Low Bid Gets The Business

Beginning an initial dialog with “How much will you charge us” is never a good indication things will go well with your chances of gaining a new client as long as pricing is the driving consideration.

A south Texas school district is seeking proposals from interested insurance consultants to assist the district in more ways than one with pricing the dominant factor in the bid award.

Among the Scope of Services to be provided is actuarial analysis of the district’s self-funded health plan, day-to-day servicing needs of the district, deferred compensation analysis, “vendor oversight”, management of competitive vendor procurement process and other services.

The successful candidate will be selected through a scoring point system as follows:

Low Price                                                                                 40 points

Reputation  (Subjective)                                                        25 points

Meet Needs                                                                               25 points

Past Relationship  (Incumbent Advantage)                        3 points

Other Relevant Factors  (Tie Breaker)                                 7 points

Nationally known brokerage firms will score high on reputation while regional mom and pop consultancies will score lower. Hidden revenue streams earned by the larger brokerages will offset their disclosed fees while the regionals will not have the same advantage to play that game (nor would many of them want to).

The RFP deadline is 2:00 pm central time, 24 September delivered to Kingsville Independent School District, 209 N. 3rd Street, Kingsville, Texas 78363.

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