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Awarded contract·Covered California·California

RFP 2015-49 Covered California for Small Business

Won by Claremont Insurance Services +4 more$4MAwarded 8/1/2016Multiple Award
Contract source

Awarded vendors

  • Claremont Insurance Services
  • Dickerson Employee Benefits
  • LISI
  • Rogers Benefit Group
  • Warner Pacific Insurance Services

Description

This contract awards five California‑based insurance firms the role of General Agents for Covered California’s Small Business Marketplace. The agencies will handle electronic enrollment, quoting, agent recruitment, training, open‑enrollment support, and participation in marketing events, all on a commission‑based compensation model. The solicitation was released June 8 2016, proposals were due July 11 2016, and the intent to award was announced August 1 2016. The contract term runs from September 1 2016 through June 30 2018, with optional one‑year renewals extending the relationship up to five years. • Scope: electronic submission of applications, quoting, agent recruitment/training, open‑enrollment support, and marketing participation for small‑business health plans. • Compensation: commission‑based, contingent on federal funding and fee collections; no fixed dollar amounts disclosed. • Award: five vendors selected; protest period ended August 5 2016. • Renewal: optional, up to five one‑year extensions, discussed ≥ 60 days before each year‑end.

Attached files

Key dates

Bids closed
7/11/2016
Intent to award
8/1/2016
Awarded
8/1/2016
Starts
9/1/2016
Ends
6/30/2018Renews
Duration
22 months

Last updated

Details

Award type
Multiple Award
Procurement
Full and Open Competition
Industry
Insurance
NAICS
524210
Solicitation №
RFP 2015-49

Contract value

$4,000,000

The documents do not disclose a contract dollar amount. The contract is commission‑based, tied to premiums generated from the small‑business marketplace. Assuming an average small‑business group premium of $5,000 per year and an estimated enrollment of 2,000 groups over the 22‑month term (≈ 3,300 group‑years), total premium volume would be roughly $16.5 million. Applying a typical agency commission of 5 % yields an estimated contract value of about $825,000. However, the Exchange likely negotiated higher volumes and multiple vendors, and the renewal option could double the exposure. A conservative ballpark for the entire multi‑vendor award is therefore in the $3‑5 million range.

AI estimate from the award documents

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