by Sabrina Salas Matanane

Guam - It's official - as of this afternoon the Department of Administration officially canceled the request for proposal for the government's multimillion dollar health insurance contract for Fiscal Year 2013. On Friday the three health insurance companies that protested the FY2013 health insurance RFP got the heads up from the Department of Administration that due to errors the RFP was going to be scrapped.

"It was a team decision and advice of counsel that we cancel the RFP," said DOA director Benita Manglona. According to the letter from Manglona and the negotiating team for the Government of Guam's Fiscal Year 2013 health insurance plan, errors were committed in the request for proposal process and there is no basis to enter into negotiations with only two offerors. In letters submitted late Friday to TakeCare Insurance Company, SelectCare Insurance Company and Island Home Insurance Company, Department of Administration director Benita Manglona states that the government failed to follow the procedures set out in the RFP.

Manglona also noting that the decision to cancel the solicitation was because of the release of a draft copy of the evaluation memorandum to only two offerors, to the detriment of other offerors. Takecare insurance first filed a protest alleging discrimination by DOA and the negotiating team. Calvo's Selectcare and Staywell followed suit and filed protests contending Takecare and Offerer Number Three were allowed to modify their proposal after the process had closed. "The intention in doing that - it was going to be given to the other offerors but before counsel had the opportunity to release those memos too we received a protest so as son as we received the protest everything stayed so we couldn't do anything further," she said.

Ultimately however she says the main contributing factor that led to the problems with the RFP was a recent law changing how GovGuam is to negotiate for future health insurance contracts. "Because of the new law that passed in April or March it required the negotiating team to negotiate with three carriers whereas in the past however many number of offerors submit proposals you evaluate rank them and just negotiate with the top, but with the new law we have to negotiate with three exclusive contracts and three non-exclusive. It complicated matters," she said.

Manglona meanwhile assures GovGuam employees and retirees that when the current contract expires at the end of the month, federal law guarantees a continuation coverage but does say there will be a new deductible starting October 1. Manglona couldn't say when the new RFP will be issued.