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FOR IMMEDIATE RELEASE

FLORIDA HME NETWORK SUES MEDICARE IN THE COURT OF CLAIMS

(Miami, June 16, 2008) - In another important and novel legal challenge to the recently conducted Round One DMEPOS Competitive Bidding Program - two Miami law firms (de la O, Marko, Magolnick & Leyton and Kravitz & Talamo LLP) are filing a bid protest in the Court of Federal Claims on behalf of the All Florida Network, a network of DME providers that was wrongfully disqualified from the bidding competition in the Miami-Ft. Lauderdale-Miami Beach-FL CBA.

The Plaintiff was disqualified for supposedly failing to furnish CMS and CBIC with required financial documentation when, in fact, Plaintiff submitted everything required by the bid rules. An emergency motion for preliminary injunction is forthcoming, and Plaintiff will seek an expedited hearing before 07.01.08 (the day the Round One contracts become effective).

The Court of Federal Claims Action is the fourth industry suit filed against Medicare for failing to conduct the DMEPOS competitive procurement in a legal and accurate fashion. This action was coordinated with other industry stake holders and was supported by the efforts of VGM, AAHomecare and particularly by AMEPA who provided invaluable timely information dealing with procurement process around the country.
This action may pave the way for similar claims by wrongfully-disqualified DME bidders. For more information about the lawsuit, please contact Daniel L. Leyton (de la O, Marko, Magolnick & Leyton) or Javier Talamo (Kravitz & Talamo).

CLICK to view the Court of Federal Claims Bid Protest

Update on the Lawsuit

According to attorney Javier Talamo, there was a Status Conference today. The Judge in the case ordered both sides to submit briefs by 5:00 P.M. on Monday. They will rule in short order the government's motion to dismiss the case based on lack of jurisdiction.

Attorney Dan Leyton said that if the court denies the government's motion, they are hopeful to quickly have a hearing on their Motion for Preliminary Injunction.

Over 40 Legislators educated about HR6252 and S.3144

The Round One AMEPA members from South Florida, Central Florida and Dallas completed their trip to Washington, D.C. last night. With support from VGM and AAHomecare we spoke to over 40 legislators and staffers about the problems of Competitive Bidding in Round One and the legislative remedies in HR.6252 and S.3134.

Special thanks to the Round 2 Providers, who sent introductory letters to their legislators.

The following Representatives and Senators were visited:

Jason Altmire (D-PA) - Pittsburgh MSA
Joe Barton (R-TX) - Dallas MSA
Spencer Bachus (R-AL) - Birmingham-Hoover, AL MSA (Round 2)
Senator Max Baucus (D-MT)
Marion Berry (D-AR) - Memphis, TN-MS-AR (Round 2)
Gus Bilrakis (R-FL) - Tampa-St. Petersburg-Clearwater MSA (Round 2)
Corrine Brown (FL - Orlando MSA (Round 2)
Vern Buchanan (R-FL) - Small Business Subcommittee
Dave Camp (R-MI) - Ways & Means, Subcommittee on Health
Kathy Castor (D-FL) - Tampa-St. Petersburg-Clearwater MSA (Round 2)
Ander Crenshaw (R-FL) - Jacksonville (Round 2)
Senator John Cornyn (R-TX)
David Davis (TN) - Knoxville MSA (Round 2)
Lincoln Diaz-Balart (R-FL) - Miami MSA
Mario Diaz-Balart (R-FL) - Miami MSA
Tom Feeney (R-FL) - Orlando MSA
Charles Gonzalez (D-TX) - San Antonio MSA (Round 2)
Kay Granger (R-TX) - Dallas MSA
Senator Charles Grassley (R-IA)
Ralph Hall (R-TX) - Dallas MSA
Alcee Hastings (D-FL) - Miami MSA
Jeb Hensarling (R-TX) - Dallas MSA
Senator Kay Bailey Hutchison (R-TX)
Eddie Bernice Johnson (D-TX) - Dallas MSA
Sam Johnson (R-TX) - Dallas MSA
Ric Keller (R-FL) - Orlando MSA
Nicholas Lampson (D-TX) - Houston MSA (Round 2)
Senator Blanche Lincoln (D-AR)
Connie Mack (R-FL) - Cape Coral-Fort Myers MSA (Round 2)
Kendrick Meek (D-FL) - Miami MSA
Tim Mahoney (D-FL) - Miami MSA
Kenny Marchant (R-FL) - Dallas MSA
Senator Mel Martinez (R-FL)
Senator Bill Nelson (D-FL)
Adam Putnam (R-FL) Tampa-St. Petersburg-Clearwater MSA (Round 2)
Ileana Ros-Lehtinen (R-FL) Miami MSA
Pete Sessions (R-TX) Dallas MSA
Fortney "Pete" Stark (D-CA) Chairman of Subcommittee on Health
Cliff Stearns (R-FL) Ocala MSA (Round 2)
Debbie Wasserman Schultz (D-FL) Miami MSA
Dave Weldon, M.D. (R-FL) Palm Bay-Melbourne-Titusville MSA (Round 2)
Robert Wexler (D-FL) Miami MSA
C.W. Bill Young (R-FL) Tampa-St. Petersburg-Clearwater MSA (Round 2)

If you know these legislators, please call them and ask to co-sponsor HR6252 or S3144. Updates are available at www.aahomecare.org

CLICK for the AMEPA - Round 2, County Analysis

Boeing has their own Competitive Bidding Issues

THIS STORY IS TOTALLY UNRELATED to Competitive Bidding in Home Medical Equipment.

GAO advises redo of bid, a triumph for Boeing
By Edward Iwata, USA TODAY

In a big win for Boeing (BA), congressional investigators Wednesday recommended that the Air Force redo a bid process that awarded a $35 billion aircraft contract to Northrop Grumman Systems (NOC) and EADS, the Europe-based parent company of Airbus. Boeing had contested the Air Force's awarding of the contract - one of the largest in Pentagon history - in February to build an initial 80 aerial refueling tankers.

In its decision, the U.S. Government Accountability Office mostly sided with Boeing, finding that "the Air Force had made a number of significant errors" that could have swayed the close competition, the GAO said in a statement.

Among other findings, the GAO said the Air Force "improperly increased" some of Boeing's estimated engineering costs and "conducted misleading and unequal discussions with Boeing" on a key aircraft performance measure.

The GAO didn't judge which firm's aircraft was best, and its recommendation isn't legally binding.But political pressure from Boeing's supporters in Congress likely will compel the Air Force to restart the bidding.

The Air Force has 60 days to tell the GAO what it plans to do.
"This is quite a shocker that will send the Air Force back to step one," says Winslow Wheeler, director of the Straus Military Reform Program at the Center for Defense Information think tank.

Congress and the White House also have the power to overturn controversial contract awards.

Air Force officials said they're reviewing the GAO's decision. "The Air Force will do everything we can to rapidly move forward so America receives this urgently needed capability," said Sue Payton, Air Force assistant secretary for acquisition.

In a statement, Boeing Vice President Mark McGraw said the company looks forward to working with the Air Force on the matter.At Northrop Grumman, spokesman Randy Belote said the company still believes it offered "the most modern and capable tanker."

In the coming years, the Air Force is expected to spend $100 billion to replace its aging refueling aircraft with either an Airbus tanker or the Boeing aircraft, a remodeled 767.The first contract set off a political dogfight. Boeing, a longtime Air Force contractor, launched a fierce lobbying and public relations campaign that urged the government to "buy American." EADS is based in Munich and Paris.

Wheeler says he's surprised that the GAO found so many problems.
"The Air Force knew full well that everybody and his brother was watching them like a hawk," Wheeler says. "You'd think the leadership and bureaucracy would have been at its very best."

Boeing rose 27 cents to $74.65 Wednesday, while Northrop Grumman fell $1.08 to $70.01.

Find this article at:
http://www.usatoday.com/news/washington/2008-06-18-boeing-tanker_N.htm