DAR File No. 38522

Administrative Services, Purchasing and General Services

Rule R33-25

Executive Branch Insurance Procurement

Notice of Proposed Rule

(New Rule)

DAR File No.: 38522
Filed: 05/13/2014 02:44:52 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule establishes additional executive branch insurance procurement requirements, and is in compliance with the Utah Procurement Code, Title 63G, Chapter 6a. This rule is being renumbered and includes house keeping changes. The reason for the renumbering of this rule is because the Division of Purchasing and General Services is updating their rules to comply with the Utah Procurement Code, and to match recent legislation (S.B. 179 from the 2014 General Legislative Session, including S.B. 190 from the 2013 General Legislative Session, and S.B. 153 from the 2012 General Legislative Session).

Summary of the rule or change:

This rule establishes additional executive branch insurance procurement requirements, and is in compliance with the Utah Procurement Code, Title 63G, Chapter 6a. This rule is being renumbered and includes house keeping changes to match recent legislation.

State statutory or constitutional authorization for this rule:

• Title 63G, Chapter 6a

Anticipated cost or savings to:

the state budget:

The state's budget will not be affected, because this rule simply establishes additional executive branch insurance procurement requirements. If there is any impact, it is created by the statute. This rule merely implements the statute.

local governments:

Local governments' budgets will not be affected, because this rule simply establishes additional executive branch insurance procurement requirements. If there is any impact, it is created by the statute. This rule merely implements the statute.

small businesses:

Small businesses' budgets will not be affected, because this rule simply establishes additional executive branch insurance procurement requirements. If there is any impact, it is created by the statute. This rule merely implements the statute.

persons other than small businesses, businesses, or local governmental entities:

No other person's budget will be affected, because this rule simply establishes additional executive branch insurance procurement requirements. If there is any impact, it is created by the statute. This rule merely implements the statute.

Compliance costs for affected persons:

There are no compliance costs for any person, because this rule simply establishes additional insurance procurement requirements. If there is any impact, it is created by the statute. This rule merely implements the statute.

Comments by the department head on the fiscal impact the rule may have on businesses:

There is no fiscal impact on businesses. If there is any impact, it is created by the statute. This rule merely implements the statute.

Kimberly Hood, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Administrative Services
Purchasing and General Services
Room 3150 STATE OFFICE BLDG
450 N STATE ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Alan Bachman at the above address, by phone at 801-538-3105, by FAX at 801-538-3313, or by Internet E-mail at abachman@utah.gov
• Paul Mash at the above address, by phone at 801-538-3138, by FAX at 801-538-3882, or by Internet E-mail at pmash@utah.gov
• Chiarina Bautista at the above address, by phone at 801-538-3240, by FAX at 801-538-3313, or by Internet E-mail at cgleed@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/01/2014

This rule may become effective on:

07/08/2014

Authorized by:

Kent Beers, Director

R33. Administrative Services, Purchasing and General Services.

R33-25. Executive Branch Insurance Procurement.

R33-25-101. Applicability and Standard Procurement Method.

(1) This rule only applies to executive branch procurement units.

(2) All new or renewal insurance purchases will be made in accordance with this Rule and the Utah Procurement Code. In addition, the following shall be considered:

(a) financial resources of agent, broker and underwriting company;

(b) quality of prior service rendered to the state;

(c) service facilities available in-state;

(d) service reputation;

(e) experience and expertise in providing similar types of insurance;

(f) coverages and services to be provided;

(g) qualifications of key personnel; and

(h) any other reasonable factor which will provide the best possible coverage and service to the purchasing agency.

 

R33-25-102. Alternate Multiple Stage Bid Process.

(1) To avoid oversaturation of limited primary or reinsurance markets, a multiple stage bid process may be used at the option of the procurement unit.

(2) All interested agents and brokers must be qualified according to the evaluation criteria described in R33-25-101.

(3) No more than the three highest ranked brokers or agents, as determined by the evaluation committee, will be eligible to proceed to the final stage.

(4) Those who are eligible to proceed to the final stage must submit a list of markets in order of preference to the procurement unit. The procurement unit will, as equitably as practicable, assign no more than five and no less than three markets to each final bidder, based upon their preferences.

(5) Eligible brokers or agents must then submit a responsive and responsible bid for each assigned market.

(6) Upon receipt of the bids, the procurement and contract award shall be conducted in accordance with Part 6 of the Utah Procurement Code.

 

KEY: alternate multiple stage bid process, executive branch insurance procurement, procurement methods, government purchasing

Date of Enactment or Last Substantive Amendment: 2014

Authorizing, and Implemented or Interpreted Law: 63G-6a