Competition

160.3 – Competition (Rev. 27, 12-19-03) The provisions of the prime contract require the use of competitive proposals to the maximum practical extent in the award of subcontracts. The contractor shall obtain proposals from small and minority audit firms and consider their proposals in light of the factors listed below, to the extent that it finds it to be consistent with the efficient performance of the audit function. The lowest price or lowest cost is the primary deciding factor in source selection, and the intermediary must justify a selection other than the low bidder. However, award of an audit subcontract may properly be influenced by the proposal that promises the greatest value in terms of: • Anticipated performance – compliance with Medicare regulations and procedures. • Ultimate productivity – compliance with terms of the contract. • Consideration of the existing and potential workload of the prospective audit firm. • Qualified staff capable of performing Medicare audit. • Prior performance in Medicare audits. • Reputation of the audit firm. • Location of offices.