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  5. ›HBEX11 - Administration of the Small Business Health…

Awarded contract·Covered California·California

HBEX11 - Administration of the Small Business Health Options Program (SHOP) Solicitation

Won by Pinnacle Claims Management, Inc.$30MAwarded 10/29/2012Single Award
Contract source

Awarded vendors

  • Pinnacle Claims Management, Inc.

Description

The California Health Benefit Exchange contracted a vendor to administer the Small Business Health Options Program (SHOP), covering sales support, agent management, eligibility and enrollment processing, financial management, customer service, and the supporting IT infrastructure. The work includes an implementation phase (Jan‑Jun 2013) followed by a two‑year operations period (Jul 2013‑Dec 2015) with the possibility of two additional one‑year extensions. The vendor must meet stringent performance metrics (call‑answer times, system availability, enrollment accuracy) and comply with HIPAA, HITECH, FISMA, and state security standards. The contract is firm‑fixed‑price and was awarded through a full and open competition. • Scope: sales & fulfillment, agent & GA management, eligibility/enrollment, premium billing, call‑center, and IT/security services (using CalHEERS platform or an optional vendor‑owned solution). • Key dates: proposal deadline 9 Nov 2012, award decision by 4 Jan 2013, vendor start 14 Jan 2013. • Optional extension: up to two additional one‑year terms, extending potential performance through Dec 2017.

Attached files

Key dates

Bids closed
11/9/2012
Intent to award
10/29/2012
Awarded
10/29/2012
Contract modified
10/10/2012
Starts
1/14/2013
Ends
12/31/2015Renews
Duration
3 years

Last updated

Details

Award type
Single Award
Procurement
Full and Open Competition
Industry
Healthcare and Medical Services
NAICS
524292
Solicitation №
HBEX 11

Contract value

$30,000,000

No explicit contract value is disclosed. The solicitation references a marketing fund of $2‑5 million per year (2014‑2015) and a substantial operations component that includes premium billing, agent commissions, and a 24‑7 call center. Assuming an average annual operations cost of $10‑12 million (based on comparable state health‑exchange contracts) plus $3 million for the implementation phase, the three‑year base period likely totals roughly $30‑35 million. Adding the optional two‑year extension could bring the total to about $45‑50 million. Therefore a reasonable ball‑park estimate for the awarded contract is approximately $30 million.

AI estimate from the award documents

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