Ohio Medicaid School Program Contract Procurement Requirements

In order to include “Contracted Therapy Costs” on the MSP Cost Report, there are specific procurement requirements that must be followed. School Districts must obtain 3 contract price comparisons for all MSP related therapy contacts that exceed the lessor of $25,000, or your district’s formal procurement threshold.

The following is a summary of the procurement requirements.

When the total contract amount exceeds the lesser of $25,000, or your district’s threshold, please document the following:

1. Rationale – Document the rationale used in selecting the vendor. (lowest price, most qualified, etc.)
2. Full/Open Competition – Do not set unreasonable contract requirements, unnecessary experience, noncompetitive pricing between affiliated companies, or conflicts of interest.
3. Limited Competition – In cases where competition is limited, document the rationale used to support this claim.
4. Cost or Price Analysis – Document the cost/price for each vendor in your comparison.

Include the following 3 statements in all MSP related contracts:

5. Vendor will comply with the requirements of 45 CFR 164.504(e)(1) for safeguarding and limiting access to information concerning beneficiaries.
6. Vendor will allow the representative of the U.S. Department of Human Services, ODM, ODE or their respective designee access to the subcontractor’s books, documents and records.
7. Vendor acknowledges that they or their principles are not suspended or debarred.

Contracts over $100,000

8. All non-ESC contracts over $100,000 must be competitively bid or have ODE approval.

HBS has developed an optional “Contract Procurement Checklist” that can be helpful in documenting these MSP Contract Procurement Requirements. You can download it here.