eReceivables, Inc.

B-416773 Dec 12, 2018 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights eReceivables, Inc., of Coral Springs, Florida, challenges the terms of request for proposals (RFP) No. 36C77618R0051, issued by the Department of Veterans Affairs (VA), for recovery audit services. eReceivables argues that the solicitation's prohibition on using auto-generated mass mailing or appeal requests and the solicitation's requirement to prepare a feasibility assessment report do not reasonably relate to the agency's needs and are unduly restrictive of competition. We deny the protest. We deny the protest. View Decision Decision Matter of:  eReceivables, Inc. File:  B-416773 Date:  December 12, 2018 Joseph L. Fuller, Esq., Kutak Rock LLP, for the protester. Aleia Barlow, Esq., and Ifeyinwa Anoliefo, Esq., Department of Veterans Affairs, for the agency. Young H. Cho, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging solicitation requirements as unduly restrictive is denied where the record supports the agency’s position that the requirement is reasonably necessary to meet the agency’s needs. DECISION eReceivables, Inc., of Coral Springs, Florida, challenges the terms of request for proposals (RFP) No. 36C77618R0051, issued by the Department of Veterans Affairs (VA), for recovery audit services.  eReceivables argues that the solicitation’s prohibition on using auto-generated mass mailing or appeal requests and the solicitation’s requirement to prepare a feasibility assessment report do not reasonably relate to the agency’s needs and are unduly restrictive of competition. We deny the protest.  BACKGROUND The VA is authorized to seek reimbursement from third-party health insurers (TPP) for the cost of non-service-connected medical care furnished to eligible veterans who have commercial insurance coverage.  RFP[1] at 18; see also 38 U.S.C. § 1729; 38 C.F.R. Parts 17.101 and 17.106.  The VA’s consolidated patient account centers (CPACs) ensure that VA collects revenue from commercial health insurance carriers for non‑service connected care provided to insured veterans.  RFP at 18.  There are seven regional CPACs located nationwide that provide revenue cycle management to the 18 Veterans Integrated Service Networks and their associated VA medical centers (VAMCs).  Id.  The agency states that this procurement is for services to actively review insurance carrier payments to determine appropriate collections and, if underpayments are identified, to pursue the collection of the underpaid amount.  Agency Report (AR), Contracting Officer’s Statement at 2.  The RFP, issued on August 15, 2018 and set aside based on an order of priority as established in 38 U.S.C. § 8127,[2] under Federal Acquisition Regulation (FAR) parts 12 and 15, contemplated the award of a single indefinite-delivery, indefinite-quantity (IDIQ) contract with a 3-year ordering period.  Id. at 3, 70, 73.  The contract included one fixed-price contract line item number (CLIN) for a feasibility assessment report[3] and a fixed contingency-fee CLIN for recovery audit services.[4]  Id. at 16-17, 70.  Award is to be made on a best-value tradeoff basis considering the following factors in descending order of importance:  technical capability, price, and subcontracting plan.  Id. at 75.   As relevant here, the solicitation required the contractor to provide a feasibility assessment report based on an analysis of all collected/closed TPP commercial health insurance claims from all seven regional CPACs and their associated VAMCs for the prior fiscal year (FY) to determine feasibility for all additional potential collections.  Id. at 16-17, 19, 21-22.  This report is to identify categories of claims that are deemed to be actionable, and to include:  recommendations for types of claims to be forwarded to the contractor for the performance of recovery audit services; the estimated amount of additional recovery; and the basis for additional recovery.  Id. at 21-22.  The solicitation also contemplated that the contractor and agency would agree upon the types of appropriate claims for which the contractor would perform recovery audit services.  Id. at 22.  The solicitation further contemplated that the agency would issue separate task orders for each CPAC for a period not to exceed 12 months during the 3-year ordering period for the performance of recovery audit services, contingent upon the results of the feasibility assessment report.  Id. at 17, 19, 22, 26-28.  In this regard, the solicitation stated that twice a month the agency would provide the contractor a list of claims that the agency determined would be appropriate for the contractor to review as part of the recovery effort.  Id. at 22, 26-28.