• California Medi-Cal Fraud Award – from Oncore to First Data to Oncore: The Bizzare World of State Procurement

    June 16th, 2017 by admin Categories: Blogs Tags: , , , , , , ,

    In one of the more curious procurements in recent history Oncore Consulting with Pondera and Lexis-Nexis has won the Medi-Cal Program Integrity Data Analytics (MPIDA) bid to aggressively pursue Medi-Cal fraud in California. It’s the second time the state issued an Intent to Award to Oncore, having initially done so back in March 2016. Here’s the story:

    That first procurement, prior to final award, was surprisingly cancelled in August of 2016 over a protest involving the state’s ever frustrating interpretation of the procurement references issue. More here, here and  here.

    Re-bid again in November of last year, an Intent to Award this time was issued to First Data in March 2017. However, previous winner Oncore protested and their protest was upheld by DGS, and the formal Award went back to Oncore. The issue was a rather obscure technicality involving small business preference points which TLTV was unaware of.

    DGS upheld the Oncore protest in a Bulletin just weeks ago. Here are the primary points (pardon the pun):

    Small businesses have preference over non-small businesses. California Code section14838(f) states that “the application of any bidder preference for which non-small business bidders may be eligible under this provision or any other provision of law shall not result in the denial of the award to a small business or micro business bidder.”
    The State Contracting Manual 8.22 further states, “A non-small business, which qualifies for this preference, may not take an award away from a certified small business.”
    Application of the Preference Points
    First Data and Oncore were the top two of the three proposals that were submitted. The proposal submitted by First Data received a score of 322.917.The proposal submitted by Oncore received a score of 320.271. When the preference points (16.506) are applied to the Oncore proposal, that proposal earns 336. 777. The preference points are not applied to the First Data proposal, as that would result in a denial of the award to Oncore. (Italics TLTV)

    So there it is, pretty clear in black & white.

    As of this writing, no contract has been signed but apparently it’s all over with Oncore, Pondera and Lexis-Nexis the winners. just like the first time, only 16 months later… Procurement Reform maybe?

    But with this bid, no predictions, we’ll all have to wait and see…

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