operational requirements affecting certain Medicaid adults, including an 80-hour monthly community engagement requirement, exemptions, verification requirements and procedures that may result in denial or disenrollment when compliance or an exemption cannot be verified. CMS also made states responsible for outreach and notice to affected Medicaid populations.

The June 1 rule materially clarified and expanded the implementation detail HCA must communicate to customers. HCA must explain who may be subject to the requirement, how customers can meet it, who

Docusign Envelope ID: 7C060A48-1C65-8924-833F-7175B6789D15

Mark Melhoff Highlight

Mark Melhoff Highlight

Mark Melhoff Highlight may qualify for exemptions such as medical frailty, what customers may need to report or document, and what can happen if compliance or an exemption cannot be verified. These detailed implementation requirements were not available when HCA first established its emergency trusted-messenger outreach strategy and require new, rapid and targeted public education.

The need is especially time-sensitive because more than 200,000 New Mexico Medicaid members may be subject to the new community engagement requirements. HCA cannot rely on a single communication channel to reach this population. Some members may not respond to government communications alone, may have outdated contact information, may face limited digital or health literacy, or may need to hear the information repeatedly from sources they already know and trust.

XOMAD's trusted-messenger model provides a distinct rapid-response channel that complements, rather than replaces, HCA notices, texts, email, website content, earned media and paid advertising.

Steps taken toward competitive procurement since the initial emergency procurement.

Since the initial emergency procurement, HCA has been evaluating its longer-term Medicaid outreach needs, defining which trusted-messenger and digital engagement services may be required beyond the emergency period, and identifying sustainable funding for a competitive procurement. HCA has also began developing the scope of work on June 2026; and are working on identifying the appropriate procurement method and identifying funding.

A competitive procurement was not completed before the current emergency need arose because the detailed federal implementation framework was still developing and HCA could not responsibly finalize a longer-term scope before knowing the specific Medicaid populations, exemptions, reporting obligations and customer actions that outreach would need to address. The June 1 CMS Interim Final

Rule created additional implementation specificity and compressed the time available to educate affected members. HCA is therefore using this second emergency procurement only as a limited bridge while completing a competitive procurement for any continuing services.

Why these services cannot presently be acquired through normal procurement methods.

A standard competitive procurement, through an RFP or equivalent process, generally requires approximately three to six months for solicitation, evaluation and award. HCA must begin educating affected Medicaid members before implementation of the federal community engagement requirement and cannot defer outreach until a standard procurement is completed. Waiting would substantially reduce the time available for members to understand the new rules, determine whether they may qualify for an exemption, prepare documentation and understand how to comply before their eligibility is affected.

A gap in trusted-messenger outreach would remove a communication channel specifically designed to reach customers who may be less likely to engage with government communications alone. Delaying this work creates a risk that eligible members may not understand the new requirements or exemptions in time to protect their coverage. Emergency procurement is therefore the only procurement mechanism presently available to maintain this immediate outreach capacity while HCA completes a competitive procurement for continuing services.

Although conducted under emergency authority, HCA utilized the maximum practicable competition available under the circumstances. The agency limited the scope, value and duration of the procurement and solicited pricing, availability and qualifications from vendors with demonstrated experience in New

Mexico-based digital outreach, public-benefits communications and rapid deployment. XOMAD was selected based on its ability to immediately mobilize a network of trusted local messengers, distribute

HCA-approved content through established community audiences, provide rapid performance data and adjust outreach within the compressed implementation period.

XOMAD's existing trusted-messenger infrastructure is particularly relevant because rebuilding a comparable statewide network through a new vendor during the immediate implementation period would require additional recruitment, vetting, onboarding and coordination before outreach could begin. The procurement does not authorize XOMAD to develop policy or replace HCA's direct communications functions. It is narrowly limited to rapid deployment of HCA-approved Medicaid information through trusted community voices.

The resulting contract will not exceed 90 days. It is not intended to establish a continuing noncompetitive relationship with XOMAD. Any continuing trusted-messenger or digital outreach services after the emergency period will transition to an appropriate competitively procured contract.

V. Describe what measures are being taken to minimize the duration and effect of this particular emergency procurement (for example: is the emergency only in place until a competitive process can be completed, etc.).

This emergency procurement is limited to a period not to exceed 90 days and is structured solely as a bridge to competitive procurement. The scope is limited to immediate trusted-messenger and digital outreach necessary to educate Medicaid members about the new federal community engagement requirements, exemptions, reporting obligations and actions they may need to take.

During this 90-day emergency period, HCA commits to initiate and complete an appropriate competitive procurement for any continuing trusted-messenger or digital outreach services. HCA will use the following milestones, subject to the procurement method approved by the agency Chief Procurement

Officer:

• Within 30 days of the emergency contract start: finalize the longer-term scope of work, funding source and procurement strategy.

• Within 45 days: initiate the competitive procurement and complete all agency actions necessary to issue or conduct the approved competitive process.

• Before expiration of the 90-day emergency period: complete the competitive procurement and transition any continuing services to the resulting competitively procured contract.

HCA's Chief Procurement Officer will track these milestones. XOMAD's emergency scope will remain limited to the immediate Medicaid outreach need and will not be expanded to routine or longer-term communications services that can be acquired through normal procurement methods.

VI. Describe what measures the Agency will take in the future to prevent/mitigate use of an emergency procurement under similar circumstances.

To prevent additional successive emergency procurements for substantially similar services, HCA will incorporate anticipated Medicaid trusted-messenger and digital outreach needs into its longer-term procurement planning and complete the competitive procurement described in Section V during this 90-day bridge period.

HCA will maintain a defined competitive procurement vehicle for any continuing trusted-messenger or digital outreach services; identify funding and procurement requirements before the emergency contract expires; use the agency Chief Procurement Officer to track milestones and elevate delays that could jeopardize completion; and begin communications procurement planning as early as practicable when proposed federal rules, statutory deadlines or implementation guidance indicate a likely need for member outreach.

HCA does not intend to seek a third successive emergency procurement to continue the services covered by this determination. Any continuing need after the 90-day period will be addressed through the competitive procurement completed during this bridge period. Emergency authority will be reserved for genuinely new and unforeseeable circumstances that independently satisfy NMSA 1978, Section 13-1-

127.

Certified by: Date: _______________

Agency Chief Procurement Officer

Agency Approval by: Date: _______________

Cabinet Secretary/Governmental Entity Head or Designee

8/24/2026

8/25/2026

Mark Melhoff New Stamp

Mark Melhoff New Stamp

I. Name of Agency: New Mexico Health Care Authority