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Fact Sheets
Common Ownership and Common Control Fact Sheet

Definitions of Terms1:
Two or more suppliers are commonly owned if one or more of them has an ownership interest totaling at least five percent in the other(s). The term "ownership interest" is defined as "the possession of equity in the capital, stock, or profits of another supplier."

Suppliers are commonly controlled if one or more of a supplier’s owners is also an officer, director, or partner in another supplier.

Important Information for Bidding
Commonly owned and/or commonly controlled suppliers are prohibited from competing against themselves when submitting bids in the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program. Therefore, suppliers that are commonly owned and/or commonly controlled must bid together when bidding in the same competitive bidding area (CBA) and product category combination (competition). If suppliers that are commonly owned and/or commonly controlled bid separately in the same competition(s), their bids will be disqualified and none of these suppliers will be awarded a contract for that competition(s). Commonly owned and/or commonly controlled suppliers may submit separate bids if they are bidding on different product categories in the same CBA, the same product category in different CBAs, or different product categories in different CBAs. In these situations, suppliers have the option to register with more than one Provider Transaction Access Number (PTAN) and submit separate bids in the DMEPOS Bidding System, DBidS.

Bidders sharing common ownership and/or common control with other suppliers must list on Form A in DBidS all commonly owned and/or commonly controlled locations (identified by PTAN) that would furnish any items in the same competition for which the suppliers are submitting a bid. This includes locations physically located inside or outside the CBA that currently furnish items and services to beneficiaries in that CBA or will do so if the bidder is awarded a contract in that CBA. If commonly owned and/or commonly controlled suppliers are awarded a contract, all suppliers who have a location(s) listed on Form A during bidding will be considered contract suppliers for that competition.

Commonly owned and/or commonly controlled suppliers must:

  • Ensure that the company’s legal business name in the Business Organization Information section of Form A in DBidS matches the legal business name of the principal/obligor on the bid surety bond associated with the supplier's bid.
  • Upload the required financial and other documents and the bid surety bond(s) in Connexion, the programs' secure portal, for all the commonly owned and/or controlled suppliers included on the bid(s). Please refer to the Request for Bids (RFB) Instructions for specific information on the required financial documents.

If you are a commonly owned and/or commonly controlled supplier and have questions regarding submitting a bid(s), please call the Competitive Bidding Implementation Contractor (CBIC) customer service center at 877-577-5331.

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1 Common ownership and common control for the Competitive Bidding Program are described at 42 CFR §414.412(d)(1) and is consistent with Medicare Program Integrity regulations at 42 CFR §420.201.



last updated on 05/07/2019

 

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