BB27-104, Oxygen Concentrators for Utah Medicaid

The State of Utah Division of Purchasing, conducting through the Utah Department of Health and Human Services, is requesting proposals for a single-vendor oxygen concentrator rental contract serving all eligible enrolled Medicaid members statewide, with proposals due November 9, 2026. This is a mandatory single-award procurement with no set-asides or preferences stated.

The scope requires the awardee to provide oxygen concentrators meeting FDA compliance and specified technical parameters (1–10 liters per minute flow rate, ≤60 decibels sound, ≤600 watts power, ≤60 pounds weight), associated equipment and supplies (humidifiers, cannulas, masks, tubing, trach collars), backup oxygen sufficient for three times the vendor's anticipated response time, and any additional respiratory equipment ordered by treating practitioners (ventilators, CPAP, BiPAP, pulse oximeters). Current utilization averages approximately 955 rental units per month statewide, distributed across counties. The vendor must deliver and install concentrators, perform scheduled preventive maintenance, provide 24/7 telephone support with 15-minute callback standards, and submit quarterly performance reports. The reimbursement structure is all-inclusive, covering concentrators, equipment, supplies, labor, delivery, and maintenance; additional items are reimbursed separately per the Medicaid fee schedule. The vendor must verify Medicaid eligibility, maintain active Utah Medicaid provider enrollment, and hold valid state and federal licenses for medical gas and durable medical equipment distribution.

The contract term is five years with pricing guaranteed for one year; after year one, the vendor may request annual rate adjustments with 180 days' notice and supporting documentation. Performance standards subject to liquidated damages (capped at $10,000 monthly) include six-hour service delivery, backup oxygen maintenance, telephone response compliance, and incident reporting for sentinel and never events. The awardee must maintain commercial general liability insurance of at least $1 million per occurrence and $3 million aggregate, and $1 million commercial automobile liability if vehicles are used.

Evaluation is two-tiered: seven mandatory minimum requirements, and sixteen scoreable technical criteria weighted by importance, comprising 70 percent of total score (430.2-point minimum threshold of 614.5 possible points). Cost comprises 30 percent (263.4 possible points), with the lowest-priced proposal receiving 100 percent of cost points and others receiving proportional points. Incumbent vendors receive a score of 3 in the transition-planning category. Technical criteria include transition planning (completion by July 31, 2027), equipment and supply quality, supply-chain and distribution capabilities, claims and billing processes, member education, business qualifications and financial health, equipment servicing practices, lost-or-damaged-equipment procedures, telephone support for members and providers, current licensure and compliance, Medicaid or Medicare experience, performance reporting metrics, member satisfaction and improvement strategies, risk mitigation and insurance, six-hour delivery capability, and staffing ratios requiring one Utah-licensed CRTT or RRT respiratory therapist per 200 concentrators in use. Vendors must provide detailed narrative responses with supporting documentation including reporting samples, training materials, organizational charts, and financial statements.