[Protest of HCFA Contract Award for Medicare Claim Services]

A firm protested a Health Care Financing Administration (HCFA) contract award for Medicare claim services, contending that HCFA: (1) improperly made award without soliciting competitive bids from other potential bidders; (2) failed to publish guidance to bidders in the Federal Register; and (3) must make award under the test program to replace poorly performing carriers. GAO held that: (1) HCFA failure to publish the required information in the Federal Register did not deprive it of its authority to award carrier contracts without competition; (2) the HCFA budget and performance requirements document satisfied the requirement for providing carrier guidance; (3) the test program provisions were supplemental and did not override HCFA authority to award carrier contracts without competition; and (4) there was no basis to review the HCFA carrier selection process. Accordingly, the protest was denied.