42 CFR § 457.940 - Procurement standards.

---
identifier: "/us/cfr/t42/s457.940"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 457.940 - Procurement standards."
title_number: 42
title_name: "Public Health"
section_number: "457.940"
section_name: "Procurement standards."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "D"
subchapter_name: "STATE CHILDREN'S HEALTH INSURANCE PROGRAMS (SCHIPs)"
part_number: "457"
part_name: "ALLOTMENTS AND GRANTS TO STATES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302."
regulatory_source: "65 FR 33622, May 24, 2000, unless otherwise noted."
cfr_part: "457"
---


# 457.940 Procurement standards.

(a) A State must submit to CMS a written assurance that Title XXI services will be provided in an effective and efficient manner. The State must submit the assurance—

(1) With the initial State plan; or

(2) For States with approved plans, with the first request to amend the approved plan.

(b) A State must provide for free and open competition, to the maximum extent practical, in the bidding of all procurement contracts for coverage or other services in accordance with the procurement requirements of 2 CFR parts 200 and 300, as applicable.

(c) All contracts under this part must include provisions that define a sound and complete procurement contract, as required by 2 CFR parts 200 and 300, as applicable.

[81 FR 27897, May 6, 2016, as amended at 89 FR 80070, Oct. 2, 2024]