More controversy regarding the state self-insurance risk management contract award has come to light. The Advocate reports that Commissioner of Administration Kristy Nichols has found that the state Office of Risk Management failed to complete a required memo justifying Sedgwick’s selection for the contract. Nichols has directed the office to complete the “selection memorandum,” then allow all proposers to protest Sedgwick’s selection, thereby starting the contract award appeals process once again. Sedgwick had been scheduled to start an $80 million, three-year contract on July 1st, replacing local company F.A. Richard & Associates (FARA, a subsidiary of York Risk Services Group). FARA/York’s proposal was $6.5 million less than Sedgwick’s. FARA/York will remain in place until August 1st for a “transition period,” at which time Sedgwick will assume the work under a six-month emergency contract while the dispute is being resolved.
Read full coverage from The New Orleans Advocate here.