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Attachment 1, Second Set of Answers to Contractor Questions
| SOLICITATION SECTION |
| SECTION, PAGE NUMBER |
| OFFEROR QUESTION |
| CMS ANSWER |
General Questions
| Will CMS grant an extension the proposal due date? |
| Yes. The new due date for proposal submission for this solicitation is January 12, 2010 at 11:00 am EST. |
| Do you have an estimate of the number of bank accounts to be utilized under Workload A / B? |
| There should be approximately 25 bank accounts per workload. |
| Stop Payments are not included in the SOW. Is this service a requirement of CMS? |
| Yes – stop payments are a service requirement that the banks must provide. |
| What is the role of the Contractor in the decision for which bank is selected/used and the decision as to what banking services are contracted? |
| CMS will determine which bank is selected for each Medicare contractor; the Medicare contractor may be consulted regarding which services will be provided for a given contractor. |
| Please provide the names of the Medicare Administrative Contractors or all contractors involved in this bid. |
| Please see Attachment 4 to this Amendment. |
| In anticipation of electronic payment mandates, what role does CMS expect the bank to play in facilitation of reassociation of the information back to the payment? |
| This has yet to be determined by CMS. |
| What precisely defines of Workload A and B? |
| Please see Attachment 4 of this Amendment |
| Is an electronic version of the contractor’s submission to this solicitation required? |
| No. |
| We understand that CMS is amenable to the hand delivery of submissions to the Baltimore facility. With regard to the necessary security clearance procedures etc. would the courier’s arrival at the main gate at 9:00 am EST on the 12th January allow sufficient time for the proposal to arrive at the required mail stop before the deadline of 11:00 am EST? |
| The contractor submitting the proposal is fully liable for getting their proposal submitted by the deadline, and should take all possible steps to ensure proposal submission is timely. CMS does not want to speculate as to the length of time clearing security will take at the Baltimore Facility on the submission date. |
| Solicitation |
| SF-1449 continuation - 1.1 |
| CMS indicates that it intends to make two contract awards from this solicitation and references “Workload A” and “Workload B.” Can CMS identify how many Medicare Administrative Contractors are contained within each workload group? Does it include those contractors processing claims for durable medical equipment? The number of outside organizations in each group will be used in defining the implementation plan submitted with the proposal and establishing the lowest cost pricing for each workload. |
| At present, Workload A contains 5 contractors and workload B contains 6 contractors. Yes, Durable Medical Equipment Contractors are contained in these workloads. Please see Attachment 4 to this Amendment for more information. |
| SF-1449 continuation - 1.1 |
| This section indicates that CMS expects to award the contract no later than February 1, 2010. In section 3.2 – Period of Performance, CMS indicates that the period of performance for the base year is April 1, 2010 through March 31, 2011; however, in Section 7.1 – Addendum 4 – Evaluation Factors – 2 Implementation Approach, CMS indicates that the bank shall submit an implementation plan that will allow transitioning the claims processing contractors to the bank within 90 days specified in the SOW. The time between expected contract award and the start of the base year period of performance is 60 days. |
Can CMS clarify and confirm: expected award date, base year period of performance start and end dates, what dates should be used for the start and end dates for the 90 day implementation plan we will submit in the proposal, and what date CMS would expect that all the claims processing contractors are transitioned and fully up-and-running with the bank?
Contractors must be transitioned by April 1, 2010. Therefore, contractors should plan to make the transition in however many days are left between contract award date and April 1, 2010. Since this will most likely be around 60 days, contractors should propose a transition that can be accomplished in 60 days, and price it accordingly.
| SF-1449 Continuation - Section 4.1 |
| The RFP provides for a not-to-exceed ("NTE") amount but does not specify the rights and obligations of the government and contractor with respect to the NTE amount. Are we correct in assuming that any work performed by the contractor in excess of the NTE amount is at risk? If so, and the contractor performs "at risk," will the contractor be entitled to reimbursement for the "at risk" work if the government thereafter increase the NTE amount? And, are we correct in assuming that the contractor is not obligated to perform any work in excess of the NTE amount? |
| The bank will be paid for all banking transactions completed under this contract, regardless as to whether the NTE amount is reached. The bank will not be at risk for performing banking transactions under this contract. |
| SF-1449 Continuation - 6.1 - 52.212-2 |
| CMS indicates that potential contractors must submit a commercial pricing list with their proposals to be considered for this award. Is this a list of standard list prices for the requested services or a list of prices that we would provide to a customer with similar transactions volumes? |
| Contractors should submit a commercial pricing list for all potential volumes of transactions. |
| SF-1449 Continuation - 6.1 - 52.212-2 |
| Please clarify the basis for award. Section 6.1(a) states that award of Workload A and B will be made to "the lowest price, technically acceptable proposal." However, that section also states that award will be made to the responsible offer whose offer conforming to the solicitation will be "most advantageous to the Government price and other factors considered." In addition, Addendum 4 lists technical evaluation criteria in descending order of importance. These latter provisions are more consistent with a "best value" determination, rather than one based on the lowest price, technically acceptable proposal. Also, what is the relative importance of the non-price factors when compared to price? |
| All evaluation criteria aside from cost asked for in this solicitation and its addenda as part of your submission are used to determine technical acceptability. Lowest price will then be used to determine which of the technically acceptable offerors will be awarded this contract. |
Addendum 1 (Statement of Work)
| Part II Requirements - Section A - General Tasks |
| “The bank shall be required to prepare a weekly reconciliation for each FHIBA and sub account. The Medicare claims processing contractor shall…” |
How often does each Medicare Assistance Contractor initiate ACH payments and disburse checks? Can CMS provide a sample of the reconciliation report or identify its data contents?
Both EFT and paper check payments are made daily. The content and format of the reconciliation report will be arranged by the bank and the Medicare claims processing contractor with approval from CMS.
| Part II Requirements - Section A - General Tasks |
| “The bank shall accept imaged checks for deposit from the Medicare claims processing contractors as required.” |
Are all deposited checks deposited electronically? If so, are those deposits sent via an image transmission in a standard format such as an X9.37 file format or via an on-site electronic deposit device? If an on-site electronic deposit device is used, is the hardware/software provided by the bank?
Deposited checks are not required to be deposited electronically. CMS expects that these processes will vary somewhat between banks and Medicare claims processing contractors and, as such, is not recommending any particular file format or devices.
Part II Requirements - Section A - General Tasks
“The bank shall provide the Medicare claims processing contractors with full service internet banking capability.”
Can CMS clarify the specific services desired via the internet banking capability? Are they limited to information reporting and positive pay decisioning or are other transaction capabilities required? For example, some internet banking systems may allow an authorized user to generate and submit an ACH payment transaction directly from their terminal. Further clarification of what elements of an online banking and reporting service are required will be used to allow for more accurate pricing of the proposal.
The banks should base their proposals on the provision of internet banking services commensurate with the highest levels of service available to address the requirements of the SOW and price these services accordingly.
| Part II Requirements - Section A - General Tasks |
| Can CMS please provide details of approximately how many calls each group of claims processors currently makes to customer service on a daily or monthly basis today and about how much time each contractor spends with customer service. This information will be used to help size and price customer service. |
| CMS does not have any estimates with regard to the volume or frequency of customer service calls. CMS currently estimates that there will be 5-6 contractors per workload, so banks should plan for the usual number of calls from a customer base of that size. Further, CMS anticipates that the number of calls will go down after the implementation period finishes. |
| Part II Requirements - Section A - General Tasks |
| “The bank shall ensure that testing of bank issue and void files, EFT files, clears files, as well as any other required system testing…” |
What is a “clears file?” Is this a file of items previously reported by the contractor as issued that should be deleted from the Account Reconciliation/Positive Pay files? Or is this a reference to the paid check file?
The clears file pertains to paper checks, specifically, those that have been “cleared” (paid).
| Part II Requirements - Section A - General Tasks |
| Will one drawdown be needed or preferred per FHIBA or will all required funds be combined for one total drawdown per day? |
| There will be one draw daily for each Part A and Part B FHIBA; these two draws will include all various subaccounts as applicable. |
| Part II Requirements - Section A - General Tasks |
| The bank shall verify the accuracy of the parameters and characteristics of electronic files received. What are the parameters and characteristics of the requirement for verification? |
| The bank shall apply similar “scrubbing” procedures as identified in SOW II.A.15 to verify the accuracy of electronic files. |
| Part II Requirements - Section A - General Tasks |
| Are you planning to provide an issue file that contains both EFT and Checks? |
| Yes. |
| Part II Requirements - Section A - General Tasks |
| The bank shall ensure that paid check files are ‘scrubbed’ to correct any checks that were encoded incorrectly before the paid check file is forwarded to the Medicare claims processing contractor. What are the requirements for providing this file? Is this a daily transmission? Are there any deadlines associated with the delivery of this paid check file? |
| Errors must be reported back to the contractor daily, otherwise include in the weekly reconciliation. |
| Part II Requirements - Section A - General Tasks |
| Please define technical assistance. Is this the same as an IT expert (focuses on issues related to transmission or file processing issues) or operational expert (focuses on a specific operational matter such as encoding errors, account reconcilement matters, etc.)? |
| Technical assistance may include an IT, operational expert, or any other expertise required; technical assistance is not limited to one person it is the provision of the necessary expertise. |
| Part II Requirements - Section B - Transfer of Information Tasks 1) Medicare Claims Processing Contractor to Bank - Daily - item b |
| What NACHA formats will need to be supported? That is, will the CCD, CCD+, 820, CTX or 835 transactions be required? Other formats? |
| NACHA Format CCD+ will be used. |
| Part II Requirements - Section B - Transfer of Information Tasks 1) Medicare Claims Processing Contractor to Bank - Daily - item c |
| Does the inclusion of the payee name field in the data file imply the requirement that “payee positive pay” service be provided? For all claims processing contractors? |
| Yes, positive pay services are to be provided for all claims processing contractors. |
| Part II Requirements - Section B - Transfer of Information Tasks 1) Medicare Claims Processing Contractor to Bank - Daily - item c |
| Is the positive pay service being upgraded to include the validation of the Payee? |
| Yes. |
| Part II Requirements - Section B - Transfer of Information Tasks 1) Medicare Claims Processing Contractor to Bank - Daily - item c |
| Will stale checks be identified on the file as a voided item? If not, what are the requirements for a stale check? |
| No they are not voided. A stale-dated check is one that is presented for payment more than 12 months from the issue date. Payment should be denied. |
| Part II Requirements - Section B - Transfer of Information Tasks 1) Medicare Claims Processing Contractor to Bank - Daily - item d |
| What “confirmation acknowledgements” are required to be sent via U.S. mail next business day? |
| CMS anticipates instances where the Medicare contractor needs the bank to assist in finding or verifying a particular transaction; the contractor may request hard-copy verification forwarded the following business day. |
| Part II Requirements - Section B - Transfer of Information Tasks 2) Bank to Medicare Claims Processing Contractor - Daily - item f |
| “The bank shall provide a clears file of all items paid from the previous business day in which the charge was not reversed.” |
Please clarify this requirement. What “charge” was made or would have been made that had not been reversed by the bank?
Charge, in this context, is synonymous with payment. The clears file consists of all checks that were paid. It is our understanding that this file should not include checks where payments were not made (for whatever reason).
| Part II Requirements - Section B - Transfer of Information Tasks 2) Bank to Medicare Claims Processing Contractor Weekly |
| In reference to the bank shall provide bank statements, bank reconciliations, supporting documentation, and deposit slips weekly as well as a CD ROM of imaged checks paid, what exactly is required regarding supporting documentation? |
| Supporting documentation consists of any additional documentation not specifically delineated that may be required by the Medicare contractor to verify account activity and services provided. |
| Part II Requirements - Section B - Transfer of Information Tasks 2) Bank to Medicare Claims Processing Contractor Monthly |
| “The bank shall provide the final reconciliation to the Medicare claims processing contractor no later than the 5th business day after the end of the reporting month. Confirm the bank will provide both weekly and monthly Full Recon statements? |
| Yes, the bank must provide both weekly and monthly full recon statements. |
| Part II Requirements - Section B - Transfer of Information Tasks 2) Bank to Medicare Claims Processing Contractor Monthly |
| It is asked that the banks provide weekly bank reconciliations and bank statements (indicating a weekly statement cycle and cut), but it is also asked that the bank provide a final reconciliation to the Medicare claims processing contractor no later than the 5th business day after the end of the reporting month as well. Is CMS asking for a combined reconciliation of weekly reconciliations already provided to the contractors? An additional report containing the previously-reported weekly data but limited to those transactions that covers exactly a one month period? Please clarify the weekly and monthly reporting contents and requirements. |
| Yes, CMS requires a combined monthly reconciliation inclusive of the prior weekly reconciliations for that month that were previously submitted to the Medicare claims processing contractor. |
| Part II Requirements - Section B - Transfer of Information Tasks 2) Bank to Medicare Claims Processing Contractor - Ongoing |
| “The bank shall coordinate routine testing of EFT systems with the Medicare claims processing contractor to ensure compliance with FISMA and OCC security policy. |
Can CMS identify how frequently this testing is required? Is a formal Certification and Accreditation required? Does CMS have security policies which must be supported and, if so, can CMS provide copies of these policies?
FISMA policy was mistakenly included in the SOW; FISMA does not apply and any reference to FISMA should be ignored.
| Part II Requirements - Section B - Transfer of Information Tasks 2) Bank to Medicare Claims Processing Contractor - Ongoing |
| With respect to the routine testing of EFT systems, please clarify as to which FISMA and OCC security policies pertain to the Bank. |
| As stated above, FISMA does not apply. The bank must meet all applicable OCC security policies. |
Addendum 2, Tri-Partite Bank Agreement for Medicare Bank Services
| What authority will the Contractor have in the Tri-partite agreement? |
| The Medicare contractor has the authority to uphold all responsibilities as assigned under the Tri-partite agreement. Note: the Tri-partite is an attachment to the banking contract between CMS and the bank. |
| The Tripartite Agreements says we can act on instructions from either the authorized representatives of the Contractor, or the Director, Division of Financial Strategies and Evaluation (CMS). Will the Contractor be a signer on the account? |
| The FHIBA is in the Medicare contractor’s name therefore the contractor will sign on the account. |
Addendum 3, Schedule of Services Price Proposals
| Are the values in Addendum 3(a) and Addendum 3(b) listed under the “Volume” column correct? The following answer applies to all questions regarding contractor questions regarding the values in the volume column. |
| CMS hereby modifies the numbers in “volume” column of Addendum 3(a) and Addendum 3(b). The updated versions of these addenda can be found as Attachment 2 (Workload A) and Attachment 3 (Workload B) to this Amendment. |
| Can additional service line items be added to the list? |
| Yes - all services must be itemized along with their respective charges. |
| What line items should we price that are not included on the pricing worksheets? |
| All line items that are necessary to service the contract should be priced. |
| Should we add line items to the pricing worksheets for stop payment and wire transfer services? |
| Yes. |
| Does CMS have a mapping of bank fees that will roll-up to the line items on the worksheet? |
| No - the banks need to separately itemize each service they plan on providing. |
| Does CMS prefer that a volume of 1 be used in the “All Other Charges” category for comparison purposes? It may be impossible to identify the quantities with more precision since they will vary based upon actual usage by the contractors. |
| Historically All Other Charges has represented 12.5% of cost. Examples of All Other Charges (not all inclusive): |
Account Maintenance Additional Reconciliations CD ROM Disks CMS Mandated Reconciliations and Reports Controlled Disbursement Maintenance Image Deposited Check Positive Pay maintenance Online Requests
CMS recommends that you use a unit volume of one for each of these items.
| Please define more specifically and/or give an example of what an “Online Request” under “All Other Charges” might represent. |
| Whatever requests are available from the banks web site. |
| Under “Major Cost Items”, does the volume for deposited items represent the number of checks deposited or the number of deposit slips? |
| Deposited Items represents the number of checks deposited. |
| For pricing elements not specifically listed by CMS in the Cost Proposal, but necessary for services requested in the SOW, should these elements be added to the existing schedule? |
| Yes. |
| Can CMS give the banks an average number of positive pay exception (mismatched) items per contractor? |
| No. |
| How often are deposits made? For example, daily? weekly? Can CMS provide information on about how many deposits are made on an annual basis? |
| Daily. |
| Are there any returned deposited items? If so, are those items recleared? What are the annual volumes for returned items and the reclears? |
| Yes, there are returned deposited items, and they are recleared. The volume should be infrequent. |
| Please define more specifically and/or give an example of what “Image Deposited Checks”, item f under “All Other Charges” represents. |
| These are checks received by a contractor from a Medicare provider and deposited electronically. |
| Addendum 4, Technical Proposal Instructions and Evaluation Factors |
| Paragraph 2) Implementation Approach - item 4) Security |
| What security requirements need to be implemented? |
| All security requirements used in commercial banking and in compliance with OCC requirements. |
| Paragraph 2) Implementation Approach - item 7) Ability to obtain Letter of Credit |
| In the Tripartite agreement (Addendum 2) – Covenants section – item 5 – it states that “CMS will arrange for a Letter of Credit…” How will the contractor’s ability to obtain a Letter of Credit be used as an evaluation factor if CMS is going to arrange for its establishment? |
| Please strike requirement 7) from the implementation approach. As stated in the Tri-Partite Agreement, CMS will arrange for a Letter of Credit for the bank. |
| Paragraph 1 |
| In regards to Type size shall not be less than a 12-point font with a space and a half between lines, please clarify the font and spacing requirement for Charts? Figures? Graphic labels? |
| Contractor can use their best judgment in determining font size for charts, figures, and graphic labels. |