Lost VA contract

Discussion in 'Rotech' started by Anonymous, Mar 29, 2014 at 12:13 AM.

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  1. Anonymous

    Anonymous Guest

    Someone posted the following link:
    http://www.gao.gov/products/B-409020,B-409020.2#mt=summary

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    Rotech Healthcare Inc., of Orlando, Florida, protests the award of three contracts (to Norco Inc., of Boise, Idaho; Care Medical Equipment, Inc., of Portland, Oregon; and Apria Healthcare, Inc., of Lake Forest, California), under request for proposals (RFP) No. VA260-13-R-0020, issued by the Department of Veterans Affairs (VA), for the provision of home oxygen services. Rotech argues that the agency unreasonably found Rotech to be nonresponsible, and therefore ineligible for award.

    D&B reports a 21.1% probability of supplier ceased operations or of becoming inactive over next 12 months. The average for US business is 5.6%.

    · D&B reports a supplier evaluation risk rating of 9, the highest risk rating on the scale.

    · D&B reports 9 for both viability and portfolio comparison. (*Note, based on information in D&B’s data files, for this business is 9. This means the company has been placed in a Special Category of bankruptcy or high risk of business deterioration).

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    Does this mean we've lost the VA contract for the entire country? Company emails still make specific mention of VA patients. Is that just until this contract worth tens of millions runs out? That combined with lower reimbursement for oxygen services, our bread and butter, means that we'll have even more trouble getting out of hundreds of millions of debt.

    The conference call this week was clear. Get cash and equipment. PulmoDose is closing next week. How quickly are we circling the drain here?
     

  2. Anonymous

    Anonymous Guest

    The VA evaluated the proposals, and on September 18, the contracting officer found that Rotech was nonresponsible. AR, Tab 5, Responsibility Determination at 1, 6. In conducting the responsibility determination of Rotech, the contracting officer primarily relied on information provided in a Dun & Bradstreet (D&B) Report,[2] ordered on June 7, 2013. CO Statement ¶ 5; AR, Tab 5, Responsibility Determination, at 2; AR, Tab 2, Debrief Letter, at 2-3. Based on the information in the D&B Report, as well as the announcement about Rotech’s plan to continue its prepetition marketing efforts to identify a buyer for its business, the contracting officer found Rotech to be nonresponsible, concluding that the firm “does not have adequate financial resources to perform the contract, or the ability to obtain them.” AR, Tab 5, Responsibility Determination, at 1. Specifically, the contracting officer explained its concerns about Rotech as follows:

    First, Rotech does not yet have an approved reorganization plan and does not expect one until August 2013. Secondly, Rotech admits it is and has been pursuing the sale of the company. It cannot be known who would purchase the assets and whether or not a new company can or would want to keep and maintain the contract.
     
  3. Anonymous

    Anonymous Guest

    I hope this is the final nail in the rotech coffin. They need to be put to death. Also our vets need the best care that's available and rotech can't do that.
     
  4. Anonymous

    Anonymous Guest

    kind of harsh,but at the same time hard to argue
     
  5. Anonymous

    Anonymous Guest

    Well spoken!
     
  6. Anonymous

    Anonymous Guest

    i wonder what rotech locations still do business w/the va
     
  7. Anonymous

    Anonymous Guest

    D&B seems to think so
     
  8. Anonymous

    Anonymous Guest

    Wonder why this thread is being pushed down? Just saying.
     
  9. Anonymous

    Anonymous Guest

    How pushed down?
     
  10. Anonymous

    Anonymous Guest

    why you want a pay cut?
     
  11. Anonymous

    Anonymous Guest

    pushing it down wont help
     
  12. Anonymous

    Anonymous Guest

    Well, must be the most important thread on here then with the links posted.
     
  13. Anonymous

    Anonymous Guest

    Ya, this should be the longest thread on this board discussing this post. Amazing the silence on it considering the ramifications of this as a wave over the whole company. Thanks for the info.
     
  14. Anonymous

    Anonymous Guest

    He might be referring to reasonable, sane post being taken off. One was posted about contacting the local VA office starting at the county level. Any county level VA office can tell you if there is or is not a contract with any local supplier. Or call your State Rep or Congressman/woman to ask about who is providing for local Vet's who deserve continuous care without major hiccups
     
  15. Anonymous

    Anonymous Guest

    Sounds like a good idea.