York Risk Services Group, operating through F.A. Richard & Associates (FARA) in Mandeville, is currently contesting the award of the state’s risk management claims handling contract after it was awarded to Sedgwick earlier this year. According to a report from The Advocate, York’s bias claim is supported by material defects in Sedgwick’s proposal and the fact that York/FARA (the current contractor) submitted its bid to renew its three year, $80 million contract with the state at a price $6.5 million less than Sedgwick. Counsel for York has appealed to Governor Jindal’s Commissioner of Administration Kristy Nichols after The Office of State Procurement rejected an initial appeal. According to a Legislative Auditor’s report on Louisiana’s workers’ comp system, FARA has saved the state about $34 million of the $50 million it promised in five years.
Read additional details from The Advocate here.