This article makes some good points, like the fact that CMS will not like to have egg on their face, and will probably try to accomodate winning bidders who underestimate costs.
I also like the point about the local component. We previously had a VA contract for hospital beds. The VA bought the beds, we had a warehouse solely for their beds, and they would pay us to pick up and deliver them. We always dealt with someone in the Philadelphia office, and things went fairly smoothly. When this whole competitive bidding thing started, I recall them saying that they wanted to base it on the VA model. They didn't even come close. It is an unholy mess.
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