MURIEL BOWSER
MAYOR
December 16, 2024
The Honorable Phil Mendelson
Chairman, Council of the District of Columbia
1350 Pennsylvania Avenue NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Pursuant to section 451 of the District of Columbia Home Rule Act (D.C. Official Code § 1-
204.51) and section 202 of the Procurement Practices Reform Act of 2010 (D.C. Official Code§
2-352.02), enclosed for consideration and approval by the Council of the District of Columbia is
proposed Modification No. M0008 to Contract No. CW81471 with Health Management Systems,
Inc. ("HMS") to exercise option year three in the amount of$3,982,750. The period of performance
is from January 24, 2025, through January 23, 2026.
Under the proposed modification, HMS will continue to provide expert assistance to supplement
and maximize the District's third-party liability recovery efforts.
My administration is available to discuss any questions you may have regarding the proposed
contract modification. In order to facilitate a response to any questions you may have, please have
your staff contact Marc Scott, Chief Operating Officer, Office of Contracting and Procurement, at
(202) 724-8759.
I look forward to the Council's favorable consideration of this contract modification.
Sincerely,
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of Contracting and Procurement
Pursuant to section 202(c-3) of the Procurement Practices Reform Act of 2010, as amended, D.C.
Official Code § 2-352.02(c-3), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(Option)
(A) Contract Number: CW81471
Proposed Contractor: Health Management Systems, Inc.
Contract Amount (Option Period Three): $3,982,750
Term of Contract: January 24, 2025, through January 23, 2026
Type of Contract: Requirements Contract
(B) Identifying number of the underlying contract, including the identifiers assigned to the
underlying contract by the Council for the base period and any subsequent option periods:
Base Year Amount: $358,000
(January 24, 2022, through January 23, 2023)
Option Period One Amount: $1,476,750
(January 24, 2023, through January 23, 2024)
(Council Approval CA25-0006)
Option Period Two Amount: $2,685,000
(January 24, 2024, through January 23, 2025)
(Council Approval CA25-0565)
Option Period Three Amount: $3,982,750
Explanation of difference from option period two: The contingency fee of (8.95%) is the same
for the base and option periods, however, the quantity of recoveries increases each option period.
Also, the amount for option period three exceeds the price for the base period due to inflationary
factors related to the cost of operating a business and also because of CPI inflation that measures
the average change over time in the prices paid by urban consumers for a market basket of
consumer goods and services.
1
Option Period Four Amount: $5,370,000
Explanation of difference from option period three: The contingency fee of (8.95%) is the same
for the base and option periods, however, the quantity of recoveries increases each option period.
Also, the amount for option period four exceeds the price for the base period due to inflationary
factors related to the cost of operating a business and also because of CPI inflation that measures
the average change over time in the prices paid by urban consumers for a market basket of
consumer goods and services.
(C) A statement that Citywide Clean Hands database indicates that the proposed contractor is
current with its District taxes. If the Citywide Clean Hands Database indicates that the
proposed contractor is not current with its District taxes, either: (1) a certification that the
contractor has worked out and is current with a payment schedule approved by the District;
or (2) a certification that the contractor will be current with its District taxes after the District
recovers any outstanding debt as provided under D.C. Official Code § 2-353.01(b):
On November 25, 2024, the Citywide Clean Hands database certified that the Contractor is current
with its District taxes.
(D) A statement that the proposed contract is within the appropriated budget authority for the
agency for the fiscal year and is consistent with the financial plan and budget adopted in
accordance with D.C. Official Code §§ 47-392.01 and 47-392.02:
The Department of Health Care Finance Agency Fiscal Officer certified that funding in the amount
of $3,982,750 is available to support the contract for the third-party liability recoveries contract.
2
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GOVERNMENT OF THE DISTRICT OF COLUMBIA
Department of Health Care Finance
Office of the Chief Financial Officer
MEMORANDUM
TO: Nancy Hapeman
Acting Chief Procurement Officer
Office of Contracting and Procurement
THRU: Delicia V. Moore
Associate Chief Financial Officer
Human Support Services Cluster
FROM: Darrin Shaffer
Agency Fiscal Officer
Department of Health Care Finance
DATE: October 28, 2024
SUBJECT: Certification of Funding for Heath Management Systems, Inc – TPL Recovery Contract
The Office of the Chief Financial Officer hereby certifies that the sum of $3,982,750.00 is included in the District’s
Local Budget and Financial Plan for Fiscal Year 2025 to fund the costs associated with the Department of Health
Care Finance’s (DHCF) TPL Recovery Contract. This certification supports the Heath Management Systems, Inc
contract cost, option year 3, from January 24, 2025 to January 23, 2026. The fund allocation is as follows:
Vendor: Health Management Systems, Inc (HMS) Contract Number: CW81471
Fiscal Year 2025 Funding: 01/24/2025-09/30/2025
Agency Fund Account Program Cost Center Amount
HT0 1060128 7132001 100203 70261 $1,507,449.46
HT0 4025002 7132001 100203 70261 $1,233,367.74
FY 2025 Contract Total: $2,740,817.20
Fiscal Year 2026 Funding: 10/01/2025-01/23/2026
Agency Fund Account Program Cost Center Amount
HT0 1060128 7132001 100203 70261 $683,063.04
HT0 4025002 7132001 100203 70261 $558,869.76
FY 2026 Contract Total: $1,241,932.80
Upon approval of the District’s Local Budget and Financial Plan by the Council and the Mayor and completion of
the thirty-day Congressional layover, funds will be sufficient to pay for fees and costs associated with the contract.
There is no fiscal impact associated with the contract.
Should you have any questions, please contact me at (202) 442-9079.
441 4th St. NW, Suite 900 South, Washington, D.C. 20001 (202) 442-5988 FAX (202) 478-1373
1. Contract Number Page of
Pages
AMENDMENT OF SOLICITATION / MODIFICATION OF CONTRACT
CW81471 1 2
2. Amendment/Modification Number 3. Effective Date 4. Requisition/Purchase Request 5. Solicitation Caption
No.
Third Party Liability-
M0008 January 24, 2025 Recoveries services
6. Issued by: Code 7. Administered by (If other than line 6)
Office of Contracting and Procurement Department of Health Care Finance
441 4th Street NW, Suite 330S 441 4th Street, N.W., 900S
Washington, DC 20001 Washington, DC 20001
8. Name and Address of Contractor (No. street, city, county, state 9A. Amendment of Solicitation No.
and zip code)
9B. Dated (See Item 11)
Health Management Systems, Inc (HMS) 10A. Modification of Contract/Order No.
5615 High Point Drive
X
Irving, TX 75038 CW81471
10B. Dated (See Item 13)
Code Facility 01/24/2022
11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
The above numbered solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers is extended. is not
extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:
(a) By completing Items 8 and 15, and returning __________ copies of the amendment: (b) By acknowledging receipt of this amendment on each copy of the
offer submitted; or (c) BY separate letter or fax which includes a reference to the solicitation and amendment number. FAILURE OF YOUR
ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED
MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such may be made by letter
or fax, provided each letter or telegram makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.
12. Accounting and Appropriation Data (If Required)
13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACT/ORDERS ,
IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14
A. This change order is issued pursuant to (Specify Authority): 27 DCMR, Chapter 36, Contract Modifications
X The changes set forth in Item 14 are made in the contract/order no. in item 10A.
B. The above numbered contract/order is modified to reflect the administrative changes (such as changes in paying office, appropriation
data
etc.) set forth in item 14, pursuant to the authority of 27 DCMR, Chapter 36, Section 3601.2.
C. This supplemental agreement is entered into pursuant to authority of:
D. Other (Specify type of modification and authority) Option year Partial Extension and Change Order
27 DCMR, Chapter 36, Section 3601.2(c) and 3603.
E. IMPORTANT: Contractor is not is required to sign this document.
14. Description of Amendment/Modification (Organized by UCF Section headings, including solicitation/contract subject matter where feasible.)
Contract CW81471 is hereby modified as follows:
1. Pursuant to Section F.2 of the contract, Option to Extend the Term of the Contract, the District hereby
exercises Option Period Three, extending the term of the contract for a period of twelve months from
January 24, 2025 through January 23, 2026 in the amount of $3,982,750.
2. Attachment A – Price Schedule
All Other Terms and Conditions Remain Unchanged
Except as provided herein, all terms and conditions of the document is referenced in Item 9A or 10A remain unchanged and in full force and effect.
15A. Name and Title of Signer (Type or print) 16A. Name of Contracting Officer
Jarad Dorsey
5B. Name of Contractor 15C. Date Signed 16B. District of Columbia 16C. Date
Signed
(Signature of person authorized to sign) (Signature of Contracting Officer)
CW81471 M0008
Attachment A – Revised Price Schedule
B.3.4 OPTION PERIOD THREE
Contract
Estimated
Line Item Unit of Unit
Item Description Qty Amount of
No. Measure Price
Recovery
(CLIN)
% of
Provide Third Party Liability Recovery
004 (TPL) recoveries as Amount $44,500,000 8.95% $3,982,750.00
described in Section C.5.
Option Year Three Estimates Amount $3,982,750.00
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