PUBLIC LAW 108–173—DEC. 8, 2003
117 STAT. 2227
‘‘(B) TERM OF CONTRACTS.—The Secretary shall recompete contracts under this section not less often than once every 3 years. ‘‘(4) LIMIT ON NUMBER OF CONTRACTORS.— ‘‘(A) IN GENERAL.—The Secretary may limit the number of contractors in a competitive acquisition area to the number needed to meet projected demand for items and services covered under the contracts. In awarding contracts, the Secretary shall take into account the ability of bidding entities to furnish items or services in sufficient quantities to meet the anticipated needs of individuals for such items or services in the geographic area covered under the contract on a timely basis. ‘‘(B) MULTIPLE WINNERS.—The Secretary shall award contracts to multiple entities submitting bids in each area for an item or service. ‘‘(5) PAYMENT.— ‘‘(A) IN GENERAL.—Payment under this part for competitively priced items and services described in subsection (a)(2) shall be based on bids submitted and accepted under this section for such items and services. Based on such bids the Secretary shall determine a single payment amount for each item or service in each competitive acquisition area. ‘‘(B) REDUCED BENEFICIARY COST-SHARING.— ‘‘(i) APPLICATION OF COINSURANCE.—Payment under this section for items and services shall be in an amount equal to 80 percent of the payment basis described in subparagraph (A). ‘‘(ii) APPLICATION OF DEDUCTIBLE.—Before applying clause (i), the individual shall be required to meet the deductible described in section 1833(b). ‘‘(C) PAYMENT ON ASSIGNMENT-RELATED BASIS.—Payment for any item or service furnished by the entity may only be made under this section on an assignment-related basis. ‘‘(D) CONSTRUCTION.—Nothing in this section shall be construed as precluding the use of an advanced beneficiary notice with respect to a competitively priced item and service. ‘‘(6) PARTICIPATING CONTRACTORS.— ‘‘(A) IN GENERAL.—Except as provided in subsection (a)(4), payment shall not be made for items and services described in subsection (a)(2) furnished by a contractor and for which competition is conducted under this section unless— ‘‘(i) the contractor has submitted a bid for such items and services under this section; and ‘‘(ii) the Secretary has awarded a contract to the contractor for such items and services under this section. ‘‘(B) BID DEFINED.—In this section, the term ‘bid’ means an offer to furnish an item or service for a particular price and time period that includes, where appropriate, any services that are attendant to the furnishing of the item or service.
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