The GAO action comes on the heels of a protest filed by PRG-Schultz USA, Inc.(PRG), and Viant, Inc., both of which lost in the bidding for RAC contracts. PRG, a RAC contractor during the demonstration, covered California and Arizona and collected $330.5 million in improper payments.
GAO has 100 days to decide the case. Two options appear likely: The GAO will rule in favor of CMS and the program will roll out, or it will order the contracting process to be re-opened.
Just one month earlier, in October, CMS formally announced its selection of permanent contractors and provided details of its launch on its Website.