Adams & Reese Secures $220M TennCare Contract After 2-Year Procurement Dispute

Adams & Reese represented Automated Health Systems (AHS) in a two-year TennCare Enrollment and Call Center procurement dispute, helping the company first overturn a 2025 award to a competing bidder and then successfully defend AHS’s 2026 award of a State of Tennessee contract valued at $220 million. The firm’s Litigation Team included Nashville Partner Rocky King and Associates Stacia Daigle and Brock Willis.

AHS is a health services management company that provides services to vulnerable populations and administers public health programs for state and local governments. TennCare is Tennessee’s managed care Medicaid program, providing health insurance to low-income individuals and families. The contract award clears the way for AHS to continue serving as the TennCare Enrollment and Call Center contractor for the next six years, including renewal terms.

“We are thrilled with this ruling and grateful for the Adams & Reese team’s steadfast guidance throughout the last two years,” said Joe Cain, Chief Financial Officer at Automated Health Systems. “Rocky, Stacia, and Brock have been more than outside counsel; they have been trusted partners who understood the importance of this work, the complexity of the procurement process, and what this contract means for the people served by TennCare. Their commitment, strategy, and responsiveness helped us reach an outstanding result.”

AHS, the incumbent TennCare contact center operator, retained Adams & Reese after a competing bidder was awarded the contract in 2025. King and Daigle successfully argued that the competing bidder’s proposal violated the procurement rules and did not materially comply with the TennCare contract, and the Chief Procurement Officer found that AHS had carried its burden by clear and convincing evidence that the competing bidder’s proposal was non-responsive and TennCare failed to conform to procurement rules. The award to the competing bidder was canceled, allowing AHS to continue operating as the state contractor while TennCare proceeded with a new procurement.

In 2026, AHS won the new procurement, and the unsuccessful bidder then filed a protest challenging the award. With support from Daigle and Willis, King led AHS’s response, showing that TennCare had changed the operative contract language from the prior procurement and that the protestor’s arguments lacked merit and violated Tennessee law. The team prepared a presentation comparing the 2025 and 2026 contract language to demonstrate that TennCare had amended the contract to address the issues identified in the prior protest. The Chief Procurement Officer adopted AHS’s arguments, denied the protest, found the protestor’s arguments without merit, and ruled that the protestor had forfeited its right to pursue the protest.

“This matter reflects the full journey of a high-stakes procurement dispute, from challenging an improper award to defending our client’s rightful win in the next procurement,” said Rocky King, Partner and Associate Liaison at Adams & Reese. “AHS trusted us with an important contract and an important public-service mission, and our team never lost sight of either. We were strong, reliable, and persistent throughout this process, and this result shows what can be achieved when a focused litigation team works together under intense time pressure and significant stakes.”

Procurement and government contracting matters often involve complex bidding rules, mandatory proposal requirements, agency evaluation procedures, and protest rights. When a disappointed bidder challenges an award, or when an incumbent contractor seeks to protect its rights, these disputes can become highly contested administrative and litigation proceedings requiring rapid response, detailed knowledge of the procurement record, and careful application of state procurement law.

The strategic counsel during the two-year procurement dispute and the $220 million award reflects the combined strength of Adams & Reese’s Litigation Practice and its Intersection of Business and Government Practice. Through these robust practice groups, the firm’s attorneys and government relations advisors provide guidance to clients navigating government contracting opportunities, procurement processes, agency challenges, and high-stakes litigation matters, bringing together regulatory knowledge, litigation strategy, and trial-ready advocacy to protect clients’ business objectives.