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CMS Just Dropped the ClaimsCore RFP. The Last Time They Tried This, They Spent $40 Million and Failed.

CMS released an RFP to replace four decades-old legacy claims processing systems with a single commercial platform. This procurement learned from previous federal failures, emphasizing competition, prototypes, and COTS over custom development.

Mary Womack March 7, 2026 2 min read

Why this matters if you are pursuing ClaimsCore

ClaimsCore is a rare procurement: an agency openly writing an RFP that reflects the lessons of its own prior failure. That is unusual in federal acquisition, and it changes what an evaluator wants to see in a proposal.

When an RFP says "COTS over custom development," it is a test. The evaluator is watching to see whether a vendor will immediately propose to wrap a COTS product in enough custom services to turn it back into a bespoke build. That is the failure mode CMS is explicitly trying to avoid. If your proposal reads like "we start with a COTS product and then customize it to the agency's needs," you are failing the test on page one.

Similarly, "prototypes" is not a nice-to-have in this kind of pursuit. It is a structural signal. The agency is telling you that the team that can show working software in evaluation is going to get credit for it.

Contractor implications

  • Take the COTS framing seriously. Lead with the product, not the services. If you are a services firm, find the right product partner. If you are a product firm, write like one.
  • Prototype early. If the evaluation allows demos, prototypes, or working software, that is where the scoring is going to happen. Do not treat those as optional.
  • Address the prior failure without gloating. Every evaluator in the room remembers the $40 million write-off. A proposal that quietly addresses what went wrong and shows how this approach is structurally different will score higher than one that pretends the history does not exist.
  • Competition signals are real. When CMS says this procurement emphasizes competition, they mean it. Expect down-select gates, expect oral presentations, and expect to be judged against peers you did not plan to be judged against.
  • Data migration is the real risk. Four decades of legacy claims data is the hardest part of this pursuit. Your migration story has to be credible, and "we will figure it out in the transition period" is not credible.

What to run before red team

Run the draft through ProposalPulse to catch the places where the COTS story reads like disguised customization and where the prototype narrative is thinner than it needs to be.

If your capture team needs a clean read on CMS acquisition history and who else is positioning around ClaimsCore, that is a MarketPulse brief. One free, 24-hour delivery.

Mary's full LinkedIn analysis of the ClaimsCore RFP is here for readers who want the original.

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  • CMS evaluators will specifically look for evidence that your COTS platform has been deployed without custom code in a comparable federal environment. If your case study requires an asterisk about customizations, it will not score well.
  • The protest risk on this procurement is high. CMS has structured the evaluation to favor prototype demonstrations, which narrows the viable competitor set. Firms without a working prototype at proposal time should seriously evaluate whether to bid or position for subcontracting.
  • The legacy COBOL migration component is the part most bidders will underestimate. Firms with mainframe modernization credentials (not just cloud migration) have disproportionate teaming value on this pursuit.

The capture-specific analysis for this opportunity:

Evaluation criteria breakdown
Incumbent analysis and vulnerability
Teaming considerations
Win theme recommendations
Action window: when to move
What NOT to do

What you can do next

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Mary Womack
Mary Womack

Federal health IT professional and founder of Mission Meets Tech. I write about what policy, procurement, and platform decisions actually mean for the people doing the work.

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