Report 2015-605 Recommendation 4 Responses

Report 2015-605: High Risk - Covered California: It Must Ensure Its Financial Sustainability Moving Forward, and Its Use of Sole-Source Contracts Needs Improvement (Release Date: February 2016)

Recommendation #4 To: Covered California

Before executing any sole-source contracts, Covered California should adequately document the necessity for using a noncompetitive process in its written justifications and, in doing so, demonstrate valid reasons for not competitively bidding the services.

Agency Response*

The Non-Competitive Bid form (HBEX 029) was implemented in April 2015, which requires written justification for using the non-competitive bid process. In order to consider using a non-competitive bid process, Covered California must clearly demonstrate and fully justify why a competitive process is not being pursued. The justification must then be reviewed independently by the Executive Director and/or his designee. Supporting documents will be submitted via the California State Auditor's secure email system.

  • Response Type†: 60-Day
  • Completion Date: April 2015
  • Response Date: April 2016

California State Auditor's Assessment of Status: Fully Implemented

As part of our assessment of Covered California's implementation of this recommendation, we reviewed supporting documentation and determined that Covered California is following its new process implemented in April 2015.


All Recommendations in 2015-605

†Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.

*Agency responses received after June 2013 are posted verbatim.


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