Before entering into or renewing a carrier contract, CMS determines that the carrier--
(a) Has the capacity to perform its contractual responsibilities effectively and efficiently;
(b) Has the financial responsibility and legal authority necessary to carry out its responsibilities; and
(c) Will be able to meet any other requirements CMS considers pertinent, and, if designated a regional DMEPOS carrier, any special requirements for regional carriers under Sec. 421.210 of this subpart. [45 FR 42179, June 23, 1980, as amended at 57 FR 27307, June 18, 1992]