The “Bona Fide” Bid Audit: When CMS Asks for Invoices

Answer Summary:

The “Bona Fide Bid” review targets providers who submitted extremely low prices. CMS suspects these bids are not viable. To survive this audit, you must upload Manufacturer Invoices showing that your acquisition cost is lower than your bid price. If you cannot prove a positive margin, your bid will be rejected as “Non-Bona Fide” to prevent market distortion.

Introduction:

You bid $300 for a standard power wheelchair.

The market average is $600.

CMS thinks you made a typo—or that you are trying to “suicide bid” to tank the market.

You receive a “Price Verification Inquiry.”

The Invoice Requirement

CMS wants to see an actual invoice from the last 6 months.

• The Math: Bid Price > (Invoice Price + Overhead).
• The Trap: If your invoice shows you buy the chair for $350, and you bid $300, you just proved you are bidding at a loss. Disqualified.

The “Rebate” Defense

What if the invoice says $350, but you get a $100 rebate at the end of the year?

• The Strategy: You must upload the invoice AND the Rebate Contract.
• The Narrative: “Although the invoice list price is $350, our volume rebate agreement (Attached) reduces the net effective cost to $250. Therefore, our bid of $300 is profitable.”

The “Private Label” Trap

• Scenario: You bid low because you import your own chairs from overseas.
• The Proof: You must provide the “Bill of Lading” and “Customs Documents” to prove you are the manufacturer/importer and control the cost.

WWS Value Proposition: We Do the Margin Math

Wonder Worth Solutions reviews your invoices before you upload them. We calculate the “Net Effective Cost” to ensure your response proves profitability, not bankruptcy.