State Auditor Raises Concerns Over Covered California’s No-Bid Contracts
The auditors found nine contracts where the exchange did not sufficiently justify why it used a sole-source contract. The state officials rated the marketplace "high risk."
The Sacramento Bee:
California’s Health Exchange Bent Own Rules In Awarding Big Contracts
A new audit slams Covered California, the agency tasked with enrolling state residents in Obamacare, for not following rules when awarding lucrative contracts without a competitive-bidding process. The report discovered nine out of 40 justifications given for the sole-source contracts were insufficient based on the agency’s own standards. Covered California’s policy at the time allowed sole-source contracts, but generally only when timeliness or unique expertise were required for the job. (Cadelago, 2/16)
The Associated Press:
Auditor Questions No-Bid Contracts At Covered California
While the agency has significantly reduced its reliance on no-bid contracts, State Auditor Elaine Howle found it waited until January to comply with a bill passed last summer requiring tighter contracting rules at the agency. Covered California says it needed no-bid contracts to rapidly prepare for enrollment under the federal health overhaul and is relying less on them now. (Cooper, 2/16)
Capital Public Radio:
Audit: Covered California Remains "High-Risk"
California’s state-run health insurance marketplace continues to be rated “high-risk” by the state auditor. A new audit released Tuesday expresses uncertainties about the sustainability of Covered California. (Bradford, 2/16)