Get Ready for DMEPOS Competitive Bidding - Bid Surety Bonds - Important Reminders

All bidders in Round 2021 of the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program are required, pursuant to 42 CFR §414.412(g), to obtain a bid surety bond in the amount of $50,000 for each competitive bidding area (CBA) for which they submit a bid. Bid surety bonds must be purchased from an authorized surety on the Department of the Treasury’s List of Certified Companies. Bidders must provide proof of having obtained the required bid surety bond(s) by uploading a copy of the bond(s) in Connexion, the program’s secure portal, by the close of the bid window.

Is the bid surety bond like the enrollment surety bond I have with the National Supplier Clearinghouse (NSC)?
The bid surety bond required for bidding is not the same as the surety bond required for DMEPOS supplier enrollment purposes. Unlike the annual DMEPOS enrollment bond, the bid surety bond required by 42 CFR §414.412(g) is purchased for the one-time bidding event.

What legal business name (LBN) should be on my bid surety bond?
The LBN on your bid surety bond(s) must be the same as the LBN associated with the Provider Transaction Access Number (PTAN) you use to register for DBidS and Connexion. When you register to request access to the DMEPOS Bidding System, DBidS, and Connexion, the program’s secure portal, you must enter a PTAN that is active in the Provider Enrollment, Chain, and Ownership System (PECOS). The LBN for this PTAN will auto-populate in the Business Organization Information section of Form A in DBidS. The LBN on Form A must match the LBN specified on the bid surety bond in order for CMS to find the bid surety bond acceptable.

What does a bid surety bond cost?
The cost of the bid surety bond may vary depending on multiple factors, including the bidder’s credit score, the number of bid surety bonds being purchased, and the risk to the authorized surety. We recommend you contact any of the authorized sureties on the Department of the Treasury’s List of Certified Companies to obtain pricing information.

When do I need to have a bid surety bond?
You must provide proof of having obtained the bid surety bond(s) by uploading a copy of the bond(s) in Connexion by the close of the bid window. The bid window is scheduled to open in June 2019 and remain open for approximately 60 days. Specific dates will be announced on the Competitive Bidding Implementation Contractor (CBIC) website in the near future. It is strongly recommended that you contact an authorized surety as soon as possible to purchase your bid surety bond(s).

How long should my bid surety bond be in effect?
Bid surety bonds must remain in full force and effect until they are either collected by CMS due to forfeiture or the liability is returned for not meeting forfeiture conditions. The bid surety bond liability will be returned to the bidding entity within 90 days of the Round 2021 public announcement of contract suppliers. That announcement date has not yet been determined, but will be in the fall of 2020, prior to January 1, 2021, when Round 2021 contracts become effective.

How many bid surety bonds do I need?
You must obtain one bid surety bond for each CBA for which you submit a bid, regardless of the number of locations (identified by PTAN) or product categories included on your bid for the CBA. For example, if you have five locations on your bid for three product categories in one CBA, you must obtain one bond for the CBA. However, if you have three locations on your bid for one product category in three different CBAs, then you must obtain three bid surety bonds, one bond for each CBA.

For more information on bid surety bonds, please see the following resources on the CBIC website: 

• Bid Surety Bond fact sheet
• Bid Surety Bond Checklist
• Bid Surety Bond FAQs
• Bid Surety Bond Sample Template

You may also call the CBIC customer service center at 877-577-5331 between 9 a.m. and 5:30 p.m. prevailing Eastern Time, Monday through Friday.

As a reminder, the CBIC is the official information source for bidders and bidder education. CMS cautions bidders about potential inaccurate information concerning the Competitive Bidding Program posted on websites other than the CBIC website. Bidders that rely on this information in the preparation or submission of their bids could be at risk of submitting a non-compliant bid.