A company passed over by the Jindal administration to run Louisiana’s self-insurance program claims it suffered bias in its losing bid.
The Advocate reports that York Risk Services Group is challenging the award of the $80 million, three-year contract to Memphis, Tenn.-based Sedgwick Claims Management Services.
York is the current contractor, doing business through one of its companies, Mandeville-based FARA. Its proposal was $6.5 million less than Sedgwick’s.
The Office of State Procurement has already denied York’s initial appeal, saying the contract was awarded fairly.
York lawyers argue that Sedgwick should have been disqualified.
The challenge is now before the Commissioner of Administration Kristy Nichols, but the newspaper reports that it could end up in state court if there’s not a resolution satisfactory to York.
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