Durable Medical Equipment (DME) Claims Processing

The contract is a sole-source bridge order under the GSA Federal Supply Schedule, authorized under FAR 8.404(d) and GSAM 538.7104-3, issued to General Dynamics Information Technology (GDIT) to ensure uninterrupted operation of the Durable Medical Equipment (DME) Claims Processing System for the Centers for Medicare & Medicaid Services. The award, issued on February 9, 2026, with a posting date of May 27, 2026, extends through February 8, 2031, and serves as a logical follow-on to a prior competitively awarded contract, justifying the use of a non-competitive procurement due to the incumbent’s irreplaceable institutional knowledge, the risk of operational disruption from transitioning to a new vendor, and the inefficiency and cost of reprocessing work already completed under existing contracts. Performance is centered at GDIT’s location in Falls Church, Virginia, with administrative oversight handled through the Office of Acquisition and Grants Management in Baltimore, Maryland, under agency code 75FCMC, using a Time and Materials contract type to provide flexibility during the transition phase. The contract includes a four-month transition-out period requiring concurrent operations between GDIT and the incoming contractor to ensure seamless service continuity without degradation of claims processing capabilities. While no detailed cost data, line items, or pricing tables are provided, the Contracting Officer affirmed fair and reasonable pricing based on prior GSA schedule determinations, and the acquisition was determined to deliver best value through economy, efficiency, and mission continuity rather than through price competition. No formal evaluation factors, quality standards, inspection criteria, or packaging requirements are detailed, as the focus is on administrative continuity and risk mitigation during a critical system transition. The sole-source justification is affirmatively documented with approvals from the HCA, and while socioeconomic status, security clearances, key personnel, and OCI provisions are not specifically addressed, the entire authority for the award rests on the logical follow-on exception, ensuring compliance with federal acquisition regulations without triggering competitive or detailed compliance protocols typically required in open procurements.