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B-297915 1 (2006-05-04)

handle is hein.gao/gaocrptasog0001 and id is 1 raw text is: 



A         G    A    O                                                  Comptroller General
.       Accountability * Integrity * Reliability                       of the United States
United States Government Accountability Office    DOCUMENT FOR PUBLIC RELEASE
Washington, DC 20548                                  The decision issued on the date below was subject to a
                                                      GAO Protective Order. This redacted version has been
                                                      approved for public release.

          Decision

          Matter of: CIGNA Government Services, LLC

          File:        B-297915

          Date:        May 4, 2006

          Craig A. Holman, Esq., Kara L. Daniels, Esq., and David J. Craig, Esq.,
          Holland & Knight, LLP, for the protester.
          Paul F. Khoury, Esq., Kathryn Bucher, Esq., Dorthula H. Powell-Woodson, Esq.,
          Kara M. Sacilotto, Esq., Daniel P. Graham, Esq., and Kevin J. Plummer, Esq., Wiley
          Rein & Fielding LLP, for Noridian Administrative Services, LLC, an intervenor.
          Jeffri Pierre, Esq., Anthony E. Marrone, Esq., and Christine Simpson, Esq.,
          Department of Health & Human Services, for the agency.
          Glenn G. Wolcott, Esq., and Michael R. Golden, Esq., Office of the General Counsel,
          GAO, participated in the preparation of the decision.
          DIGEST

          Agency's cost realism analysis of awardee's proposed cost/price was reasonable
          where agency considered specific cost elements of the proposed cost/price,
          comparing the cost/price proposed for those elements with historical costs incurred
          by both the awardee and other contractors in performing similar activities.
          DECISION

          CIGNA Government Services, LLC protests the award of a contract by the
          Department of Health & Human Services, Centers for Medicare and Medicaid
          Services (CMS), to Noridian Administrative Services, LLC under request for
          proposals (RFP) No. CMS-2005-0012 to provide Medicare claims processing and
          services related to claims from suppliers and beneficiaries of durable medical
          equipment.' CIGNA protests, among other things, that CMS failed to perform an
          adequate cost realism analysis with regard to Noridian's proposed cost/price.


          1 CIGNA has protested two separate contracts awarded under the same solicitation:
          one awarded to Noridian Administrative Services, LLC, and one awarded to Palmetto
          GBA, LLC. In response to CIGNA's initial protest submission and its supplemental
          submissions, our Office opened two docket numbers: B-297915 and B-297915.2. We
          are addressing in this decision, under docket number B-297915, all protest issues
                                                                            (continued...)

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