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CA26-0571 • 2025

Proposed Contract with Health Management Systems, Inc.to Contract No. CW81471

Proposed Contract with Health Management Systems, Inc.to Contract No. CW81471

Healthcare
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
at the request of the Mayor
Last action
2026-01-09
Official status
Deemed Approved
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on what services HMS must continue to perform, only that the contract is extended.

Proposed Contract with Health Management Systems, Inc.

The bill proposes a contract modification for Health Management Systems, Inc. to continue providing assistance in recovering third-party liability funds for the District of Columbia from January 24, 2026 through January 23, 2027.

What This Bill Does

  • Modifies an existing contract (Contract No. CW81471) with Health Management Systems, Inc. to extend it for another year (Option Period Four).
  • Extends the contract period from January 24, 2026 through January 23, 2027.
  • Sets a not-to-exceed amount of $5,370,000 for this extension period.

Who It Names or Affects

  • Health Management Systems, Inc., which will receive funding and provide services under the contract.
  • The District of Columbia government, specifically the Department of Health Care Finance, which will fund and benefit from the contract.

Terms To Know

Third-party liability recovery
Efforts to recover funds owed to the District by third parties (such as insurance companies) for medical expenses or other liabilities.
Not-to-exceed amount
The maximum amount of money that can be spent on a contract, set before the contract is signed.

Limits and Unknowns

  • The bill does not specify what happens if Health Management Systems fails to meet their obligations under the contract.
  • It is unclear how this funding will impact other parts of the District's budget or financial plan beyond the specified period.

Bill History

  1. 2026-01-09 Council of the District of Columbia LIMS

    Retained by the Council with comments from the Committee on Health

  2. 2026-01-08 Council of the District of Columbia LIMS

    CA26-0571 Introduced by Chairman Mendelson at Office of the Secretary

Official Summary Text

Proposed Contract with Health Management Systems, Inc.to Contract No. CW81471

Current Bill Text

Read the full stored bill text 
MURIELBOWSERMAYOR
January8,2026
‘TheHonorablePhilMendelsonChairman
CounciloftheDistrictofColumbiaJohnA.WilsonBuilding1350PennsylvaniaAvenue,NW,Suite504Washington,DC 20004
Dear Chairman Mendelson:
Pursuantto section451 of the Districtof Columbia Home Rule Act (D.C. OfficialCode § 1-
204.51)and section202 of the ProcurementPracticesReform Actof 2010 (D.C. OfficialCode §
2-352.02),enclosedforconsiderationand approvalby theCouncilof theDistrictof Columbia is
proposed ModificationNo. M0011 toContractNo. CW81471 with HealthManagement Systems,
Inc.(“HMS") toexerciseoptionyear fourinthenot-to-exceedamountof $5,370,000.The period
of performanceisfrom January24, 2026,throughJanuary23,2027.
Undertheproposedmodification,HMS willcontinuetoprovideexpertassistancetosupplementandmaximizetheDistrict’sthird-partyliabilityrecoveryefforts.
My administrationisavailabletodiscussanyquestionsyoumayhaveregardingtheproposedmodification.Inordertofacilitatearesponsetoanyquestionsyoumayhave,pleasehaveyourstaffcontactMareScott,ChiefOperatingOfficer,OfficeofContractingandProcurement,at(202)724-8759.
IlookforwardtotheCouncil’sfavorableconsiderationofthismodification.
Sincerely,
Muriel Bawser
GOVERNMENT OF THE DISTRICTOF COLUMBIA
OfficeofContractingandProcurement
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Pursuanttosection202(c-3)oftheProcurementPracticesReformActof2010,asamended,D.C.
OfficialCode§2-352.02(c-3),thefollowingcontractsummaryisprovided:
COUNCIL CONTRACT SUMMARY
(OptionYearContract)
(A)ContractNumber: cws1471ModificationNo.M0011
ProposedContractor: HealthManagementSystems,Inc.(HMS)
ContractAmount: Not-to-exceed(NTE)$5,370,000
Termof Contract: January24,2026,throughJanuary23,2027(OptionPeriodFour)
TypeofContract: RequirementsContract
Identifyingnumberoftheunderlyingcontract,includingtheidentifiersassignedtothe(B)

underlyingcontractbytheCouncilforthebaseperiodandanysubsequentoptionperiods:
BaseYearAmount: NTE $358,000
OptionPeriodOne Amount: NTE $1,476,750
CouncilApproval: CA25-0006
OptionPeriodTwoAmount:NTE$2,685,000
CouncilApproval: CA25-0565
OptionPeriodThreeAmount:NTE$3,982,750
CouneilApproval: CA25-1147
Option Period Four Amount: NTE $5,370,000
(©)A statementthattheCitywideCleanHandsdatabaseindicatesthattheproposedcontractoriscurrentwithitsDistricttaxes.IftheCitywideCleanHandsDatabaseindicatesthattheproposedcontractorisnotcurrentwithitsDistricttaxes,either:(1)acertificationthatthecontractorhasworkedoutandiscurrentwithapaymentscheduleapprovedbytheDistrict;or(2)acertificationthatthecontractorwillbecurrentwithitsDistricttaxesaftertheDistrictrecoversanyoutstandingdebtasprovidedunderD.C.OfficialCode§2-353.01(b):

The CitywideClean Hands databaseindicatesthecontractoriscurrentwith itsDistricttaxes.
(D)AstatementthattheproposedcontractiswithintheappropriatedbudgetauthorityfortheagencyforthefiscalyearandisconsistentwiththefinancialplanandbudgetadoptedinaccordancewithD.C.OfficialCode§§47-392.01and47-392.02:
TheOfficeoftheChiefFinancialOfficerhascertifiedthatfundingisconsistentwiththeapplicablefinancialplanandbudget.
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*
* GovernmentoftheDistrictofColumbiaOfficeoftheChiefFinancialOfficer 11014!Street,SW

OfficeofTaxandRevenue Washington,DC20024
DateofNotice:October24,2025 NoticeNumber:0015193709 =
HEALTH MANAGEMENT SYSTEMS INC FEIN: **-***0433
225 E JOHN CARPENTER FWY STE 500 Case ID: 18741953
IRVING TX 75062-2326
CERTIFICATE OF CLEAN HANDS
As reportedintheClean Hands system,theabove referencedindividual/entityhas no outstanding
liabilitywith theDistrictof Columbia Officeof Tax and Revenue or theDepartment of Employment
Services.As of thedateabove,theindividual/entityhas compliedwith DC Code § 47-2862, therefore
thisCertificateof Clean Hands isissued.
TITLE47.TAXATION, LICENSING,PERMITS,ASSESSMENTS, AND FEES
CHAPTER 28GENERAL LICENSE
SUBCHAPTER II.CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE § 47-2862 (2006)
§ 47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
1. —
AuthorizedBy Melinda Jenkins
Branch Chief,Collectionand Enforcement Administration
To validatethiscertificate,pleasevisitMyTax.DC.gov. On theMyTax DC homepage, clickthe
“Validatea Certificateof Clean Hands” hyperlinkunder theClean Hands section.

1101thStreetSW,SuiteW270,Washington,DC20024/Phone:(202)724-S045/MyTax.DC.gov
GOVERNMENT OF THE DISTRICTOF COLUMBIA
DepartmentofHealthCareFinance
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OfficeoftheChiefFinancialOfficer m=
MEMORANDUM.
TO: NancyHapemanChief Procurement Officer
OfficeofContractingandProcurement
THRU: DeliciaV.Moore DeliciaV. 23%yserséo”AssociateChiefFinagpigh(Qfficeroae:2025.10.22
Human SupportServicesCluster"7°"
: ‘ i yorebyDainASFROME RayFestomicerDarrinA ShafferostestssiozstosneotoAgencyFiscalOfficerDepartmentofHealthCareFinance
DATE: October22,2025
SUBJECT: CertificationofFundingforThirdPartyLiabilityRecoveriesContract

TheOfficeoftheChiefFinancialOfficerherebycertifiesthatthesumof$5,370,000.00isincludedintheDistrict's
LocalBudgetandFinancialPlanforFiscalYear2026tofundthecostsassociatedwiththeDepartmentofHealth
CareFinance’s(DHCF)ThirdPartyLiability(TPL)RecoveriesContract.ThiscertificationsupportscontractcostfromJanuary24,2026toJanuary23,2027.Thefundallocationisasfollows:

Vendor: Health Management Systems Contract Number: CW81471
FiscalYear 2026 Funding: 01/24/26 - 09/30/26
agengy]DIES[ BHESCowt| DIES [DUSToraiec|award|SubTask TlTARO[ans [et [Toon[Ta Ro SE] Boe—| ase|THO[-oo13s_[toast—| Tosa—[7007 Ss] SaareldsTrTOT[-aopso[—roer—[ ost [rr SORT[HATE]aT—| ase SoaTrro—[-torooot_[-—oe—[ oasis[70 $5 [S307Fis Tout]Baosassa7
FiscalYear 2027 Funding: 10/01/26— 01/23/2027
zeny]DHS| ourscon| ours| OVS Jorja|award|SubTask Toa
TARO[-asoor_|poner[tooo[Tao |Soon| Te| aa | aTrro[toot [roast[oats[sa $5 [ SOOTWaT Tout| S174.

UponapprovaloftheDistrict’sLocalBudgetand FinancialPlanbytheCouncilandtheMayorandcompletionofthethirty-dayCongressionallayover,fundswillbesufficienttopayforfeesandcostsassociatedwiththecontract.Thereisnofiscalimpactassociatedwiththecontract.
Shouldyouhaveanyquestions,pleasecontactmeat(202)442-9079.
4414 St.NW,Suite900South,Washington,D.C.20001(202)442-5988FAX(202)478-1373

1.ContaNaber PageotAMENDMENTOFSOLICITATION/MODIFICATIONOFCONTRACT Eagescws1471 7 [27AmendmanthoaiicaionNumber]3EecveDate 7RequiatantPurhaseRequetNo q -MooIL January24,2026 Roawetieasenile
3fesvedby Cade 7aiid by(TatertanineOfficeofContractingandProcurement DepartmentofHealthCareFinance441 4" StreetNW, Suite330S 441 4" Street,N.W., 900S
Washington, DC 20001 Washington, DC 20001
8. Name and Address ofContractor(No.street,city,county,state ‘9A.AmendmentofSolicitationNo,
and zipcode) ‘9B.Dated(Seeitem17)
HealthManagementSystems,Inc(HMS) TORModicatonofCarraoTOraeWo5615HighPointDrive KxIrving,TX75038 cws1471
05,Dated(SeeemCode Facility 01/24/2022
TiTHISITEMONLYAPPLIESTOAMENDMENTSOFSOLICITATIONS
[itheabovenumberedsociationisamendedassetfhinitem14.ThehouranddatespeciefrreceiptofOfers[isextended.]isnotendedtersmustacknowedgerecepofthsamendmentprtothehowanddatspecieinthesokatonoraamended,byoneofthefolowingmethods:(a)8ycompingtoms®snd6,andretuming copesaftheamendment(0)Byacknowedgigrecepoftheamendmentenantcopyofhefersubior()BYseparatetrofaxwhghneuesaeterncetotheslstaionaraamendmentrune,PARUREOFYOURACKNOWLEDGMENTTOBERECEIVEDATTHEPLACEDESIGNATEDFORTHERECEIPTOFOFFERSPRIORTOTHEHOURANDDATESPECIFIEDMAYRESULTINREJECTIONOFYOUROFFER.ibyvitoofhsamendmentyouceseoangeanofraeadysuite,uo)mayberadebylofx providedeatoortelegrammakrearncstothesoicatonandtheamendmen,o'secavedparisnwopeninghowardaspec

“12.AccountingandAppropriationData(ifRequired)

1 THISITEMAPPLIESONLYTOMODIFICATIONSOFCONTRACTIORDERS-ITMODIFIESTHECONTRACTIORDERNO.ASDESCRIBEDINITEM14
‘AThischangeorderisissuedpursuantto(SpectyAuthoriy):27OCMR,Chapter36,ContractModifeations‘Thechangessetforthintem14aremadeintheconiractlorderno.initem0A,
1BTheabovenumberedcontracorderismodifiedtoreflecttheadministratechanges(suchaschangesinpayingOffce,appropriationataetc)setforthintem14,pursuanttotheauthorityof27DCMR,Chapter36,Section36012.
Thissupplementalagreementisenteredintopursuantfoauthoiyof.

Other(Specifytypeofmodificationandauthonty)OptionyearParial27DOMR,Chapter36,Section3601.2(c)and3603.

jensionandChangeOrder

E.IMPORTANT:ContractorisnotDdis(_]requiredtosignthisdocument
4.DescriptionofAmendmentModification(OrganizedbyUCFSectionheadings,nludingsolatatonicontradtsubjectmaterwherefeasible.)
ContractCW81471isherebymodifiedasfollows:
1.PursuanttoSectionF.2ofthecontract,OptiontoExtendtheTermoftheContract,theDistricthereby
exercisesOptionPeriodFour,extendingthetermof thecontractfora periodof twelve months from
January24,2026throughJanuary23,2027inthenot-to-exceed(NTE)amountof $5,370,000.
2. AttachmentA — PriceSchedule
AllOtherTermsandConditionsRemainUnchanged
Exceptasprovidedherein_alltermsandcondiionsofthedocumentisreferencedinem 9AorT0Aremainunchangedandinulforceandeffec,

5A.NameandTieofSigner(Typeorprint) 6A.NameofContractingOfficerJaradDorsey‘5B.NameofContractor TSC.DateSgred| T6B.DistrictofColumbia 760.DateSigned
(Sgroofponssnotzeisr) (SoranofConcingOn
CW81471 M0011
Attachment A —Price Schedule
B35 OPTION PERIOD FOUR
ProvideThirdPartyLiability
(TPL)recoveriesasdescribedinSectionC.5.
Page2of2
‘,
$5,370,000