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Rutherford, Franchot question single-bid $634M health insurance contract

By Darcy Costello
Capital News Service

Comptroller Peter Franchot and Lt. Gov. Boyd Rutherford, standing in for Gov. Larry Hogan, once again criticized state agencies’ procurement processes at the Board of Public Works meeting Wednesday, challenging a Maryland Transit Administration health insurance single-bid contract for $634 million.

The board ultimately approved the contract to incumbent provider CareFirst in a 2-to-1 vote, following extended debate on the agency’s bidding process. Franchot voted against the measure with an “emphatic no,” he said, citing the agency’s “highly irregular” process. Treasurer Nancy Kopp, along with Rutherford, voted yes.

“We are in favor of procurement reform, we are not in favor of business as usual,” said Franchot, a Democrat. “We’re for reforming, not continuing.”

In the past, Hogan, a Republican, has voiced his dissatisfaction with sole-source contracts and contract extensions given to incumbent companies. Following his lead, Rutherford sharply questioned the transit authority over their lack of other bids.

Read full report on Chamber News