---
kind: "section"
citation: "42 C.F.R. § 421.306"
title: "42"
number: "421.306"
heading: "Awarding of a contract."
url: "https://uscodex.org/cfr/42/421.306"
---

# §421.306. Awarding of a contract.

- (a) CMS awards and administers Medicare integrity program contracts in accordance with acquisition regulations set forth at 48 CFR chapters [1](/cfr/48/ch1.md) and [3](/cfr/48/ch3.md), this subpart, all other applicable laws, and all applicable regulations. These requirements for awarding Medicare integrity program contracts are used as follows:
  - (1) **When entering into new contracts.**
  - (2) When entering into contracts that may result in the elimination of responsibilities of an individual fiscal intermediary or carrier under [section 1816(l)](/cfr/42/1816.md?p=l) or section 1842(c) of the Act, respectively.
  - (3) **At any other time CMS considers appropriate.**
- (b) CMS may award an entity a Medicare integrity program contract by transfer if all of the following conditions apply:
  - (1) Through approval of a novation agreement in accordance with the requirements of the Federal Acquisition Regulation (FAR), CMS recognizes the entity as the successor in interest to a fiscal intermediary agreement or carrier contract under which the fiscal intermediary or carrier was performing activities described in section 1893(b) of the Act on August 21, 1996.
  - (2) The fiscal intermediary or carrier continued to perform Medicare integrity program activities until transferring the resources to the entity.
- (c) An entity is eligible to be awarded a Medicare integrity program contract only if it meets the eligibility requirements specified in [§ 421.302](/cfr/42/421.302.md); 48 CFR chapters [1](/cfr/48/ch1.md) and [3](/cfr/48/ch3.md); and other applicable laws and regulations.

## Notes

### Source

Source: 72 FR 48886, Aug. 24, 2007, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302 and 1395hh.

### Source

Source: 45 FR 42179, June 23, 1980, unless otherwise noted.