Insurance Consultant Makes Recommendation But Fails To Follow Texas Education Code Requirements

Recently, a Texas licensed insurance consultant, retained by a Texas independent school district, reported his analysis with recommendations to the district’s School Board of Trustees. Unfortunately for the consultant, one of the school trustees is an experienced purchasing manager well versed in the Texas Education Code in the area of puchasing requirements under a bid or proposal process.

“I recommend XYZ Insurance Company as the best and lowest bid” offered the consultant.

Mr. XXXXX, you have made a very excellent presentation and your reputation among school districts is very good indeed. But, how did you come up with your recommendation? What criteria did you use in your evaluation? How did you grade each vendor? I don’t see that you included that evaluation in your report as is required under the Texas Education Code.”

“Why, no, I did not use a grading methodology at all. I used my 30+ years of insurance experience and can tell you that XYZ Insurance Company is the best and lowest bid.”

“That’s fine Mr. XXXXX, and I am not trying to embarass you here, and I am going to vote to approve your recommendation, but I just wanted to let you know that as our consultant, you should know the bidding laws applicable to us as a district, and you should abide by those laws.”

“Yes Sir!”

“Read the suit entitled R.G.V. Vending Vs Weslaco Independent School District, 995 S. W. 2d 897 (Tex. App.- Corpus Christi 1999, no pet.” Also, read Education Code 44.031.

“Will do Sir! Thanks for the advice!”

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