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Solicitation Must Adequately Evaluate Contract Type and Not Have Arbitrary Disqualifications

Client Alert | 1 min read | 09.09.16

In CACI, Inc.-Federal (Aug. 3, 2016), GAO sustained two pre-award challenges to the cost/price evaluation scheme in DISA’s $17.5B ENCORE III IDIQ solicitation. GAO held, first, that the solicitation did not provide an adequate basis to compare the relative cost of competing proposals because, despite anticipating roughly half of the ENCORE III task orders to be cost-reimbursable, the RFP did not require offerors to propose any cost-reimbursable labor rates and, second, that a provision that would eliminate any offeror with a total price more than 50 percent below a “trimmed average total proposed price” of other offerors was “entirely arbitrary in selection and application” because the record did not reflect that such a price difference would pose any inherently high performance risk.

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Client Alert | 6 min read | 03.26.24

California Office of Health Care Affordability Notice Requirement for Material Change Transactions Closing on or After April 1, 2024

Starting next week, on April 1st, health care entities in California closing “material change transactions” will be required to notify California’s new Office of Health Care Affordability (“OHCA”) and potentially undergo an extensive review process prior to closing. The new review process will impact a broad range of providers, payers, delivery systems, and pharmacy benefit managers with either a current California footprint or a plan to expand into the California market. While health care service plans in California are already subject to an extensive transaction approval process by the Department of Managed Health Care, other health care entities in California have not been required to file notices of transactions historically, and so the notice requirement will have a significant impact on how health care entities need to structure and close deals in California, and the timing on which closing is permitted to occur....