MURIEL BOWSER
MAYOR
April 28, 2023
Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
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. M0010 to exercise option period three of Contract No. CW81817 with
Zane Network, LLC. (Zane) in the amount not-to-exceed $1,235,400. The period of performance
is June 1, 2023 through May 31, 2024.
Under the proposed modification, Zane shall continue to provide assistance to supplement and
maximize the District’s Third-Party Liability (TPL) verification efforts. Zane shall also continue
to provide additional TPL coverage information on Medicaid beneficiaries which will enable the
Department of Health Care Finance to decrease its Medicaid expenditures.
In order to facilitate a response to any questions you may have regarding the proposed
modification, please have your staff contact Marc Scott, Chief Operating Officer of the Office of
Contracting and Procurement, at (202) 724-8759.
I look forward to the Council’s favorable consideration of this proposed modification.
Sincerely,
Muriel Bowser
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of Contracting and Procurement
Pursuant to section 202(c) of the Procurement Practices Reform Act of 2010, as amended, D.C.
Official Code § 2-352.02(c), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(Standard)
(A) Contract Number: CW81817
Proposed Contractor: Zane Network LLC. (Zane)
Contract Amount (Option Period Three): Not-to-exceed (NTE) $1,235,400
Unit and Method of Compensation: Fixed Unit
Term of Contract: June 01, 2023 through May 31, 2024
Type of Contract: Firm Fixed Price
Source Selection Method: Request for Proposal (RFP)
(B) For a contract containing option periods, the contract amount for the base period and for
each option period. If the contract amount for one or more of the option periods differs from
the amount for the base period, provide an explanation of the reason for the difference:
Base Year Amount: NTE $546,000
(June 01,2020 through May 31, 2021)
Option Period One Amount: NTE $703,500
(June 01, 2021 through May 31, 2022)
Explanation of difference from base year amount (if applicable): The quantity of units procured
is far less during the base year than that of option period one. Also, the price per unit for option
period one increased by $0.60 from the price per unit of the base year.
Option Period Two Amount: NTE $931,500
(June 01, 2022 through May 31, 2023)
Explanation of difference from base year amount (if applicable): The quantity of units procured
is far less during the base year than that of option period two. Also, the price per unit for option
period two increased by $1.20 from the price per unit of the base year.
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Option Period Three Amount: NTE $1,235,400
(June 01, 2023 through May 31, 2024)
Explanation of difference from base year amount (if applicable): The quantity of units procured
is far less during the base year than that of option period three. Also, the price per unit for option
period three increased by $1.80 from the price per unit of the base year.
Option Period Four Amount: NTE $1,620,600
(June 01, 2024 through May 31, 2025)
Explanation of difference from base year amount (if applicable): The quantity of units procured
is far less during the base year than that of option period four. Also, the price per unit for option
period four increased by $2.40 from the price per unit of the base year.
(C) The goods or services to be provided, the methods of delivering goods or services, and any
significant program changes reflected in the proposed contract:
The contractor is to provide expert assistance to supplement and maximize the District’s Third-
Party Liability (TPL) verification efforts. Federal law requires state Medicaid programs to ascertain
the legal liability of third parties to pay for medical services furnished to a Medicaid beneficiary.
States may elect to supplement their own activities with those of an independent offeror that has
been competitively selected and who shall assist the state in this effort.
(D) The selection process, including the number of offerors, the evaluation criteria, and the
evaluation results, including price, technical or quality, and past performance components:
The solicitation (Doc456734) was set aside for Certified Business Enterprise contractors on August
05, 2019, through an RFP. The solicitation closed on August 29, 2019. On the closing date, the
District received two proposals in response to the solicitation. The proposals were evaluated in
accordance with the technical evaluation factors as described in the solicitation, which are listed
below.
The evaluation factors consisted of:
Technical Approach and Methodology;
Technical Expertise and Capabilities;
Past Performance and Experience; and
Price.
Based upon the findings of the contracting officer’s independent review of the proposal in
accordance with the evaluation factors, the contracting officer determined that the proposal from
Zane was most advantageous to the District and that it is in the best interest of the District that the
award be made to Zane.
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(E) A description of any bid protest related to the award of the contract, including whether the
protest was resolved through litigation, withdrawal of the protest by the protestor, or
voluntary corrective action by the District. Include the identity of the protestor, the grounds
alleged in the protest, and any deficiencies identified by the District as a result of the protest:
• Protest 1: CAB No. P-1125, Protestor: Health IT 2 Business Solutions, LLC. dba Codice
(“Codice”), Resolution: Denied and Dismissed with Prejudice
On June 26, 2020, a protest was filed by Codice with the CAB. Codice alleged that the District
failed to meaningfully evaluate their Best and Final Offer (BAFO) under the Technical
Expertise and Capabilities Factor (Factor B). Codice alleged that the District failed to
accurately evaluate their BAFO’s response and did not consider education, experience,
knowledge, necessary skills and expertise of the key personnel directly assigned to the project
and resumes for each key personnel as described in Section L.19.
On September 1, 2020, the protest was denied and dismissed by the CAB.
(F) The background and qualifications of the proposed contractor, including its organization,
financial stability, personnel, and performance on past or current government or private
sector contracts with requirements similar to those of the proposed contract:
The contractor is providing services to the satisfaction of the District under the current contract,
which will expire on May 31, 2023. The contractor has performed these services for the District
since 2020.
Zane has demonstrated through past performance reports that its organization has the history,
organizational and technical experience, including the key personnel, required to successfully meet
the requirements of the proposed contract. Likewise, it has been determined that the proposed
contractor maintains the financial resources, accounting and operational controls to successfully
fulfill the District’s requirement. The proposed contractor has been determined responsible in
accordance with the District’s standards of responsibility.
(G) A summary of the subcontracting plan required under section 2346 of the Small, Local, and
Disadvantaged Business Enterprise Development and Assistance Act of 2005, as amended,
D.C. Official Code § 2-218.01 et seq. (“Act”), including a certification that the subcontracting
plan meets the minimum requirements of the Act and the dollar volume of the portion of the
contract to be subcontracted, expressed both in total dollars and as a percentage of the total
contract amount:
The contractor is certified as a local business enterprise, disadvantage business enterprise, small
business enterprise, and development enterprise zone. Therefore, a subcontracting plan is not
required. The Contracting Officer has determined that the Contractor meets the Department of
Small and Local Business Development requirements.
(H) Performance standards and the expected outcome of the proposed contract:
The expected outcome is to identify new TPL coverage information on Medicaid beneficiaries
which will enable the Department of Health Care Finance (DHCF) to decrease its Medicaid
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expenditures. Also, the expectation is to increase the amount of claim accounts returned to the
DHCF, thus saving additional cost for the Medicaid program.
Performance is expected to be in accordance with Federal Regulations 42 CFR, Part 433, Subpart
D, Third Party Liability, §433.36 and §433.135 through §433.154.
(I) The amount and date of any expenditure of funds by the District pursuant to the contract
prior to its submission to the Council for approval:
None
(J) A certification 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 DHCF Agency Fiscal Officer certified that funding in the amount NTE $1,235,400 is available
to support option period three for the TPL verification services.
(K) A certification that the contract is legally sufficient, including whether the proposed
contractor has any pending legal claims against the District:
The contract has been reviewed by the Office of Attorney General and found to be legally
sufficient. The contractor has no pending legal claims against the District.
(L) A certification 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 March 9, 2023, the Citywide Clean Hands database certified that the contractor is current with its
District taxes.
(M) A certification from the proposed contractor that it is current with its federal taxes, or has
worked out and is current with a payment schedule approved by the federal government:
The contractor has self-certified, via the Bidder/Offeror Certification form, that it is current with its
federal taxes.
(N) The status of the proposed contractor as a certified local, small, or disadvantaged business
enterprise as defined in the Small, Local, and Disadvantaged Business Enterprise
Development and Assistance Act of 2005, as amended; D.C. Official Code § 2-218.01 et seq.:
The contractor is a certified local, small or disadvantaged business enterprise under certification
number LSDZ62988052025.
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(O) Other aspects of the proposed contract that the Chief Procurement Officer considers
significant:
None
(P) A statement indicating whether the proposed contractor is currently debarred from providing
services or goods to the District or federal government, the dates of the debarment, and the
reasons for debarment:
As of March 07, 2023, the contractor does not appear on the Office of the Inspector General
exclusions database, the federal excluded parties list or the District’s list of debarred and suspended
contractors.
(Q) Any determination and findings issues relating to the contract’s formation, including any
determination and findings made under D.C. Official Code § 2-352.05 (privatization
contracts):
Determination and Findings for Contractor’s Responsibility, dated March 16, 2023
Determination and Findings for Price Reasonableness, dated March 09, 2023
(R) Where the contract, and any amendments or modifications, if executed, will be made
available online:
http://ocp.dc.gov
(S) Where the original solicitation, and any amendments or modifications, will be made available
online:
http://ocp.dc.gov
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Government of the District of Columbia
Office of the Chief Financial Officer 1101 4th Street, SW
Office of Tax and Revenue Washington, DC 20024
Date of Notice: March 9, 2023 Notice Number: L0009278690
ZANE NETWORKS,LLC FEIN: **-***1847
1133 21ST ST NW STE M200 Case ID: 1439761
WASHINGTON DC 20036-3329
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
CO
liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code § 47-2862, therefore
this Certificate of Clean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE § 47-2862 (2006)
PY
§ 47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Melinda Jenkins
Branch Chief, Collection and Enforcement Administration
To validate this certificate, please visit MyTax.DC.gov. On the MyTax DC homepage, click the
“Validate a Certificate of Clean Hands” hyperlink under the Clean Hands section.
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Department of Health Care Finance
Office of the Chief Financial Officer
MEMORANDUM
TO: George A. Schutter
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: March 21, 2023
SUBJECT: Certification of Funding for Zane Networks – TPL Verification Contract
The Office of the Chief Financial Officer hereby certifies that the sum of $1,235,400.00 is included in the District’s
Local Budget and Financial Plan for Fiscal Year 2023 to fund the costs associated with the Department of Health
Care Finance’s (DHCF) Third Party Liability (TPL) Verification Contract. This certification supports the Zane
Networks, LLC (Zane) contract cost from June 1, 2023 to May 31, 2024. The fund allocation is as follows:
Vendor: Zane Networks, LLC (Zane) Contract #: CW81817
Fiscal Year 2023 Funding: 06/01/23 – 09/30/23
Agency DIFS Fund DIFS Cost Center DIFS Program DIFS Account Amount
HT0 1060128 70261 700087 7132001 $226,490.00
HT0 4025002 70261 700087 7132001 $185,310.00
FY 2023 Contract Total: $411,800.00
Fiscal Year 2024 Funding: 10/1/23 – 05/31/24
Agency DIFS Fund DIFS Cost Center DIFS Program DIFS Account Amount
HT0 1060128 70261 700087 7132001 $452,980.00
HT0 4025002 70261 700087 7132001 $370,620.00
FY 2024 Contract Total: $823,600.00
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
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of the Attorney General
ATTORNEY GENERAL
BRIAN L. SCHWALB
Commercial Division
MEMORANDUM
TO: Tommy Wells
Director
Office of Policy and Legislative Affairs
FROM: Robert Schildkraut
Section Chief
Government Contracts Section
DATE: April 12, 2023
SUBJECT: Approval of Contract (Option Period 3) for Third Party Liability
Verification
Contractor: Zane Networks, LLC
Contract Number: CW81817
Contract Amount: NTE $1,235,400
This is to Certify that this Office has reviewed the above-referenced contract and that we have
found it to be legally sufficient. If you have any questions in this regard, please do not hesitate to
call me at 724-4018.
______________________________
Robert Schildkraut
400 6th Street, NW, Suite 79100, Washington, DC 20001 (202) 727-3400 Fax (202) 347-8922
1. Contract Number Page of Pages
AMENDMENT OF SOLICITATION / MODIFICATION OF CONTRACT CW81817 1 1
2. Amendment/Modification 3. Effective Date 4. Requisition/Purchase Request No. 5. Solicitation Caption
Number
CW81817 – M0010 June 1, 2023 Third Party Liability (TPL)
Verification
6. Issued by: Code 7. Administered by (If other than line 6)
OFFICE OF CONTRACTING AND PROCUREMNT DEPARTMENT OF HEALTH CARE FINANCE
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441 4 Stree