‘‘(C) 
TWO
WEEKS
BEFORE
AUCTION 
DATE.—Approximately 2 weeks before the 
scheduled auction date, the Secretary shall 
identify the qualified suppliers eligible to submit 
bids. In carrying out this subparagraph, the 
Secretary shall specify— 
‘‘(i) bidder capacity; 
‘‘(ii) bidder eligibility by eligible mar-
ket area; 
‘‘(iii) for each market area, the lead 
price for the lead product established 
under paragraph (4)(A); 
‘‘(iv) the price index (described in 
paragraph (4)(B)(ii)) in each market area; 
and 
‘‘(v) for each eligible bidder, its his-
toric capacity for each item and service 
that will be subject to auction pursuant to 
paragraph (1) in the eligible market area. 
‘‘(D) 
PRE-AUCTION
BIDDERS
OUT-
REACH.—Before each auction, the Secretary 
shall provide an open meeting or other form of 
outreach at which prospective bidders in eligible 
market areas in which the auction will be con-
ducted are provided information concerning the 
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auction and have the opportunity to have the 
auction expert respond to questions concerning 
the conduct of the auction. 
‘‘(E) DURING AUCTION.—During the con-
duct of the auction, the Secretary shall an-
nounce— 
‘‘(i) the time of the end of the round 
of auctioning; and 
‘‘(ii) the history of prior rounds in-
cluding the aggregate supply at the end of 
the round price for each product area by 
round. 
‘‘(F) IMMEDIATELY AFTER EACH AUCTION 
ROUND.—Not later than 15 minutes after the 
end of each auction, the Secretary shall an-
nounce— 
‘‘(i) the aggregate supply for each 
item and service that is the subject of the 
auction at the price established during the 
auction; 
‘‘(ii) for each supplier who has partici-
pated in the auction, its own supply for all 
prices (from the initial starting price to the 
end of round price) for each item and serv-
ice that is the subject of the auction; and 
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‘‘(iii) revised schedule of rounds for 
the next bidding day. 
‘‘(G) AT CONCLUSION OF FINAL AUCTION 
ROUND.—Not later than 15 minutes after the 
end of the final auction round, the Secretary 
shall announce— 
‘‘(i) a list of winning suppliers; 
‘‘(ii) the market clearing price for 
each item and service that is the subject of 
the auction; and 
‘‘(iii) for each bidder and in each eli-
gible market area, the bidder’s supply for 
all prices (from the initial starting price to 
the end of round price). 
‘‘(H) FINAL ACTIONS.—Not later than one 
week after the end of the final auction round, 
the Secretary shall enforce the performance 
guarantees received from each winning bidder 
(including a list of bidders who failed to provide 
performance guarantees in accordance with 
paragraph (3)(B) within one week after the end 
of the auction). 
‘‘(6) CONDITIONS OF AWARDING CONTRACT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
award a contract to any entity in an eligible 
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market area in which an auction is conducted 
and whose bid submitted pursuant to paragraph 
(3)(A) is below the clearing price established 
pursuant to paragraph (4)(B)(iii). 
‘‘(B) TERMS OF CONTRACT.— 
‘‘(i) MANDATORY
ACCEPTANCE
OF 
CONTRACT.—A supplier that submits a bid 
below such clearing price shall be treated 
as having agreed to and accept the con-
tract awarded pursuant to subparagraph 
(A). 
‘‘(ii) CONTRACT TERMS.—A contract 
awarded pursuant to subparagraph (A) 
shall be valid for 2 years, with the first 
such contract for the period beginning on 
July 1, 2013. 
‘‘(iii) NO REQUIREMENT TO SUPPLY 
UP TO BID AMOUNT.—Nothing in this sub-
section shall require a supplier that is 
awarded a contract pursuant to subpara-
graph (A) to supply a marked priced item 
or service that is the subject of an auction 
in the eligible market area beyond the level 
of demand for such item or service in the 
eligible market area, even if such level is 
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below the level that the supplier assumed 
in its bid. 
‘‘(C) ENSURING ADEQUATE SELECTION OF 
CONTRACTORS.—The Secretary may not award 
a contract to any entity under the auction to 
furnish such items or services unless the Sec-
retary finds that the conditions described in 
section 1847(b)(2)(A) apply with respect to an 
entity receiving a contract under this para-
graph. 
‘‘(D) SUFFICIENT
CAPACITY.—The Sec-
retary shall establish a process to ensure that 
a supplier has sufficient capacity to supply and 
fulfill the patient demand for the item or serv-
ice involved in the market area involved. Such 
process shall be based upon the historic capac-
ity of the supplier. For purposes of the pre-
ceding sentence, the term ‘historic capacity’ 
means the capacity of the supplier in the mar-
ket area in the preceding year. 
‘‘(E) LIMITS
ON
SUPPLIERS.—Each bid-
ding supplier who has no historic capacity in 
the market area subject to an auction shall be 
assigned a base capacity for each item and serv-
ice made available under the auction of 1 per-
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cent of the total dollar value of that item or 
service made available in the eligible market 
area. 
‘‘(7) PAYMENT AMOUNT SHALL EQUAL AUCTION 
CLEARING PRICE.— 
‘‘(A) IN GENERAL.—With respect to mar-
ket priced items or services that are provided in 
an eligible market area in which— 
‘‘(i) a market-priced auction is con-
ducted, the auction price determined at 
such auction for such item in such eligible 
market area; or 
‘‘(ii) such an auction is not conducted, 
the auction price determined at an auction 
for those items that is conducted in an-
other eligible market area, as adjusted by 
the factor described in subparagraph 
(B)(iv), 
shall constitute the payment amount under sec-
tion 1834(a)(1)(H)(i)(I) or section 1842(s), as 
the case may be. 
‘‘(B) SUPPLYING ITEMS OR SERVICES.— 
‘‘(i) IN
GENERAL.—No entity other 
than a supplier of a market priced item or 
service that is the subject of a market- 
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