Medicaid Drug Rebate System RFP 124528 Intent_to_Award_Notice.docx

This Intent to Award Notice from the State of Nebraska Department of Health and Human Services announces the state's intention to award the contract for the Medicaid Drug Rebate System (MDR) under RFP #124528 to CONDUENT State Healthcare, LLC. The solicitation, which opened on August 6, 2026 at 2:00 p.m., seeks a comprehensive Medicaid drug rebate management system encompassing design, development, testing, implementation, and five-year operational support. The scope includes rebate calculations, claims processing, vendor management, and reporting capabilities, with integration required across eighteen data interfaces connecting Nebraska's Medicaid Management Information System (MMIS), Health Insurance Administration (HIA), Centers for Medicare & Medicaid Services (CMS), managed care organizations, and pharmacy benefit managers. Written questions were due June 23, 2026, with proposals due July 23, 2026 at 2:00 p.m. Central Time. The evaluation period ran from July 30 through August 13, 2026, with the Intent to Award posted on September 3, 2026. The initial contract term is five years with one optional three-year renewal, with contract finalization targeted for September and October 2026 and an anticipated January 2027 award and start date.

The contract establishes fixed pricing for the initial five-year term and includes performance guarantees with daily monetary penalties ranging from $500 to $5,000 per incident for non-compliance across six requirement categories. The contractor must meet strict operational requirements, including capturing rebate data for invoicing within 60 days of each quarter end, generating automatic delinquent letters within 10 business days, completing quarterly rebate file generation within one business day of invoice cycle completion, and providing dispute resolution support within five business days of DHHS request. The contractor is responsible for all costs associated with breach investigation, mitigation, and notification, and must comply with Section 1927 of the Social Security Act, applicable CFR provisions (42 CFR 447.509, 447.511, 447.520), HIPAA regulations, and NIST standards. The vendor must designate Privacy and Information Security Officials, implement administrative, physical, and technical safeguards, and notify DHHS of breaches to federal information within one hour of discovery and all other confidential information within 15 days. The State of Nebraska reserves the right to consider resident disabled veteran and designated enterprise zone preferences under Nebraska Revised Statutes.