5 U.S.C. § 8953: Contracting authority

Summary

The Office must hire a reasonable number of qualified companies to offer the benefits listed under section 8954. Competitive-bidding rules do not apply. Employee groups may join a company to take part in a contract. Contracts must be awarded based on the company’s qualifications, price, and reasonable competition. Each contract must include certain requirements the Office sets (including parts of section 8902), the enrollment period terms, and any other agreed terms that follow the chapter and the Office’s rules. Contracts run for 7 years and cannot be renewed automatically. Each company must pay benefits it owes and set up quick internal steps to handle claim disputes. If those steps do not solve the problem, the company must offer one or more alternative dispute methods, which can include an independent third-party review agreed to by both sides. If someone signs up for dental coverage after their first chance, stricter waiting periods can apply. Decisions about a person’s eligibility can only be reviewed as the contract allows. The Director will name which board of contract appeals handles disputes, and U.S. district courts can hear certain contract lawsuits at the same time as the U.S. Court of Federal Claims. Neither the Office nor a reviewer may change contract terms.

Title 5, §8953

Government Organization and Employees, Source: USLM XML via OLRC

(a)(1)The Office shall contract with a reasonable number of qualified companies for a policy or policies of benefits described under section 8954 without regard to section 6101(b) to (d) of title 41 or any other statute requiring competitive bidding. An employee organization may contract with a qualified company for the purpose of participating with that qualified company in any contract between the Office and that qualified company.

(2)The Office shall ensure that each resulting contract is awarded on the basis of contractor qualifications, price, and reasonable competition.

(b)Each contract under this section shall contain—

(1)the requirements under section 8902(d), (f), and (i) made applicable to contracts under this section by regulations prescribed by the Office;

(2)the terms of the enrollment period; and

(3)such other terms and conditions as may be mutually agreed to by the Office and the qualified company involved, consistent with the requirements of this chapter and regulations prescribed by the Office.

(c)Nothing in this chapter shall, in the case of an individual electing dental supplemental benefit coverage under this chapter after the expiration of such individual’s first opportunity to enroll, preclude the application of waiting periods more stringent than those that would have applied if that opportunity had not yet expired.

(d)(1)Each contract under this chapter shall require the qualified company to agree—

(A)to provide payments or benefits to an eligible individual if such individual is entitled thereto under the terms of the contract; and

(B)with respect to disputes regarding claims for payments or benefits under the terms of the contract—

(i)to establish internal procedures designed to expeditiously resolve such disputes; and

(ii)to establish, for disputes not resolved through procedures under clause (i), procedures for 1 or more alternative means of dispute resolution involving independent third-party review under appropriate circumstances by entities mutually acceptable to the Office and the qualified company.

(2)A determination by a qualified company as to whether or not a particular individual is eligible to obtain coverage under this chapter shall be subject to review only to the extent and in the manner provided in the applicable contract.

(3)For purposes of applying the Contract Disputes Act of 1978 to disputes arising under this chapter between a qualified company and the Office—

(A)the agency board having jurisdiction to decide an appeal relative to such a dispute shall be such board of contract appeals as the Director of the Office of Personnel Management shall specify in writing (after appropriate arrangements, as described in section 8(c) 1 of such Act); and

(B)the district courts of the United States shall have original jurisdiction, concurrent with the United States Court of Federal Claims, of any action described in section 10(a)(1) 1 of such Act relative to such a dispute.

(e)Nothing in this section shall be considered to grant authority for the Office or third-party reviewer to change the terms of any contract under this chapter.

(f)Contracts under this chapter shall be for a uniform term of 7 years and may not be renewed automatically.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Contract Disputes Act of 1978, referred to in subsec. (d)(3), is Pub. L. 95–563, Nov. 1, 1978, 92 Stat. 2383, which was classified principally to chapter 9 (§ 601 et seq.) of former Title 41, Public Contracts, and was substantially repealed and restated as chapter 71 (§ 7101 et seq.) of Title 41, Public Contracts, by Pub. L. 111–350, §§ 3, 7(b), Jan. 4, 2011, 124 Stat. 3677, 3855. section 8(c) and 10(a)(1) of the Act, which were classified to section 607(c) and 609(a)(1), respectively, of former Title 41, were repealed and restated as section 7105(d), (e)(1)(C) and section 7104(b)(1), respectively, of Title 41. For complete classification of this Act to the Code, see Tables. For disposition of sections of former Title 41, see Disposition Table preceding section 101 of Title 41.

Amendments

2011—Subsec. (a)(1). Pub. L. 111–350 substituted “section 6101(b) to (d) of title 41” for “section 5 of title 41”.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Dec. 23, 2004, and applicable to contracts that take effect with respect to the calendar year 2006, see section 7 of Pub. L. 108–496, set out as a note under section 8951 of this title.

§8953 Contracting Authority