AttachmentA-Amendment1-Q As.doc

RFP-CMS-2007-0027

Amendment 000001

Attachment A

Zone Program Integrity Contractor

RFP-CMS-2007-0027

Questions and Answers

RFP/Solicitation Sections B-M Questions

SECTION B

1) RFP B.5.b – Indirect Cost Rates (p.9) (1.8) The chart has a column titled Cost Center. What does the “Cost Center” title represent?

Response: The “Cost Center” refers to the rate name, i.e. Fringe, Overhead, G & A

2) IDIQ, B.11.d ZPIC Level of Effort (Cost Reimbursement) (page 12 of 125) (1.3)

Please clarify what is meant by other non-work location. This work is conducive to travel and working at various locations.

Response: Section B.11(d) has been amended to remove the non-work location.

3) RFP B.11.d – Level of Effort (p.12) (1.8)

a. This paragraph states that the level of effort shall not include work performed from home, in transit, or from other non-work locations. If a person spends 10% of their time traveling, can we include hours of work performed during these travels in our direct labor hours, e.g. work performed in the hotel room or hours spend attending a conference?

Response: Section B.11(d) has been amended.

b. If a person has a need to work from home on a rare or occasional basis, can these hours be direct labor hours? Indirect?

Response: We can not fully answer this question; this is dependent upon what the person is working on.

SECTION G

4) IDIQ RFP, Section G.8, "Project Director/Project Manager," and section G.9, "HHSAR 352.270-5 Key Personnel (Jan 2006)" (1.9) Must the Project Director/Project Manager identified in section G.8 be the same person as that identified in section G.9 as the Zone Program Director?

Response: Yes

5) IDIQ Section G.9 (page 23 of 125) – Key Personnel (page 19) (1.7)

The RFP identifies the Zone Program Director as the only individual considered “key” under this contract. However, SOW Section 1.1.7 (page 18) identifies eleven key personnel positions.

Is the Zone Program Director the only individual considered “key” under this contract?

Response: Yes, for the IDIQ.

6) IDIQ RFP, Section G.9, "HHSAR 352.270-5 Key Personnel (Jan 2006)" and ZPIC IDIQ SOW Section 1.1.7.2, "Key Personnel"

Section G.9 of the IDIQ RFP (p. 23) only lists one key person. Is the key personnel for the IDIQ only the Zone PD, or is it also all the personnel mentioned in section 1.1.7.2 of the ZPIC IDIQ SOW?

Response: See response to Question 5.

7) ZPIC Citations –

IDIQ – RFP – G.9 – Key Personnel (p. 23 of 125)

IDIQ – SOW – Attachment J.1, Section 1.1.7 – Key Personnel (p.18)

Task Orders (all) – RFP – G.9 – Key Personnel

Task Orders (all) - SOW – Section II – Key Personnel (1.22) The IDIQ RFP (citation above) provides as follows:

“The following individuals are considered ‘key’ under this contract: Zone Program Director. All other personnel will be designated in each individual task order.”

The IDIQ SOW (citation above) provides as follows:

“When Task Orders are issued, key personnel positions will be identified in the Task Order Statement of Work (SOW).”

The IDIQ then sets for the title and requirements for ALL Key Personnel.

The Task Order SOWs (citations above) provide:

“The ZPIC umbrella SOW is incorporated into this Task Order (TO) with the same force and effect as if it were provided in full text.” [II – Requirements]

“The Key Personnel requirements for this TO are IAW ZPIC Umbrella SOW 1.1.7. Key Personnel required for this TO are as follows . . . .”

1 – (a) Does the IDIQ proposal require only the Zone Program Director to be submitted as the Key Personnel (per the RFP)?

OR

(b) Does the IDIQ proposal require all Key Personnel listed in the IDIQ SOW (which includes the Zone Program Director) to be included in submission?

Response: Only the Zone Program Director is required as key personnel under the IDIQ.

2 – Is the bidder to submit individuals for:

(a) ALL identified Key Personnel in the IDIQ SOW in addition to different individuals for the identified Key Personnel required in the TO SOWs?

OR

(b) ALL identified Key Personnel in the IDIQ SOW and these Key Personnel are then identified to a Task Order(s)?

OR

(c) ONLY the Zone Program Director for the IDIQ proposal and ONLY the Key Personnel identified in the TO SOWs?

Response: The correct answer is (c)- ONLY the Zone Program Director for the IDIQ proposal and ONLY the Key Personnel identified in the TO SOWs 3 – Under Task Order 1, Sow, II Requirements notes “The ZPIC may utilize all of the ZPIC (USOW) requirements EXCEPT FOR THE FOLLOWING SECTIONS, at this time:…” The ONLY Key Personnel position excluded is “Section 1.1.7.2.4 – Cost Report Audit / Reimbursement Manager. “ Because no TO currently includes Parts C or D work, should the MMA Audit Manager, Pharmacy Specialist and Chief Actuary be excluded under this section also?

Response: Answered at a later date.

4 – The Zone Program Director is listed in the IDIQ RFP, however, this position is not defined as full-time, part-time, or on-site. Is this position required to be full-time or not; on-site or not?

Response: The Zone Program Director is required to be full-time but not on-site. See amended IDIQ Statement of Work.

8) IDIQ, Section G. 13, Page 24 of 125, Article G. 13 (1.10) This article identifies the Subcontracting Program established by HHS as a minimum of: 40% Small Business; 5% Small Disadvantaged Business; 5% WOSB, 3% Hubzone; 3% SDVOSB; and 3% VOSB. Please confirm that the total small business utilization goal is

59% of any subcontracted dollars.

Response: No, the total overall subcontracting goal is 40%. This includes the SDB, WOSB, HUBZone, SDVOSB, and VOSB goals.

9) IDIQ, G.23.(a).(1), Task Order Proposals (page 30 of 125) (1.3)

This clause states direct labor includes the "estimated direct labor dollars (broken out by hours and rates for each month of effort) for each individual proposed on the task order”. Is the requirement to supply this information on a monthly basis or a yearly basis, since the cost schedules are set up by year?

Response: The language in G.23 has been amended to reflect that hours and rates are to be broken out by task.

10) IDIQ, G.23.(a).(1), Task Order Proposals (page 30 of 125) (1.3)

This clause requires the Offeror to supply direct dollars for individuals whereas the Task Order Business Proposal Instructions direct the Offeror to supply labor rates for labor categories. Should we supply individual names or labor categories?

Response: See response to Question 9.

SECTION H

11) IDIQ – H.2 Conflict of Interest. (1.4)

In H.2.c.1.(a) it states that there is an organizational conflict of interest or the potential for a conflict if the contractor conducts audits of health benefit payments or cost reports.

a. Does it matter to CMS who the audits are performed for?

Response: Yes

b. For example, if the audits are on behalf of Medicare or Medicaid, would that still be considered a conflict?

Response: If a contractor conducts audits for CMS via a CMS contract, this does not appear to be a Conflict of Interest. However, further review would be necessary.

12) IDIQ - H.2 Conflict of Interest. (1.4)

a. Can the Offeror meet with the Contracting Officer on conflict of interest issues before the proposals are due? (1.4)

Response: No, since the solicitation has been released, CMS can not meet with Offerors individually to discuss COI issues.

b. If the Offeror cannot meet with the Contracting Officer on conflict of interest issues prior to submitting the proposal, how will the company know that the proposed mitigation strategy for the company or its subcontractors will be acceptable to CMS?

Response: Conflict of Interest mitigation strategies will be discussed during “Discussions” if the Offeror is included in the Competitive Range, provided award is not made without discussions as defined in Section M.I.1.i. Conflict of Interest is not a consideration in the Competitive Range Determination.

13) RPF Conflict of Interest (COI) section H.2 (1.8) How does CMS define “complete separation” as noted at the pre-bidders conference?

Response: Complete separation means that there is no affiliation with the conflicted organization. For example, if Company X is a subsidiary of Company Y, Company X could establish a new entity to remove ties to Company Y.

14) RPF Conflict of Interest (COI) section H.2 (1.8) What does CMS view as an acceptable COI mitigation plan? What should this mitigation look like?

Response: CMS does not dictate mitigation strategies. The format of the plan is at the discretion of the Offeror. However, it must contain, at a minimum, the required elements stated in the solicitation.

15) RPF Conflict of Interest (COI) section H.2 (1.8) Does CMS believe there is an acceptable mitigation for an LLC whose parent is a Part D Plan while still remaining as an LLC of said parent?

Response: CMS believes that an LLC with a parent company who is a Part D Plan clearly poses a conflict of issue. As stated, CMS believes total separation would be an acceptable mitigation strategy.

16) RPF Conflict of Interest (COI) section H.2 (1.8) Is there an existing PSC that would not have a Part C or Part D COI with its Parent Company at this time? If yes, and permissible, please name said PSC that does not have a Part C or Part D COI with it’s Parent Company at this time.

Response: This is not an appropriate question for CMS to answer.

17) RPF Conflict of Interest (COI) section H.2 (1.8) Is the current COI Mitigation Plan of an existing PSC regarding any organizational and/or financial relationship sufficient or transferable for ZPIC bidding assuming no substantive changes have occurred?

Response: The answer to this question is dependent upon individual organizational circumstances. Nonetheless, a complete and separate Conflict of Interest plan must be submitted for this solicitation.

18) RPF Conflict of Interest (COI) section H.2 (1.8) Would CMS consider allowing the bidders / contractors to submit their proposed COI Mitigation Plan prior to submission of the proposal and receive early determination from CMS regarding the sufficiency, approval or denial of the proposed mitigation plan, as submitted?

Response: See response to Question 12. No, COI Plans can not be submitted early.

19) IDIQ, Section(Paragraph) / Title: H.2(c)(1)(a) / CONFLICT OF INTEREST (1.1)

Does CMS consider there to be an organizational conflict of interest if a ZPIC subcontractor also serves as a state contractor for one or more states listed in the zone in which it will work, where the work that such subcontractor provides to such a state consists of data warehousing, business intelligence, and advisory services to the state Medicaid agency and its program integrity organization or agency?

Response: Notwithstanding any other Conflicts of Interest, this scenario does not appear to cause a conflict of interest.

20) Organizational COI, page 33, 1.a.2 and 3; Experience in health care fraud, waste and abuse detection requires conduct of audits of health care payments and utilization. How does this represent COI?

Response: One way this could represent a Conflict of Interest is if the services are being performed for a provider.

21) ZPIC IDIQ RFP, Section H.2.d.2 – Conflict of Interest, Disclosure (1.20)

When Disclosure is Made “Certificate is submitted November 20, 2007 and annually on October 31st thereafter”: Question – Does CMS want the certificates to be submitted prior to the written proposal due date of November 27, 2007? If so, is there any particular format required for the submission?

Response: See response to Question 22 and Question 14.

22) H.2 Paragraph H.2.d.2.(c) requires the submission of an OCI Certificate on November 20, 2007. This date occurs before proposals are due for any of the Zones under this RFP. (1.6)

Response: This should read “with the submission of the ZPIC proposal.” Amendment 000001 has corrected this error.

23) H.2 Paragraph H.2.d.2.(d) requires the submission of an OCI Certificate “45 days or less (as the information becomes known) before any change …”. (1.6) Some “corporate and organizational structure” changes could occur at any tier that may not be known to the offeror in advance of the change.

We suggest language previously used by CMS for the Medicare Administrative Contractor solicitations -- “Within 45 days of any change in the information previously submitted…” Response: The language will remain as is.

24) Can you please clarify if a company can Prime in a zone and subcontract to another company in a different zone or if this would create a Conflict of Interest? (1.12)

Response: Notwithstanding any other Conflicts of Interest, this scenario does not appear to cause a conflict of interest.

25) IDIQ - H.4 Compliance Program. (1.4)

Will CMS consider the size of the company in determining the current scope and requirements of the company’s compliance program?

Response: No

26) IDIQ - H.4 Compliance Program. (1.4)

Does CMS require a small company to currently have in place a “compliance department” or is it sufficient to propose a future structure once an award is made?

Response: If the Offeror (large or small) does not have a “compliance department” in place, the overall Compliance Plan must be acceptable and able to be implemented at time of award.

27) RFP H.11 – Approval of Contract Acquired IT (p. 47-48) (1.8) If the ZPIC is creating an internal database, does this section apply? Does this apply for all IT purchases (i.e., PCs, software) and all applications?

Response: Yes, this applies to all IT purchases and applications.

28) Will all subcontractors be required to submit the same Conflict of Interest and Compliance Program proposals?

Response: It shall be the Prime Contractor’s responsibility to monitor the subcontractor’s Conflict of Interest and Compliance Plans. For this solicitation, CMS is requiring both the Prime Contractor and all subcontractors to submit a Conflict of Interest Plan to CMS. However, subcontractors will not be required to submit a Compliance Plan to CMS. See amended Section L.I.4.

29) What is the renewal authority? Can the contract be for more than a base plus four years?

Response: The renewal authority is listed under H.1, Contract Renewal. Under the authority of the Medicare Integrity Program, CMS may renew the contract annually after the base plus four option periods.

SECTION K

30) IDIQ, Section K, Page 73 of 125, Representations, Certifications and Other Statements of Offerors or Quoters (1.10) Does CMS wish the Offeror to submit a hard copy of the Section K as well as the electronic copy on ORCA? Does CMS wish to receive a hard copy or electronic copy of Section K document for each of the potential subcontractors?

Response: CMS does not wish to receive an electronic copy, only a hardcopy shall be submitted in accordance with the proposal instructions. See response to Question 31.

31) Do Section K instructions apply to subcontrators? Must subcontractors submit “Reps and Certs” to CMS under this procurement, or is such information only needed for the prime contractor?

Response: Yes, CMS is requesting that subcontractors provide the information requested in Section K. See amended L.I.2.C.

SECTION L

32) IDIQ - L.4 (e) Restriction on disclosure and use of data. (1.4)

This section specifies a statement that belongs on the first page and references the “Freedom of Information Act, 5 U.S.C. 552 (New Window).” What is the reference to New Window?

Response: The reference is for the link associated with 5.U.S.C. 552 indicating the link will open in a new window. Offerors can not use the link; therefore we have removed the occurrences of “(New Window).” See amendment.

33) IDIQ, Section L.9, Small Business Subcontracting Plan, the language of page 89 states, “As a subset of the 40%, the following goals are recommended”. (1.10) Please clarify the Small Business Subcontracting Plan Total Goal of 40% with a subset of percentages for the various categories, (i.e., the 19% of the combined categories is included in the overall 40% goal); or is 59% for Small Business the recommended total, with the percentages for various categories added to the 40% as noted in Section G. 13.

Response: See response to Question 8.

34) IDIQ, L.10.n.3, Page Size, Typing, Spacing and Page Numbering (page 93 of 125) (1.3)

This requirement requires the use of high grade white paper while Section L.12 states the proposal should be submitted on recycled paper. Please clarify which type of paper should be used.

Response: Section L.10.n.3 has been amended to request that Offerors use Recycled Paper.

35) IDIQ, L.10.n.4, Page Size, Typing, Spacing and Page Numbering (page 93 of 125) (1.3)

This clause states “type size shall not be less than 12-point font type Times New Roman”. Does this requirement apply to graphics and tables as well? Can graphics and tables be no less than 8 point font?

Response: This section has been amended to allow charts, graphics and tables to be no less than 8 point font.

36) IDIQ - L.10.n Page Size, Typing, Spacing and Page Numbering. (1.4)

This section requires type size to be not less than 12 point font type. Are other smaller type fonts allowed for graphs or other figures?

Response: See response to Question 35.

37) IDIQ; Solicitation Section L.10 – General, paragraph a. Multiple Zones (p 91) (1.11) The RFP states: “Offerors are required to propose separate key personnel for each Zone for which they are submitting a proposal.” Does this refer only to full time key personnel? Please confirm that key personnel other than full time can be leveraged across more than one Zone.

Response: This applies to full time key personnel. Key personnel other than full time can be leveraged across Zones as long as the total combined hours proposed do not exceed one FTE for each individual.

Section L.I

38) IDIQ, L.I.1.A, General (page 95 of 125) (1.3)

The fourth bullet indicates all files shall be submitted in Microsoft Office Word. Does this include documents with signatures and Business Proposal spreadsheets? Are pdf files and Excel files acceptable?

Response: Section L.I.A has been amended to allow signed documents such as Conflict of Interest Plan to be submitted in Adobe Acrobat or “pdf” format. Organizational charts may be provided in PowerPoint. Cost proposal spreadsheets shall be submitted in MS Excel. The Work Breakdown Structure may be submitted in Microsoft Project or other stated format as indicated in Section L. All other documents shall be submitted in MS Word unless otherwise noted.

39) IDIQ Section L.I.1.A – General (page 95 of 125) (1.7) The RFP states:

In addition, two (2) copies each of the Business Proposal (Volume I), Technical Proposal (Volume II) and Conflict of Interest and Compliance Program (Volume III), in their entirety, shall be submitted electronically on a CD-ROM submitted in Microsoft Office Word.

Is it acceptable for offerors to submit all spreadsheets required in the Business Proposal electronically on MS Excel spreadsheets instead of MS Word?

Response: See response to Question 38.

40) IDIQ RFP, Section L.I.1.A, "Proposal Instructions," subsection A, "General" (Page 95) specifies that we provide a CD-ROM with MS Word files for the Business Proposal, Technical Proposal, and COI and Compliance Program. Can we provide these files in PDF format? (1.9) Response: See response to Question 38.

41) IDIQ; Solicitation Section L.I.2.C – Business Proposal Instructions, paragraph C. Contract Form and Representation and Certifications (p 98) (1.11) The RFP states: “In addition, Sections B, G and H of the RFP shall be completed where applicable.” With the possible exception of G.8 Project Director/Project Manager, these sections of the IDIQ draft contract are informational or are intended to be filled in upon award. Is it acceptable to state that we agree with the sections, in lieu of inserting these sections into the proposal as subsections 2, 3, and 4 of Part C?

Response: No

42) IDIQ, L.I.2.D, Breakdown of Proposed Costs (page 98 of 125) (1.3)

Please clarify where the costs associated with the Zone Program Director should be reported.

Response: This is at the discretion of the Offeror.

43) IDIQ, L.I.2.D, Breakdown of Proposed Costs (page 98 of 125) (1.3)

Please clarify the meaning of “staffing level assumptions”.

Response: Staffing level assumptions are considered to be the labor categories, hours and FTEs that the Offeror would propose for Part C and Part D only. The Offeror shall also propose assumptions for ODCs for Part C and Part D only. No costs should be proposed for the staffing level or the ODC assumptions. This paragraph has been amended for clarification.

44) IDIQ – L.I.2.D Breakdown of Proposed Costs (1.4)

What specific assumptions should be used to determine staffing levels for Part C and what year should these assumptions be based on?

Response: Answered at a later time.

45) IDIQ – L.I.2.D Breakdown of Proposed Costs. (1.4)

What specific assumptions should be used to determine staffing levels for Chapter 5 cost report audits and what year should these assumptions be based on?

Response: CMS is not requiring Offerors to submit staffing levels for Chapter 5. See Question 43.

46) IDIQ, Section: L.I.2.D Breakdown of Proposed Cost (1.13)

a. Section states: “Breakdown of Proposed Costs for the Umbrella IDIQ should include a staff breakdown for all workloads within the zone (Parts A, B, C, D, DME, RHHI and Medi-Medi).” We assume no rates, hours, or costs required for this section?

Response: Please see response to Question 43. Staff breakdown is not required for all workloads within a Zone.

b. The RFP states: "Breakdown of Proposed Costs for the Umbrella IDIQ should include a list of ODCs required to perform all workloads within a zone (Parts A, B, C, D, DME, RHHI, and Medi-Medi)." Do we assume that no costs are required, but a list of ODCs and assumptions about the ODCs is required?

Response: See response to Question 43. A list of ODCs is not required for all workloads within a Zone.

47) IDIQ, Section: L.I.2.D Breakdown of Proposed Cost (1.13) Can CMS provide work load assumptions for Part C audits and RDS audits?

Response: Answered at a later time.

48) IDIQ, Section: L.I.2.D Breakdown of Proposed Cost (1.13) For Part C audits, should bidders assume that the contractor will perform audits based on all of the elements presented in the “Medicare Advantage Audit Guide”?

Response: Answered at a later time.

49) A. B. –ZPIC Citations –

IDIQ – RFP – L.I.3 – Technical Proposal, 2. – Oral Technical Proposal (p. 104 of 125)

IDIQ – RFP – L.I.1 – PROPOSAL INSTRUCTIONS, C. Proposal Organization (1.22)

(a) Is the Offeror required to submit the Oral Presentation materials (i.e., Power Point presentation) as part of the IDIQ Technical Proposal, Volume II & TO Technical Proposals, Volume I?

OR

(b) Are the Oral Presentation materials submitted at the time of the Oral Presentation?

Response: Oral Presentation materials are to be submitted at the time of the Oral Presentation.

AND

(c) If (a) above is correct – May the Offeror submit edited corrected or supplemental Oral Presentation materials at the Oral Presentations?

Response: N/A

50) RFP L.I.3.1.B – Technical Proposal Instruction – Personnel (p.100-101) (1.8) This provision requires résumés and letters of commitment for all Key Personnel in IDIQ SOW section 1.1.7.2. Questions:

a.

Does this include Cost Report/Audit Manager, the MMA Audit Manager, the Pharmacy Specialist, and Chief Actuary?

Response: This section has been amended to read that “Offerors shall provide, at a minimum, resumes for the key personnel in Section G.9.”

b. If yes, are we required to have a letter of commitment with salary or a letter of intent, in that this TO will not be issued until 2009?

Response: N/A

c. Are Key Personnel required to be an employee of the Prime Contractor?

Response: See revised Statements of Work provided as an attachment to this amendment.

51) IDIQ RFP, Section L.I.3.1.B, "Technical Proposal Instructions," subsection 1, "Written Technical Proposal," subsection B, "Personnel" (1.9) Should the "list of names" mentioned at the top of page 101 (1. General) contain the names of personnel required in TO 1 and TO 2, or should this list only contain the name of the Zone Program Director?

Response: The list of names and proposed duties of the personnel assigned to the project should include the Zone Program Director (key personnel) and any other personnel the Offeror may propose on the IDIQ.

52) IDIQ; Solicitation Section L.I.3.1.B.3 – Personnel, Letters of Commitment

(p 101) (1.11) Is a letter of commitment required for a proposed Key Personnel who is currently an employee of the offeror's parent company?

Response: Yes

53) IDIQ, L.I.3.1.B.3 Letters of Commitment (page 101 of 125) (1.3)

If a proposed key personnel is currently employed by a team member subcontractor and will remain employed by the subcontractor, is a letter of commitment required since the position is not being filled by the Offeror?

Response: Yes

54) IDIQ RFP, Section L.I.3.1.D, "Technical Proposal Instructions," subsection 1, "Written Technical Proposal," subsection D, "Past Performance" (1.9) Who is the "Program Manager" mentioned in bullet "1.g" on page 102? Is it referring to the contractor's Program Director or to the Government's GTL?

Response: The “Program Manager” would be the individual of the client who managed the contract. For example, in government contracting this may represent the Project Officer, GTL, COTR, etc.

55) IDIQ RFP, Section L.I.3.1.D, "Technical Proposal Instructions," subsection 1, "Written Technical Proposal," subsection D, "Past Performance" (1.9) Who is the "Administrative Contract Officer" mentioned in bullet "1.h" on page 102? Is it the government's Contract Specialist, the GTL, the Contract Officer? Please specify.

Response: See FAR 2.101 for definition of an “Administrative Contract Officer” under “Contracting Officer.”

56) IDIQ - L.I.3.1.D Past Performance. (1.4)

The RFP indicates that for large businesses, the list of contracts shall only include all contracts within the separate business unit where the ZPIC contracts shall be performed. How does this requirement apply if the proposed mitigation strategy for conflict of interest is to create a new entity?

Response: CMS would recommend that this be handled the same as “joint venture,” see Section L.I.3.1.D.2.

57) IDIQ; Solicitation Section L.I.3.1.D – Past Performance (p 102) (1.11)

a. Paragraph 1: Please confirm that offerors are required to submit past performance information (as stated in items 1a to j) for all of their contracts (both current and those completed within the past two years.

Response: Paragraph 1 has been amended for clarification.

Paragraph 4: With regard to the questionnaire for references, if the bidder is a current PSC and our reference is CMS, is the questionnaire required? Or is the questionnaire applicable only for non-CMS references?

Response: A questionnaire for references is required for CMS work unless the Offeror is certain that an National Institutes of Health (NIH) evaluation has been finalized in the NIH Contractor Performance System.

58) IDIQ, L.I.3.1.D.1.j Past Performance page 102 of 125) (1.3)

Are the Performance Evaluations the same as the Past Performance Questionnaires?

Response: No. Performance Evaluations, if applicable, are retrieved by CMS from the National Institutes of Health Contractor Performance System. The Past Performance Questionnaires are sent by the Offeror and received by CMS.

59) IDIQ, L.I.3.1.D.4 Past Performance (page 102 of 125) (1.3)

If an Offeror and its subcontractors currently hold contracts with CMS, does CMS want performance forms (Attachment J.9) to be submitted?

Response: See response to Question 57.

60) IDIQ, L.I.3.1.D.4 Past Performance (page 102 of 125) (1.3)

Are Offeror’s required to submit Past Performance Questionnaires for each zone being bid? This will require clients to submit duplicate Questionnaires.

Response: The Offeror may submit one Past Performance Questionnaire (PPQ) for more than one Zone. The PPQ must clearly be labeled “ZPIC.” This PPQ will stay on file and be used for all current and future proposals as long as they fall within the respective past 2 years. This procedure will eliminate the need for the Offeror or client to submit multiple PPQs for the same contract reference. For example, if an Offeror is requesting Client A to fill out a PPQ and the Offeror is proposing on Zone 4 and Zone 5, Client A may submit one PPQ to encompass both Zones. See amendment for clarification.

61) IDIQ, Document: 1_RFP-CMS-2007-0027.doc Section: L.I.3.1.D Past Performance (1.19) RFP Section L.1.3.1.D Past Performance requirement states that offerors are to provide "A list of all contract and/or subcontract (completed and/or currently in progress) for the prime contractor and any subcontractors for the last two (2) years." Upon further evaluation of this requirement our team estimates that we will have over 700 past performances and questionnaires to submit due to this requirement. We would like to suggest that CMS reconsider this requirement to limit the past performances to a maximum of 5 most relevant references for each subcontractor. This will enable CMS to effectively evaluate subcontractor references while still providing the CMS with ability to review all contracts for the prime.

Response: This paragraph has been amended, see Amendment 000001.

62) IDIQ, L.I.3.1.E.4 Small Business Participation (page 103 of 125) (1.3)

Please clarify the difference in requirements to express targets as dollars or percentage of total contract value versus the goal of 40% of subcontracting dollars specified in L.9.c (page 89).

Response: 40% represents the Small Business Subcontracting goal while the information requested in L.I.3.1.E.4 represents the firm commitments of the Offeror to use Small Business concerns.

63) L.I.3.2.c, Page 104, says: Only members of the Contractor’s or subcontractor’s in-house staff shall participate in the oral presentation. The only exception is individuals who are proposed as Key Personnel or managers on the contract, but are not currently employed by the contractor/subcontractor who may participate in the presentation. Offerors may not use consultants to make any part of the oral presentation. (1.8) Is an exception made if a consultant is listed as key personnel in a contract and they provide the appropriate letter of intent?

Response: A consultant proposed as key personnel will be permitted to participate in the oral presentation. Please note that consultants proposed on the contract are considered subcontractors, see G.11 of the solicitation.

64) IDIQ, Section: L.I.3.2.c Participation and Attendance (1.13) If Task Order Part C and Part D will not be rolled out until 2009, are key personnel who support these functions required to be present at Orals? Are key personnel who support these functions required to submit letters of commitment and resumes in the technical proposal at this time?

Response: There are no key personnel specifically designated for Part C and Part D at this time.

65) IDIQ, Section: L.I.3.2.c Oral Technical Proposal/ Participation and Attendance (1.13) If a required function, such as security or ISO, is performed by an individual on the team who is not a manager or key person, can that individual speak on behalf of the offeror and participate in questions and answers during Orals?

Response: Yes, this section of the solicitation has been modified for clarification.

66) IDIQ, Section: L.I.3.2.f Questions and Answers (1.13) Can heads of companies participate in the Q and A at Orals?

Response: The solicitation has been amended to read “Key Personnel and/or individuals performing the specific activity related to the question must answer questions during the question and answer period.” Therefore, if a question is directed to the head of a company, then they may answer the question.

67) IDIQ - L.I.4.A Conflict of Interest. (1.4)

The RFP indicates if the conflict exists because of the parent companies involvement with Prescription Drug Plans or Medicare Advantage Plans, a complete separation is required from the parent so there is no longer a parent-subsidiary relationship. Could CMS please clarify the terms “involvement with”? Does this include a contract with a Prescription Drug Plan to perform specified and discrete services where the company is not a Prescription Drug Plan or a Medicare Advantage Plan?

Response: It is difficult to answer this question without specific information. However, we envision that complete separation would be required if the parent company is a Part C and/or Part D Plan. Other situations, such as a contract with a Part C or Part D Plan contractor may not require complete separation.

68) IDIQ; Solicitation Section L.I.4 – Conflict of Interest and Compliance

Instructions (p 107 and 108) (1.11) a.

On page 107 of the RFP it states if the ZPIC, a ZPIC parent company, or subsidiary of the ZPIC’s parent company has a relationship with a Prescription Drug Plan, CMS is concerned that the ZPIC’s decisions, findings or level of scrutiny would be, or appear to be, biased. In determining the acceptable method of mitigation or level of mitigation required, will CMS take into consideration the nature of the relationship among these three entities: ZPIC, ZPIC parent company, and the Prescription Drug Plan, i.e., the revenue generated by the parent company under the subcontract to the PDP or specific functions performed under the subcontract?

Response: The bidder will be required to present a plan to mitigate any COI it may have with any other relationship. The bidder may explain all relevant aspects of the plan, i.e. explain the effect of the mitigation strategy, if the bidder thinks such an explanation would be helpful to CMS' understanding of the mitigation method. To the extent that the nature of corporate or organizational relationships, revenue or other information is relevant to CMS's analysis of the acceptability of the mitigation plan, the bidder is free to include such information. The mitigation plan will be considered in its entirety.

b.

On page 108, the RFP gives examples of methods that an offeror may use to mitigate an Organizational Conflict of Interest. Specifically, bullet number 5 states that ”If the conflict exists because of the parent company’s involvement with Prescription Drug Plans, a complete separation from the parent so that there is no longer a parent-subsidiary relationship.” Is divestiture the only acceptable mitigation method or is this just one example of how this type of conflict can be mitigated?

Response: This is dependent upon the circumstances. Divestiture is one example, the mitigation method would depend on the level and type of involvement with the conflicted party.

69) IDIQ, Section: L.I.4.A Conflict of Interest (1.13) If a company is conflicted out of a zone as a prime contractor, should we assume that it is also conflicted out as a subcontractor?

Response: This is dependent upon the circumstances.

70) IDIQ, Section: L.I.4.A Conflict of Interest (1.13) Will CMS please provide a list of all Prescription Drug Plans and Medicare Advantage Plans?

Response: CMS will not provide a list of these plans.

71) IDIQ, Section: L.I.4.A Conflict of Interest (1.13) Will CMS please describe or clarify what involvement in the Prescription Drug and Medicare Advantage Plans would constitute a Conflict of Interest.

Response: See response to Question 67.

72) IDIQ, Section: L.I.4.A Conflict of Interest (1.13) Will CMS please clarify if licensing a software product or providing IT services to a Prescription Drug Plan, Medicare Advantage Plan, Carrier, Fiscal Intermediary, Medicare Administrative Contractor, and so forth is considered a Conflict of Interest.

Response: This situation may pose a conflict of interest because of the financial relationship it causes.

73) IDIQ, Section: L.I.4.A Conflict of Interest (1.13) In several bullets under Examples of Methods an Offeror May Use to Mitigate Organization Conflicts of Interest, CMS states the following:

“a complete separation from the parent so that there is no longer a parent-subsidiary relationship”

Please clarify this statement and what constitutes a complete separation? Is it CMS’ intention that new, separate companies must be established in the market place to support the ZPIC IDIQ contract?

Response: See response to Question 68.b. and Question 13.

74) IDIQ, Section: L.I.4.A Conflict of Interest (1.13) If the parent company is a Part C or Part D sponsor, is the only Conflict of Interest mitigation possible a complete separation from the parent?

Response: We envision that complete separation would be required if the parent company is a Part C and/or Part D Plan.

75) Does the Past Performance need to be addressed in the orals even though offerors will be submitting a "written" document on Past Performance?

Response: No, under L.I.3.2.h.2 for oral presentation topics, the listing does not include Past Performance.

76) Can non-key personnel, part of the bidding team, present at oral presentations regarding shared services, i.e. ISO?

Response: See response to Question 65.

77) With the requirement of ISO registration within one year, is the requirement a flow-down to any subcontractor?

Response: No.

78) Does CMS want a separate Subcontracting Plan for the IDIQ, Task Order 0001 and Task Order 0002?

Response: The Subcontracting Plan shall only be submitted for the IDIQ in accordance with the solicitation.

79) a. Staffing assumptions are required in the IDIQ for Parts C and D; what are the workload assumptions for audits of Parts C and D?

Response: Answered at a later date.

b. Does this include Cost Report/Audit Manager, the MMA Audit Manager, the Pharmacy Specialist, and Chief Actuary?

Response: Section G.9 designates the individuals that are considered Key Personnel. Other individuals are designated as Key Personnel in the individual task orders.

80) Are Key Personnel required to be an employee of the Prime Contractor?

Response: See amended Statements of Work provided as an attachment to this amendment.

SECTION M

81) RFP Section M.I.1.c - General Procedures for Award of Contracts - Part c. –- Multiple Zones – This section states that(1.12):

“Offerors who propose on more than one Zone will be evaluated individually on each Zone. If, after evaluation of each Zone under this solicitation an Offeror is the potential winner for more than one Zone, CMS will assess the associated risks with awarding on Offeror multiple Zones.”

Can you please clarify if a company can Prime in a zone and subcontract to another company in a different zone or if this would create a Conflict of Interest?

Response: Notwithstanding any other conflict of interest, this does not appear to be a conflict of interest. However, Offerors are cautioned that any perceived collusion will be reported accordingly.

82) IDIQ, Section (Paragraph) / Title: M.I.2 / ZPIC IDIQ USOW TECHNICAL EVALUATION CRITERIA (1.1)

Will a subcontractor’s use of small and disadvantaged businesses help its team achieve its subcontracting goals?

Response: No, only the Prime’s use of subcontractors will achieve subcontracting goals.

83) IDIQ, Section (Paragraph) / Title: M.I.2.A.3 / ZPIC IDIQ USOW TECHNICAL EVALUATION CRITERIA – Key Personnel and Staffing (1.1)

Can an offeror provide an alternative management structure (oversight board, executive leadership team, etc.) that utilizes the experience of management staff who will be involved in the project, but may not be included in existing, pre-defined roles (“medical director”, ”task order director”, etc.)?

Response: It is at the Offeror’s discretion.

84) IDIQ, M.I.2.A.3, Key Personnel and Staffing (page 120 of 125) (1.3)

Can the Offeror propose personnel in other labor categories than those defined as key and essential?

Response: The Offeror shall propose, at a minimum, key personnel. Other personnel is at the discretion of the Offeror.

85) ZPIC IDIQ SOW, Section M.I.2, “ZPIC IDIQ USOW Technical Evaluation Criteria”

Is the information about "Cost Reporting" in this section (p. 32) to be excluded and not to be addressed in the proposal?

Response: See amendment.

86) What weight will be given to Part C and Part D in reference to the specific Umbrella evaluation factor?

Response: The technical evaluation criteria are listed in Section M. Parts C and D should be addressed as part of the IDIQ technical proposal as applicable. M.I.2.A has been amended to provide clarification.

87) In Section M, how many points will be given for small business utilization? Or is it only Pass/Fail?

Response: Small Business Utilization points are listed in Section M.I, M.II and M.III. See amendment also.

88) While Chapter 5 of the ZPIC USOW speaks to the functions performed by the Cost Report Audit and Reimbursement area, there does not appear to be evaluation criteria related to this function in the IDIQ procurement process. Does CMS intend to add this criteria since any task orders awarded dealing with traditional (Part A and HH+H) Cost Report Audit and Reimbursement would be non-compete task orders awarded to the Zone IDIQ holder?

Response: See amendment.

89) IDIQ, Section M.I.2.A.5, Page 121 of 125, 5) ISO and Quality Assurance (1.10) In registering with ISO, is the Offeror required to flow-down the requirements of the ISO Certification by review of the site and performance standards of each of its subcontractors and/or consultants?

Response: No.

ATTACHMENTS

90) IDIQ, Attachment J.9, Past Performance Questionnaire (1.15)

a. If the bidding entity is an existing MEDIC or PSC LLC with a parent company, should the corporate experience/past performance references be limited to contracts held and performed by the LLC only, or may the corporate experience/past performance references also include contracts held and performed by the parent company?

Response: The corporate experience/past performance shall be submitted for the Prime contractor only, not its parent company(s).

b. A newly formed LLC or other entity will be limited in the past performance references that it can submit. In these instances, will CMS accept a past performance reference related to work performed by the Principals of the new company although the specific reference will discuss work done on behalf of another entity?

Response: Yes.

91) Task Order 0001 proposal spreadsheets include a familiar format for detail of Travel Expense. Task Order 0002 includes a new format for this schedule. The following questions arise:

There are four sections of the spreadsheet going across. What are these to accommodate -- travel destinations (each destination has a separate column)?

Response: See amended travel sheet for all Zones for Medi-Medi, it now mirrors task order 0001’s format. These exhibits have been provided as an attachment to this amendment.

The formula (A*B)*C does not accommodate all situations often we have both a number of trips and also a number of nights for a given trip, each traveller may have different miles to the airport, rental car calculation is obscured by the number of people traveling, etc.

Response: See amended travel sheet for all Zones for Medi-Medi, it now mirrors task order 0001’s format. These exhibits have been provided as an attachment to this amendment.

Are we required to break out the travel and ODCs by state?

Response: Yes Since there is only one column for "purpose" on each sheet, the implication is that a separate sheet is required for each purpose. Presumably separate trips to different locations could be accommodated on different columns of the same sheet.

Response: See amended travel sheet for all Zones for Medi-Medi, it now mirrors task order 0001’s format. These exhibits have been provided as an attachment to this amendment.

ZPIC GENERAL QUESTIONS

92) For Task Orders 0001 and 0002 how do subcontractors for a ZPIC estimate or forecast their expected costs – CPAF, T&M, etc.?

Response: Subcontractors would price based on the pricing arrangement of their subcontract.

93) Will each ZPIC be required to build a data mining capability and a database for fraud, waste and abuse detection?

Response: Yes

94) How does this contract relate to the Medicaid Integrity Contract (MIC) contracts under the new Medicaid integrity program run by CMS?

Response: There is no relationship, they are two separate procurements.

95) Will the ZPIC contractor be required to build a database of all Part A, B, DME HH+H and Medi-Medi claims? Will a National Database be available for analysis or does the ZPIC contractor need to build the claims database?

Response: The ZPIC will be required to build a database. Additional information provided at a later date.

96) Does DME require a separate task order manager and benefit integrity manager from Parts A and B?

Response: No

a) Did CMS consider requiring that audits performed under this procurement be conducted in accordance with generally accepted government auditing standards (GAGAS) established by GAO? If so, will the audit reports assert that the audits were conducted in accordance with GAGAS?

b) GAGAS unconditionally requires audits that are performed in accordance with GAGAS be performed by either a government audit organization or public accounting firm. Will CMS issue a separate Zone audit program integrity contractor for audits that are to be performed in accordance with GAGAS?

c) GAGAS unconditionally requires public accounting firms to undergo peer review. Non-public accounting firms do not undergo peer review. Thus, non-public accounting firms can not perform GAGAS audits. Since non-public accounting firms can not perform GAGAS audits, CMS should consider a separate procurement for Zone audit program integrity contractors.

d) Non-public accounting firms can not review the quality of public accounting firm audits. Thus, they can not, as primes, assure the Government that audits comply with GAGAS standards. CMS should consider a separate procurement for Zone audit program integrity contractor GAGAS audits.

e) If CMS does not require audits to be performed in accordance with GAGAS, what standards are the audits going to be performed under?

f) Without audit standards, how will CMS provide consistent audit performance across the Zones?

Response to all: CMS requires that contractors follow CMS Pub 100-6 Chapter 8 and 9 when performing Medicare cost report audits. Chapter 8 Section 80 of this publication states “In performing a Medicare audit, comply with the standards outlined in this chapter. Although not exact, these standards reflect Chapter 3 of the Government Auditing Standards (GAS) entitled,” General Standards.”

97) Where do the RACs come into play?

Response: Interaction with the RAC is addressed in the Program Integrity Manual (PIM) and the USOW. Also, see response to Question 140.

99) Where does the QIO come into play?

Response: Refer to the USOW and PIM.

100) If a PSC has a current jurisdiction over states in two or three zones, does that disqualify the PSC from submitting a response to the IDIQ?

Response: No.

101) How are the claims or data stored?

Response: Each contractor should have their own data warehouse.

102) Could you provide a list of current CMS contractors working on ZPIC-type contractors or program activities?

103) What is the practical difference between “Register to Receive Notification” and “Register as an Interested Vendor” in Federal Business Opportunities (FedBizOpps)?

Response: “Register to Receive Notification” means you will receive an e-mail notification when CMS posts anything, for example an Amendment of Modification, to the ZPIC Solicitation in FedBizOpps. CMS strongly encourages interested vendors to evoke the “Register to Receive Notification” feature.

“Register as an Interested Vendor” means that a company’s information will be published on the FedBizOpps web site as a company that is interested in this procurement. It is helpful for teaming arrangements.

104) Can a Medicare Administrative Contractor (MAC) be awarded a ZPIC contract?

Response: CMS considers it a Conflict of Interest (COI) for an Affiliated Contractor or MAC to hold a ZPIC contract as a prime contractor in the same Zone. This scenario would require adequate COI mitigation.

105) Please clarify the work done by the MACs versus the ZPIC.

Response: In general, MACs process claims and ZPICs perform benefit integrity functions.

106) Please clarify the role of Audit and Reimbursement.

Response: This would involve acceptance of the cost reports, desk reviews, audits, settlement, and appeals of the cost reports. The Reimbursement function would involve rate setting.

107) Pre-Proposal Conference 10/17/07 (1.12) – It was stated during the Pre-Proposal Conference that the Contractor’s Program Manager was expected to work on-site. Please clarify if on-site means in one of the states within the awarded zone, at the CMS Single Site Location in Baltimore, MD, or at another location.

Response: This is at the discretion of the Offeror in accordance with the IDIQ and task order requirements but never at a CMS facility. See amended Statements of Work for office location requirements.

108) When will the One-PI and other supporting databases be complete and available for data analysis? Prior to their completion, what are the data sources to be reviewed to execute the ZPIC mission?

Response: For proposal purposes, the Offeror’s should assume that One-PI will not be available at this time.

109) SAS Enterprise Miner and other tools are mentioned in the RFP. Will licenses for these tools be shared by the ZPIC or should the ZPIC contractors acquire independent licenses for their own use?

Response: Basic SAS may be provided to the ZPIC at no additional cost. If applicable,. ZPICs will have to propose the cost of an Enterprise Miner license.

110) Can a company bid as a subcontractor to different Prime contractors on more than one Zone procurement?

Response: That is left to the discretion of the Offeror(s)/Subcontractor.

111) When is the expected RFP date for ZPIC cycle 2 procurements?

Response: This will be released in a future posting on FedBizOpps.

112) When is the expected RFP date for ZPIC cycle 3 procurements?

Response: This will be released in a future posting on FedBizOpps.

113) Will the RFPs be the same for each cycle of Zone procurements?

Response: This can not be…