The Rankin County School District purchased fire and extended coverage insurance on April 22, 1992, for an annual premium of $42,949. Although the school district’s purchase of such insurance was exempt from state purchasing laws, the board’s evaluation of bids received was flawed.
The school district determined the bid submitted by Great American Insurance Company to be the “lowest and best” because, although the bid was not the lowest monetarily, the district considered evaluation criteria not contained in the formal request for proposals. If state purchasing laws had been applicable to the school district’s purchase of insurance, the district’s evaluation process would have violated state purchasing laws.
PEER recommends that the Legislature amend state purchasing laws (MISS. CODE ANN. Section 31-7-13 [1972]) by deleting the exemption which allows governing authorities to purchase fire, automobile, casualty, and liability insurance without first receiving sealed, competitive bids.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.