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Industry puzzled by CMS request for proposals terminating call center contractor
The Centers for Medicare and Medicaid Services (CMS) has recently released a request for proposals that has left the industry scratching their heads. The termination of an existing call center contractor after just two years, with the award taking three years to establish, has raised eyebrows. What’s even more puzzling is the requirement for re-compete contractors to have labor harmony agreements.
In a recent interview on The Federal Drive with Tom Temin, David Berteau, President and CEO of the Professional Services Council, expressed his astonishment at the unprecedented actions taken by CMS. Berteau, with almost half a century of experience in the industry, stated that he had never seen such intent behind a contract termination.
The one-year contract with nine one-year options, awarded in September 2022, is not even two years old. The failure to exercise the next option without cause has raised concerns about the contractor’s ability to recover costs already incurred. The insertion of a labor harmony agreement into the existing work has further complicated the situation.
A labor harmony agreement implies the presence of a union, which could potentially impact wages and working conditions. The ambiguity in the RFP regarding the requirement for a labor harmony agreement before or after the contract starts has added to the confusion.
The potential impact on customer experience, with millions of Americans relying on call center services, is a cause for concern. The current call center has received a 95% excellent rating, highlighting the importance of maintaining high-quality service.
The issue of transferring employees from the losing contractor to the winning bidder raises questions about the government’s role in union negotiations. The forced unionization of companies through the contract re-compete process seems to contradict existing regulations and laws.
The rushed timeline for solicitation submissions by June 28th has left little time for companies to fully understand and respond to the requirements. The lack of transparency in previous requests for information and sources sought notices adds to the uncertainty surrounding the contract re-compete process.
The potential impact on competition and the stability of government contracting processes is a significant concern raised by Berteau. The requirement for past experience with labor harmony agreements could limit competition and create further complications for subcontractors.
Overall, the unusual actions taken by CMS in the contract re-compete process have raised serious questions about the future of government contracting and the implications for industry stakeholders. The need for clarity, transparency, and fairness in the process is essential to ensure the continued success of government contracts.
