CRE Board of Advisors Member Jim Tozzi sent a letter to CMS requesting that the agency postpone the Round One program until it revises the auction rules to “conform with accepted principles.” Tozzi’s letter follows the Sept. 26 Cramton letter to Chairman Pete Stark (D-Calif.) and CMS’ delay in announcing the Round One winners.

According to the CRE Web site, the letter to CMS explains the rules governing the competitive bidding program contain flaws that are not found in other government auctions.

“CRE is not aware of any auction program in existence which violates accepted auction principals as seriously as does CMS’ DMEPOS competitive bidding program,” said Tozzi in the letter.

The letter explains that economists have studied auctions and game theory for years, leading to auction operation procedures that result in “optimal economic outcomes.” However, after reviewing CMS’ DMEPOS competitive bidding program, leading economists have concluded that “the program violates established economic principles.”

The full letter can be found here https://thecre.com/pdf/WilsonLetter.Signed.pdf

Original Post: https://www.nobid.org/2010/10/cre-blasts-competitive-bidding/