Is the District required to use a formal bid process to procure a health administrator? NO
State Board of Education Rule 6A-1.012(15) provides a "school board, when purchasing insurance, entering risk management programs, or contracting with third party administrators, may make any such acquisitions through the competitive solicitation process as described herein or by direct negotiations and contract."
Board Policy 6320 mirrors the Statute and also specifically says “Purchases of insurance, risk management programs, or contracting with third party administrators for insurance-related services may be through competitive solicitation or by direct negotiation and contract with a vendor or supplier.”
“I had trouble finding out about the competitive bid process” said Mr. Galbraith. FALSE
Mr. Galbraith spoke about his company at a School Board meeting during 2016. As a result, the application for consideration was directly provided to Mr. Galbraith. The District is confused as to how Mr. Galbraith would have trouble finding the application since it was sent to him directly.
Was the invitation to apply competitive? YES
Seven companies received information from the District’s broker. Four of them submitted information to the District in the format requested.
Was Mr. Galbraith prohibited from submitting an application because of the size of his company? NO
Mr. Galbraith was specifically informed that he could apply even though his company did not have the 2 million life census. One other company did apply that also has a smaller census. That number was desired because larger companies have the infrastructure to handle employee groups of the District’s size. They also have the financial wherewithal and network that is needed for the District’s employees. Many employees have children who they insure that are out of area, and many retirees live out of area. Larger companies typically have their own large network, which is why the District asked about the size of network. Additionally, larger companies typically have deeper negotiated discounts than companies that have to “rent” a network; this allows for cost savings to the self-insurance fund and District.