The proposed bill seeks the Council's approval for Contract No. CW123727 with Public Consulting Group LLC (PCG) for $2,319,000, covering the operations and maintenance of the District's Administrative Services Organization (ASO) system, which is vital for managing Medicaid claims and payments. The contract, running from September 13, 2025, to September 12, 2026, is justified under a competition exemption due to PCG's proprietary ownership of the ASO system. It includes provisions for option periods that account for inflation, with costs increasing in subsequent years. The bill confirms that the contract is within the appropriated budget authority and has been deemed legally sufficient by the Office of the Attorney General.

Additionally, the bill incorporates the Nonprofit Fair Compensation Act of 2020, mandating that nonprofit organizations include indirect costs in their service rates under this contract. It outlines the responsibilities of the contractor, including project management, compliance with federal regulations, and the provision of ongoing support and training to partner agencies. The bill also emphasizes the importance of hiring District residents and compliance with labor laws, establishing penalties for non-compliance. Significant changes include the deletion of previous hiring requirements and the introduction of new insurance and dispute resolution provisions, aiming to enhance contractor accountability and ensure smooth transitions between contractors.